Decode the force that propel stock market.

There was an interesting article from Forbes about what makes stock market go up and down.

In short, the stock market and the herd investors only care about the expected cooperate earning because that's the only reason why market goes up. The market doesn't care about the economy as a whole.

Here are the clues you can pick up when cooperate earning are about to rise:

1. When the feb is starting increase interest. This usually means the feb has been making it cheap to borrow money from the banks; by pumping money into the economy businesses are expanding quickly and so is earning and inflation. The fed needs control inflation by hiking the interest.

2. When S&P 500 p/e falling. Which means the "e" the earning in the p/e formual is raising.

The chart illustrated similar pattern between s&p 500 and fed discount rate.
They go up together, down together.

This chart illustrated inverse relationship of S&P 500 p/e and S&P 500.

Final word: Interest rate will raise, and sp p/e is at the 2003 peak; evidence suggests bull market is coming soon.

Full story via Forbes

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How to lower the interest on loan and credit card debt?

We will tackle this issue head to head. There are Credit card loan, mortgage, student loan and what not. The interest rate ranging from 7% to 18 %; yeah, that’s gonna eat up a big chunk of your pay check.

What you want is lower the interest you pay so you can pay less interest and get out of debt quicker. Here is something you didn’t know that can actually lower your monthly interest:

- Call your credit card company and ask them to lower your interest rate.

- Get a line of credit with lower interest rate. Borrow the money from your line of credit and pay off the high interest credit card first.

- Last and the most effective way is to get a 0% interest credit card. Use the money borrowed from 0% interest credit card to pay off your other high interest debt. (note. 0% interest promotion usually last 12 to 15 months)

You can find all the 0% interest credit cards here.

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Freebies, Life should be free

I love getting stuff for free. I used to get a lot of free samplers ranging from shampoo, shavers to tea cups. They saved me a lot of money in a year.

Here is the ultimate site for you. You can literally get anything for free. You can find a lot of free stuff here:

- www.totallyfreestuff.com (all kinds of freebies)

- www.pgeverydaysolutions.com (free P&G product samplers like shaver, shampoo, bodywash)

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Small and Cheap laptop for outdoor

I want to be able to blog and surf the net anywhere I go. Yes, there are laptops, but who wants to carry these bulky laptops on the road? It wouldn't be safe to carry all your important information on the road.

So the solution is to get a very cheap laptop that you wouldn't care if you lose it. Here come the netbooks, they are cheap, lightweight and best of all, they are easy to use! They can be turned on in 30 seconds; they run on Linux hence you don't need to worry about viruses, hardware drivers and buying software ect....

They cost between $299 - $400. The most populous netbook is the Asus Eee pc 901, DELL Mini 9 and IBM U10 are also releasing their flavor of netbooks in sept 2008.

complete list of netbooks

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The Most Essential Secret to Successful Investing

Here is a worthwhile post from seekingalpha.com about the most important aspect of investing:

What is THE most important aspect of investing?

It’s not the ability to read a balance sheet. Nor is it recognizing trading patterns. In fact, this particular quality isn’t even specific to investing; it’s essential to any skill.

I’m talking about patience.

From an action standpoint, investing is boring. Unless you’re a day trader, it’s very much a waiting game. After all, buying or selling an investment requires nothing more than a click of the mouse. A couple seconds and you’re done. The rest of the time (99%) you’re doing nothing.

Full Story via seeking alpha

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You can't teach money

Law professor Lauren Willis suggests that we just give up on financial literacy - she says it's a waste of time and can even get you into trouble.

(Money Magazine) -- When Americans are in financial distress, politicians often call for better education. Case in point: The Economic Recovery Act of 2008 allocates funds to improve borrowers' knowledge of home loans.

Lauren Willis, an associate professor at Loyola Law School in Los Angeles who specializes in financial products regulation, says that's the wrong move. She argues that trying to teach consumers to make wise money choices is not only a waste of time and resources, it may be dangerous.

Question: What's so bad about financial education?

Answer: It doesn't work. Sellers of financial products spend billions drowning out well-meaning messages to consumers from nonprofits or government agencies.


Continue...

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Starting your own blog

Today is the first day my own blog. Like everything we do for the first time; I have done many things unnecessary such as finding best blog provider and finding the most beautiful templates.

I could have saved myself a lot of headache and 4 hours of my life. These flashy template and blog providers are like your friends' beautiful blond girlfriends, they are high maintenance. We don't have time, energy and attention for that. We want our lives to be simple.

At the end of the day, I chosen the default template supplied by this blog's service provider, I avoided to change the color or picking on every detail.

Now I have a simple blog that require minimal maintenance time which allows me to blog the things that matter.

Last Word: Keep it simple, use default setting

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Live a simple life

Last night I was swamped with tremendous amount of worries. I worry about keeping my job, worry about starting a family of my own. Such event leads me to realize how complicated my life have become. I rather live a simple worry-free life, and I start this blog to pursue my dream of a simple life.

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