China Unemployment May Explain U.S. Unemployment- By NEIL SISKIND

The unemployment in China rate is below 3%. I have no idea how they calculate their employment rate or their labor participation rate- with all those people and all those rural areas … who knows what goes into the number. One thing for sure- lots of those jobs are in poor conditions, have no benefits, provide for long hours, exist in hot factories, and pay low wages. So, what does low unemployment in China tell us- it tells us that any old job with hopeless prospects and no wage growth doesn’t mean a heck of lot to the workers- it’s only meaningful to China’s wealthy who profit from it. If wages rise and prices rise as a path to growth for China, China would cease to be China. China grows because living standards for so many never can rise- and pricing power for businesses is not a concept, so that exports continue.

What can this tell us about our own low unemployment rate?

As long as China pays workers a pittance, our product prices stay low, and our wages stay low- so employers here can afford employees in the same way China’s employers can afford theirs … by paying very little- which keeps people employed.

Debt, Debt, Debt, Debt, Debt, Debt, Debt- by NEIL SISKIND

What allows consumers to spend more as their incomes remain stagnant, causing CPI to be strong and company revenues to rise? Debt.

What allows businesses to buy back share with excess earnings from tax cuts so that they can increase their EPS? Government debt. When earnings rise today, this is only the start of the analysis. Tax cuts add to the national debt. How will they be paid for? How much will they cause interest rates to rise? Earnings rise, but we will all pay for it with higher interest rates unless they really trickle down- including in rising wages.

As interest rates rise- so will business’s costs of debt. And they are rising.

How do governments afford tax cuts? Debt- the national debt.

I almost wish that the yield curve would invert (well, not really. It would shut down credit). But I’m happy to see the yield curve remain flat, rather than steepen- if steepening is solely due to Treasury sales to fund tax cuts and pay down the national debt. Because then we have higher rates without the good reason- organic growth.

All one has to do is look at the 2003-2007 period- earnings were growing, wages were stagnant, housing was not affordable, interest rates were rising- and consumers got buried in debt. And it all came crashing down.

Wall Street Analyst Continue To Deceive- By NEIL SISKIND

Certain analysts continue to talk about profits and revenues, and how business and the economy looks strong- but- as in 2005-2007- they continue to ignore debt- consumer debt, business debt, and government debt.

Revenues grow while wages still remain stagnant. What is financing sales growth? How can consumers make the same- yet spend more? Debt.

Business earnings grow due to share buybacks raising EPS. How? Tax cuts (i.e. government debt). If tax cuts don’t result in wage increases and long term sustainable growth- then it’s just debt- debt that we pay for with higher long term interest rats.

As for businesses, when we see earnings, we don’t get debt insight. Earning reflect the cost of debt by reflecting debt service expenses, sure- but we don’t see the total debt principal on a company’s books used to reach those earnings.

Beware of debt.

Should The Math of Economics Be Re-Calculated?- By NEIL SISKIND

As the Philips curve seems to be less and less on-point or relevant to a modern economy, where businesses grow larger and larger, small businesses get marginalized more and more, wages at large companies grow more more slowly, and labor has less and less leverage- combined with globalization pushing wages ever downward- perhaps time-tested economic theories of all kind should start to come under scrutiny to determine if they will hold up in the digital age together with a global economy.

The Bank of Japan has indicated that its long-lived policy on interest rates, to keep them low, may shift, as years of experiences shows- or proves- that persistently low rates have not sufficiently fueled growth. Likewise, some of us in America who analyze and study economic indicators and data are starting to reconsider the connection between growth, inflation, and interest rates.

It’s possible that low interest rates don’t cause wage inflation- as they have not done so in the U.S., or in China, or in other countries, as well- or price inflation- as the PCE is not really moving much; but, rather, low rates cause American lives to “worsen” by causing asset inflation- housing inflation.

