Stop the Insanity
My firm exists to fight the insanity of dysfunctional investing. It has been written in all of the Wall Street publications and consumer publications on how to BEAT the market. They are just patronizing the people who like to get the rush of trading in the market.
I say this is the same as going to the casinos and playing one of the many games to stimulate this same rush. You might as well be playing blackjack or craps. The phenomenon is like a drug that satisfies an addictive habit.
Why not invest using the proven theories of Nobel prize winning academics like Henry Markowitz who discovered Modern Portfolio theory and take them to their most extreme efficiencies which are more predictable and less risky.
Lets stop the insanity of trying to BEAT the market and instead lets go with the market and take advantage of the full returns available and position ourselves so that our risk is calculable and not a crap shoot. I work with my clients to get them peace of mind with their investments by helping them answer the 20 must answer questions for achieving peace of mind with their investments. Once they are able to start answering these questions they are on their way to getting what they want out of life and their investments.
For more information go to my website http://www.yourwealthadvocate.com/ or call me at 610-977-2422.
disclaimer
Wednesday, November 19, 2008
Saturday, November 15, 2008
Don't React to Media Hype
Following the Media...
If you are stressed trying to get the scoop on all of the noise out there in the media maybe you should think about what has been happening over the last 6 months. Remember that the media needs to fill up pages of their websites/publications in order to sell advertising. If you keep following their stories and act on the current media report you can get caught up in the frenzy. And that's exactly what they want. I suggest that you should keep a handle on the big picture.
A few months ago if you were watching and following you might remember that folks were reporting that commodities were going through the roof and that was the place to be. The more the media hyped the commodities the more various mutual fund providers came out selling their commodity laden funds.
As we look at the commodity market today these speculative reports are now looking a little less attractive with the spiraling down of oil and other hot commodities. In fact Bloomberg data reported in October that commodities in October posted their biggest monthly decline since at least 1956.
The media now explains this surge and decline of prices as a bubble bursting of the market. Yet a few months back, the argument from many of the same publications was that commodities' growth was perfectly justified by the fundamentals and suggested that small investors should get in line to buy.
As prudent investors we should be aware of the media hype and what can appear to be of great significance at the time can vanish from a favored view. As the free market factors the information in the prices will fluctuate but we must remember that the long term view should be our mantra because the short term view is only a blip on a much larger radar screen.
As I mentioned earlier the primary reason for these stories is to fill the space they need to publish their media.
It doesn't do investors any good to be reacting to what they read or see everyday in the media because it has been proven that the markets will do their job and produce positive results over the long term as long as their portfolios are properly diversified.
If you are stressed trying to get the scoop on all of the noise out there in the media maybe you should think about what has been happening over the last 6 months. Remember that the media needs to fill up pages of their websites/publications in order to sell advertising. If you keep following their stories and act on the current media report you can get caught up in the frenzy. And that's exactly what they want. I suggest that you should keep a handle on the big picture.
A few months ago if you were watching and following you might remember that folks were reporting that commodities were going through the roof and that was the place to be. The more the media hyped the commodities the more various mutual fund providers came out selling their commodity laden funds.
As we look at the commodity market today these speculative reports are now looking a little less attractive with the spiraling down of oil and other hot commodities. In fact Bloomberg data reported in October that commodities in October posted their biggest monthly decline since at least 1956.
The media now explains this surge and decline of prices as a bubble bursting of the market. Yet a few months back, the argument from many of the same publications was that commodities' growth was perfectly justified by the fundamentals and suggested that small investors should get in line to buy.
As prudent investors we should be aware of the media hype and what can appear to be of great significance at the time can vanish from a favored view. As the free market factors the information in the prices will fluctuate but we must remember that the long term view should be our mantra because the short term view is only a blip on a much larger radar screen.
As I mentioned earlier the primary reason for these stories is to fill the space they need to publish their media.
It doesn't do investors any good to be reacting to what they read or see everyday in the media because it has been proven that the markets will do their job and produce positive results over the long term as long as their portfolios are properly diversified.
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