SubscribeProfitable Resolutions for the New Year
December 31, 2007
It seems that the commitment made to resolutions each New Year is such a common pastime that the United States government actually has a web page dedicated to the “Top New Year’s Resolutions.” According to the “government-made-easy” site (www.usa.gov), there are a dozen or so popular resolutions that we seem to revisit year after year. This year, think about taking those same resolutions and applying them to your investments and finances. Here are a few ideas for The Disciplined Investor:
Lose Weight – Put your investment portfolio on a diet! In other words, get rid of the fat and keep it off! Look carefully through the list of your investments. Do you have stragglers that you are keeping just because they have been there for years? There is no better way to clean up AND rebalance a portfolio than getting rid of non-performing positions. Make a list of the stocks, bonds and mutual funds that do not seem to meet your investment objectives. Be critical and maybe even a bit brutal and cut out the unnecessary load.
Pay Off Debt – Be careful not to over-borrow. While margin can be utilized for good reason, it is not appropriate for most investors. Make sure that your accounts are free from margin debt and commit to paying down any outstanding loans. Close positions that have been bought on borrowed money. If you have been accessing the margin features of your brokerage accounts to pay down bills…DON’T!
Save Money – It is time to stop paying high commissions and fees. There is no reason for anyone to be paying the high costs associated with front- or back-end loaded mutual funds. Of course, even with no-load funds, the managers Read more
TDI Podcast 17: From Seat 3A
June 29, 2007
From Seat 3A on the way to Russia. Review of CROX trade (OH YEAH), an idea for profiting from Apple iPhone. Blackrock IPO went south, no kidding..was only setup to benefit the insiders anyway. We discuss the opportunities in Northern Europe. Chatting from 35,000 above the Atlantic.
Book Pre-orders are being accepted at the website…Coming to bookstores July 31st. All pre-orders will be signed by ME.
Apple (AAPL) is a short idea into the release of the iPhone. Buys some puts?
PRE-ORDER Signed Copy of The Disciplined Investor - Taking indications of interest - Go to MAILBOX
Here are the funds that are the top in the European Sector:
Mutual Funds for Uncertain Times
June 26, 2007
As the market moves higher, it is difficult to continually commit money to new investments. Concern over the potential for a market fall is ever present and this is when a select group of mutual funds may make sense. In total they are called Market-Neutral funds. Each will approach the strategy differently, but overall the goal is to have exposure to markets (Usually the S&P 500 index) and at the same time, hedge the portfolio to maintain a low risk profile.
Instead of trying to time the markets, these allow for Read more
TDI Podcast 12: Shorting for Profits
June 1, 2007
Interview with Rydex Funds Director of Portfolio Strategies, David Reilly. Listener questions are answered. Andrew’s book is finally going to print! Hedging strategies discussed for the average investor.
In 2004, David joined Rydex as director of portfolio strategies. David has been instrumental in the development and the launch of Rydex Essential Portfolio Theory, an investment approach designed to help financial advisors potentially increase portfolio diversification and manage risk. In addition, David’s team created the Rydex Real Returns Calculator—an online, mutual fund portfolio-modeling tool. On a day-to-day basis, he is charged with developing strategies using Rydex products, positioning the products and acting as a spokesperson for the firm.
Follow the simple advice from Andrew: “How to look at your investments. Remember, stocks do not care how you feel about them! Sell if it is sell and buy if it is a buy.”
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Mutual Fund Deregulation - No way!
May 28, 2007
On May 27, 2007 - Chuck Jaffee of Marketwatch writes about a book that proposes changes for the Mutual Fund Industry. He comments, “The mutual fund business is the proverbial camel, the one that was supposed to be a horse until it was built by committee. It is filled with arcane rules and procedures that can make funds perform more like beasts of burden than thoroughbreds. And while investors have worked their way over the hump and have successfully used mutual funds to reach their financial goals, it’s hard not to wonder how the business could be improved.”
The idea came from the book “Competitive Equity: A Better Way to Organize Mutual Funds“. Mr. Jaffee says that, “it made such a compelling story for investors. The book, co-authored by Peter Wallison and Robert Litan, calls for deregulation of the mutual fund industry. I wrote to Mr. Jaffee and he replied that it is best if I were to speak directly to the authors. (Maybe I will)
The basis of this idea seems to be to throw out the Board of Directors of the mutual fund and replace them with Trustees. One of the components to this would be to attempt to stop the requirement of fee oversight by the board and put it in the hands of the fund’s management. The idea is said to help bring on more competition and therefore greater benefit for the fund investors. (Fox and hen house ring any bell?)
There are many problems with this thesis. To keep this post short, we should focus on the most obvious: The fund industry Read more
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