Low interest rates encourage Americans to use houses as investments tools. This causes lower supplies as investors buy for the purpose of deriving income. These investors may be in the United States- or from other countries. Moreover, low interest rates provide affordable homes for those at the top of the economic scale who buy up homes as their respective companies grow larger and larger at the expense of small businesses, leaving little left for those at the lower ends of the scale who have to work and live in the same communities. San Jose and Manhattan are prime examples of this exact kind of  “affordability stress” caused by growth, often fueled by cheap capital.

A low cost of capital helps companies grow ever larger, exchanging margin for volume, stomping out competition, and fueling disinflation. So, low rates may never again lead to higher prices and wages. But stock values and home prices will continue to unduly rise as long as rates are low. Low interest rates help fuel these imbalances (technology, of course, has played a large part in large companies growing larger as small businesses are out-marketed and under-priced).

In the wake of the Philips curve failing to react as expected, perhaps it’s time for economic theorists and practitioners to begin to consider that higher long term interest rates may not suppress growth, so much as they encourage banks to lend where the yield curve steepens and an acceptable and profitable spread is created. This- loan stimulus for business purposes (as distinguished from real estate speculation)- may be more pro-growth than low interest rates, which leads to asset bubbles. What if there is inflation where prices rise because businesses have pricing power, and employees are paid more, and people and businesses can spend more, even where interest rates are higher? Might this not be better than lack of business pricing power, lack of lending incentive, lack of wage growth, lack of GDP growth, lack of growth in living standards? Moreover, a healthy banking system is vital to an economy, and profitable consumer and business lending is necessary to a healthy banking system. Profitable spreads also help lead banks to make less but better loans, rather than the need to make a large volume of bad ones.

In other words, liquidity at reasonable prices is better for an economy than low cost capital that fuels unsustainable asset prices and bubbles and that encourages corporate borrowing to grow market share and diminish or remove competition by keeping prices low and wages low. It’s better to have more costly, but more thoughtful lending and borrowing that is not used to distort commercial and asset markets.

Consider this: Consumer spending is the other side of low wages. Consumers only keep spending because prices are lower, as opposed to because wages are higher. So instead of wage inflation, we have consumer spending. Americans have exchanged better incomes for low priced goods. So, low interest rates are not the cause of consumer spending. CPI inflation and higher consumer spending really just means that incomes are stagnant and pricing power for businesses is declining, allowing consumer to keep shopping without saving. With inflation, we could have higher wages and prices, and lower CPI. Instead we have low inflation and low rates and low wages and low prices, and CPI remains intact.

The point is that to wait for price or wage inflation to raise rates could lead to more bad than good as bubbles form in the face of weak income growth. We’d be better off to encourage price and wage growth with lack of asset bubbles. That is how you grow a sustainable economy. This is what the trade dispute in concert with tightening fiscal policy is attempting to do. The President wants more and better paying jobs and more price control for American businesses, while the Fed tightens and engages in quantitative tightening, partially, to keep asset prices from rising further. The right ideas, at least, are in place. But, the bubble vs. wage weakness dynamic is already ingrained.

Japan is considering that with a steepening yield curve, its banks may be more successful while asset prices will be kept in line. Other kinds of inflation have not been problematic. By allowing rates to rise, Japanese money may move from other nations into Japan’s own bonds, which could be helpful to its government and economy, as Japan is a large exporter of capital.

So, the modern idea of races to the bottom thorough the lowest interest rates, the lowest wages, the lowest prices, and declining living standards, should be reconsidered as inflation in prices and wages is proving to be less problematic than are low wages, slow growth, unproductive bank lending, and expensive housing costs.

______________________

endnotes

At this stage, it’s clear that rising rates will negatively affect home prices and perhaps overall economic growth (well, certainly economic growth were it not for fiscal stimulus), so I’m not suggesting higher interest rates will lead to growth from here. I am referring to a nation’s overall economic philosophy and policies. In other words, put plainly, rate should have risen months ago. Quantitative tightening should have begun before the housing market reached the present level. While rates have remained low, housing prices have risen and wages have been stuck in the mud- a toxic mix. Would employment be much lower or GDP growth much below 4.1% if rates had been higher? Who knows for sure? But, we can also ask, “Would banks be more profitable and would homes more affordable if rates and wages were higher?”.

