Huge surplus money

There is huge surplus money in this world that’s driving the market, wish I could trace it to make money.

This money was invested in Tech stocks during 2000, then real estate the following years, then gold and finally Oil. Beauty of this is: the money leaves in droves just before the bubble is going to bust. These guys back off right around that time the markets peak leaving individual investors in the valley. There will be folks who will be burnt investing in oil and we will figure out soon.

I always wish that my money follows the cycle, so trying to see where the money is going next and invest early on…

If I follow CNN or CNBC, I’ll be in catch up mode, so need to be smarter than them.

Oil and Food – is the world headed for chaos?

Here is the reason:

Oil producing countries are keeping the prices high. Some of these countries don’t have much of cultivation land, so they are depended on other countries for food.

Food producing countries are producing more corn that can be converted to oil and leaving less for exports. If these countries produce less food, oil producing nations will have difficulties in importing food. Also, some of these food producers have put food export ban. This is pretty soon going to cause a deadlock.

As the price of food goes up, oil producing countries have to lot more of import (assuming there are no export bans), eating into their short lived joy and long term pain.

This is a vicious cycle and should be quenched at source by producing more oil. There is going to be chaos if its not fixed immediately. Oil is not going to be there for ever, so in the long term world should consume less oil.

I think we are headed in the wrong direction and should fix it now before it’s too late.

Dividend paying companies

I assume that Wall Street rates the company equal whether or not they pay dividend. But I think dividend paying companies need to be rated differently as the cash doesn’t come back to the companies coffers unlike the companies that don’t. However, the companies that pay the dividends need to be rated better because they have to work hard to fund the R&D and dividends.

Does anyone of you know how the companies are rated based on the dividend payout or not? Leave me note.