market timing Archive

  • I have received countless e-mails and phone calls from individuals who have been led astray by brokers, financial planners and others using buy-and-hold and dollar cost averaging. Stories abound of retirees having to go back to work just because someone told them that "the market can't go any lower" or "let's dollar cost average."

    Buy and Hold: How to Perpetuate Your Investment Losses

    Posted on February 7, 2012 | 1 Comment
    I have received countless e-mails and phone calls from individuals who have been led astray by brokers, financial planners and others using buy-and-hold and dollar cost averaging. Stories abound of retirees having to go back to work just because someone told them that "the market can't go any lower" or "let's dollar cost average."

    Continue Reading...

  • In the initial stages of a bull market, it's the fear of the unknown that keep the masses out of an asset class. They think to themselves, "Yes. I can see it's cheap. I can see the fundamentals stack up. But what if, blah blah blah. Why is no one buying it? There must be something wrong with it. Best to steer clear."

    Investor Psychology

    Posted on May 7, 2011 | No Comments
    In the initial stages of a bull market, it's the fear of the unknown that keep the masses out of an asset class. They think to themselves, "Yes. I can see it's cheap. I can see the fundamentals stack up. But what if, blah blah blah. Why is no one buying it? There must be something wrong with it. Best to steer clear."

    Continue Reading...

  • Be careful of financial planners, but a good one who charges only a fee will be easier to find than a broker. Some are CFPs, Certified Financial Planners. That doesn’t mean they know how to make money. Most have the same training as brokers – all bad. You definitely don’t want one with ties to any financial organization or brokerage company.

    Changing Brokers/Financial Planners

    Posted on March 10, 2011 | No Comments
    Be careful of financial planners, but a good one who charges only a fee will be easier to find than a broker. Some are CFPs, Certified Financial Planners. That doesn’t mean they know how to make money. Most have the same training as brokers – all bad. You definitely don’t want one with ties to any financial organization or brokerage company.

    Continue Reading...

  • These companies advocate a stubborn Buy & Hold philosophy despite the devastating effects that approach had on investors' portfolios during the recent bear market. Performance is immaterial to them-they want your money in their fund whether it's going up or down.

    How to beat the mutual fund companies at their own game

    Posted on March 1, 2011 | No Comments
    These companies advocate a stubborn Buy & Hold philosophy despite the devastating effects that approach had on investors' portfolios during the recent bear market. Performance is immaterial to them-they want your money in their fund whether it's going up or down.

    Continue Reading...

  • There are people who are paid big bucks for opinions. Stock analysts are hired by big brokerage companies to research individual companies and both the local and world economies. They spend hours, days and weeks investigating a company balance sheet. A few will actually go to the company headquarters to see the physical plant and interview with management. Ultimately they will form an opinion on whether the stock should or should not be bought or sold.

    Belly Buttons

    Posted on February 27, 2011 | No Comments
    There are people who are paid big bucks for opinions. Stock analysts are hired by big brokerage companies to research individual companies and both the local and world economies. They spend hours, days and weeks investigating a company balance sheet. A few will actually go to the company headquarters to see the physical plant and interview with management. Ultimately they will form an opinion on whether the stock should or should not be bought or sold.

    Continue Reading...

  • Most brokers have not been taught by their companies how to make money and few have any idea what to do when the market tanks. They look at each other with blank faces and ask what do we do now. Customers call either crying or screaming.

    Making Money In A Down Market

    Posted on February 25, 2011 | No Comments
    Most brokers have not been taught by their companies how to make money and few have any idea what to do when the market tanks. They look at each other with blank faces and ask what do we do now. Customers call either crying or screaming.

    Continue Reading...

  • The moral of the story is to look past the surface and don't take any numbers thrown at you at face value. Remember, most people returning from a weekend in Las Vegas will shout about their winnings and mumble about their losses.

    Lies, Damn Lies and Mutual Fund Returns

    Posted on February 16, 2011 | No Comments
    The moral of the story is to look past the surface and don't take any numbers thrown at you at face value. Remember, most people returning from a weekend in Las Vegas will shout about their winnings and mumble about their losses.

    Continue Reading...

  • There is a way the investor, NOT the fund manager, can protect his money. He must set a limit price. If the fund drops below that price Mr. Investor must call the fund manager and have his money transferred into a money market account. Cash is king while the market is sinking. If Mr. Investor is not willing to take responsibility for his own money his full name will be Mr. Poor Investor.

    Time To Sell

    Posted on January 27, 2011 | No Comments
    There is a way the investor, NOT the fund manager, can protect his money. He must set a limit price. If the fund drops below that price Mr. Investor must call the fund manager and have his money transferred into a money market account. Cash is king while the market is sinking. If Mr. Investor is not willing to take responsibility for his own money his full name will be Mr. Poor Investor.

    Continue Reading...

  • The major complaint with investors is they don’t know when to sell so they can keep their profits and not give them back. Of course, that is why investors give their money to others to manage. No fund should ever lose large sums of money. Any loss more than 10 or 15% means the fund manager does not understand risk management. Investors should never have their money with this type of manager

    Mutual Funds Are Dead – But They Don’t Know It

    Posted on January 20, 2011 | No Comments
    The major complaint with investors is they don’t know when to sell so they can keep their profits and not give them back. Of course, that is why investors give their money to others to manage. No fund should ever lose large sums of money. Any loss more than 10 or 15% means the fund manager does not understand risk management. Investors should never have their money with this type of manager

    Continue Reading...

  • First thing you need to do is make them prove they know what they are doing. Every professional should have a model portfolio. One of the answers you will get is there are several different types and they may not be what you need. Capital BS. Tell them bluntly unless you see are real time (not hypothetical) portfolio you are going to hang up. Period. Any hesitation and you do hang up. He is ashamed of his performance and you have escaped with your funds in tact.

    Mattress Money

    Posted on January 3, 2011 | No Comments
    First thing you need to do is make them prove they know what they are doing. Every professional should have a model portfolio. One of the answers you will get is there are several different types and they may not be what you need. Capital BS. Tell them bluntly unless you see are real time (not hypothetical) portfolio you are going to hang up. Period. Any hesitation and you do hang up. He is ashamed of his performance and you have escaped with your funds in tact.

    Continue Reading...

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