On Behalf Of Angelo Mozilo's Mystic Tan Representative, We Demand A Correction IMMEDIATELY

Mozilo, his dark bronze skin contrasting sharply with his white hair and shirt...

That shit is not bronze, it is ORANGE. Hence the title, His Orangeness. Jesus.

Gratuitous publicity, or something

My blog was recently reviewed on debtconsolidationcare.com, a site which claims to be "the internet's first get-out-of-debt community" and boasts ninety thousand or so members. While this may be the case, not a single hit on my sitemeter has come from this community since this review was published. :-) I cannot vouch for the Debt Consolidation Care's expertise or competence, and my browser settings really don't work well with their page, but maybe you'll have better luck than I did. I use Mozilla Firefox with ad-block on Windows XP, and have blocked most video sites by default. Nonetheless, some of the scripts affiliated with the site kept hanging my browser. Just be cautious.
I *can* tell you the Debt Consolidation Care community is based out of Calcutta, India, based on the time of the emails received (usually after 10PM Pacific) and my site stats, so take that as you will.

I'm obviously not getting paid to write this review, but am doing at the request of one of their staff members, one Liza Jolie, who has been, shall we say, very relentless in her emailing. So here it is. I'm sure my link to their site will make a huge difference in their traffic. ;-)

Steve & Barry's Rocks It Out

I have never been to a Steve & Barry's. And yet, this article in the New York Times makes me want to visit one.

Tightening the Belt
Is This the World’s Cheapest Dress?
New York Times, May 1, 2008
By Eric Wilson

... Steve & Barry’s, for the uninitiated, is to fashion what Tower once was to music. Steve & Barry’s is manna, a store that sells stylish celebrity-branded clothes at prices that are absurdly inexpensive, lower than those at Old Navy, H & M or Forever 21, undercutting even Wal-Mart by as much as half....

Read the full article here. (You'll need to register free of charge, I think.)

It's interesting to see that the themes presented in the CBS interview in which I participated (Is cheap the new chic?) are living on.

To take it a step further, I just hope all you fashionistas are putting all the dinero you're saving on clothes to a good cause - like your retirement, education or investments. After all, it's not just about looking good for less, but making sure your bank accounts are just as stylish.

Cheating Today

Actually I've been cheating for the last couple of weeks since our son went to blow up things in the Las Vegas desert, we're building a house, I may have to sue some people in Florida, and I'm having trouble getting the electrician to show up. Not a lot of time for other things like concentrating so I'm cheating. Actually the subject is about paying attention to only certain things so take a look at this article from Marketminder.com (again) and learn to ignore thinking that only gets in the way of getting rich. Here goes---

The Myth of One

9/12/2007 |

Right now, you’re reading this column and your mind is focused on each sentence. That’s a marvelous and miraculous thing your brain is doing! The ability to focus on one thing is an incredible feat of focus allowing us to accomplish much in life. But there’s a big drawback: While you’re focusing on this column, there’s a whole world of activity your brain is ignoring!

That pain in your back, the chatty co-worker across the room, the phone that won’t stop ringing, the fly buzzing around your head…where did all those pesky thoughts go? None of them ceased to exist, you just stopped paying attention for a few seconds.

Blocking extraneous issues from our minds and directing our focus towards what’s most relevant is a nifty feature of the human brain: We’re actually designed to ignore most of what’s going on around us. Human brains—and those of many animals—are made to focus and reduce situations to actionable, understandable steps. We can’t keep a whole lot of information at the forefront of our consciousness for very long. At best, we can hold on to a few items at a time, but mostly we just focus on one thing or we’ll forget it.

That’s because evolution designed the brain as a hierarchical thing—receiving stimulus from the outside world and running the data through various neural unconscious systems (which account for the vast majority of brain activity) and deciding what, if any, information is worth bringing to your actual frontal lobes (where most of your consciousness is believed to reside). You’ll never even know about most of what your brain does or perceives!

That’s a great thing because nobody wants to be thinking about regulating their heartbeat, digesting this morning’s cinnamon raisin bagel, or focusing the lenses in their eyeballs to read the newspaper every second of the day. Our unconscious brains do all that heavy lifting so we can put our attention on other issues.

Only problem is, the brain’s tendency to block out extraneous information can be a very hazardous thing for investors.

I like to call most of today’s financial media pundits disciples of the “Myth of One.” That is, most stories we read today tend to focus on one issue alone as if that was the only thing moving stocks. “Oh, stocks were down today because housing starts fell last month!” or “Stocks went up because mortgage loan demand was higher than expected in August!” (Really? Since when are we suddenly all so focused on mortgage demand as the seminal market moving issue?)

