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According to a recent US Department of Transportation report, Americans drove 9.6 billion miles less this past May compared to May of last year.

With the US consuming about 25% of the world's oil, the reaction to high gas prices could have a significant impact on oil prices worldwide. Since the US uses a quarter of the world's oil supply, people in the States have been impacted hugely by the recent spike in oil prices. This has caused the average American to curb their gasoline appetite; switching to more efficient means of travel, driving less, and postponing vacations.

Regular Unleaded gas still costs about $3.95 a gallon even after a quick drop in oil prices from around $145 to $124 a barrel. For most SUV drivers, that means $75-$85 a fill-up.

Although many Americans believe these prices are outrageous, they are not near as bad as most other countries in the world.

Also, I believe that we needed a spike in prices to wake the US up; we need to be more environmentally friendly and more conservative in using up our planet's resources. We cannot continue to pollute our world with cheap fossil fuels. There are better, cleaner, and possibly cheaper ways of transportation.

This is also a double-edged sword because analysts are saying that oil prices may go back below $100 making gas cheaper once again. This may increase the chances of an economic recovery, but there may be a catch. We forget to soon how painful it is to fill up the tank, and then gone with the ideas of being "green" and conserving what we have.

We must find new ways of creating our energy; homes, cars, buses, jets, machinery, and the list goes on. If gas prices go back down, do not forget what must ultimately be done about energy.

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UPDATE 7/26/08!:
The US Congress has passed the housing and GSE bill according to a Reuters report that came out Saturday morning. The Senate as well as President Bush have voted and signed respectively for passage of the bill. The bill allows for a $300 billion fund for troubled homeowners and a monetary lifeline to GSEs Fannie Mae and Freddie Mac.

Economists call this the worst real estate slump since the Great Depression.

This past week the House of Representatives voted for a bill that allows $300 billion for people facing foreclosure who can refinance with Fannie Mae (FNM) and Freddie Mac (FRE). The bill also gives Fannie and Freddie a lifeline through government funds.

In a Dow Jones Newswire article, Connecticut's Senator (D) Chris Dodd was quoted saying, "This is the most important piece of housing legislation in a generation." He expressed his concern along with many other Congress members that housing is at the core of the US' prosperity.

The US House of Representatives have voted in favor, and the bill now awaits the Senate's decision as well as President Bush's signature. President Bush has also shown concern for the well being of these important Government Sponsored Enterprises (GSEs).

Passage of the bill will instill confidence in the housing market and could ignite the turnaround in the real estate market. If Fannie and Freddie receive the government backing, their equity shares will be more appealing and debt issues will be as safe as US bonds.

Although this could create a larger budget deficit for the US in the short-term, the benefits of providing these GSEs with a lifeline will make the US a more investable and prosperous nation.









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Check out the News section we just added! Stock Market News and Business Headlines Here.

This week is a major week for the stock market. Many of the US' largest companies are reporting earnings starting Monday. How will the market react?

Some of the featured earnings reports for the week are:

- Anheuser-Busch, Bank of America, AT&T, Boeing, ConocoPhillips, McDonald's, PepsiCo and Pfizer, Amazon.com, Ford, 3M, and Wachovia.

This next week will determine much of what direction the stock market will go for the next couple months. As far as stock investing advice goes, do not try to predict what the earnings will be and where the stock market is headed.

Investors will try to get a feel for the market by assessing the collective earnings reports, and they will react as they come out. What you should do is:

• Wait for a couple of weeks after most of the earnings reports are out.
• Decide what type of sentiment major company reports created in the market (negative, positive, so-so).
• Watch the stock market indexes to see their initial direction.
• Think back on the earnings numbers and make a judgement on whether the market priced in the news already or if there is more to come.

If you feel the market has more to go or is ready to turn around, then make your move. (Remember this is for shorter term traders of no more than a year invested because quarterly earnings are a short-term focus.) The stock market is largely a product of mass psychology, so trade with that in mind.








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Some of you may be filled with fear about the stock market right now, but your main concern should be preserving your capital. This stock investment advice should help you keep the money you have during this down stock market while you are trying to make returns on your investments. Find out how you can protect your capital from the thieving bear market.


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If you are putting on new positions or have old ones that are losing their value, put a stop limit on each position. Although it's not a wonderful thought, you need to decide how much you are willing to lose before you buy any stock. Generally anywhere from 5% to 10% is a good limit to put on your investment losses. That brings us to the:

Number One Rule for Stock Market Investing:

1. Don't lose money!

I know it sounds obvious, but many investors lose focus of keeping losses to a minimum. That simple rule can mean the difference between a great investor and terrible investor. Keeping investment losses as minimal as possible will allow you to win big on the trades that go your way. Losing trades or investments usually continue to be losing trades or investments.

Even top hedge fund managers like in Schwager's Stock Market Wizards book repeat how important cutting your losses on trades is. If you can't cut losers, you will never win in investing. Everyone makes bad trades, but good investors don't let them eat up their capital.

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Even some of the best investors of our time are getting hurt with this relentlessly bearish stock market. As soon as you think the market is going to turn around and go up, stocks take another plunge across the board. So what should I do about investing in the stock market now?

I could just leave you with the title of this article; "Stock Market: Stay Long-Term or Stay Out!" is self-explanatory, but further explanation is needed.

Many times in the stock market you can invest in stocks, sell them, and make a quick profit. Trading stocks in this bearish and volatile market can rob investors of their hard earned money. For most investors, there are only 2 bits of investing advice that will keep your money safe:

• Stay Long-Term- for long-term investing, this is a great stock market. Stock prices for many companies are already low. Financials, retail, and real estate/ homebuilde are among the sectors that have taken the biggest price cuts.

By investing in stocks that have already been hit hard by the bearish market, you are creating a very high probability of great returns once the market becomes bullish.
*(Think of a house on a lake for sale. There is a drought so the lake is mostly dried up, making the home dirt-front not lakefront. You buy the house for 40% less than it would be if there were actually a lake. After a year and a half goes by, the lake is full. You can now sell it for over double the price you bought it.)

• Stay Out!- for those investors that do not want to go through the pain of watching your stock investments potentially drop in price before they go up again, sitting on the sidelines with cash is never a bad idea.

By not losing any money, you could be doing better than many active investors out there. The only problem is deciding when you will enter the stock market, because if you wait too long stock prices could be at a premium.

Trading in the stock market right now is very risky. Even highly skilled stock trading experts can attest to the difficulty in making money in this economy.

If you follow one of these two pieces of investing advice, you will much more likely be better off than trading this market. You will also get to enjoy the bull market with big gains rather than trying to figure out how much money you lost during the bearish times. Good luck and enjoy the profits of the coming years!