|Will Angels Save the USA? - Going for Gold in Omaha. A Note from Willy/Gevers Wealth Management, LLC July 2012
I had the great privilege of attending a recent meeting of the Northwest Energy Angels as a guest. NWEA (http://www.nwenergyangels.com/) is a group of successful entrepreneurs and executives that fund new businesses in the “clean tech” energy sector by investing seed capital, and through providing management and leadership guidance to these start-up companies. The group’s members are named angels because they are so called “angel investors ” who provide money to start-up companies and acquire an ownership share in exchange for that seed cash.
The agenda of the meeting was companies presenting their new technologies and explaining their business plan with the goal and hope that the angel investors in the group would invest in, and otherwise help their fledgling companies to grow and succeed.
The presenters/company owners were brilliant scientists and talented engineers who were trying to turn their intellectual discoveries into a business success. I was fascinated by the presentations, and reflected later that these folks were really the heart of our capitalistic system and the real soul and fabric of our free enterprise system. These men and women were risking a great deal; their time and energy and finances with the dream of creating a viable and profitable business out of their ideas and talents.
|2012 American Taxpayer Relief Act Explained… kind of
2012 American Taxpayer Relief Act Explained… kind of
On a completely different subject – many of our clients have asked about the 2012 American Taxpayer Relief Act (ATRA), how it might impact them, and what kinds of planning and strategies to consider.
To provide some historical context – Congress under President George W. Bush passed two major tax relief bills that became commonly known as the Bush Tax cuts. The bill(s) were temporary and set to expire at the end of 2010.
|QE3 – What Does it Mean to Me…? And What is Quantitative Easing Anyways!?
The Federal Reserve announced last week that they would begin a third round of Quantitative Easing (QE3). The much anticipated announcement sent waves of excitement through the investment markets. The US and Global stock markets each leapt on the news, and commodities – especially gold, silver and oil almost instantaneously jumped in price.
The timing for the next round of QE, and whether or not the Fed was actually going to even embark on more QE has been hotly debated over the last months. QE3 was by no means a done deal, there were a number of prominent economists and analysts who insisted that QE3 would not and should not happen, and even inside the Fed itself, some of the regional presidents expressed their opposition to more QE. In a moment that will be hard to live down, a well-known commodity analyst made an announcement two weeks ago that the Fed definitely would not print more money, and advised all his clients to sell their silver and gold and short their positions.
Ouch… as Maxwell Smart used to say, “Missed it by that much!”
|Wall Street Obsessesed with Money Printing
Wall Street is obsessed with the Federal Reserve’s money printing program. The US stock markets recent gyrations have been driven by anticipations and expectations of Fed monetary policy. If Wall Street anticipates more money printing – then the stock markets tend to go up. However, at even a hint that the fountain of new dollars might slow down in the future, the markets retreat in turmoil and stock prices fall.
Let’s look at some of the recent Fed events and announcements and how they have impacted our stock investments.