The reality is millions upon millions of factors are acting on the market at any given time. But our brains can’t live with that idea so we write and read stories about single factors as if they were the only relevant thing. How absurd! But that’s how our brains work—we’re just not made to see the big picture. (In fact, our brains are so blind no one seems to notice corporate earnings are easily surpassing expectations this year!) Today the singular mythic issue is credit and housing, yesterday it was energy prices and carry trades, and tomorrow it will be something else. That’s your brain tricking you into the Myth of One.

It seems impossible to truly understand what’s going on in markets if we can only focus on a few measly issues at a time. What can we do?

One useful strategy is to put things into perspective. Often when investors get too focused on a single issue it gets blown far out of proportion. A great example is last week’s US employment report. Investors headed for the hills as the S&P 500 relinquished more than 1.5%–supposedly all for a job contraction of 4,000. When we consider a workforce of over 153 million, 4,000 jobs account for less than one thousandth of a percent of the employee base. How silly! There’s virtually no way such a small thing could account for such a big move. That tells you investors irrationally fell prey to the Myth of One. If you can see that, you’ve put the issue into perspective and gotten ahead of the game. Read more about the employment issue here:

Belaboring Labor, 9/7/07
http://marketminder/commentary/CommentaryPage.aspx?articleID={FCC988F3-72BA-4D67-97CE-10681D05A89C}

Ultimately, you’re just going to have to live with the brain you’ve got. But that doesn’t mean you have to buy in to the myth that just one story alone moves global markets at any given time.

A Drugstore Game Primer

I couldn't fill in for JLP for a whole week and not discuss my new favorite hobby, The Drugstore Game. In a nutshell, The Drugstore Game is the ultimate combination of sales, store coupons, manufacturer coupons, and store rewards programs to pay pennies on the dollar for the things you need. I now only buy toothpaste, toothbrushes and shampoo if they're free. And I spend just a fraction of what I used to spend on other necessities like toilet paper, diapers, and laundry detergent.

I wrote a guest post for Get Rich Slowly that explains The Drugstore Game in more detail, and also explains how to get started. I freely admit that the game isn't for everyone, even if they really need to save money. What's occurred to me recently, though, is that if you know you wouldn't enjoy the game but have a friend who does, ask if they'll shop for you. You can offer newspaper coupons, printable coupons, and even gift cards in return. Most Drugstore Game players build up a substantial stash of toiletries and other items that they are happy to share. And having extra coupons and especially gift cards makes it easier to get the best deals, so I think it's a pretty fair trade.

If you're interested in more on The Drugstore Game, you can read my related posts at Chief Family Officer and CFO Reviews. I recently listed a few new sources of Drugstore Game info and some coupon tips at CFO. I also try to post at least one weekly scenario at CFO Reviews, as well as quick updates on deals.

I've even discovered a bonus to playing The Drugstore Game. Some of the sites I read list the weekly deals at Target and grocery store chains. I've picked up items that were free after coupons at Target, and I never would have known about these bargains if not for The Drugstore Game.

One big concern in the comments on my guest post at Get Rich Slowly was time - as in, it takes too much time to cut coupons, plan deals, and go shopping. And for some people, that may be true. Personally, I find it extremely convenient because I have two young boys who need to get out of the house, and we can't go to the park all the time. I do think I'll probably play The Drugstore Game less often when my kids are older, but for the time being, it really fits my lifestyle.

And it doesn't hurt that so far this month at CVS, I've gotten premium brand toilet paper, paper towels, diapers, wipes, cleaning supplies, toothbrushes, mouth wash and more without spending a penny. I've paid with CVS gift cards that I acquired for free and store rewards coupons. In the first half of this month, I've saved my family over $120 by shopping at CVS. And I didn't have to pay income taxes on that $120.

What do you think of The Drugstore Game?

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Should I get a paying job or not?

We've been living here for about two months now, and I've had a couple of job interviews but haven't heard back from them, and at this point I am wondering if I should even bother with trying to get paid employment. It may not be worth the hassle. It might. If I get hired with either the company I interviewed with two weeks ago or the tax preparation firm I worked with in Virginia (surprisingly, employment is NOT as portable as they'd have you believe), I'll take the position, but I'm trying to decide if I should even try for more.