At this stage, too, longer term rates will begin to rise due to Treasury sales, so raising rates “now”, as opposed to last year, is going to cause pain no matter what.

 

Good Capex vs. Bad Capex- By NEIL SISKIND

Capex numbers seem promising. Businesses are making capex.

Blackstone feels that GDP numbers reflect capex “pulled-forward”, and growth will wane.

If capex works as it’s supposed to, then it requires jobs and people, and hopefully results wage growth. So, capex is not like a tax cut- a one-time bump. It’s a “process” put into place that trickles down, or that uses job growth to beget job growth.

When looked at in this way, Blackstone is wrong in that capex is just a short term pulling-forward of future spending and only provides a one time bump.

But- to the extent that capex is mostly in the form of machinery and technology to increase “automation” so that companies can do with less human labor, then the capex purpose of creating jobs, and then jobs upon jobs and wage growth, will fail … and, in fact, capex, in such case, would be be an overall disservice to jobs and wages, and Blackrock would be more than right about a limited capex bump- just for a different reason.

So, it remains to be seen if we get good capex or bad capex.

 

Neil S. Siskind, Esq., President
The Siskind Law Firm
Tel: 646.530.0006

Neil Siskind is the Founder & Chairman of The Fatherhood Assignment
Neil-Siskind-photo
Learn more at:  http://www.neil-siskind-the-fatherhood-assignment.org/

Neil Siskind is the Conservator of the Neil S. Siskind Nature Preserve
Neil-Siskind-Picture

The Neil S. Siskind Nature Preserve is over 7 acres of environmentally-pristine waterfront land in a magnificent setting along New York’s majestic Hudson River. The Preserve includes a variety of species of animal and plant life, and is a precious example of the thoughtful maintenance of New York’s priceless open spaces. The land’s uses are limited to outdoor recreation such as hiking and climbing, and the study of ecology, nature and land use. The Neil S. Siskind Nature Preserve allows for the intelligent contemplation of our valuable natural resources and the most effective ways to maximize them and keep them protected.

Neil Siskind, Founder, “National Fatherhood Day” – March 29th

Neil-Siskind-pics
To encourage recognition of the needs of boys and girls who are living without fathers or father-figures in their lives.

Read about the non-profits and charities whose missions Neil Siskind supports and promotes: www.neilsiskindsupports.com
Caring is Free®

You can read what clients and associates say about Neil Siskind at: http://siskindlawfirm.com/neil-siskind-bio/.

Neil Siskind’s Volunteer Work:

– Memorial Sloan Kettering Cancer Center, Volunteer

– Memorial Sloan Kettering Cancer Center, My Fundraiser- Help Neil Siskindhelp children with cancer to be more comfortable: http://mskcc.convio.net/site/TR?px=3182108&fr_id=2632&pg=personal

– Make-A Wish Foundation- Help Neil Siskind make sick children’s wishes come true by creating your own fundraiser: Neil-Siskind/Help-Make-A-Child-Smile.htm

– DonorsChoose.org- Donate to one of my needy public classrooms: http://www.donorschoose.org/NeilSiskindGiving

– Champion Children– We seek to inspire people through stories of children who have overcome challenges: http://siskindlawfirm.com/neil-siskind-champion-children/


Neil Siskind’s Pro Bono
 Work:

– Saving Senior Citizens- Protecting New York’s senior citizens from fraud and financial abuse www.savingseniorcitizens.com

– Senior FreeStart Business– Pro Bono: We seek to help put senior citizens in the right direction so that they can face the challenges of the modern economy: http://siskindlawfirm.com/free-start-business/

– Veteran FreeStart Business– Pro Bono: We seek to help put Iraq and Afghanistan war veterans in the right direction so that they can face the challenges of the modern economy: http://siskindlawfirm.com/free-start-business/

– In development: The Neil S. Siskind School of Hope: A free school to teach inner-city youths the skills of entrepreneurship and importance of economic self-sufficiency.

