The big news this week was Barack Obama getting re-elected for another term on Tuesday.  Many Canadians seem to pay more attention to politics south of the border than they do their own.  So now that the election is behind us, what’s in store for the economy?  Will we be better or worse off financially with Obama at the helm for four more years?

Kevin Press from Brighter Life thinks it’ll be more of the same, with House Republicans blocking Democrat initiatives every step of the way.  The sad thing is,  both parties seem to be more concerned about fighting with each other than about finding common ground to fix the economy and make the country a better place.

A good article by Jason Heath at the Financial Post looking at the wealth effect – the theory that as one’s perception of wealth increases, an accompanying increase in spending generally results.

Perhaps that’s why Canadians have such a high debt-to-income ratio.  We feel richer because our homes have increased so much in value over the past decade.  When housing prices fall, that creates a negative wealth effect and causes people to spend less.

I stumbled upon this cool investing chart a few weeks ago that shows the investment returns of major asset classes from 1935 onward.  U.S. stocks led the way, returning 10.7% annually.

Weekend Reading

Here are some more great personal finance articles for you to enjoy this weekend:

  1. Canadian Finance Blog asks is dividend investing a bad bet because it’s so popular?
  2. Canadian Couch Potato explains why market beating strategies don’t last
  3. Financial Uproar says your time is not worth more than money
  4. Big Cajun Man says time is the most important financial variable
  5. Million Dollar Journey argues financial security comes from a huge nest egg
  6. Free From Broke explains what you need to know if the Bush tax cuts expire
  7. Money Smarts Blog looks at the true cost of owning an ETF
  8. My Own Advisor reviews David Trahair’s new book, Cash Cows, Pigs and Jackpots
  9. My University Money explains how much should I get in student loans?
  10. Timeless Finance says I won’t make my son go to University
  11. Retire Happy Blog says not all advisors understand investing for income
  12. Saving Mentor explains how to get ultra cheap designer prescription glasses
  13. She Thinks I’m Cheap asks if it’s really cheaper to buy electronics south of the border
  14. Money Mamba explains how some stocks fall off Wall Street’s radar
  15. The Passive Income Earner compares saving in an RESP vs. other alternatives

Have a great weekend, everyone!

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