tag:blogger.com,1999:blog-80913672878139935332012-01-30T22:00:03.275-05:00Thoughts and observations for those investing on their own or contemplating doing it themselves.Robert Wasilewskihttp://www.blogger.com/profile/04536814650758511673noreply@blogger.comBlogger5861100tag:blogger.com,1999:blog-8091367287813993533.post-67914623135924852382012-01-30T08:47:00.001-05:002012-01-30T17:10:17.353-05:00

The key (IMHO) to successful investing is to have a well-thought-out plan.  Sometimes the bull will be on the rampage; other times the bear will amble in.  There will be trying times.  On occasion they will be so trying they trigger a "flight or fight" response.  This is when investors without a plan ( I have to say that the Dennis Hopper commercial will forever pop into my head when I talk about

Robert Wasilewskihttp://www.blogger.com/profile/04536814650758511673noreply@blogger.com3tag:blogger.com,1999:blog-8091367287813993533.post-52917550776800192932012-01-25T07:50:00.001-05:002012-01-25T17:27:28.688-05:00

http://jamaryland.org/ This Saturday, January 28, from 10 am - 2 pm, Junior Achievement http://www.makingchangecenter.org/about_us.html and makingCHANGE will put on a financial literacy event at Howard Community College.  It is free and targets youth between the ages of 12 and 18.  Young people and their parents go through various stations where they make financial decisions such as

Robert Wasilewskihttp://www.blogger.com/profile/04536814650758511673noreply@blogger.com3tag:blogger.com,1999:blog-8091367287813993533.post-39492337003730757662012-01-24T14:57:00.001-05:002012-01-24T15:10:24.065-05:00

Some really good advice from someone who has "been there and done that."  Andrew Hallam tells you all you need to know to beat the pros at their own game in the investing world.  His ability to get at the essence of the best approach to investing is why I continually recommend Millionaire Teacher:  The Nine Rules of Wealth You Should Have Learned in School.  Get it for your kids, get it for

Robert Wasilewskihttp://www.blogger.com/profile/04536814650758511673noreply@blogger.com1tag:blogger.com,1999:blog-8091367287813993533.post-25990229089337108422012-01-22T09:58:00.001-05:002012-01-22T11:04:55.198-05:00

Source: Capital Pixel On December 12, I wrote a piece to show how professional bond managers approach the fixed income market.  I find, when I talk to potential clients, that the fixed income portion of their portfolio tends to confuse them - especially in today's environment of low interest rates.  Potential clients have an asset allocation which tells them that 40% or 50% should go to fixed

Robert Wasilewskihttp://www.blogger.com/profile/04536814650758511673noreply@blogger.com3tag:blogger.com,1999:blog-8091367287813993533.post-68251828636257084112012-01-19T11:48:00.004-05:002012-01-20T20:18:13.158-05:00

Source: Capital Pixel The Dow Jones Industrial Average (DJIA) is the most quoted stock average among followers of the markets.  "Where's the Dow?" is the question people ask when they want to know how the market is doing.  The average is comprised of 30 stocks and has been used since 1896 to track the market. Most market participants are somewhat familiar with the DJIA, but how many can name

Robert Wasilewskihttp://www.blogger.com/profile/04536814650758511673noreply@blogger.com4tag:blogger.com,1999:blog-8091367287813993533.post-53960636052629033502012-01-18T07:54:00.002-05:002012-01-18T08:48:21.806-05:00

Yesterday's post on Denny Neagle's financial woes generated some interesting comments on the need for personal responsibility in the personal finance world.  One point personal finance bloggers understand well is that nobody knows your financial situation better than you do.  Up to a certain point, everybody should know basic investment and financial planning concepts - they need to take some

Robert Wasilewskihttp://www.blogger.com/profile/04536814650758511673noreply@blogger.com4tag:blogger.com,1999:blog-8091367287813993533.post-66592547671318408042012-01-17T09:12:00.002-05:002012-01-17T19:02:04.320-05:00

Denny Neagle, 2-time all star pitcher, and his ex - wife are suing their financial advisor who put them in hedge funds, private equity funds, and alternative investments where they have experienced large losses and today cannot access their funds.  As Larry Swedroe points out in  "Invest Smarter Than an MLB Star" posted at Arianna Capital's site, "Working with an advisor you can trust is

Robert Wasilewskihttp://www.blogger.com/profile/04536814650758511673noreply@blogger.com6tag:blogger.com,1999:blog-8091367287813993533.post-61159052688149106312012-01-16T07:38:00.001-05:002012-01-16T08:07:34.544-05:00

Zacks, the well known stock research company, is offering 10 stock picks that "...promises market-beating gains no matter the direction the market heads." Not only that, but with a $299 subscription, you get a number of free reports! Some of you might question what happens if (alas!) the picks don't outperform.  No problem:  "...if the service doesn't BEAT the market, we'll credit the cost of

Robert Wasilewskihttp://www.blogger.com/profile/04536814650758511673noreply@blogger.com5tag:blogger.com,1999:blog-8091367287813993533.post-22701910865803823702012-01-14T09:06:00.002-05:002012-01-14T09:31:24.634-05:00

"How could I have been so mistaken as to have trusted the experts?"- John F. Kennedy (after the Bay of Pigs fiasco) More people today are learning what many have known for some time:  the Federal Reserve policymakers are a collection of arrogant clueless elitists.  If it weren't for the fact that their actions cause widespread misery, I would label them as a joke. The latest transcripts will be

Robert Wasilewskihttp://www.blogger.com/profile/04536814650758511673noreply@blogger.com4tag:blogger.com,1999:blog-8091367287813993533.post-63728168704615699692012-01-13T08:02:00.003-05:002012-01-13T15:52:36.800-05:00

A number of years ago I attended a presentation at the Touchdown Club in Washington, D.C. given by a successful contrarian money manager.  In fact, his investment record was so outstanding the audience hung on every word.  After all, he was giving the secrets to beating the market using a sort of "Dogs of the Dow" on steroids approach.  As I scanned the audience, I noticed slight nods as he

Robert Wasilewskihttp://www.blogger.com/profile/04536814650758511673noreply@blogger.com2tag:blogger.com,1999:blog-8091367287813993533.post-35585725667432468112012-01-11T07:48:00.002-05:002012-01-11T09:02:23.654-05:00

Target date funds are, IMHO, a pretty good product for people who need to invest but don't want to invest the time to learn the basics of investing or get professional investment advice.  This article, "Target Funds Miss Their Marks - Again," by Sarah Morgan in the Wall Street Journal may cause people some pause in this regard.  Ms. Morgan reports that funds within 4 years of target date returned

Robert Wasilewskihttp://www.blogger.com/profile/04536814650758511673noreply@blogger.com2tag:blogger.com,1999:blog-8091367287813993533.post-7495713188537809522012-01-07T07:57:00.004-05:002012-01-08T17:28:43.938-05:00

Source: Capital Pixel I'm an indexer.  I agree with Warren Buffet that most investors and individuals will do best by indexing the broad stock market. Still, I belong to the "there is more than one way to skin a cat club" and, if an individual is willing to take the risk, has the time, expertise, emotional fortitude, and resources, he or she may outperform the market with a well-thought out/

Robert Wasilewskihttp://www.blogger.com/profile/04536814650758511673noreply@blogger.com2tag:blogger.com,1999:blog-8091367287813993533.post-91117388594936462852012-01-06T18:16:00.002-05:002012-01-06T18:22:21.889-05:00

Source: Argot Pictures Here is a belated Xmas gift to my readers- "Throw Down Your Heart" on Hulu.  Bela Fleck takes the banjo back to its origins. If you like music, play it loud and enjoy.  Worth watching all the way through.  Hulu even throws in some commercials to give you time to replenish your wine. Thanks to David, my music guru and son,  for giving me the link!