Neil Siskind’s Government Work:

– Suffolk County District Attorney’s Office, Boston, MA, 1994, Intern
– Office of Senator Christopher J. Dodd, Newington, CT, 1992, Intern
– Hartford County Department of Probation, Hartford, CT, 1991, Intern

Neil Siskind’s Community Assistance:

Financed & operated a legal clinic providing low-cost legal services to struggling Long Islanders during the recession to help clients resolve debt, organize finances, and launch new businesses.

Neil Siskind’s Professional Curriculum Vitae: http://neilsiskind.com/

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China: A Dangerous Sign; A Dangerous Path- By NEIL SISKIND

Seeing a nation lower its banks’ capital reserve requirements simply because its economy is slowing is downright scary. Reserve requirements, are, allegedly, high enough in China. But, the shadow banking leverage problem is not resolved, and allowing banks to lend more- or hoping that they lend more- to over-leveraged businesses as business sales across China’s economy slow, is a bad policy and a bad sign. A bank’s capital reserves should be lowered when, and only when: (i)  It has enough reserves on hand to protect against an economic slowdown, and (ii) opportunities abound.

It should not be just out of fear of slowing and as a last resort for preventing a recession.

Neil S. Siskind, Esq., President
The Siskind Law Firm
Tel: 646.530.0006

Neil Siskind is the Founder & Chairman of The Fatherhood Assignment
Neil-Siskind-photo
Learn more at:  http://www.neil-siskind-the-fatherhood-assignment.org/

Neil Siskind is the Conservator of the Neil S. Siskind Nature Preserve
Neil-Siskind-Picture

The Neil S. Siskind Nature Preserve is over 7 acres of environmentally-pristine waterfront land in a magnificent setting along New York’s majestic Hudson River. The Preserve includes a variety of species of animal and plant life, and is a precious example of the thoughtful maintenance of New York’s priceless open spaces. The land’s uses are limited to outdoor recreation such as hiking and climbing, and the study of ecology, nature and land use. The Neil S. Siskind Nature Preserve allows for the intelligent contemplation of our valuable natural resources and the most effective ways to maximize them and keep them protected.

Neil Siskind, Founder, “National Fatherhood Day” – March 29th

Neil-Siskind-pics
To encourage recognition of the needs of boys and girls who are living without fathers or father-figures in their lives.

Read about the non-profits and charities whose missions Neil Siskind supports and promotes: www.neilsiskindsupports.com
Caring is Free®

You can read what clients and associates say about Neil Siskind at: http://siskindlawfirm.com/neil-siskind-bio/.

Neil Siskind’s Volunteer Work:

– Memorial Sloan Kettering Cancer Center, Volunteer

– Memorial Sloan Kettering Cancer Center, My Fundraiser- Help Neil Siskindhelp children with cancer to be more comfortable: http://mskcc.convio.net/site/TR?px=3182108&fr_id=2632&pg=personal

– Make-A Wish Foundation- Help Neil Siskind make sick children’s wishes come true by creating your own fundraiser: Neil-Siskind/Help-Make-A-Child-Smile.htm

– DonorsChoose.org- Donate to one of my needy public classrooms: http://www.donorschoose.org/NeilSiskindGiving

– Champion Children– We seek to inspire people through stories of children who have overcome challenges: http://siskindlawfirm.com/neil-siskind-champion-children/


Neil Siskind’s Pro Bono
 Work:

– Saving Senior Citizens- Protecting New York’s senior citizens from fraud and financial abuse www.savingseniorcitizens.com

– Senior FreeStart Business– Pro Bono: We seek to help put senior citizens in the right direction so that they can face the challenges of the modern economy: http://siskindlawfirm.com/free-start-business/

– Veteran FreeStart Business– Pro Bono: We seek to help put Iraq and Afghanistan war veterans in the right direction so that they can face the challenges of the modern economy: http://siskindlawfirm.com/free-start-business/

– In development: The Neil S. Siskind School of Hope: A free school to teach inner-city youths the skills of entrepreneurship and importance of economic self-sufficiency.

