Stock market investing - the November syndrome
The November Syndrome is a short-lived annual investment
opportunity that most people are too confused to notice,
much less appreciate. Simply put, get out there and buy the
November lows and wait for the periodic and mysterious
January Effect to happen.
[November 28 2007]
The Dow, your portfolio, and Aliens
Most investment portfolios do have both a set of reasonable
goals and a plan for moving in their direction. Performance
is a measure of this movement toward our objectives and it
is generally considered a long-term, personal proposition.
Wall Street has created its own definition of performance,
one that has nothing to do with the structure and design of
[October 17 2007]
Stock and bond trading as a conservative investment strategy
Trading is the world's oldest form of commercial activity,
and it is unfortunate that it is treated with such
disrespect by our dysfunctional tax code. It is even more
unfortunate that it is looked at askance by client attorneys
and brokerage firm compliance officers. Trading does not
have to be done quickly to be productive, and it doesn't
have to focus on higher risk securities to be profitable.
[May 29 2007]
March investment madness: the Financial Final Four
Revered Blue Chips (and Blue Devils) fall from grace on the financial
hardwood and unknown Cinderellas gain fame and financial fortune with
upset victories in both venues. In basketball and in finance, the
road to the final four is paved with four principles. If you
recognize the importance of the Financial Final Four, you can insure
that your investing experience will get you to The Big Dance in
[March 27 2007]
Year end investment ideas and KISS tax strategies
First thing Monday morning I´m going to march into my
boss´s office and demand a pay cut so that I´ll be in a
lower tax bracket. The key issue in considering a capital loss is
the economic viability of the investment... not your tax situation!
Surely, speaketh the Conventional Wisdom prophets, these profits
will hang around until next year, thus deferring those terrible
taxes! (Worked real well at year-end ´99, you´ll
[November 16 2006]
Asset allocation: investment management without mutual funds
Establish a profit-taking target for every security you
purchase. Avoid unrealized gains, embrace volatility, increase
annual income, and remember that all key investment moments
are only visible in rear view mirrors. Keep in mind that you
need income to pay the bills, and examine market value numbers
at intelligent intervals.
[September 29 2006]
Real estate investing: no lawyers, no debt, no plungers
Real estate investing is not nearly as legally complicated,
financially burdensome, or time consuming as you might think.
The benefits of this form of Real estate investing vs.
ownership of the properties themselves should be clear: no
attorneys; no debt; no maintenance; no problem.
[August 12 2006]
Stock market window dressing: the art of looking smart!
At least four times per year, security prices are more a
function of institutional marketing practices than they are a
reflection of the economic forces that (we would like to
think) are their primary determining factors. Do you remember
the "Circle of Gold" chain letter from the
[July 12 2006]