By Jon S. Strebler

 

In the financial planning field, we tell people that going into debt is by itself neither good nor bad. There are a number of criteria that make borrowing money either wise or unwise; perhaps the most important of those is the purpose of the loan. From a strictly logical, monetary point of view, borrowing to pay monthly bills, go on a vacation, buy a new bass boat or jewelry for your spouse is probably not well-advised. On the other hand, borrowing to expand a profitable business, to purchase a residence or certain other solid, physical assets may well be a very good idea.

by Jon S. Strebler

 

Now that the Presidential election is over, a top concern is “the ins”: in-terest rates and in-flation rates. Inflation is defined as an ongoing rise in the average price of goods and services. There are two types of inflation. One is cost-push inflation, also known as stagflation. It most notably occurred in the late-1970s and early-1980s when the cost of inputs (raw materials, labor, capital) climbed, thus increasing the cost of making things while at the same time reducing the aggregate (or total) supply of goods and services. It looks like this, with AS representing the total supply of stuff and AD representing the total demand for stuff:

by Jon S. Strebler

 

Fall is a great time of year. It means cooler temperatures, beautiful foliage, fewer tourists, the arrival of the first clean northwest swells for us California surfers, and a chance to chase big animals around the mountains for us hunters. Because of various ailments, this year I opted to do a management deer hunt on a private Colorado ranch. Not a "high fence" operation where you're just killing captive animals, but a legitimate fair chase hunt on several thousand relatively gentle acres of sagebrush, oaks, and aspens.

By Jon S. Strebler 

 

Last week we finally started hearing a lot of concerns about how today’s election could turn out to be very destabilizing for the markets – no matter who wins, and for quite awhile afterwards. If Donald Trump wins, uncertainty over his policies and his ability to perform the job itself will be substantial and potentially very negative for the country, the economy, and the markets. If Hillary Clinton wins, worries range from widespread civil disobedience on the unlikely side to blocking her ability to rule through more conventional methods (think: Obama vs. Republicans, 2009-2016, but worse), along with potential criminal proceedings and God knows what else that could be equally destabilizing. 

by Jon S. Strebler

 

Pop superstar Taylor Swift's 2008 hit Change claimed that:

 

 

It's hard to fight when the fight ain't fair, We're getting stronger now,

Because these things will change, Can you feel it now?

It's a revolution.

That kind of describes the current environment in various parts of the world. Iceland's Prime Minister resigned, as elections gave big gains to the pseudo-eponymous Pirate Party on Sunday. The win capitalized on a "wave of anger over corruption" and promises big changes, according to the NY Times. Surely that is a recurring theme in politics, as one year's "throw out the bums!" winners become next year's bums themselves more often than not.