Neil Siskind’s Government Work:

– Suffolk County District Attorney’s Office, Boston, MA, 1994, Intern
– Office of Senator Christopher J. Dodd, Newington, CT, 1992, Intern
– Hartford County Department of Probation, Hartford, CT, 1991, Intern

Neil Siskind’s Community Assistance:

Financed & operated a legal clinic providing low-cost legal services to struggling Long Islanders during the recession to help clients resolve debt, organize finances, and launch new businesses.

Neil Siskind’s Professional Curriculum Vitae: http://neilsiskind.com/

Sponsored Advertisements

Inventors, IP Owners, Manufacturers
Learn How To Bring Products To Market And To Expand Your Distribution Channels
The Complete Guide To The Ways To Manufacture & Sell Your Products

We Need To Re-Think Inflation And Rates In This Country- By NEIL SISKIND

I’d probably prefer to have higher wages, higher product prices, higher interest rates in this country, than having one company, such as Amazon, pushing prices and wages downward, sucking up all the business revenues, and using low interest rates to help it scale so large that everyone else goes out of business … and then using those same low rates to buy its own stock and for their executives to buy homes with their huge profits so that no one in communities (like San Jose) can afford to buy homes; and then buying national newspapers to push their corporate agendas. We need inflation, wage growth, competition, higher costs of capital, and functioning capitalism and competitive free markets- rather than free money, enormous scale, cheap products, no income growth, overpriced houses due to investors and wealthy buyers, and continued decline of small business competitiveness and growth in the face of growing corporate monstrosities, like Home Depot, Amazon, Facebook, and Netflix.

Should Interest Rates And Inflation Stay Connected?- By NEIL SISKIND

Perhaps interest rates should rise- not when we see price inflation or wage inflation- but when we see stock prices to earnings ratios beyond acceptable levels and/or when we see home prices to income ratios too high; in other words, “asset inflation”.

Prices and wages are being depressed by changes to our economy in that businesses in categories are growing larger, paying labor less, and exchanging margin for volume. And low cost of capital are helping companies grow ever larger, stomping out competition, and fueling disinflation. So, low rates may never again lead to higher prices and wages. But stock values and home prices will continue to rise as long as rates are low.

It may be time for the inflation measures that must rise before rates go higher, to change.

 

 

Neil S. Siskind, Esq., President
The Siskind Law Firm
Tel: 646.530.0006

Neil Siskind is the Founder & Chairman of The Fatherhood Assignment
Neil-Siskind-photo
Learn more at:  http://www.neil-siskind-the-fatherhood-assignment.org/

Neil Siskind is the Conservator of the Neil S. Siskind Nature Preserve
Neil-Siskind-Picture

The Neil S. Siskind Nature Preserve is over 7 acres of environmentally-pristine waterfront land in a magnificent setting along New York’s majestic Hudson River. The Preserve includes a variety of species of animal and plant life, and is a precious example of the thoughtful maintenance of New York’s priceless open spaces. The land’s uses are limited to outdoor recreation such as hiking and climbing, and the study of ecology, nature and land use. The Neil S. Siskind Nature Preserve allows for the intelligent contemplation of our valuable natural resources and the most effective ways to maximize them and keep them protected.

Neil Siskind, Founder, “National Fatherhood Day” – March 29th

Neil-Siskind-pics
To encourage recognition of the needs of boys and girls who are living without fathers or father-figures in their lives.

Read about the non-profits and charities whose missions Neil Siskind supports and promotes: www.neilsiskindsupports.com
Caring is Free®

You can read what clients and associates say about Neil Siskind at: http://siskindlawfirm.com/neil-siskind-bio/.

