Book recommendation — “The Investment Answer”

If you are investing (and I hope you are), if you are thinking about investing, or if you just think you might start investing sometime in a foggy future, do yourself a huge favor and pick up a copy of “The Investment Answer” by Dan Goldie and Gordon Murray.

It is very short and very sweet. And eye opening in a very good way.

I picked it up months ago and finally read it the other night. Great, great stuff. And full of simple, actionable advice.

Four new asset bubbles to watch

Oh, man.

From the link:

Less than two years after the housing market collapsed, the U.S. economy is threatened by a new bubble in asset prices. This time, four billowing balloons are hovering: two commodities — gold and oil — stocks, and government bonds.

Don’t be fooled into thinking that last week’s 5% drop in the S&P, and the recent sell-off in oil, remotely makes them fairly valued, let alone bargains. Equities and commodities, as well as Treasuries, which actually rallied as stocks dropped, still have a long way to fall. The reason: They’ve already seen huge run-ups that put their prices far above their historic averages, and far above the levels justified by fundamentals.