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Welcome To Investor Elite - Investment Analysis

The financial and stock markets are a vastly different place than they were twenty years ago. Today any bozo with a keyboard can trade stocks and bonds without consulting a broker or any market professional. Hundreds of media “experts” follow the daily twists and turns of the stock market as if they were covering a circus. Professionals hype their pet stocks shamelessly on CNBC and on the internet, hoping to lure in ignorant buyers. Who can you trust in an environment like this? The answer is nobody, not even this website you're reading right now.

If you are looking for solid principled investment tips then this site is for you. In a sea of dishonest spinsters trying to sell you on gold or the so-called housing bubble or the latest NASDAQ bubble stocks, it helps to have a solid source of rational information. aims to be that source. We do not recommend individual stocks and rarely do we even mention specific stocks. Instead we discuss the financial markets as a whole.

Housing is Still Underpriced
January 8th, 2006

After rising at a quick pace for the last five years, housing prices are now at a plateau according to some. Housing bubble believers frequently point to the fact that housing prices have run up while rents have remained relatively flat, and claim that the disparity must be corrected by a decline in housing prices. Analyzing the purchase price of a given home against the price it fetches in rent though shows that housing still remains a great investment with much room to the upside. In fact, the P/E ratio of housing is currently below most stocks when it should be higher due to a decreased risk factor. Even in the most overpriced markets, the price of housing is backed up by solid fundamentals. Read more »

The Housing Bubble Mentality
January 5th, 2006

A fit of media-induced hysteria has struck many normally rational Americans. According to those who believe in the housing bubble, the sky is falling, the seas are melting away, and the world is about to end yesterday. Bubbleheads claim to have analyzed the housing market with a sharp eye and reached an apparently logical conclusion that growth is unsustainable. How can two sets of people look at the same facts and reach conclusions that are at a direct opposite? Read more »

Media Spin and the Housing Bubble
January 2nd, 2006

The mainstream media has officially gone overboard in their coverage of the so-called housing bubble. Once again the media has shown that they will go to any lengths to create a housing market panic with their sensationalist coverage. The truth that housing still remains a good investment does not sell newspapers and does not keep viewers glued to their televisions. Tell the public that there exists a massive housing bubble, then tell them that their future is doomed because of the inevitable collapse, and you will have the general public hooked like heroin. This is what we like to call "Chicken Little journalism". Read more »

Stock Returns May Not Always Be Superior
December 31st, 2005

The Dow Jones Industrial Average has a mean return of around 7.5% over the past 100 years. This fact is no surprise to the majority of stock investors, experienced veterans or otherwise. We have all been conditioned to believe the Sacred Rule of Investing which states that stocks outperform bonds over the long term. Stocks have undoubtedly outperformed bonds over the past 100 years, but what will the next 100 years hold in store for the financial markets? Read more »

There Is No Housing Bubble
December 27th, 2005

You cannot read a newspaper or turn on a television these days without being confronted by the media discussing a bubble in the housing market. According to the man on the TV, there is zero doubt as to the existence of a housing bubble. In fact, the media has told us that housing will crash, if not today then probably this afternoon or next week. Before you throw your hands up in panic though let’s take a rational look at the situation. Facts and logic seem to indicate that the housing bubble is nothing more than a media myth. Read more »

The MO Factor: Phillip Morris / Altria Corp Circa 1999
December 15th, 2005

Back in 1999 it looked like doom was on the horizon for Phillip Morris, NYSE: MO, now know known as Altria corp. Despite decent profits, the company was being attacked from all sides by lawsuits and politicians intent to destroy the tobacco industry. For a brief period in late 1999, MO was trading at multi-year lows at under 20 per share. The future looked bleak. Meanwhile, everyone’s favorite Nazdog tech stocks like ARBA and LNUX were partying like it was 1999. Read more »

Online Brokerage Review: Etrade
December 3rd, 2005

Etrade is perhaps the most well known of all the discount online brokerages, though it is no longer even close to the largest. In the past they have been plagued by support and order execution issues along with bad user interfaces. Are they worthy of another look? Read on to find out.Read more »

Gold: The Investment of Suckers
November 30th, 2005

Here’s a rule you can bank on: When you hear television or radio advertisements urging you to put your money into a certain obscure investment vehicle with all-but-guaranteed massive returns in the future, it’s time to sell. Today gold fits this profile perfectly. Read more »

Online Brokerage Review: TD Ameritrade
November 23rd, 2005

When Ameritrade acquired TD Waterhouse, it became the ten-ton gorilla of the online trade business. The new brokerage will soon be known as TD Ameritrade, with old TD Waterhouse customers likely moved over to the Ameritrade interface and fee schedule, which we review here. How does TD Ameritrade compare to Etrade, Schwab, and Scottrade? Let’s just say the biggest isn’t necessarily the best. Read more »

Why You Cannot Trust Your Broker
November 16th, 2005

In March 2000, every stockbroker in the world was telling you to allocate 90% of your portfolio to NASDAQ bubble trash stocks like CMGI and INSP. If you listened to these experts then you got slaughtered. What did you think would happen? When you trust those who have a financial stake in your decision, you will always lose. Read more »


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