Reasons I should get a job:

• Boredom! I have quite a bit of free time on my hands, and while I am engaged in volunteer activities, I could easily handle a part-time job and not sacrifice any family time or fail to accomplish any of my regular errands.
• The gap in my working resume is only getting longer with every day I fail to work. Same thing with my salary history.
  
• A supplemental source of income would provide Mr. Dimes and me with greater ability to fatten up our short-term and long-term savings (and a matched 401k would be totally awesome if I could get it). We've got the three-month emergency fund taken care of, but a car-replacement fund or home down-payment fund would be great to get started on.
• My student loans, which I have earnestly been paying off with my income, are now starting to become my husband's responsibility with no earnings coming into the household from my efforts. Even earning $200/month would enable me to fully cover the loan payments.

Reasons not to get a job:

• Potential lack of flexibility. I am doing hundreds of practicum hours for my AFC certification, and a full-time job would cut off my ability to do those at the pace needed to complete them on time. A part-time job is ideal, and what I'm looking for, but even some part-time schedules are unworkable with my volunteer commitment.
  
• Interference with family planning: Mr. Dimes and I are thinking about starting a family within the next year or two. It would be difficult if I were to start a job and then immediately get pregnant, as I have no plans to work after giving birth.
• Possible relocation. As I mentioned a few posts ago, we might be relocating onto base housing. Currently we live about 20 miles away from the base. If I had a job close to where we currently live, it would be just as far from our new residence as his workplace is from our current one. In that case, we'd just be trading commutes. My car gets better gas mileage than his does, but do I want to drive so far every day for supplemental income?
• Allegedly, there is a lot of nepotism in this area for jobs. I've heard that a lot of people get passed over due to internal hiring decisions or choosing friends or acquaintances instead of the most qualified applicants. While this wouldn't keep me from applying for jobs in general, it would probably cause me to throw in the towel sooner than if I weren't thinking the process was rigged.
  

So I'm not sure. I guess another thing to keep in mind is that Christmas is coming, and a new job might keep me from being able to go and visit family in December, though I'm not sure that's necessarily a bad thing. ;-) We'll see what happens.

Possible Shorts Trending Downward

Today’s screen locates stocks that may become longer term short candidates based on the direction and action of their major moving averages. They are all trading below their 200-day moving averages after reaching a new high within the past 6 months or so. This type of action has historically tipped off a longer term downtrend that may be in the stock’s future. As some of you know, I prefer to use options to capitalize on downtrends rather than shorting the stock outright.

See my posts below to understand exactly what I am looking for when placing a short trade or buying put options several months out.

• Setups for Selling Stocks Short


• Stages of a Stock Breakdown


• 10-Week Crossing Below 30-Week Moving Average

Stocks Starting to Trend Downward:

• PCP – 110.69, Precision Castparts Corp. is trending lower as the stock is challenging (to move above) the 200-d m.a. for the first time since crossing below the average in January. The stock does sport a 10-week m.a. below the 30-week m.a.


• GME – 47.38, Gamestop Corp was screened back in March as a stock setting up a possible short but it had one last push before starting to crumble again. Now is the more ideal entry area for a short or put options based on the 200-d m.a. and the 10/30-week crossover.


• VOD – 30.10, Vodafone Airtouch is attempting to challenge (move above) the 200-d moving average but doesn’t seem to be having success. The 10-week m.a. is trading below the 30-week m.a.


• GR – 57.96, Goodrich Corp. is down more than 10% this week on large volume as the 10-week m.a. also trades below the 30-week m.a. A drop below $56 would violate all recent support.


• LLL – 101.90, L-3 Communications is down more than 5% this week on above average volume as it violates the 200-d m.a. (for the second time since 2006). The 10-week m.a. is still above the 30-week moving average so I would not short the stock until they cross.


• GOLD – 41.14, Randgold Resources, has started to pullback and violate the 200-d m.a. for the first time since the summer of 2007. It may be early to short for the long term but keep an eye on this stock and the commodity in general. The 10-week m.a. is still above the 30-week m.a. (10-week moving average is now trending downward).


• TEF – 83.21, Telefonica is about six months removed from its high as it trades beneath its 200-d m.a. for the first time in years. The 10-week m.a. is now trading below the 30-week.

Please note that it is still early for a few of the names above (they may have some life left for a bounce higher before a longer term decline).