Robert Wasilewskihttp://www.blogger.com/profile/04536814650758511673noreply@blogger.com2tag:blogger.com,1999:blog-8091367287813993533.post-40964743365896134202012-01-06T08:40:00.003-05:002012-01-06T17:52:17.971-05:00

Source: Capital Pixel Anyone casually following investment markets knows that dividend stocks are the investment du jour.  After all, with the yield on the 10-year U.S. Treasury bouncing around 2%, big cap, well-known names yielding greater than 2% with a history of increasing dividends look very attractive.  Furthermore, the blogosphere has numerous bloggers who provide excellent dividend

Robert Wasilewskihttp://www.blogger.com/profile/04536814650758511673noreply@blogger.com0tag:blogger.com,1999:blog-8091367287813993533.post-58303012619681806792012-01-05T08:34:00.003-05:002012-01-05T15:52:24.566-05:00

Source: Capital Pixel My last post presented results on the BlackRock standard portfolio which is basically 65% stocks/35% bonds and cash equivalents.  It returned approximately 1.6% for the year.  To me, it's a good benchmark against which to measure investment performance.  After all, it is simple and very easy to exectute.  It takes very little time, is well diversified and low cost, and it

Robert Wasilewskihttp://www.blogger.com/profile/04536814650758511673noreply@blogger.com2tag:blogger.com,1999:blog-8091367287813993533.post-89895454460236229052012-01-02T09:19:00.006-05:002012-01-02T10:04:10.446-05:00

HAPPY NEW YEAR EVERYONE!!!  I had a wonderful New Year's in Ocean City, Maryland with my wife.  The weather was absolutely great.  We stayed at a fun place where the rocking chairs are comfortable and the house wine is perfect. The view of the surfers from the deck was excellent.  I could appreciate them because I spent a day surfing in Galveston, Texas in the Gulf of Mexico years ago.  I only

Robert Wasilewskihttp://www.blogger.com/profile/04536814650758511673noreply@blogger.com5tag:blogger.com,1999:blog-8091367287813993533.post-48718386326910981302011-12-30T09:29:00.001-05:002011-12-30T10:29:57.358-05:00

Source: Capital Pixel Resolve to start or bolster your investment program. If you are young:  congratulations!  One of the first principles of personal finance is to start investing early to take advantage of compounding. Decision makers understand that taking no action is in fact a decision.  You can wait until you are 65 years old and then, after blowing out the birthday candles, figure

Robert Wasilewskihttp://www.blogger.com/profile/04536814650758511673noreply@blogger.com4tag:blogger.com,1999:blog-8091367287813993533.post-10543821846692649672011-12-27T09:22:00.001-05:002011-12-27T11:48:23.911-05:00

Source: Capital Pixel One of the questions I have potential clients answer is why they are seeking the services of RW investment Strategies.  This, of course, points me, as an advisor, in a particular direction and tells me a lot about whether I can help them.  A frequent answer is that they need help getting into the market. This, in fact, is one of the best reasons to seek the help of an

Robert Wasilewskihttp://www.blogger.com/profile/04536814650758511673noreply@blogger.com3tag:blogger.com,1999:blog-8091367287813993533.post-33949227951330135442011-12-26T08:52:00.005-05:002011-12-26T12:42:44.348-05:00

This is the season of predictions and forecasts.  Pundits are getting a lot of air time and magazine space trotting out all kinds of charts and esoteric facts to support highly specific predictions on where markets are headed. If you are like a lot of investors, you will be impressed.  In fact, crystal ball seers in the market are usually introduced by citing a time in the past when they made

Robert Wasilewskihttp://www.blogger.com/profile/04536814650758511673noreply@blogger.com2tag:blogger.com,1999:blog-8091367287813993533.post-9076350228996842392011-12-23T08:01:00.001-05:002011-12-24T13:39:09.367-05:00

In this final, 4-minute Khan Academy video on currencies, "China Keeps Peg But Diversifies Holdings," Sal notes that China's holdings of U.S. Treasuries are decreasing as they diversify their holdings but other countries holdings of Treasuries are increasing.  In fact, globally the rest of the world has to do something with the excess of the amount we buy from them versus what they buy from us,

Robert Wasilewskihttp://www.blogger.com/profile/04536814650758511673noreply@blogger.com1tag:blogger.com,1999:blog-8091367287813993533.post-19488416204127058642011-12-22T09:37:00.001-05:002011-12-25T12:22:10.474-05:00

In today's Khan Academy video, "Debt Loops Rationale and Effects," Sal looks at the positives and negatives--for both China and the U.S.--of the on-going pegging of the Yuan on global markets.  He discusses the likely outcome once the process is halted and the result when it is reversed.  Very simply, it has held interest rates low and enabled the U.S. to finance its massive debt at historically

Robert Wasilewskihttp://www.blogger.com/profile/04536814650758511673noreply@blogger.com0tag:blogger.com,1999:blog-8091367287813993533.post-37024079807353030102011-12-21T07:36:00.002-05:002011-12-21T09:51:17.014-05:00

In this Khan Academy video, "American - Chinese Debt Loop," Sal explains the effect of China pegging the Yuan, lending the U.S. funds via the buying of Treasury securities, and thereby contributing in a major way to low U.S. interest rates.  U.S. Treasury rates affect other U.S. rates as well, along with global interest rates.  Furthermore, low interest rates push global investors out on the risk

Robert Wasilewskihttp://www.blogger.com/profile/04536814650758511673noreply@blogger.com0tag:blogger.com,1999:blog-8091367287813993533.post-74948907637423581082011-12-20T07:29:00.002-05:002011-12-20T09:26:06.620-05:00

In this 16-minute video, Sal of Khan Academy takes us real close to understanding an important dynamic taking place in the global capital market that has held interest rates down and has been a bit underappreciated.  Here he shows how the Chinese Central Bank needs to constantly print Yuan and use that Yuan to buy U.S. dollars to maintain the peg between the Yuan and the U.S. dollar.  They do

Robert Wasilewskihttp://www.blogger.com/profile/04536814650758511673noreply@blogger.com0tag:blogger.com,1999:blog-8091367287813993533.post-6317212694842185432011-12-19T07:13:00.003-05:002011-12-19T09:04:58.183-05:00

The previous 3 posts presented short videos from the Khan Academy that covered some basics of international trade.  They showed a simple example of how a trade imbalance is resolved in a market of freely floating exchange rates.  They showed how currencies and prices adjusted. Today's 7-minute video presentation, "Pegging the Yuan," takes us closer to the real world.  It begins to look at what

Robert Wasilewskihttp://www.blogger.com/profile/04536814650758511673noreply@blogger.com0tag:blogger.com,1999:blog-8091367287813993533.post-47093025360539019572011-12-18T08:10:00.002-05:002011-12-18T09:54:02.106-05:00

The last two posts have looked at how a trade imbalance gets worked out in a freely floating exchange rate environment as explained by Sal Khan.  Today's 10-minute video,  "Currency Effect on Trade Review" brings it all together and shows how the quantity demanded for dolls and cola adjust, along with prices, to result in balanced trade. This sets the stage for what is happening in the real

