What is up with this market? Unfortunately this is the effect of both year-end profit taking at 15% long term capital gains rates while you still have them and more economic uncertainty as we approach the upcoming “fiscal cliff.” The good news is that I think we’re approaching a bottom in the near future (assuming…
I’m getting a sweet tooth for some sugar (financially at least…)
I like investing in commodities for a few reasons. First, we’re in a commodity bull market which puts the long-term trend on my side. As long as you’re willing to be patient, you should make money. Next, it’s easy to understand why the price of each commodity goes up and down. The only thing you…
Election Results
As an advisor, I’m happy to have clarity. My job isn’t to root one way or the other. I simply want to know who will be in office for the next four years so I can provide advice and manage investments with a high level of confidence. Now that we know President Obama will remain…
Protecting Against Stock Market Volatility
I figured today’s rough day in the stock market was a good time to discuss ways I like to protect portfolios in the short-term. Rule #1 of investing is diversification. By holding a mixture of asset classes, you reduce the risk that your entire portfolio will fall at the same time. However, the market crash…
Biding My Time…
I’m running above average levels of cash right now, especially in growth oriented portfolios, simply because I’m having a hard time finding decent value. Stocks, in general, are only 1.5% off their highs for the year, and in my opinion are still fairly stretched after what has been a great year to this point. While…
Coffee!
I think some of the best companies to invest in are the so called “vice” stocks – companies that do business in addictive products, like cigarettes, coffee, etc. When your consumers are addicted, they just keep coming back! I’ve been watching the price of Coffee and Sugar lately. After prices increased dramatically in 2010, farmers…
Index Investing vs. Active Fund Managers
Every 6 month’s Standard & Poor’s releases an update of how active mutual fund managers perform against their benchmark index. This report is called the S&P Indices vs. Active funds (SPIVA) scorecard, and can be found here. It’s an independent study that serves to act as a scorecard for the ongoing debate over which style…
Presidential Election 2012
Disclosure: I promise I will never use this blog to express my political opinions. I will use it to discuss the potential impact on the economy and investment markets from an objective standpoint though! I was beginning to think that President Obama had this election wrapped up, but we’ll see if last night’s debate can…