O where o where has my thousand dollars gone

So I upped my voluntary retirement contributions for February, and they were duly taken out of my paycheck. However, they didn't show up in my TIAA-CREF account. This is bad. They always arrive at the same time as my work's contribution and my involuntary contribution, but this time something seems to have gone amiss and I am missing $1000. I notified TIAA-CREF and they are looking into it, and I notified my HR department and did not get a response. Let's hope one of them finds something soon.. I'm a little disappointed that I missed the really low stock prices day - TIAA-CREF said that when they credit the money, it'll buy shares at whatever price is current that day, not the day it was supposed to credit. (Dangit.)

US News Loves Budgeting Babes

My girl Kim Palmer over at US News and World Report wrote to let me know that the magazine has launched a new financial Web site ENTIRELY DEVOTED TO 20-SOMETHING FINANCE!!!!!

So exciting! Click here to partake in the awesomeness and sweet knowledge building.

And congrats to Kim for doing an absolutely amazing job on her ABC News Now interview, which you can watch here. It's everything I wish I would have said in my recent TV interview. She's so smart and together. If only my financial brain was as big as hers!

Kim, when you become uber-famous and spin off your own cool magazine and TV show properties, keep me in mind as a contributor! Or at least invite me to the kick-off party so we can be sassy together. I know you will.

House, Senate panels back a 3.9% pay raise for 2009

The House and Senate budget panels are backing a 3.9% increase in military base pay for 2009, while the President is backing a 3.5% increase for next year. The goal of these increases is to provide for a cost of living adjustment as well as make military pay commensurate with civilian pay for similar jobs. While the increase sounds nice, it hasn't been signed into law yet, because the Congressional Budget is far from being finalized, and if you recall how the process went this past year, don't count on seeing it until February. Hopefully though, a lame-duck Congress and a lame-duck President can get their work accomplished quickly and prevent unnecessary inconvenience to military families.

Of course, we all realize that with the increasing costs of fuel, food, energy, and housing this 3.9% increase will really be a small pay cut, but that's a topic for another day.

Vacation home buying tips

If you're planning to buy a vacation home -- rather than simply engage in wishful thinking like the hubby and I do -- you might feel like Charles Dickens is your Realtor.

It's the best of times to buy a second home. If you can meet the new, more diligent lending standards mortgage rates are still quite low and prices in many retreat areas are down.

It's the worst of times to buy a second home. Shoreline erosion is bad and getting worse, even before this year's hurricane season hits its stride. And the onslaught of foreclosures, while creating some opportunities, also could mean problems for buyers.

That's the word from Forbes magazine, which in its latest online edition offers Top Tips for Vacation Home Buyers.

One guess as to which tip caught my eye -- Take taxes into account. The magazine warns:

State and municipal governments have been shifting the property tax burden to part-year residents, mainly through "homestead" exemptions and caps on increases in property tax assessments that protect only full-year residents. That's a particular problem in states that don't impose income taxes and so rely heavily on real estate levies. In Florida, a snowbird might pay 10 times as much in property tax as his full-year neighbor, reports Dominic Calabro, president of Florida TaxWatch. With property values falling and voters restless, it could get worse.

Other tips include avoid golf subdivisions, think like a Baby Boomer, consider the commute, widen your horizons, go for slow growth, watch water levels, make a big down payment, check rental potential, play vulture with caution.

Taxes everywhere: I must point out that tax considerations also are a part of the elaborations on water levels (special tax assessments to rebuild beaches), down payments (second home loan interest and alternative minimum tax issues) and rental issues (investment vs. vacation property tax differentiations).

Discussion of each of the tips can be found in this slide show.

Don't forget insurance: And I'd like to add one tip not on the list. Consider the insurance implications.

Insurance is alluded to in the water level slide, but from personal experience I know that if you live in an area anywhere near a beach, your annual policy premium is going to be ginormous. And if you actually have to file a claim for, say, hurricane damages, you could face deductibles in the five-digit range.

I'm not saying don't buy that fabulous beach-front place. I'm just saying be aware of the potential added expenses before and after a tropical storm strikes.

Someday I hope to be this guy, without the beer

Click if the image is unclear.

This is from PVP Online, a comic that I like to read. This character won a whole lot of money in the lottery and now spends his days drinking beer and playing video games with his friends.

But seriously, I have been thinking (not in a morbid way) about where I would leave my retirement money when I don't need it anymore. One thing I think would make a big impact on people's lives is to dispose of it to a foundation associated with the hospital I work at. This foundation generally pays for things like cab fares and hotel stays and other little things that are important to getting your cancer treated just like the doctors and nurses are - after all, if you can't afford to get there and you have no place to stay, life is going to be a lot more difficult. I know there are a lot of foundations that support research - and seeing as how I am in research, I certainly appreciate it - but the best drugs in the world will not find you a sitter for your kids while you are in the hospital, or drive you here from two hours away when your car is broken down.