Robert Wasilewskihttp://www.blogger.com/profile/04536814650758511673noreply@blogger.com3tag:blogger.com,1999:blog-8091367287813993533.post-91572265950705484962011-12-17T08:01:00.002-05:002011-12-17T17:17:23.811-05:00

Yesterday we looked at the first short video of 7 that explains why interest rates are so low.  The effect comes from the global currency markets and, in my vie,  is an effect that hasn't been fully appreciated by investors - even very sophisticated investors. Today's Khan Academy 14-minute video shows, in very basic terms, how freely varying exchange rates eliminate trade imbalances.  Notice

Robert Wasilewskihttp://www.blogger.com/profile/04536814650758511673noreply@blogger.com0tag:blogger.com,1999:blog-8091367287813993533.post-8081424186429382072011-12-16T08:16:00.001-05:002011-12-16T21:01:19.965-05:00

I have previously touted the Khan Academy videos produced by Sal Khan. They are a revolution in education produced by a gifted teacher.  Bill Gates, in fact, has called Sal Khan his favorite teacher. This is the first of 7 videos that takes the viewer into the world of currency exchange and shows how China's controlling its currency has an important influence on U.S. interest rates.  The videos

Robert Wasilewskihttp://www.blogger.com/profile/04536814650758511673noreply@blogger.com4tag:blogger.com,1999:blog-8091367287813993533.post-36614002779500562652011-12-13T09:36:00.001-05:002011-12-13T19:38:25.387-05:00

Source: Capital Pixel Last week I met with a client who held the Calvert Enhanced Equity Fund (CMICX).  This is a socially responsible fund.  It carefully screens stocks and selects only those that fit strict criteria in terms of their lines of business.  For example, many socially responsible funds would avoid tobacco stocks, military oriented stocks, etc. My investment approach runs into a

Robert Wasilewskihttp://www.blogger.com/profile/04536814650758511673noreply@blogger.com3tag:blogger.com,1999:blog-8091367287813993533.post-25233004227752299382011-12-12T14:14:00.002-05:002011-12-12T16:41:09.111-05:00

Source: Capital Pixel Yesterday we looked at the idea of bond trading on the basis of yield spreads.  Underlying this idea is that there is so-called "reversion to the mean" when it comes to yield spreads. We looked at a set of data showing that, on average, selling IEF (a 7 - 10 Treasury ETF) and buying HYG ( a high yield ETF) resulted in a take out of $10.42. Today HYG is $87.26 and IEF is

Robert Wasilewskihttp://www.blogger.com/profile/04536814650758511673noreply@blogger.com1tag:blogger.com,1999:blog-8091367287813993533.post-55800999889966158582011-12-10T10:25:00.001-05:002011-12-10T15:11:18.437-05:00

Source: Capital Pixel This post is for the active DIY investor who would like an approach  for  the fixed income portion of the portfolio.  It is presented solely as an idea to get the creative juices flowing.  In fact, in the end, the best approach for most DIY investors is to just buy the market, via AGG or BND which tracks the Barclay's Aggregate Index, i.e. the overall bond market, and

Robert Wasilewskihttp://www.blogger.com/profile/04536814650758511673noreply@blogger.com4tag:blogger.com,1999:blog-8091367287813993533.post-73855547495254401112011-12-07T08:01:00.001-05:002011-12-08T09:06:11.325-05:00

Source: melmelsmith.com Dividend aristocrats are S&P 500 companies that have increased dividends for 25 years in a row.  There are 50 companies on the list.  A listing, including number of years dividends have increased for each company, has been produced by Dividend Growth Investor.  Note that near the bottom of the post is a listing for so-called "Dividend Champions."  This is a broader

Robert Wasilewskihttp://www.blogger.com/profile/04536814650758511673noreply@blogger.com3tag:blogger.com,1999:blog-8091367287813993533.post-3918720828856380382011-12-03T07:45:00.001-05:002011-12-03T07:51:26.848-05:00

 Worth watching and reflecting on. Found on Biz of Life site. Paul Tudor Jones II- 2011 Heroes Breakfast from Robin Hood on Vimeo.

Robert Wasilewskihttp://www.blogger.com/profile/04536814650758511673noreply@blogger.com1tag:blogger.com,1999:blog-8091367287813993533.post-80689637565787671162011-12-02T08:01:00.004-05:002011-12-02T08:52:04.298-05:00

The joy of the holidays brings the stress of choosing gifts.  Some of us will participate in that sanity-testing tradition of "Secret Santa" and draw the name of the least liked or least known person in the office or even (yikes!) the boss. Others stress over getting something for someone in a different age bracket with tastes they can't relate to.  Still others dread meandering in crowds of rude

Robert Wasilewskihttp://www.blogger.com/profile/04536814650758511673noreply@blogger.com3tag:blogger.com,1999:blog-8091367287813993533.post-84417572710004248962011-11-30T08:33:00.001-05:002011-11-30T08:57:33.545-05:00

Source: Capital Pixel Here's an excellent article for those considering the DIYer route which I highly recommend:  "Should I Hire a Financial Advisor or Go it Alone?" by Walter Updegrave. Thinking about becoming a DIYer is something I promote.  IMHO ( as well as Warren Buffet's and many other respected market practitioners) many people are throwing money away by paying professionals to time

Robert Wasilewskihttp://www.blogger.com/profile/04536814650758511673noreply@blogger.com2tag:blogger.com,1999:blog-8091367287813993533.post-74680271104968886972011-11-28T07:29:00.002-05:002011-11-28T16:05:19.302-05:00

Seth Klarman is a legend in a league with Warren Buffett. In this interview with Charlie Rose I found on The Biz of Life site, he first talks about his non-profit organization and then gets into his investment approach. No matter what style an investor chooses, it is always valuable, I think, to listen to those who have mastered the game. He notes that it takes a certain, rare gene to invest

Robert Wasilewskihttp://www.blogger.com/profile/04536814650758511673noreply@blogger.com4tag:blogger.com,1999:blog-8091367287813993533.post-81356553229084577892011-11-27T09:07:00.002-05:002011-12-01T07:58:51.275-05:00

As one who concentrates on investments and portfolio management, I am very much aware that the process is carried out within the context of an overall plan. Plainly put, the investment program can be the exact fit for a client in terms of overall assets, risk tolerance, retirement goals, etc. but something else can be totally out of kilter - sort of like a well-fitted suit with a long loose

Robert Wasilewskihttp://www.blogger.com/profile/04536814650758511673noreply@blogger.com6tag:blogger.com,1999:blog-8091367287813993533.post-86253337204256662222011-11-23T08:10:00.002-05:002011-11-23T09:16:01.330-05:00

For those who get overdosed on cheer this holiday season, I recommend the DVD Inside Job . It will quickly bring you back to reality.  It proves what most people know - there is no upper bound for greed.  Still, to see how it has played out to bring us to where we are today is sobering. We have paid a heavy price for assuming that those in charge know what they are doing and that they are

Robert Wasilewskihttp://www.blogger.com/profile/04536814650758511673noreply@blogger.com5tag:blogger.com,1999:blog-8091367287813993533.post-4956908077779502582011-11-22T08:36:00.006-05:002011-11-22T08:57:42.795-05:00

