Oil still Struggling, NASDAQ to 5000

Oil fell down hard today after news of supply still overstocked. This was after a rise from the slump earlier this month. I still think that oil will go up in the long-run back to previous levels but it will be a volatile and rocky road there. I have enjoyed the cheap gasoline at the pump but know that it is a temporary price. A good move will be to take advantage of the cheaper gas now and invest in companies that have been hurt like Exxon and Chevron.

The NASDAQ is closing in on 5000 points around thirty points shy. It's very close to its all time high and one that has not been seen in fifteen years.  Apple has certainly carried it up to the heights it is at now. Once it passes this milestone again will it go up or will it scare investors that the market is overvalued. Earrings at record levels and good prospects on the economy this year point to a great sign that the markets will continue to go up and up. Companies are getting stronger and will attract people to invest in the market. I've invested in this market.

The Benefits of an Economic Education

High School in Kentucky has English, science, history, and math requirements. It has health and physical education. You can find a complete list here. What it painfully needed though is a requirement that high school students graduate with at least one economic and personal finance class. It makes no sense to not have any classes that will teach our soon to be graduates ready with critical thinking skills and a firmer grasp on the concept of money.

When we teach our children and next generation we want them fully equipped for the modern world. That is why we have taught them math, science, and English. English so they can form sentences and communicate and understand communication with their fellow members of society. Math so they can be employed in the workplace. Science is for a better comprehension of the natural world in which we live. All of this is to make informed citizens.

Without requiring economic and personal finance teaching in high schools and in some places not even offering it we do a disservice to our students. They are missing out of an important and integral part of society. People in today's society just as in the past need to know about the interest that will be charged on a loan, how to balance a checking account, and most importantly budget. Just those few tricks will save money and time for the average person and they will appreciate that they can understand the monetary world around them. They might have some knowledge about how the economy works which is a complicated organic beast. They will also learn strong problem solving and critical thinking skills learning about economics.

Now I am biased I graduated with a degree in Economics but I never had it in high school. I learned a little from reading on my own and going to the Governor's Scholars Program in Kentucky. Both of those were good. Some people will not have the opportunity to study it in college or have the direction and determination for self-study as a high school student.

An education in basic economics will in my opinion better the student body in meaningful ways. We want to give our students the best way forward in life and prepare them for the real world. Economics and personal finance are a good place to start in Kentucky. It is already required in some states. All states though would benefit and the populace will also benefit.

Dead Cat Bounce?

The market had a monumental upswing today. It had several key factors mostly though oil was back up and rising sharply the past two days. Some good earning number, possible Greece debt deal, and okay economic data all contributed. This follows of course a couple of weeks of bad news and falling stock prices. So which way is the market really going to go? Is this just a dead cat bounce where a major fall has started hit the first floor, bounces a little and then just goes right back down and even farther. I do not think it is a dead cat bounce. It might go down some more but in the end this year I think it will be up and reach great heights. We should always keep an eye on the market and be careful about the direction it is headed. 

Let's consider that it is not a dead cat bounce then the people who bought at this level will have larger gains than those who waited until someone else told them it was time to go into the market. If it is a dead cat bounce than the people who buy now will lose money at first. They can always recover it but it is difficult to recover losses. So it is always as previously stated a risk to buy into the market but one that consistently pays off with a well diversified stock picking. 

So I'm going to say that this current uptick is not a fake bounce. It is a strong uptrend that will continue.