My Comments: I posted recently that we had better revise our investment expectations downward if we are planning to use our retirement savings to sustain our standard of living for the next twenty years or so. I attributed the likelihood of lower growth and investment return numbers on demographics and a rising interest rate environment. …
Category: Investing Money
Demographics and Money
My Comments: If you are in pretty good health today, chances are you’re going to live into your 90’s. Which begs the next question: “How are you going to pay for food, shelter, medical care, etc.”? This is a global conundrum, brought about by medical advances and a reluctance on the part of people like …
Asset Allocation Strategies That Work
My Comments: It’s not easy to make your money grow. And to make sure once it’s grown, it doesn’t disappear. A long time truth involves a principal called asset allocation. It means spreading your money across different styles and kinds of assets. Some will always work better than others, not just when going up, but …
What Is The World Coming To?
My Comments: What’s your poison? Politics? Money? Entertainment? Sports? Religion? Well, this post is about economics and finance. Some of you will run and hide. That’s OK. It comes from Guggenheim Investments and is a quick and dirty look at the next few months... With spreads tight in high-yield corporate bonds, loans, structured credit, and …
Is The S&P 500 Overvalued?
My Comments: Are you willing to bet your financial future that this time it’s different? 27 days after this was written and it’s only gotten worse. By Aaron Hankin | April 18, 2017 Given rising geopolitical tension in the Middle East and North Korea, and rising skepticism about Trump administration policy, you could be excused …
Flashing Red Ratio
My Comments: Will stock prices plummet? Maybe… The Ratio That Predicted The 2001 And 2008 Stock Market Crashes Is Again Flashing Red by Atle Willems, May 4, 2017 The co-movement of the stock market and the money supply to saving ratio has been obvious especially in recent decades. But the two have now dislocated with …
An Overvalued Stock Market?
My Comments: Dr. Doom here again. And boy, do I love this first chart. Many of my colleagues have been encouraging our clients to sit on the sidelines now for about two years or more. And we’ve been blasted because the DOW and the S&P just keeps going up. Unless you believe the world has …
Stock Pickers vs Indexers
My Comments: Which approach is best for you? Not for me, but for YOU? For the past dozen years or more, my efforts on behalf of clients to use historically good fund managers has largely failed. And not just because of what happened in 2008-09. Yes, I still made my money as an advisor. But …
Why Reducing Investment Losses Is So Important
My Comments: There are times to be cautious and there are times to throw caution to the winds. As you get older, caution is increasingly common. One way to solve your dilemma is to focus efforts on limiting what we call downside risk. That’s the opposite of upside risk for those of you just figuring …
Continue reading Why Reducing Investment Losses Is So Important
The Best Way to Invest in Index Funds
My Comments: It’s important that some of your money be exposed to the risks and rewards of the stock and bond markets. Not all your money, perhaps 25% of it. So what’s the next step? There’s an increasing awareness of fees and commissions and how they have the potential to erode the value of your …
Helping Define Your Financial Future 