Thoughts From the Frontline, March 2005

The New Retirement Model

March 18, 2005

It seems like every week I get a letter from a reader asking questions along the following line: "How can I make a lot of money so I can retire early and/or live the lifestyle I want to live when I do retire?" Most of them are phrased far more eloquently and with accompanying questions and comments, but the bottom line is, "How can I get rich?"

I'm especially touched by the very sincere letters from young people who ask this most basic of questions about accumulating wealth. They are...

The Trade Deficit End-Game

March 11, 2005

This week we finish with our series on the US trade deficit. When will we see a real problem? What are the likely results from a balancing of global trade? Where are the investment opportunities, and where are the pitfalls? It should make for an interesting conclusion and hopefully an interesting letter.

Let's start this letter by noting that this week is the anniversary of the all- time high of the NASDAQ. Five years ago this week the NASDAQ topped at 5,048. It eventually dropped to...

Why Trade Deficits Matter

March 4, 2005

We have been looking at the US trade deficit and the global trade imbalance for the past two weeks. It is currently an unsustainable trend, and thus will stop at some point. The questions are when and how? We will conclude this series today, looking at several ways the trade deficit could come back into line.

First, a very quick review. For those who remember, you can skip to the next heading. (And for those who would like to read the previous letters, you can go to