Source: Capital Pixel The most important firm specific date is usually when earnings are released.  If you invest in individual stocks, you are interested in when the report is coming out and the expectations of the market.  A disappointing report or a surprisingly good report typically will move the price significantly.  Those who follow Apple stock closely know exactly what I mean.  When

Robert Wasilewskihttp://www.blogger.com/profile/04536814650758511673noreply@blogger.com1tag:blogger.com,1999:blog-8091367287813993533.post-73365091302659392992011-11-19T10:37:00.003-05:002011-11-19T21:46:17.603-05:00

Assume: Joe has worked for 20 years at a company that matched  the company 401(k) by 50% up to 6% of salary.  Joe contributed 6% of salary and being risk averse allocated his contribution and the company match to 50% bonds (aggregate exchange traded fund, AGG) and 50% stocks (S&P 500,SPY). He was 45 years old when he started and today he is 65 years old. How much was his portfolio  worth at year

Robert Wasilewskihttp://www.blogger.com/profile/04536814650758511673noreply@blogger.com5tag:blogger.com,1999:blog-8091367287813993533.post-37407496229408223012011-11-18T07:50:00.004-05:002011-11-18T20:56:28.535-05:00

Source: Capital Pixel One of the challenges today for DIY investors, who actively manage their own assets, is handling the vast amount of information at their finger tips.  A key is to find good sources.  One worth checking out is "Market Currents" at Seeking Alpha. Scanning recent lists you'll find many reports on the troubled Europe region.  This, of course, is where investors are presently

Robert Wasilewskihttp://www.blogger.com/profile/04536814650758511673noreply@blogger.com3tag:blogger.com,1999:blog-8091367287813993533.post-66407512733346245742011-11-14T07:25:00.004-05:002011-11-14T08:22:13.590-05:00

Source: Amazon Andrew Hallam's book Millionaire Teacher has deservedly reached #1 on Amazon's best seller list of personal finance books.  It's not hard to figure out why - it is readable, witty, and provides a desperately needed message to individuals on how to become financially literate.  If it was up to me, it would be required reading in all high schools and colleges; and Human Resources

Robert Wasilewskihttp://www.blogger.com/profile/04536814650758511673noreply@blogger.com7tag:blogger.com,1999:blog-8091367287813993533.post-88773802516661733232011-11-10T09:16:00.001-05:002011-11-10T11:21:22.031-05:00

Kim Clark offers some interesting points on so-called "conventional wisdom" in "Investing: Throw Out Conventional Wisdom."  Many have to do with the all-important subject of asset allocation.  IMHO, this is where investors should focus their efforts rather than spending the bulk of their time picking stocks and trying to figure out which "guru du jour" to follow. From this perspective, Clark's

Robert Wasilewskihttp://www.blogger.com/profile/04536814650758511673noreply@blogger.com2tag:blogger.com,1999:blog-8091367287813993533.post-74348284660568664622011-11-09T08:04:00.003-05:002011-11-09T09:27:22.926-05:00

At some point in a jury trial, you get to credentials.  In the jury trial I was on, a "first responder" was getting equipment off a firetruck in a cordoned-off area when he was sideswiped by an elderly lady whose car had somehow made it into the area.  He rolled down an embankment and damaged his knee. I was hoping the trial would go into analyzing how the lady got her car into the area, but

Robert Wasilewskihttp://www.blogger.com/profile/04536814650758511673noreply@blogger.com3tag:blogger.com,1999:blog-8091367287813993533.post-72559859352751541212011-11-06T12:31:00.002-05:002011-11-06T16:10:57.880-05:00

Source: http: Capital Pixel Sometimes when I talk with potential clients about the fixed income portion of their portfolio, I find that they are thinking "cash" à la money markets, etc.  They see cash as their defense against a falling market. Me:  "Maybe you should consider the asset allocation model that has 50% in fixed income." Them:  "I'm pretty much there.  I have 3 certificates of

Robert Wasilewskihttp://www.blogger.com/profile/04536814650758511673noreply@blogger.com2tag:blogger.com,1999:blog-8091367287813993533.post-79910060059036629652011-11-03T11:20:00.008-04:002011-11-03T20:38:40.387-04:00

Source: Amazon Yesterday I gave a pitch to the Howard County Public Schools Academy of Finance board, of which I am a member, for Andrew Hallam's book Millionaire Teacher.  The book is highly recommended for anyone interested in learning the appropriate way to invest for the longer term and how a person of modest salary can attain a sizeable nest egg.  Andrew's humor and talent for explaining

Robert Wasilewskihttp://www.blogger.com/profile/04536814650758511673noreply@blogger.com2tag:blogger.com,1999:blog-8091367287813993533.post-8027195477757860272011-11-01T07:58:00.001-04:002011-11-01T15:48:26.118-04:00

It's hard to understand why someone would try to pull a foot off the brakes of a car careening towards a cliff.  That's the puzzle facing investors as they get the latest news out of the European Union on Greece's call for a referendum on last week's agreement.  Some people and nations make agreements and then live up to the agreements.  Some don't.  A useful source for understanding Greece, as

Robert Wasilewskihttp://www.blogger.com/profile/04536814650758511673noreply@blogger.com3tag:blogger.com,1999:blog-8091367287813993533.post-14273243030634478462011-10-30T10:07:00.002-04:002011-10-30T11:19:09.457-04:00

Isn't it striking how every politician in Washington DC can eloquently riff on what is wrong with the U.S. political system and yet the system continues in a highly dysfunctional state?  This points up the well-known and frustrating fact that people know what to do to take steps to regain functionality but the will is lacking.  Sort of like dealing with an accident-prone teenager walking around

Robert Wasilewskihttp://www.blogger.com/profile/04536814650758511673noreply@blogger.com4tag:blogger.com,1999:blog-8091367287813993533.post-23897212786665466512011-10-28T07:42:00.001-04:002011-10-28T16:21:40.544-04:00

Source: Capital Pixel So Europe pulled it off!  They agreed on haircut for Greek debt, percent of debt to GDP, bolstering Tier 1 capital position for banks, and funding for EFSF.  I echo those who wonder if the U.S. government can learn something here. Now it's about execution, and a key indicator will be Italian bond yields - in particular the 10-year Italian bond yield.  To the extent that

Robert Wasilewskihttp://www.blogger.com/profile/04536814650758511673noreply@blogger.com5tag:blogger.com,1999:blog-8091367287813993533.post-47652705652527258932011-10-25T09:12:00.001-04:002011-10-25T09:29:03.273-04:00

Source: durtcom In August, I wrote a post about rear view mirror investing. At the time, investors were piling into bonds and precious metals and didn't like stocks.  I cited the following year-to-date returns at the time: TLT (longer term U.S. Treasury exchange traded fund): +20.79% GLD (gold exchange traded fund): +29.02% INTC (intel common stock):  -6.03% Back then, the 10-year Treasury

Robert Wasilewskihttp://www.blogger.com/profile/04536814650758511673noreply@blogger.com4tag:blogger.com,1999:blog-8091367287813993533.post-20214102610640258742011-10-23T09:22:00.001-04:002011-10-23T12:41:21.457-04:00

In late September, six people, including a current employee, sued Ameriprise Financial on issues related to its 401(k) plan, as described by Lieber in "Financial Planner's Red Flags."  There are several ongoing suits against 401(k) plans on the basis of cost and performance results.  This, to my knowledge, is the first suit brought against a financial services firm by its employees - those who

