tag:blogger.com,1999:blog-48412554968840914302024-02-20T00:40:50.507-08:00ValutarianContrarian with an orientation towards value.Unknownnoreply@blogger.comBlogger2125tag:blogger.com,1999:blog-4841255496884091430.post-14538584822583750622010-02-22T04:24:00.000-08:002010-02-22T04:30:44.269-08:00Are College Degrees a "Bubble" Asset?<span class="Apple-style-span" style="font-family: Arial; font-size: small;"><span class="Apple-style-span" style="font-size: 13px; line-height: 16px;"><b>Debt Makes A Bubble</b></span></span><br />
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<span class="Apple-style-span" style="font-family: Arial; font-size: small;"><span class="Apple-style-span" style="font-size: 13px; line-height: 16px;">Two acknowledged bubbles have occurred within the past 10 years, the Technology/Nasdaq/.com bubble, and the housing bubble.</span></span><br />
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<span class="Apple-style-span" style="font-family: Arial; font-size: small;"><span class="Apple-style-span" style="font-size: 13px; line-height: 16px;">While each had different characteristics, they both had a common feature; an extra-ordinary growth of credit. <b><span class="Apple-style-span" style="color: red;">Credit growth within a narrow asset class practically define bubbles.</span></b></span></span><br />
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<div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEimOQRhtS3xAe_37GTaPlAwcngQfCLw890ii4bjRWGm7uDsKfump37Y0Jsgk793GOJP5qoxwgldFLBuRtVsMpAZop7OfDzlG_DFnbuw_xSoSb8OVJR01oPwL3JxYYy5kYNh2oHTjBx8broR/s1600-h/D.%20Margin%20Debt%20Contrary%20Investor.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" height="327" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEimOQRhtS3xAe_37GTaPlAwcngQfCLw890ii4bjRWGm7uDsKfump37Y0Jsgk793GOJP5qoxwgldFLBuRtVsMpAZop7OfDzlG_DFnbuw_xSoSb8OVJR01oPwL3JxYYy5kYNh2oHTjBx8broR/s400/D.%20Margin%20Debt%20Contrary%20Investor.jpg" width="400" /></a></div><div class="separator" style="clear: both; text-align: center;"><br />
</div><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhonme0jO1UU9XQuiyIB4df0oEz4Uxyr25bHbTrxf4dLtZGY7h6e54j306Ub4aJhw_kqTOjPJH9Jbza5ypgTJE8R5nuWCTpjmJh4AvnK5pOV2MQOUjagi5FEt54t5etYf5QjYiWIByWH_N-/s1600-h/mortgage_gdp.png" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" height="227" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhonme0jO1UU9XQuiyIB4df0oEz4Uxyr25bHbTrxf4dLtZGY7h6e54j306Ub4aJhw_kqTOjPJH9Jbza5ypgTJE8R5nuWCTpjmJh4AvnK5pOV2MQOUjagi5FEt54t5etYf5QjYiWIByWH_N-/s400/mortgage_gdp.png" width="400" /></a></div><span class="Apple-style-span" style="font-family: Arial; font-size: small;"><span class="Apple-style-span" style="font-size: 13px; line-height: 16px;">Another defining feature is the growth of <span class="Apple-style-span" style="color: red;"><b>asset prices beyond rises in income.</b></span></span></span><br />
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<div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhBrq68Vf29Qm3alR3fIGkqfiBvP66bbZobInxAfVb54QaAiWOCHflrxBFPcPKfpb0q7jR5ylQb81kzSiychbqcHmlf_088RgZUcmWWws7p9WuXPj9cIIr3XyCegz_p62OKGpzWVeZcQL7K/s1600-h/house-prices-vs-income-1987-2009.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" height="275" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhBrq68Vf29Qm3alR3fIGkqfiBvP66bbZobInxAfVb54QaAiWOCHflrxBFPcPKfpb0q7jR5ylQb81kzSiychbqcHmlf_088RgZUcmWWws7p9WuXPj9cIIr3XyCegz_p62OKGpzWVeZcQL7K/s400/house-prices-vs-income-1987-2009.jpg" width="400" /></a></div><span class="Apple-style-span" style="font-family: Arial; font-size: 13px; line-height: 16px;"><b><br />
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<span class="Apple-style-span" style="font-family: Arial; font-size: 13px; line-height: 16px;"><b>So, Do We See This?</b></span><br />
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<span class="Apple-style-span" style="font-family: Arial; font-size: 13px; line-height: 16px;">Yes. We do.</span><br />
