There has been some talk about the new credit card law saving consumers from higher interest rates, hidden fees, and overall unclear terms. Yes, this law does do that. However, this law may also adversely affect consumers as credit card companies hurry to hike rates and move fees around.
Rates will be hiked soon to make up for the fact that companies cannot raise these rates to new holders. Since the law does not cap interest rates, how high will these rates get? It is important to pay off your debt fast as any late payments will be met with a higher rate.
Annual fees are going to be likely for most card companies now. This will make up for the fact that they cannot raise rates on new holders for a year. The annual fee makes up for the percentage difference. Fees will also rise for cash advancements, transfers, and late payments. Some companies are even considering getting rid of their grace period.
At any rate, you should be fine as long as you pay off your card regularly. After the crisis we had (and are still in), it is not surprising the companies will be stricter on lending out credit. Be mature with your credit cards and you will be saving cash money.
Wednesday, May 27, 2009
Monday, May 18, 2009
Housing Helps the Market
Housing showed some signs of life again today. New home sales were up as were refinancing numbers. Lowe's beat earnings today. They also upped their estimates for the year. The market is up nearly 2% as a result. But why are home sales so important?
The complete recovery of the economy rests with the housing market. Housing was the first to go and has to be the first to come back. Until people can afford their homes, how can they afford anything else? Financials also rest along these same lines. Until they offer affordable loans, no one can pay off mortgages. To see the backbone in the recovery, we will have to watch financials and housing. However, this is no reason to buy housing stocks. They have to get out of debt before they make money. Soon enough their will be money to be made with this. First, lets look elsewhere for cash money. Look at the bounce back - its not too hard to find.
The complete recovery of the economy rests with the housing market. Housing was the first to go and has to be the first to come back. Until people can afford their homes, how can they afford anything else? Financials also rest along these same lines. Until they offer affordable loans, no one can pay off mortgages. To see the backbone in the recovery, we will have to watch financials and housing. However, this is no reason to buy housing stocks. They have to get out of debt before they make money. Soon enough their will be money to be made with this. First, lets look elsewhere for cash money. Look at the bounce back - its not too hard to find.
Monday, May 4, 2009
Commodities Market
Commodities led the market through the first half of 2008 and then, along with financials, led a tremendous decline as the economy went into a recession. As the market has been rising, so have the commodities. More and more signs are pointing toward the economy reaching a bottom, one of which is the price of oil.
Oil has been an indicator of the economy as price movements have reflected consumer demand. Oil has been on a tear as it reached a 2009 high at just under $55. I like a natural gas play better than oil as Obama make try a green strategy. Apache has been on a tear as demand has strengthened. It just crossed $80 after being at $60 a few weeks ago. If you have to play oil, I would go for an oil services company as they will have most of the growth. I look for oil to continue its way back to high prices. The world is dependent on oil so once people have money again, look for them to travel more and for OPEC to decrease supply to raise prices.
I also like agriculture plays. Ag follows oil as, it too, reflects demand. IPI and AGU are the best plays as both are smaller companies with lots of room to grow. If you want a more stable company try MON. These companies will gradually increase as food prices increase. Once food increases and ag increase, then look at machinery.
These prices should really start to move into the summer. After summer, look for these prices to somewhat stabilize. Demand will increase but after summer no one will be traveling. If you are looking for a six month play, look at commodities to make you some cash money.
Oil has been an indicator of the economy as price movements have reflected consumer demand. Oil has been on a tear as it reached a 2009 high at just under $55. I like a natural gas play better than oil as Obama make try a green strategy. Apache has been on a tear as demand has strengthened. It just crossed $80 after being at $60 a few weeks ago. If you have to play oil, I would go for an oil services company as they will have most of the growth. I look for oil to continue its way back to high prices. The world is dependent on oil so once people have money again, look for them to travel more and for OPEC to decrease supply to raise prices.
I also like agriculture plays. Ag follows oil as, it too, reflects demand. IPI and AGU are the best plays as both are smaller companies with lots of room to grow. If you want a more stable company try MON. These companies will gradually increase as food prices increase. Once food increases and ag increase, then look at machinery.
These prices should really start to move into the summer. After summer, look for these prices to somewhat stabilize. Demand will increase but after summer no one will be traveling. If you are looking for a six month play, look at commodities to make you some cash money.
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