Robert Wasilewskihttp://www.blogger.com/profile/04536814650758511673noreply@blogger.com3tag:blogger.com,1999:blog-8091367287813993533.post-80214727216582320832011-10-19T08:28:00.004-04:002011-10-19T12:03:27.886-04:00

I, along with millions of Americans, watched the Republican candidates debate last night.  Really, what better entertainment is there?  Actually, "Dancing With the Stars" is pretty close; and I did do a lot of switching back and forth. Anyways, it got me to thinking of the difference between the parties and what makes one a Democrat or a Republican.  I have to admit that I've switched parties

Robert Wasilewskihttp://www.blogger.com/profile/04536814650758511673noreply@blogger.com6tag:blogger.com,1999:blog-8091367287813993533.post-6336647058762964092011-10-15T08:24:00.002-04:002011-10-15T08:34:09.094-04:00

How are your investments doing? This is a fairly common question these days with Europe dealing with bailout problems, the U.S. worried about a recession, and politicians acting stupider than usual.  Some put all this together and opt for money market accounts.  Unfortunately for many, that won't get the retirement many want. On a number of occassions, I've posted about asset allocation and how

Robert Wasilewskihttp://www.blogger.com/profile/04536814650758511673noreply@blogger.com2tag:blogger.com,1999:blog-8091367287813993533.post-15257445436456292272011-10-14T08:19:00.002-04:002011-10-14T08:27:40.444-04:00

"Those who do not learn from history are doomed to repeat it." - George SantayanaMention black swans and you get investors' attention.  These are the rare events that destroy portfolios.  Unfortunately, they are not as rare as commonly thought.  Two have occurred in the last 10 years - the dot.com bust and the housing crisis.  The term, of course, was popularized by hedge fund trader Nassim Taleb

Robert Wasilewskihttp://www.blogger.com/profile/04536814650758511673noreply@blogger.com4tag:blogger.com,1999:blog-8091367287813993533.post-46451774495538360642011-10-11T09:13:00.002-04:002011-10-11T14:40:53.739-04:00

Going through old financial statements can be a depressing experience for financial advisors - not so much because of what individuals investors did, but because of what was done to them. This from a 9/06/2006 presentation by Morgan Stanley reps on a SIMPLE IRA: What is Asset Allocation?      i. Avoids The Big Mistake        From 1984 to 2002, S&P 500 - 12.22% annually ( penciled in by

Robert Wasilewskihttp://www.blogger.com/profile/04536814650758511673noreply@blogger.com3tag:blogger.com,1999:blog-8091367287813993533.post-50021492835570053132011-10-07T07:56:00.004-04:002011-10-07T08:25:36.164-04:00

Today the market is braced for the release of the monthly employment data.  It is released on the first Friday of each month at 8:30 am.  To find out when data is released, you need a calendar of economic events, like the following, available at ECONOMIC CALENDAR. Source: ECONODAY By clicking the indicated link, you'll find that economists expect the unemployment rate to tick up to 9.2% and

Robert Wasilewskihttp://www.blogger.com/profile/04536814650758511673noreply@blogger.com9tag:blogger.com,1999:blog-8091367287813993533.post-38088490533910860682011-10-06T07:57:00.001-04:002011-10-06T08:23:54.426-04:00

A Standford University commencement address by Steve Jobs worth viewing - from "The Biz of Life" blog. I have to say how lucky we are to have an economic system of free market capitalism in which Steve Jobs and others are enabled to work hard and are incentivized to hire talented people to produce the remarkable products that enrich our lives.  The workings of this system and the whole idea of

Robert Wasilewskihttp://www.blogger.com/profile/04536814650758511673noreply@blogger.com12tag:blogger.com,1999:blog-8091367287813993533.post-69480147477651993122011-10-05T07:44:00.004-04:002011-10-05T08:28:02.281-04:00

If you are interested in understanding the European crisis, please spend 50 minutes and watch this interview of author Michael Lewis by Charlie Rose.  The interview starts with a discussion of Moneyball, Lewis's story of how the Oakland A's used statistics to build a team that accomplished something never before accomplished in professional baseball, despite having a lower payroll than other

Robert Wasilewskihttp://www.blogger.com/profile/04536814650758511673noreply@blogger.com2tag:blogger.com,1999:blog-8091367287813993533.post-40841980250114616312011-10-03T08:28:00.001-04:002011-10-03T10:30:10.765-04:00

The problem with the protest on Wall Street is that, like similar episodes, many of the protesters tend to be clueless on what the protest is about.  Leaders of the protests tend to be closet Marxists (Susan Sarandon) who feel left out of an economic system that rewards merit or feel guilty because they have an economically valuable talent (Susan Sarandon) and who never understood why Marx was

Robert Wasilewskihttp://www.blogger.com/profile/04536814650758511673noreply@blogger.com6tag:blogger.com,1999:blog-8091367287813993533.post-67237957679194450362011-10-01T08:29:00.003-04:002011-10-02T07:37:42.040-04:00

One of the most useful research pieces available for DIY investors, I believe, is the "Asset Class Returns: A 20-Year Snapshot" table produced by BlackRock and discussed at Cedar Financial Advisors.  It shows annual asset class returns, color-coded, on a ranked basis so that investors can easily see the best-performing and worst-performing sectors for each year. Similar so-called periodic

Robert Wasilewskihttp://www.blogger.com/profile/04536814650758511673noreply@blogger.com4tag:blogger.com,1999:blog-8091367287813993533.post-66512233011800340752011-09-30T08:05:00.001-04:002011-09-30T09:54:03.297-04:00

Investors' Silent Business Partner Many times there is a "missing manual" type of effect in personal finance.  For example, investors reach the point where they understand that asset allocation is the first and most important step in investing, determine that they should put 30%, say, in fixed income, but then are left hanging.  Should they buy individual bonds or exchange traded funds?  And

Robert Wasilewskihttp://www.blogger.com/profile/04536814650758511673noreply@blogger.com2tag:blogger.com,1999:blog-8091367287813993533.post-48742341247475066482011-09-28T07:37:00.002-04:002011-09-28T08:08:09.043-04:00

Jack Bogle answers 5 questions in this interview by Ben Steverman of Bloomberg.  Bogle offers the best advice he ever received, his views on the current market, and mentions the biggest problem facing the industry today. He says "The fund industry has turned into a marketing business, and the important thing is getting a lot of assets under management. It’s run for the benefit of financial

Robert Wasilewskihttp://www.blogger.com/profile/04536814650758511673noreply@blogger.com2tag:blogger.com,1999:blog-8091367287813993533.post-26188849110264780702011-09-27T09:06:00.008-04:002011-09-27T19:39:57.862-04:00

Source: Richard Scarry The September 12 - September 18, 2011 issue of Bloomberg Businessweek reports ("Armageddon" "We're Dealing With a Culture of Hypochondria" by Robert Farzad) that, according to an MFS Investment Mangement survey, 40 % of Gen-Yers (ages 18-30) agree with the statement, "I will never feel comfortable investing in the stock market." The article goes on to say that this is "

Robert Wasilewskihttp://www.blogger.com/profile/04536814650758511673noreply@blogger.com9tag:blogger.com,1999:blog-8091367287813993533.post-65484683768880297762011-09-25T09:49:00.001-04:002011-09-25T15:10:42.700-04:00