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</div><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhfuSXoxoj5Hba7qbH6YBYTnFucUCh5wP0SSvDZa7-y6-_C-56Gyx9gH4c4RlhLrr2TfkX3tO3QqcMNkgnfBVaO10BrlSozV995NIJXkJoBPxmP3i4A4pZNR3L6Ru_AlXan8FOTlqO20GL2/s1600-h/slars.png" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" height="376" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhfuSXoxoj5Hba7qbH6YBYTnFucUCh5wP0SSvDZa7-y6-_C-56Gyx9gH4c4RlhLrr2TfkX3tO3QqcMNkgnfBVaO10BrlSozV995NIJXkJoBPxmP3i4A4pZNR3L6Ru_AlXan8FOTlqO20GL2/s400/slars.png" width="400" /></a></div><div class="separator" style="clear: both; text-align: center;"><a href="http://4.bp.blogspot.com/_lDYKCU5U4es/S4J0TvMEMnI/AAAAAAAAD7Q/6JraIdnJBiI/s1600-h/wagesjuly08_24256_image001.png" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" height="320" src="http://4.bp.blogspot.com/_lDYKCU5U4es/S4J0TvMEMnI/AAAAAAAAD7Q/6JraIdnJBiI/s320/wagesjuly08_24256_image001.png" width="268" /></a></div><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiIxS1mwk0AY4SlAG6OCaJe-KChCjBxS_i3xe6lSVVAqWEH_t7H8T6P5aXqylglvFnQbXHGySccs9NgB0WZhF4LaYRswrrgfOYTJVdhQ01A8a46pR1bTay6w701ihhfNPetl7dgbnsoIEBq/s1600-h/p32_26302_image001.png" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" height="400" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiIxS1mwk0AY4SlAG6OCaJe-KChCjBxS_i3xe6lSVVAqWEH_t7H8T6P5aXqylglvFnQbXHGySccs9NgB0WZhF4LaYRswrrgfOYTJVdhQ01A8a46pR1bTay6w701ihhfNPetl7dgbnsoIEBq/s400/p32_26302_image001.png" width="388" /></a></div><span class="Apple-style-span" style="font-family: Arial; font-size: small;"><span class="Apple-style-span" style="font-size: 13px; line-height: 16px;"><b>Valutarian's View:</b></span></span><br />
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<span class="Apple-style-span" style="font-family: Arial; font-size: small;"><span class="Apple-style-span" style="font-size: 13px; line-height: 16px;">My view is that since about 2001-2002, a college degree has cost too much, and delivered too little to qualify it as a "value" asset.</span></span><br />
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<span class="Apple-style-span" style="font-family: Arial; font-size: small;"><span class="Apple-style-span" style="font-size: 13px; line-height: 16px;">This is a very broad statement and <span class="Apple-style-span" style="color: red;">caution should be applied to those who are pursuing degrees in professional and hard science fields.</span></span></span><br />
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<span class="Apple-style-span" style="font-family: Arial;"><span class="Apple-style-span" style="line-height: 16px;"><span class="Apple-style-span" style="font-size: x-small;">sources:</span></span></span><br />
<span class="Apple-style-span" style="font-family: Arial;"><span class="Apple-style-span" style="line-height: 16px;"><span class="Apple-style-span" style="font-size: x-small;"><a href="http://www.businessweek.com/the_thread/economicsunbound/archives/2009/09/earnings_of_you.html">http://www.businessweek.com/the_thread/economicsunbound/archives/2009/09/earnings_of_you.html</a></span></span></span><br />
<span class="Apple-style-span" style="font-family: Arial;"><span class="Apple-style-span" style="line-height: 16px;"><a href="http://www.econbrowser.com/archives/2008/01/mortgage_securi.html#more"><span class="Apple-style-span" style="font-size: x-small;">http://www.econbrowser.com/archives/2008/01/mortgage_securi.html#more</span></a></span></span><br />
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</span></span>Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-4841255496884091430.post-37747041702646807082007-11-01T07:08:00.000-07:002007-11-01T07:15:36.673-07:00Valutarian - Value/Contrarian Investing<p style="margin-bottom: 0cm; font-family: lucida grande;">Valutarian combines value and contrarian. What seems cheap is occasionally undervalued. Usually because it is misunderstood.</p><p style="margin-bottom: 0cm; font-family: lucida grande;">Pointing out potential misunderstandings, pointing out opportunities to see the true value of things, will be driving force behind this blog.</p>Unknownnoreply@blogger.com0