Oct
27
Time to Buy Gold?
October 27, 2008 | Leave a Comment
With financial hysteria setting it, some might wonder if it's time to buy gold or other commodities. Gold has been marketed as a "store of value" in uncertain times. But is gold (or other commodities) a good investment?
The rumor is that many hedge funds are liquidating their holdings to raise cash. This liquidation is bringing [...]
Oct
8
Were You Diversified?
October 8, 2008 | Leave a Comment
Every morning in the locker room I hear the same thing. People talking about how much money they just lost in the stock market. The problem is these people are OLD. I really want to walk up to one of them and ask if they were diversified or if the stock market was their only [...]
Sep
26
Wall Street No Longer Exists
September 26, 2008 | Leave a Comment
The Wall Street Journal (ironically) published an article stating that Wall Street for all intents and purposes no longer exists. Now that the investment banks are commercial banks Wall Street is not the same.
With Goldman Sachs and Morgan Stanley becoming commercial banks, and the other three big investment banks/brokerage houses being acquired by commercial banks, [...]
Sep
21
Why Money Market Funds Aren't Safe
September 21, 2008 | Leave a Comment
Many people think money market funds are as safe as bank deposits or certificates of deposit. Many people are wrong.
When you buy a CD or deposit money into a demand deposit (checking or savings) account, the government (FDIC) will insure your money up to a certain limit, usually no less than $100,000.
However with with money market [...]
Sep
17
Stocks for the Long Run
September 17, 2008 | 1 Comment
http://blogs.law.harvard.edu/philg/2008/09/16/stocks-for-the-long-run/
Inflation has decreased the value of a dollar about 33% since 1999. The S&P 500 has been stagnate for about that long.
You would have much more today if you had stashed you money in savings accounts, real estate and CD's. Most of my wealth is accounted for by cash and real estate. The minority [...]
Sep
16
Here We Go Again
September 16, 2008 | 1 Comment
I'm sure many financial "experts" are going to tell you to stay the course. That this is just a minor correction. The market will work itself out. I'm not going to do that. Instead I think this is a symptom of the cancer that has infected Wall Street.
If you want a good read on the [...]
Sep
12
Evidence that the Stock Market is Efficient
September 12, 2008 | 1 Comment
An old news story provides further evidence that the Efficient Market Hypothesis is valid. The Efficient Market theory states that all public information is reflected in the price of security. Put another way, news effects the prices of stocks almost as soon as it is known.
Recently an old news story from the Sun Sentinel [...]
Sep
10
Why I'm not Contributing to my 401(k) at Work
September 10, 2008 | 2 Comments
After some soul searching and fact checking, I've decided it's time to dump the 401(k). I know this sounds like sacrilege to the investing faithful, but I think it's a wise financial move.
My company contributes 7.5% of my salary to my 401(k). My employer makes this contribution even if I don't contribute a [...]
Sep
9
The Stock Market Scam – Stock Options
September 9, 2008 | Leave a Comment
I was reviewing some posts on Mark Cuban's site this morning. He's an interesting guy with real world experience. I used to follow his blog closely but a lot of it doesn't necessarily interest me. Anyway, I'm really interested in his investment philosophy and his talking stocks and money section.
In short, he feels that the [...]
Aug
13
A Random Walk Down Wall Street
August 13, 2008 | Leave a Comment
Is the stock market predictable? No says Burton Malkiel author of A Random Walk Down Wall Street.
Like Graham's Intelligent Investor, A Random Walk is one of those books that seems to stand the test of time. First published in 1973, it's currently in its 23rd edition.
This book is readable. Unlike some other [...]