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8:30 AM Thursday, August 25, 2005: If you own any long-term bonds, you may want to look carefully at them. I looked at some of mine yesterday. They were yielding under 4% and were clearly about to plummet in value as long-term interest rates begin a slow rise. Of course, if you plan on holding them to maturity, hold them. You won't lose any principal. But if you think you can ultimately find better places for your money you may think about putting your money into short-term floaters. My triple tax-free New York munis are yielding just under 3%. And there's no principal risk.

Technical analysis works: Most day-traders lose money. The ones who don't have read two books:

My friend who actually makes a living day-trading (and kicked my butt at tennis last night) emailed me:

There are 2 books that really helped me. I suggest the first should be Reminiscences of a Stock Operator by Edwin Lefevre. This is more of an overview/strategy book which details the experiences of Jesse Livermore, one of the best traders of all time. The second is Technical Analysis of Stock Trends, 8th Ed by Edwards and Magee, which is a large book with all the technical analysis I use. Generally the first half of the book gives you what you need. The first book is generally acknowledged as the trading bible of wall street – any good trader has read it many times. This is the technical analysis bible. Enjoy them!

The housing boom is ebbing, not collapsing: From today's New York Times:

Rents are rising again across the country, squeezing tenants who are already coping with high gasoline prices and improving returns to landlords after a deep five-year slump.

The turnaround appears to be another sign that the boom in house prices and sales is finally slowing, as homes have become so expensive in many metropolitan areas that some people have decided to rent instead.

A government report yesterday also offered new evidence that the housing boom could be reaching a peak. The median price of a newly built home fell to $203,800 in July from $219,500 in June, after having risen in the winter and spring, the Commerce Department said.

Still, the number of new homes that were sold continued to grow, and economists cautioned that the recent housing slowdown could turn out to be a pause.

But rents have clearly changed direction, even if the increases have been relatively small. With the economy growing and mortgage rates inching up, more people are looking to rent apartments and homes rather than buy them. At the same time, many buildings are being turned into condominiums, reducing the supply of rental property.

"It seems like the tide has finally turned," said Michael H. Zaransky, co-chief executive of Prime Property Investors, which owns 15 buildings in Chicago.

Eat more bananas: Bananas contain a natural chemical which can make a person happy. This same chemical is also found in Prozac. This column is full of such useful information.

Life is weird: I drop a letter off at the small post office serving my country house.
The postmaster asks me "If I'm making a statement?"
I ask "How so?"
He replies I've put the love stamp on upside down!
I explain that about my sorry eyesight... He doesn't seem to accept my impeccable excuse. Then I think, "What statement am I making?"
That love is bad?

Lawyers, lawyers, lawyers: Every time I criticize them, my lawyer friends call and complain. But..
1. I put a deposit down on a yet-to-be built apartment. The lawyer stuck my deposit in a bank account yielding 0.4% -- that's less than 1%. Since I started complaining, the lawyer has said he was too busy, going on vacation, would get to it, would have someone else in his office handle it, etc. etc. So far nothing, why do I suspect the bank is kicking money back to the lawyer for his sending his trust funds their way?

2. The FBI called yesterday and told me I was entitled to funds from a Texas oil fraud. My name was on the list. The law firm handling the receivership hadn't bothered to contact me and -- dig this -- 90% of the other people on this list. They had done the minimum. They had placed small ads in papers most of the 90% of the people can be guaranteed not to read.

Many law firms deserve to be sued for their mistakes, incompetence and laziness. Good luck finding a law firm that will sue one of its brethren. You can draw your own lessons. I'm speechless with anger.

Don't forget to watch Rome on HBO this Sunday night. See what $100 million buys you. One advantage of being HBO is that the FCC doesn't regulate you and can't fine you $500,000 for "wardrobe malfunctions." Remember the SuperBowl?

I'll TiVo Rome. The best thing about TiVo is not its stock,



nor the fact that it's just turned profitable. The best part is you can now get TiVo recorders with 140 hours of programming. That seems like a lot, but isn't. Trust me.

How to immigrate to the US:
Jose was trying to get into the USA legally through Immigration.
The Officer said, "Jose, you have passed all the tests, except there is one more test. Unless you pass it you cannot enter the United States of America. Jose said, "I am ready". The officer said, "Make a sentence using the words Yellow, Pink and Green."
Jose thought for a few minutes and said, "Mister Officer! I am ready." The Officer said, "Go ahead." Jose said, "The telephone goes green, green, green, and I pink it up, and say, 'Yellow, this is Jose.'"
Jose now lives in a neighborhood near you and works at a PC help desk. Yep for sure, I talked to him yesterday.

Ain't statistics wonderful?
If 4 out of 5 people SUFFER from diarrhea...does that mean that one enjoys it?

Recent column highlights:
+ Manhattan Pharmaceuticals: Click here.
+ NovaDel Biosciences appeals. Click here.
+ Hana Biosciences appeals. Click here.
+ All turned on by biotech. Click here.
+ Steve Jobs Commencement Address. The text is available: Click here. The full audio is available. Click here.
+ The March of the Penguins, an exquisite movie. Click here.
+ When to sell your stocks. Click here.

Harry Newton

This column is about my personal search for the perfect investment. I don't give investment advice. For that you have to be registered with regulatory authorities, which I am not. I am a reporter and an investor. I make my daily column -- Monday through Friday -- freely available for three reasons: Writing is good for sorting things out in my brain. Second, the column is research for a book I'm writing called "In Search of the Perfect Investment." Third, I encourage my readers to send me their ideas, concerns and experiences. That way we can all learn together. My email address is . You can't click on my email address. You have to re-type it . This protects me from software scanning the Internet for email addresses to spam. I have no role in choosing the Google ads. Thus I cannot endorse any, though some look mighty interesting. If you click on a link, Google may send me money. That money will help pay Claire's law school tuition. Read more about Google AdSense, click here and here.
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