Neil Siskind’s Volunteer Work:

– Memorial Sloan Kettering Cancer Center, Volunteer

– Memorial Sloan Kettering Cancer Center, My Fundraiser- Help Neil Siskindhelp children with cancer to be more comfortable: http://mskcc.convio.net/site/TR?px=3182108&fr_id=2632&pg=personal

– Make-A Wish Foundation- Help Neil Siskind make sick children’s wishes come true by creating your own fundraiser: Neil-Siskind/Help-Make-A-Child-Smile.htm

– DonorsChoose.org- Donate to one of my needy public classrooms: http://www.donorschoose.org/NeilSiskindGiving

– Champion Children– We seek to inspire people through stories of children who have overcome challenges: http://siskindlawfirm.com/neil-siskind-champion-children/


Neil Siskind’s Pro Bono
 Work:

– Saving Senior Citizens- Protecting New York’s senior citizens from fraud and financial abuse www.savingseniorcitizens.com

– Senior FreeStart Business– Pro Bono: We seek to help put senior citizens in the right direction so that they can face the challenges of the modern economy: http://siskindlawfirm.com/free-start-business/

– Veteran FreeStart Business– Pro Bono: We seek to help put Iraq and Afghanistan war veterans in the right direction so that they can face the challenges of the modern economy: http://siskindlawfirm.com/free-start-business/

– In development: The Neil S. Siskind School of Hope: A free school to teach inner-city youths the skills of entrepreneurship and importance of economic self-sufficiency.

Neil Siskind’s Government Work:

– Suffolk County District Attorney’s Office, Boston, MA, 1994, Intern
– Office of Senator Christopher J. Dodd, Newington, CT, 1992, Intern
– Hartford County Department of Probation, Hartford, CT, 1991, Intern

Neil Siskind’s Community Assistance:

Financed & operated a legal clinic providing low-cost legal services to struggling Long Islanders during the recession to help clients resolve debt, organize finances, and launch new businesses.

Neil Siskind’s Professional Curriculum Vitae: http://neilsiskind.com/

Sponsored Advertisements

Inventors, IP Owners, Manufacturers
Learn How To Bring Products To Market And To Expand Your Distribution Channels
The Complete Guide To The Ways To Manufacture & Sell Your Products

Is China Manipulating “Our” Currency, Instead?- By NEIL SISKIND

The U.S. is so concerned that China is manipulating its currency downward, all while it (China) may be selling U.S. bonds and/or buying U.S. dollars, pushing U.S. bond rates higher and the Dollar higher.

 

 

Neil S. Siskind, Esq., President
The Siskind Law Firm
Tel: 646.530.0006

Neil Siskind is the Founder & Chairman of The Fatherhood Assignment
Neil-Siskind-photo
Learn more at:  http://www.neil-siskind-the-fatherhood-assignment.org/

Neil Siskind is the Conservator of the Neil S. Siskind Nature Preserve
Neil-Siskind-Picture

The Neil S. Siskind Nature Preserve is over 7 acres of environmentally-pristine waterfront land in a magnificent setting along New York’s majestic Hudson River. The Preserve includes a variety of species of animal and plant life, and is a precious example of the thoughtful maintenance of New York’s priceless open spaces. The land’s uses are limited to outdoor recreation such as hiking and climbing, and the study of ecology, nature and land use. The Neil S. Siskind Nature Preserve allows for the intelligent contemplation of our valuable natural resources and the most effective ways to maximize them and keep them protected.

Neil Siskind, Founder, “National Fatherhood Day” – March 29th

Neil-Siskind-pics
To encourage recognition of the needs of boys and girls who are living without fathers or father-figures in their lives.

Read about the non-profits and charities whose missions Neil Siskind supports and promotes: www.neilsiskindsupports.com
Caring is Free®

You can read what clients and associates say about Neil Siskind at: http://siskindlawfirm.com/neil-siskind-bio/.

