Most companies don't get into financial trouble overnight - there are signs.

One of the better signs is the cash flow to debt ratio.

This ratio tells you how well a company can cover its debts from cash flow.

A low number is bad news. Here's how it works.

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The stock market has been on a roller coaster and there's a good chance it's not getting off anytime soon.

Good news on the jobs front along with some better than expected earnings sent the market up Thursday, but that follows a down day that struggled with uncertainty.

Investors are looking for a reason to buy, but reality keeps biting them in the butt.

And that reality is true unemployment (combining the jobless numbers with workers on reduced hours or otherwise working for much less than before) is staggering.

A vast majority of business economists recently predicted it will be at least two and, quite likely more, years before the unemployment situation is resolved.

That means in the short run it is unlikely that consumer spending will return with any strength.

Without increased consumer spending, business spending will not grow enough to create the jobs we need to ease the unemployment crisis.

Remember, we not only have to replace lost jobs but must also create jobs for young people entering the work force every year.

This is why the stock market charts are likely to look more like the Swiss Alps than an airliner taking off.

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When Warren Buffett speaks (and, more importantly, acts) the stock market listens.

The market may not always follow his moves precisely, but you can bet many in the stock market note whether he is bullish or bearish.

He is definitely bullish these days with the acquisition of Burlington Northern Santa Fe railroad - a $44 billion investment.

Some pundits have labeled the move a "bet," but Buffett doesn't bet.

Every move he makes is well thought-out and, for the most part, geared toward a long-term investment.

Why is his acquisition of a railroad important?

Transportation stocks (railroads, trucking firms, but not necessarily airlines) do well when the economy is strong.

They suffer when the economy is bad and there are fewer goods to move around.

Buffett's acquisition of a railroad is testimony to his confidence in the U.S. economy. Transportation, including railroads, will see increased traffic as the economy grows.

He has become the most successful investor in history by buying where others failed to see long-term potential - in other words, Buffett is a value investor.

Too often these days, stock investors hear that long-term investing is a losing game - that market fluctuations will wipe out any gains.

Buffett reminds us again that a long-term perspective is still one road to investing success, but it is not a road investors should follow with their eyes closed.

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Small business financing giant CIT Group Inc. filed for Chapter 11 bankruptcy Sunday.

While not unexpected, the bankruptcy may further shake investor confidence Monday after a tough run last week.

The markets closed down slightly for October ending a seven-month bull run.

The CIT bankruptcy is troubling because it is the largest lender to medium and small businesses.

With the holiday season coming and companies needing solid financing, the CIT trouble could spread.

Trouble has already found the taxpayer. CIT received several billion in U.S. funds last year in an effort to stay afloat.

The government took preferred stock for its investment.

However, the CIT bankruptcy, like most filings, renders stock in the company worthless. Bankruptcy treats bondholders better, but they won't get all of their money back.

Bankruptcy is never good for stockholders, however that's part of the risk of being a part owner.

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Thanks to uncertainty in the economy and stock market, savings rates are up and investing rates are down.

Which is another way of saying investors are more concerned with a fixed, but virtually certain, rate of return and less willing to risk a loss.

This is the difference between saving and investing. It is an important distinction because too often investors expect they will only make money.

The risk of loss should equal the chance of gain.

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Earnings season is a time for companies to lay their financial cards on the table for the previous quarter.

Although there are rules and regulations prohibiting companies from reporting false information, some companies hope to give their stock a bump by suggesting the number will be lower and then - surprise - the company beats estimates.

Stock analysts and savvy investors can spot companies that make a habit of this and discount their advise, but others may not know and jump on the stock when it beats estimates.

The system works best when every company offers honest advise prior to reporting earnings.

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While retailers are worried about holiday spending, stock investors may have another yearend worry: taxes.

With the market hovering around 1999 levels, some investors will not be worried about taxes on gains in 2009.

However, others may find themselves in some tax hot water if they have had a profit from the sale of a security this year.

In general, taxes are calculated based on three factors:

1. What you paid for the stock
2. What you sold the stock for
3. The length of time in between the purchase and sale

The market is up substantially from its early March 2009 bottom, however it is still down from prices before the bust in the fall of 2008.

If you got into a stock when it was near its bottom and sold for a profit in 2009, you will likely owe taxes on that transaction.

You may have a "tax event" for several reasons.

The important thing to remember is you may be able to take steps before the end of the year to offset that gain, but the time to plan this tax strategyis now.

Always consult a competent tax advisor before attempting any offsetting stock sales.

Don't give back a big chunk of a gain this year for lack of a tax plan.

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Dollar cost averaging is a hybrid stock investing strategy you should consider.

It combines buy and hold strategy with an active investment schedule and it removes emotions from decision making - a big plus.

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The dollar is the ugly duckling of the world currency markets.

The continued decline of the dollar is a troubling sign for some parts of the economy, but a hopeful sign for others.

Stock investors are watching with caution the dollar's value relative to other major currencies. What a cheap dollar means to stock investors.

A cheaper dollar means consumers pay more for imported goods, which is just about everything.

Consumer goods such as televisions, computers, cars and so on, will cost more if they come from foreign manufacturers.

And oil, which is denominated in U.S. dollars on the world markets, has recently busted the $80 a barrel mark.

That's around two and one-half times what a barrel cost at the beginning of 2009.

Gas prices and home heating oil prices have risen accordingly. Will higher prices at the pump combined with more expensive goods from abroad derail an already feeble economy?

The good news is a cheaper dollar means U.S. goods are more competitive in foreign markets, which will boost exports.

Higher oil prices may add fuel to inflation concerns, already high due to heavy government borrowing.

As with many things about this recovery, there are no easy or clear-cut answers to a weak dollar, rising oil prices and massive government debt.

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Inflation (the Consumer Price Index) is so flat that Social Security recipients will not see a cost of living adjustment (COLA) in their 2010 checks.

This is the first time since 1975 benefits haven't been adjusted.

Thanks to an economy in the tank, prices have actually declined over the past year.

No COLA means recipients will not have extra cash to buy consumer goods or pay for a 15 percent increase in Medicare premiums facing some 27 percent of those recipients.

For those folks still working, the story is much the same.

If you are lucky enough to hang on to your job, you may find hours cut while the workload increases.

Health care premiums keep going up with double-digit increases likely for many.

What's an investor to do?

If you are concerned about losing your job (even a little bit), now is the time to make sure your emergency cash fund covers six months of living expenses.

If your spouse works (for a different employer), you can back off the six-month requirement, however given the difficult times, six months of ready cash to keep food on the table and a roof over your head is prudent.

Keep funding your retirement plan if possible. If the choice is an expensive purchase (new car, exotic vacation and so on) or your retirement fund, choose wisely.

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