OK...I can hear it now...what kind of question is that?  After all, widespread deflation occurred in the 1930s and look at that period.  More recently, Japan has been in a long-term stagnation deflationary period.  In the 1930s, prices fell and businesses couldn't sell their goods as consumers retrenched.  Consumers retrenched because businesses were laying people off.  An impasse resulted and

Robert Wasilewskihttp://www.blogger.com/profile/04536814650758511673noreply@blogger.com3tag:blogger.com,1999:blog-8091367287813993533.post-68627325431226448902011-09-23T08:33:00.001-04:002011-09-23T23:04:49.213-04:00

This post idea came from "Where Can You Learn Extreme DIY Skills?" at the Money Ning blog.  DIY investing is actually a pretty easy skill to learn that can save a boatload of money because of the great books written by the masters, who simplify the whole process.  The basics can be grasped in a single weekend.  A number of these books are listed in the bookstore link on the right hand side.  I

Robert Wasilewskihttp://www.blogger.com/profile/04536814650758511673noreply@blogger.com4tag:blogger.com,1999:blog-8091367287813993533.post-76649297463300330192011-09-22T07:33:00.004-04:002011-09-22T08:04:56.311-04:00

Yesterday I looked at the first 5 questions suggested by Fidelity for couples thinking about retirement.  Here are the final 5 questions.  The study is the result of a poll showing that less than half of potential retirees discuss this major life change with their partners.  The list is useful for closing this communications gap.  Continuing yesteday's approach, I put my comments in bold. 6.

Robert Wasilewskihttp://www.blogger.com/profile/04536814650758511673noreply@blogger.com5tag:blogger.com,1999:blog-8091367287813993533.post-32498630210288082752011-09-21T08:14:00.002-04:002011-09-21T08:34:12.846-04:00

 Quick: What percentage of couples make joint decisions on retirement savings?  According to a study by Fidelity Investments reported on in the September 2011 issue of AAII Journal, it is just 41%. Furthermore, only 17% of couples feel that either spouse could assume responsibility for managing the assets. 35% of wives and 72% of husbands believe they could manage the assets.  37% of husbands

Robert Wasilewskihttp://www.blogger.com/profile/04536814650758511673noreply@blogger.com1tag:blogger.com,1999:blog-8091367287813993533.post-51237581893258033332011-09-19T08:27:00.001-04:002011-09-19T09:05:27.852-04:00

As for me, all I know is that I know nothing.  Socrates On 9/11 last week, I spent much of the day, like many Americans,  watching footage of the terrorist attacks.  One of the things that really struck me more than it had in the past was the giving of advice by those supposedly "in the know" that cost thousands of lives.  People in the towers called 911 after the first plane hit and were told to

Robert Wasilewskihttp://www.blogger.com/profile/04536814650758511673noreply@blogger.com5tag:blogger.com,1999:blog-8091367287813993533.post-13632227492756387032011-09-17T09:12:00.001-04:002011-09-17T12:38:42.432-04:00

As commenters to my previous posts have pointed out, today a much easier way to participate in the bond market is via exchange traded funds (ETFs).  When you do an asset allocation and determine that a certain percentage of your assets, 30% say, should be allocated to bonds or fixed income, think exchange traded funds.  You immediately get diversification and avoid the pricing problem with odd

Robert Wasilewskihttp://www.blogger.com/profile/04536814650758511673noreply@blogger.com2tag:blogger.com,1999:blog-8091367287813993533.post-77515915915837701322011-09-16T14:08:00.002-04:002011-09-16T15:09:16.303-04:00

Buying individual bonds is not easy.  Anything under $1 million is an odd lot and will typically not get a good bid or offer price, they trade over-the-counter, are difficult to price, and come with a lot of bells and whistles.  Still, some DIY investors prefer individual bonds because of their specificity and directness. With individual bonds, you know exactly what you own and you have control

Robert Wasilewskihttp://www.blogger.com/profile/04536814650758511673noreply@blogger.com1tag:blogger.com,1999:blog-8091367287813993533.post-75047584359092519922011-09-14T08:28:00.003-04:002011-09-14T09:01:03.871-04:00

On Monday, we looked at some basic terms used to describe bonds.  At the end of the post, we saw the idea of accrued interest.  Simply, when you buy a bond in the secondary market (after it has been issued), you pay accrued interest to the buyer - the interest earned since the last interest payment.  The Treasury bond example we were considering paid interest on August 15 and February 15 (every 6

Robert Wasilewskihttp://www.blogger.com/profile/04536814650758511673noreply@blogger.com3tag:blogger.com,1999:blog-8091367287813993533.post-53306860394605533382011-09-12T08:18:00.001-04:002011-09-12T09:34:53.651-04:00

Few subjects confuse new investors as much as bonds.  Many struggle to understand that prices and yields move in different directions.  They aren't sure whether to buy individual bonds or a bond fund. They aren't sure where, in fact, to go to buy individual bonds or what bond fund to buy.  This series will examine the basics of bonds. Terminology Bonds have some basic terms that all investors

Robert Wasilewskihttp://www.blogger.com/profile/04536814650758511673noreply@blogger.com4tag:blogger.com,1999:blog-8091367287813993533.post-21724833166305009362011-09-11T10:07:00.003-04:002011-09-11T12:58:54.818-04:00

This is a really good interview, by Jason Zweig, of Jack Bogle found at Biz of Life's blog.  Jason Zweig is an excellent interviewer and asks the questions that occur to listeners.  The interview is about Mark Cuban's approach to investing where he says "buy-and-hold" and "diversification" are not the keys to good investing - I've paraphrased here big time; Cuban is a bit blunter.  All of this is

Robert Wasilewskihttp://www.blogger.com/profile/04536814650758511673noreply@blogger.com4tag:blogger.com,1999:blog-8091367287813993533.post-79680328669783214212011-09-10T17:47:00.002-04:002011-09-11T12:51:30.022-04:00

9/11 is the saddest day in our history.  It is very well presented in numerous documentaries.  One of the best is "On Native Soil" which clearly shows the failure of our government.  It answers the question of how this could have happened - at least for me. Unfortunately many citizens who lost loved ones in New York, Washington D.C., or Pennsylvania  had to struggle with spineless government

Robert Wasilewskihttp://www.blogger.com/profile/04536814650758511673noreply@blogger.com3tag:blogger.com,1999:blog-8091367287813993533.post-28670840617644855202011-09-09T10:36:00.002-04:002011-09-10T17:10:43.738-04:00

Hire someone who has been out of work for more than 6 months, and Uncle Sam will pay you $4,000 under Obama's Job Act described last night.  You hired 4 chronically unemployed last week?  Too bad - you're screwed.  You left $16,000 on the table. You applying for a jo,b but you've been out of work for only a week.  There's a good chance someone less qualified will get it.  Sorry, you're screwed.