Neil Siskind’s Volunteer Work:

– Memorial Sloan Kettering Cancer Center, Volunteer

– Memorial Sloan Kettering Cancer Center, My Fundraiser- Help Neil Siskindhelp children with cancer to be more comfortable: http://mskcc.convio.net/site/TR?px=3182108&fr_id=2632&pg=personal

– Make-A Wish Foundation- Help Neil Siskind make sick children’s wishes come true by creating your own fundraiser: Neil-Siskind/Help-Make-A-Child-Smile.htm

– DonorsChoose.org- Donate to one of my needy public classrooms: http://www.donorschoose.org/NeilSiskindGiving

– Champion Children– We seek to inspire people through stories of children who have overcome challenges: http://siskindlawfirm.com/neil-siskind-champion-children/


Neil Siskind’s Pro Bono
 Work:

– Saving Senior Citizens- Protecting New York’s senior citizens from fraud and financial abuse www.savingseniorcitizens.com

– Senior FreeStart Business– Pro Bono: We seek to help put senior citizens in the right direction so that they can face the challenges of the modern economy: http://siskindlawfirm.com/free-start-business/

– Veteran FreeStart Business– Pro Bono: We seek to help put Iraq and Afghanistan war veterans in the right direction so that they can face the challenges of the modern economy: http://siskindlawfirm.com/free-start-business/

– In development: The Neil S. Siskind School of Hope: A free school to teach inner-city youths the skills of entrepreneurship and importance of economic self-sufficiency.

Neil Siskind’s Government Work:

– Suffolk County District Attorney’s Office, Boston, MA, 1994, Intern
– Office of Senator Christopher J. Dodd, Newington, CT, 1992, Intern
– Hartford County Department of Probation, Hartford, CT, 1991, Intern

Neil Siskind’s Community Assistance:

Financed & operated a legal clinic providing low-cost legal services to struggling Long Islanders during the recession to help clients resolve debt, organize finances, and launch new businesses.

Neil Siskind’s Professional Curriculum Vitae: http://neilsiskind.com/

Sponsored Advertisements

Inventors, IP Owners, Manufacturers
Learn How To Bring Products To Market And To Expand Your Distribution Channels
The Complete Guide To The Ways To Manufacture & Sell Your Products

Are Stocks for Suckers? – By NEIL SISKIND

The average person on the street – he or she who is not in the financial industry as a career- owns stocks, but not bonds, or currencies, or emerging market stocks or bonds- and, certainly, by and large, does not buy or sell options on stocks, or own commodities or futures.

Does this mean that the average person is a sucker?

For sure- yes.

Why?

A stock is ownership in a company. People in the financial industry (portfolio managers, traders, hedge fund managers) are combing, day by day, through that company’s revenues, customers, activities, costs, sales, products, competitors … there is no way for the typical stock investor to make an educated trade before such people do- and there are a lot of these people. How can anyone who is at work, or out to dinner with their kids, or at the gym- make a smart investment against people who are studying that same investment, day and night? It’s impossible. It’s a sucker’s bet.

Further- by and large, the people who are studying these businesses are also studying macro issues that affect such businesses, and that effect the entire economy. So, they are educated on a variety of outside issues and factors that might affect your stock, while you aren’t. But, not only are they educated on these stocks more and before the typical investor, and on any underlying economic issues that will or could affect the business and the stock- such as currency changes, interest rate changes, commodity prices changes- they are actually and actively making trades on those underlying economic factors, too. So, while the typical person is just a “sitting duck” waiting for something to affect his or her stock, the people studying that stock and the economy for a living have made money on the economic factors that might affect your stock “AND” may have also affected your stock with their trade on the underlying economic element. For example, a commodity price on a material used to manufacture the core product sold by the company in which you own stock might be about to rise. Professional investors may short your stock, buy the commodity, cause it’s price to rise, watch your stock price sink, and turn a profit on the commodity and on the short.