Hope you weren't counting on that extra half-percent raise

... cuz you aren't going to get it, at least not for awhile.
Remember the National Defense Authorization Act, which President Bush vetoed a couple of months ago, with the 3.5% military pay raise? Well, our pandering and inept congresspeople were unable to revise the bill such that it would be passed before the start of the new year, so military personnel will have to settle for a 3.0% raise across the board. However, plans are "in the works" to assure that "the half-percent raise will be applied to military pay retroactive to January first, 2008," but I wouldn't count on seeing it for a couple of months, at least. Luckily, for most families, this amounts to a difference of $20 or less per month; however, it's hard to plan a budget when something as basic as base pay hasn't even been established. Keep this in mind next time you go to the polls.

Frustrations

1. I really want to be home at my condo. I miss it. But walking in there while it’s still under renovation depresses me. It also doesn’t help that I nearly had an asthma attack the other night because of all the dust. The contractor did not tape off the hallway as I requested. He left a 3-inch gap at the top. I’m actually quite angry about that. I told him repeatedly that I could not and would not clean up the cave-in and dry wall myself because I feared an asthma attack.

2. Because I can’t be home, I feel like I’m out of control with my finances. I rely on Quicken to help me plan out my spending. I open it up every few days, if not every day, and update the balances. Access to my desktop is key for good financial management. I am veritably crawling the walls because I am addicted to my finances. It’s partially why I am hoarding cash like crazy. I was a little afraid of sending my federal tax refund to my credit card company but I looked a Quicken on Monday night and see that it’s ok. BOOM! That’s $2500 I can pay off this month. All the rest of the cash I’m hoarding is for my contractor.

3. I feel fat. I may not LOOK fat, but I can’t fit into my Lilly skirt (purchased 2 yrs ago). I was hoping to wear it to a beach-side wedding last month, but I had to settle for an odd fitting dress. Way to go. All my pants are cutting into my stomach at work while I’m sitting. I am constantly uncomfortable. I admit, I haven’t made a lot of effort here since frankly I am lazy and exercise isn’t on the menu. My own vanity is getting the best of me and my wallet.

BLAH. June will be better. I can feel it.

Sell in May?

It's that time of year again, “Sell in May and Go Away”, so I will upload up my annual post of statistics using the help of the Stock Trader’s Almanac written by Jeffery A. Hirsch and Yale Hirsch.

For the record, I don't sell just because the calendar says May but I do enjoy sharring the statistical data (it is very interesting):

Worst six months of the year begin in May:

* All data is from the DJIA from 1950 to 2005

• A $10,000 investment in the DJIA compounded to $544,323 for the period beginning in November through April over the past 56 years (termed the best six months)


• Compare this to a $272 loss; yes I said loss for the same investment in May through October (termed the worst six months)


• 44 of the 56 periods ended with a gain in the November through April period


• Only 33 periods ended with a gain versus 23 losing periods in May through October


• The average gain for the November through April period is 7.9% (56 yrs)


• The average gain for May through October is 0.3% but the period did have an overall loss of $272 as mentioned above


• The best six months gained 11,691.79 Dow points over the 56 yrs (data ends in 2005)


• The worst six months actually lost 538.98 Dow points


• Top performing period for best six months was a gain of 29.8% in 1985 and then 25.6% in 1998


• Top performing period for worst six months was a gain of 19.2% in 1958 and then 16.9% in 1982


• The poorest performing period for the best six months was a loss of 14.0% in 1969 and then 12.5% in 1973


• The poorest performing period for the worst six months was a loss of 25.2% in 2002 and then 22.4% in 1974


• The best six months has only had one losing period in the past 22 years and that was only 2.2%


• The worst six months has had eight losing periods over the past 22 years with several in double digits


• Seven of the past eight years have been losers for the worst six months


• All of these results are based without timing the market using technical analysis


• Using a simple MACD indicator to time the entries and exits, the gain during the best six months rises up to $1,548,121 while the loss during the worst six months increases to $6,646.


• Finally, five of the last nine May months have been down for the markets; starting the period of the “worst six months”

One side note: the Stock Trader’s Almanac notes that the Nasdaq actually has a best eight month period from November to June.

For further detail, grab a copy of the Almanac as I buy one every year for the excellent statitical information and the great quotes.

For all CP sell articles, visit my category on selling or short selling!