Robert Wasilewskihttp://www.blogger.com/profile/04536814650758511673noreply@blogger.com3tag:blogger.com,1999:blog-8091367287813993533.post-81268132932873645592011-09-07T07:40:00.002-04:002011-09-07T08:10:22.153-04:00

On Monday we saw how to find dividend information for exchange traded funds. By going to Yahoo! Finance and putting the ticker symbol into the quote box, we saw how to find the actual payment dates and payment amounts on a per share basis.  On Tuesday we created a table to calculate the weighted yield of a simple portfolio. The final step is to take this information and put it into a table that

Robert Wasilewskihttp://www.blogger.com/profile/04536814650758511673noreply@blogger.com5tag:blogger.com,1999:blog-8091367287813993533.post-87126335687463222462011-09-06T09:48:00.003-04:002011-09-06T17:28:18.988-04:00

Yesterday we took step 1 in creating a dividend table for a simple portfolio of 5 exchange traded funds.  The goal is to understand when payments will be received, approximately how much they will be, and the overall yield on the individual securities as well as the portfolio. We went to Yahoo! Finance and found the payout record of SCHX.  It pays quarterly in September, December (actually right

Robert Wasilewskihttp://www.blogger.com/profile/04536814650758511673noreply@blogger.com1tag:blogger.com,1999:blog-8091367287813993533.post-1659685180168895402011-09-05T10:11:00.001-04:002011-09-05T20:14:28.466-04:00

A really good way to better understand your portfolio, whether you manage it or an advisor manages it, is to create a dividend table showing when dividends will come in on a security level basis and then derive a weighted average yield for the portfolio.  This become crucial when an investor reaches the decumulation stage when investors need to draw down their nest egg.  Using the rule-of-thumb,

Robert Wasilewskihttp://www.blogger.com/profile/04536814650758511673noreply@blogger.com1tag:blogger.com,1999:blog-8091367287813993533.post-46104589239733642732011-09-04T10:13:00.001-04:002011-09-04T16:52:07.722-04:00

Investors interested in yield (who isn't these days) should consider master limited partnerships (MLPs).  These are a bit tricky, however, and you just can't load up on them in an IRA. Here is the best article I have read in some time on MLPs by Steven Bavaria entitled "One Thing Jim Cramer Didn't Mention About IRAs."  It explains the "UBIT" - unrelated business taxable income well and tells how

Robert Wasilewskihttp://www.blogger.com/profile/04536814650758511673noreply@blogger.com1tag:blogger.com,1999:blog-8091367287813993533.post-38364826689128041852011-09-04T09:07:00.002-04:002011-09-04T16:51:10.699-04:00

Bernanke Just when we thought (and hoped) the Federal Reserve might have shot all its bullets (without hitting the target by the way), it turns out  there are plenty left.  The latest to garner attention, after Chairman Bernanke's mention in his much anticipated Jackson Hole speech, is "operation twist," an action last carried out in 1961 during the Kennedy administration.  It lowered longer

Robert Wasilewskihttp://www.blogger.com/profile/04536814650758511673noreply@blogger.com3tag:blogger.com,1999:blog-8091367287813993533.post-74975944185472754232011-09-03T08:36:00.003-04:002011-09-03T09:23:06.348-04:00

Adam Smith I, along with many others across the nation last week, introduced students to the marvels of the free market system.  We discussed how, by allowing individuals to act in their own self-interest, unprecedented wealth has been created over the past 250 years in the Western world and how many nations that had chosen a different economic system have seen the folly of their choice and

Robert Wasilewskihttp://www.blogger.com/profile/04536814650758511673noreply@blogger.com2tag:blogger.com,1999:blog-8091367287813993533.post-67294481858353319162011-09-02T08:00:00.003-04:002011-09-02T09:06:22.396-04:00

One of the 3 or 4 books I recommend to those serious about learning investing is Your Money and Your Brain by Jason Zweig.  This is a book that will change the way you look at investing.  It is the single best intro to leading-edge research on the field of "neroeconomics" which carries out experimental research to understand how financial decisions are made.  It came to mind after reading the

Robert Wasilewskihttp://www.blogger.com/profile/04536814650758511673noreply@blogger.com1tag:blogger.com,1999:blog-8091367287813993533.post-44993059803108942232011-09-01T17:23:00.001-04:002011-09-02T07:52:42.891-04:00

This cartoon made me think of the Fed Chairman and the Treasury Secretary. CLICK TO ENLARGE From Greg Mankiw's blog (former head of Council of Economic Advisors to the President) and author of the best-selling undergraduate micro and macro economics texts.

Robert Wasilewskihttp://www.blogger.com/profile/04536814650758511673noreply@blogger.com1tag:blogger.com,1999:blog-8091367287813993533.post-87021212481458472772011-09-01T08:19:00.001-04:002011-09-01T12:37:03.930-04:00

Charles Ponzi Have you heard of James D. Risher and Daniel Sebastian?  They apparently defrauded teachers and retirees in a $22 million Ponzi scheme.  Teachers!  Teachers are at the forefront in many parts of the country teaching financial literacy!  The men are said to have promised returns of 124% annually, according to the Securities Exchange Commission.  The M.O. appears to be

Robert Wasilewskihttp://www.blogger.com/profile/04536814650758511673noreply@blogger.com5tag:blogger.com,1999:blog-8091367287813993533.post-5594091591855242552011-08-31T07:32:00.001-04:002011-08-31T15:30:51.950-04:00

MoneyCone has written a must read analysis, "Following Buffett Blindly Can Be Injurious to Your Wealth,"  from the perspective of the investor who might consider jumping on the coattails of some of his deals.  Be sure to note the very apt art on the article showing a pack of "SMOKEME" cigarettes. It is not easy for me to write objectively about Buffett's latest deal, Bank of America, because

Robert Wasilewskihttp://www.blogger.com/profile/04536814650758511673noreply@blogger.com3tag:blogger.com,1999:blog-8091367287813993533.post-78245504755266631712011-08-30T17:15:00.002-04:002011-08-30T18:00:21.748-04:00

Source::The Dividend Ninja DIY Investor was picked by Dividend Ninja as one of his top 10 blogs, which I consider an honor considering the others in the list and the fact that Dividend Ninja is a high-quality blogger. Anyone interested in investing and financial topics, and especially top of the line research on dividend paying stocks, will find this list a great resource. Thanks, Ninja!

Robert Wasilewskihttp://www.blogger.com/profile/04536814650758511673noreply@blogger.com3tag:blogger.com,1999:blog-8091367287813993533.post-44533557372148819362011-08-30T13:48:00.002-04:002011-08-30T13:56:27.187-04:00

By Lori Steenhoek aka oldest daughter Hurricanes, earthquakes, hey...respect mother nature!  Roads here are blocked, power lines are down all over the place, and it's not clear what is open and what is closed.  Rooms have stopped shaking, and the winds and rain have departed.  The sun is out and the cleanup is underway. I spent most of the morning looking for gasoline to fill up a generator

Robert Wasilewskihttp://www.blogger.com/profile/04536814650758511673noreply@blogger.com3tag:blogger.com,1999:blog-8091367287813993533.post-40945501137448957742011-08-25T09:15:00.002-04:002011-08-25T12:33:19.011-04:00

Early in my investment career I had a friend/mentor, Phil, who believed that the market does what hurts people the most.  He would sit down and talk out loud, reasoning with himself a likely course for events to unfold - both on the upside as well as the downside - that would be painful for investors.  In early 2009, as investors fled the market, he surely was questioning what would hurt

Robert Wasilewskihttp://www.blogger.com/profile/04536814650758511673noreply@blogger.com3tag:blogger.com,1999:blog-8091367287813993533.post-72514176596055995172011-08-24T07:51:00.001-04:002011-08-24T09:24:49.453-04:00

Biz of Life presents 9 videos as the first part of a series that details the process of portfolio construction by renowned investment manager Paul Merriman.  The explanations are very well done.  Merriman shows how, over the longer term, based on academic evidence, adding asset classes increases expected compound annual return from 9.5% to 12%.  He clearly demonstrates the role of risk in the

