Successful Investing and Diversification

Recently, Paul Krugman, a well known Nobel Prize winning economist and a regular New York Times columnist, suggested that the wealthiest Americans wanted a depression because aggressive monetary policy has materially reduced their income from bonds and other interest-paying assets. While it is very likely that the wealthy, like the rest of us, have suffered … Continued

Is It Too Late for My Kid’s College Savings Plan?

Everyone can agree that education is important and costly.  College savings can be so overwhelming that it paralyzes some from developing and implementing an investment plan.  The high and increasing costs, coupled with the uncertainty in capital markets, oftentimes creates inaction that can be detrimental to one’s long-term college savings goals.  Sometimes seeing some averages … Continued

The Perils of Prophesy

Investment strategies, of necessity, involve estimates and projections. First, investors, as part of constructing a portfolio strategy, should, in conjunction with their advisor(s), prepare a carefully developed projection of their financial outlook and objectives. Second, investors must recognize that investment decisions, designed to implement a portfolio strategy, rely on estimates of future corporate operating results, … Continued

Second Chances: Investing in Your Life

Approximately one year ago, shortly after getting in bed for the night, I felt this intense pain in my sternum. Was I having a heart attack?  Should I get up and take some Aleve?  Would that mask symptoms?  The thoughts began to rush at me, nearly working me into a frenzied panic, a feeling of … Continued

Is The Stock Market Too High?

I’m not sure that anyone knows the answer to this.  Every day, all day, CNBC features a wide range of market experts and pundits who, invariably, take positions that are 180 degrees divergent on each side of every issue.  At the end of the day, you will have heard from those who believe that the … Continued

Punitive Damages and Investors

Punitive damages can be defined as a court awarded sum that is considerably or greatly higher than the measurable value of the injury.  Punitive damages are meant, not to compensate the aggrieved party, but to punish the offending party for its allegedly reckless or unconscionable actions or conduct. Without attempting to resolve the differing views … Continued

Investing, Subsidies and Mandates

Investors typically seek to identify opportunities for achieving appropriate returns by assessing the outlook based on anticipated free market forces.  Government subsidies and/or mandates tend to distort free market forces with the potential for unexpected results. This phenomenon – government interference in the market process – is so wide ranging as to make it difficult … Continued

Misleading Investment Schemes that Might Cost You Money

The Wall Street Journal issue of June 28, 2014 carried an article titled, “Huge Returns at Low Risk?  Not So Fast.”  The premise focused on what is known as “back testing”, whereby an investment analyst runs a series of computer simulations to identify an optimal portfolio of stocks that would have produced the best returns … Continued

Pension Fund Investing

A recent article in The Wall Street Journal suggested that corporate pension funds and university endowments have missed out on much of the rally for stocks since 2009, instead following a push to diversify into other investments.  Candidly, these other investments have had disappointing performances. While there is a case to be made for greater … Continued

Investing Tomorrow

In the musical “Annie”, (1977), the star sings: “Tomorrow, tomorrow, I love ya tomorrow, you’re only a day away”. In the depths of a recession, as portrayed in the musical, a sunny outlook is clearly heartwarming, and suggests that things will get better soon. In the cold world of investing, tomorrow is always a day … Continued

Investment Chef

There is something about food that creates a love close to everyone’s heart.  It is not just the food alone, but the preparation of the food that makes it so special.  At its most elemental level, the art of cooking is about chemistry.  The chef develops the art form in which ordinary ingredients are combined … Continued

Investment Trend in the US Auto Market

Phil LeBeau, from CNBC, recently published an article highlighting trends in car buying.  One of the statistics mentioned in the article stood out to us.  That is, nearly 25% of new auto loans have payment terms between six and seven years.  Currently, auto loan terms have been extended to record highs due to increased vehicle … Continued