All while you’re at the gym.

Not only are such people way ahead of you on what might happen to your stock next, which means that you will have to pay more to buy the stock than they do, or that you will have to sell the stock for less money that they do, or that you will hold your stock at a lower price than hoped- but they are making trades that cause your purchase price to be higher, or your sales price lower, such that they make money on the stock at your expense.

Stocks, are, indeed, for suckers- at least when it comes to those who are not full-time analysts and investors. Of course, active management is an answer to your risk.

 

 

Neil S. Siskind, Esq., President
The Siskind Law Firm
Tel: 646.530.0006

Neil Siskind is the Founder & Chairman of The Fatherhood Assignment
Neil-Siskind-photo
Learn more at:  http://www.neil-siskind-the-fatherhood-assignment.org/

Neil Siskind is the Conservator of the Neil S. Siskind Nature Preserve
Neil-Siskind-Picture

The Neil S. Siskind Nature Preserve is over 7 acres of environmentally-pristine waterfront land in a magnificent setting along New York’s majestic Hudson River. The Preserve includes a variety of species of animal and plant life, and is a precious example of the thoughtful maintenance of New York’s priceless open spaces. The land’s uses are limited to outdoor recreation such as hiking and climbing, and the study of ecology, nature and land use. The Neil S. Siskind Nature Preserve allows for the intelligent contemplation of our valuable natural resources and the most effective ways to maximize them and keep them protected.

Neil Siskind, Founder, “National Fatherhood Day” – March 29th

Neil-Siskind-pics
To encourage recognition of the needs of boys and girls who are living without fathers or father-figures in their lives.

Read about the non-profits and charities whose missions Neil Siskind supports and promotes: www.neilsiskindsupports.com
Caring is Free®

You can read what clients and associates say about Neil Siskind at: http://siskindlawfirm.com/neil-siskind-bio/.

Neil Siskind’s Volunteer Work:

– Memorial Sloan Kettering Cancer Center, Volunteer

– Memorial Sloan Kettering Cancer Center, My Fundraiser- Help Neil Siskindhelp children with cancer to be more comfortable: http://mskcc.convio.net/site/TR?px=3182108&fr_id=2632&pg=personal

– Make-A Wish Foundation- Help Neil Siskind make sick children’s wishes come true by creating your own fundraiser: Neil-Siskind/Help-Make-A-Child-Smile.htm

– DonorsChoose.org- Donate to one of my needy public classrooms: http://www.donorschoose.org/NeilSiskindGiving

– Champion Children– We seek to inspire people through stories of children who have overcome challenges: http://siskindlawfirm.com/neil-siskind-champion-children/


Neil Siskind’s Pro Bono
 Work:

– Saving Senior Citizens- Protecting New York’s senior citizens from fraud and financial abuse www.savingseniorcitizens.com

– Senior FreeStart Business– Pro Bono: We seek to help put senior citizens in the right direction so that they can face the challenges of the modern economy: http://siskindlawfirm.com/free-start-business/

– Veteran FreeStart Business– Pro Bono: We seek to help put Iraq and Afghanistan war veterans in the right direction so that they can face the challenges of the modern economy: http://siskindlawfirm.com/free-start-business/

– In development: The Neil S. Siskind School of Hope: A free school to teach inner-city youths the skills of entrepreneurship and importance of economic self-sufficiency.

Neil Siskind’s Government Work:

– Suffolk County District Attorney’s Office, Boston, MA, 1994, Intern
– Office of Senator Christopher J. Dodd, Newington, CT, 1992, Intern
– Hartford County Department of Probation, Hartford, CT, 1991, Intern

Neil Siskind’s Community Assistance:

Financed & operated a legal clinic providing low-cost legal services to struggling Long Islanders during the recession to help clients resolve debt, organize finances, and launch new businesses.

Neil Siskind’s Professional Curriculum Vitae: http://neilsiskind.com/

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