Robert Wasilewskihttp://www.blogger.com/profile/04536814650758511673noreply@blogger.com2tag:blogger.com,1999:blog-8091367287813993533.post-36287663284991943422011-08-20T08:04:00.001-04:002011-08-20T08:13:31.082-04:00

Keynes:  The market can stay irrational longer than you can stay solvent. To see how various investments have fared is easy.  Just look in the rear view mirror.  In fact, the "rear view mirror" approach is a very popular investment approach.  What isn't generally appreciated is that it often ends badly.  Ask those that jumped on the dot.com bubble in 2000. Let's consider some year-to-date

Robert Wasilewskihttp://www.blogger.com/profile/04536814650758511673noreply@blogger.com1tag:blogger.com,1999:blog-8091367287813993533.post-72203683409538289012011-08-19T07:52:00.001-04:002011-08-19T08:01:44.279-04:00

Source: Time Backstory:  Unemployment stubbornly high.  High percentage of unemployed chronically unemployed.  Official numbers underreport extent of unemployment.  Overall Consumer Price Index (CPI) reported at 0.5% - approximately 6% annual rate. One of my favorite exercises with my macro econ students is to think about how many "inflation" words we can think of, to define them, and to

Robert Wasilewskihttp://www.blogger.com/profile/04536814650758511673noreply@blogger.com0tag:blogger.com,1999:blog-8091367287813993533.post-18370664959037510232011-08-18T11:14:00.002-04:002011-08-18T14:56:38.927-04:00

John Maynard Keynes The Dow is down 450 points, the S&P 500 is off 50 points, the 10-year Treasury note yield is close to 2%, and gold is up $31/oz.   As a long time observer of markets, I have studied and wondered about how it felt as the 1930s unfolded.  I 'm not claiming to be an expert on the Great Depression like our esteemed Federal Reserve Chairman, Ben Bernanke, but have read widely

Robert Wasilewskihttp://www.blogger.com/profile/04536814650758511673noreply@blogger.com2tag:blogger.com,1999:blog-8091367287813993533.post-29753857998161994612011-08-17T07:50:00.002-04:002011-08-17T09:52:43.044-04:00

Campaign rhetoric can get ugly.  Everybody knows that, and the American public braces itself during campaign season--which, unfortunately, starts earlier each season.  Still, in the running for the ugly trophy, Governor Perry set the bar awfully high  let's hope nobody else gets near it during this campaign season) in remarks about Ben Bernanke, Chairman of  the Federal Reserve. First he said

Robert Wasilewskihttp://www.blogger.com/profile/04536814650758511673noreply@blogger.com6tag:blogger.com,1999:blog-8091367287813993533.post-65162715856409500282011-08-16T08:52:00.009-04:002011-08-17T11:16:05.544-04:00

Kevin at "Invest it Wisely" has invited me to participate in the "My Top 7 Posts" project. Thanks Kevin.  Here it is:  The project asks for posts related to 7 categories.  I cheated and added a couple under two headings. Your most beautiful post I'd have to go with the one I just wrote describing a bit about a remarkable man, Edward Abbey, who had a passion for nature.  Included in the post was

Robert Wasilewskihttp://www.blogger.com/profile/04536814650758511673noreply@blogger.com5tag:blogger.com,1999:blog-8091367287813993533.post-13478766830401409362011-08-15T15:12:00.001-04:002011-08-16T09:21:47.267-04:00

Readers of this blog know I prefer to use Schwab for clients because of its asset allocation tracking and its performance capabilities.  It provides clients with up-to-date time-weighted return performance numbers for accounts as well as the benchmark index chosen by the client. Here is another overview of the benefits of Schwab from another source: http://investorjunkie.com/8782/

Robert Wasilewskihttp://www.blogger.com/profile/04536814650758511673noreply@blogger.com0tag:blogger.com,1999:blog-8091367287813993533.post-2850368681763827272011-08-15T07:55:00.001-04:002011-08-15T09:47:00.379-04:00

Michelle Singletary, financial columnist for The Washington Post, described on Sunday a friend's financial issues.  The friend is 65 years old, was recently laid off, and now is perplexed by numerous financial issues.  These include whether to take a lump sum or a pension, when to take Social Security, should she roll over her 401(k), etc.  The friend doesn't have the information at hand, hasn't

Robert Wasilewskihttp://www.blogger.com/profile/04536814650758511673noreply@blogger.com5tag:blogger.com,1999:blog-8091367287813993533.post-58069989056253574452011-08-14T10:26:00.002-04:002011-08-15T09:43:05.561-04:00

A few years back, my son David and I made several cross country camping trips. One was to dip our big toes into the Pacific Ocean; another was to reach Carlsbad Caverns.  We pretty much winged these trips, looking for free camping and out-of-the-way sites.  I had a couple of things I wanted to see (Custer's Last Stand) and he had a few things. I highly recommend road trips to see the U.S. for

Robert Wasilewskihttp://www.blogger.com/profile/04536814650758511673noreply@blogger.com2tag:blogger.com,1999:blog-8091367287813993533.post-36038335635558002242011-08-13T08:27:00.002-04:002011-08-13T18:43:08.516-04:00

Source TheLanguageLab It seems counter intuitive that indexing a portfolio can outperform very smart people who spend enormous resources analyzing company specific information, macroeconomic data, charts of price and volume history, and even sunspots. After all, in many aspects of life, those who are most talented and work the hardest get ahead. But apparently not so in the investment world,

Robert Wasilewskihttp://www.blogger.com/profile/04536814650758511673noreply@blogger.com2tag:blogger.com,1999:blog-8091367287813993533.post-10313783409667759022011-08-12T07:11:00.003-04:002011-08-12T08:55:40.194-04:00

CNBC yesterday made a big deal out of four consecutive days of 400 points or more swings in the Dow Jones Industrial Average.  Here is a look at volatility in terms of percentages for the S&P 500: Source: New York Times CLICK GRAPHIC TO ENLARGE As shown, there have been 3 instances of 4 consecutive days where the average moved by more than 4%.  A 4% move today is even more interesting when

Robert Wasilewskihttp://www.blogger.com/profile/04536814650758511673noreply@blogger.com2tag:blogger.com,1999:blog-8091367287813993533.post-56816922771394807632011-08-11T09:39:00.001-04:002011-08-11T14:53:56.069-04:00

Source: CNNMoney Help me out here, but does anyone truly believe that the super committee is going to get this country's finances under control?  For crying out loud, we just went through an exceedingly embarrassing spectacle of many of these same men making asses of themselves as they postured and sound bited and brought the financial markets to its knees.  These are the exact same people

Robert Wasilewskihttp://www.blogger.com/profile/04536814650758511673noreply@blogger.com4tag:blogger.com,1999:blog-8091367287813993533.post-88512710477583757742011-08-10T07:46:00.001-04:002011-08-10T09:01:41.029-04:00

I've got two questions:  First, do the commentators on CNBC have any idea how clownish they look?  Yesterday, as the market rose, then plummeted on the Fed announcement and finally ended up sharply, the commentators, guests, as well as the regular reporters, had great after-the-fact explanations at each stage-as they do at the end of each day. They parade on - one right after the other - first

Robert Wasilewskihttp://www.blogger.com/profile/04536814650758511673noreply@blogger.com2