Realizing you are wrong about a basic belief is tough. The last two weeks we discussed “The Bond Fund Risks Your Broker Won’t Tell You” and “Closed-End Bond Funds, Friend or Foe?” We concluded holding top-rated bonds is OK – individually, not in a publicly traded fund. Fund managers, chasing high returns, take risks I’m not comfortable with. If bonds […]
» Read moreIn our article, “Is Your Money Manager Really Listening?”, subscriber Rick G. reported a bad experience when his money manager invested in a closed-end bond fund: “…. He put me in several Closed-End Bond Funds (CEFs). He said they were good deals as they were selling at a discount to Net Asset Value (NAV). Upon further research, these CEFs ALWAYS […]
» Read moreHistorically, funds holding investment-grade bonds have been considered a safe investment. Lending money to hundreds of well-known companies had little chance of major default and provided interest income. Has your broker mentioned new risks emerging? Bonds ratings fall into two major groups, investment grade and high yield (called junk bonds). The bond rating generally determines the interest rate borrowers have […]
» Read moreApple was the first $1 trillion company. In May 2018 they announced a $100 billion stock buyback program. Their stock was over $225/share at the end of August. In November, Tony Daltorio, one of our panel of experts, wrote “Two Smartphone Makers Nipping at Apple’s Heels“. Apple’s stock dropped around 16% since Tony’s warning. Tony’s comments raised a huge red […]
» Read moreMy broker/mentor was fond of saying; “It’s easy for investment advisors when the market is booming. When times are tough you learn who is doing their homework!” She was a veteran and the voice of experience. We looked out her office window and counted a dozen starter BMW’s in the employee parking lot. They belonged to their cadre of freshly […]
» Read moreWith our current political climate, the EU punishing Britain for Brexit, tariffs, trade wars, the Fed raising rates, record government deficits and whatever hysteria the media can create – the crystal ball is full of clutter. How should investors approach 2019? We’ve assembled a terrific group of highly regarded experts with excellent track records. Readers want me to use them […]
» Read moreIn response to our recent article about investing offshore, many readers asked for more information. They expressed many concerns, particularly about safety. Jamie Virjhof, Relationship Manager of Weber Hartmann Virjhof & Partners Ltd. recently interviewed me and addressed those concerns. I have permission to share it with our readers. Is International Diversification really necessary? Dennis Miller’s recent article, “Should Investors […]
» Read moreThe market is bouncing up and down like Marqeus Haynes dribbled a basketball. Are stop losses necessary? Investors are edgy. Money and Markets reports – “Alarming Survey: Record Number of Fund Managers More Bearish than 08 Crisis”. “…. Bank of America’s monthly survey…is warning investors to take caution and heed the market’s warning signs. …investors managing about $646 billion in […]
» Read moreCan the Fed cause a market crash? In 2017 Fed Chair Janet Yellen reassured us: “Would I say there will never, ever be another financial crisis? …. That would be going too far but I do think we’re much safer and I hope that it will not be in our lifetimes and I don’t believe it will be. …. The […]
» Read moreWhen David Galland approached me about writing an investment newsletter, I said, “I’m not a stock picker, I try to pick them out of newsletters. Sometimes I even screw that up!”. David asked me to explain. Expensive lessons In the late 1990’s I self-managed our retirement fund. The market soared; between 1995-2000 the S&P went from 500 to 1500. I […]
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