Asset Allocation

Analysts at Bank of America-Merrill Lynch have created the Global Wave, a compilation of seven global indicators designed to provide a comprehensive assessment of trends in global economic activity. The compiled data allows investors to predict equity market performance and...[it indicates that there is an 86% liklihood that we will experience a 14.2% increase, on average, in the performance of global stock markets in the next 12 months. Read more about the "Global Wave" below.] Words: 462

Investors should look for protection from this global storm by owning physical gold or even gold mining stocks for that matter because they are so undervalued vis-a-vis bullion. I have no appetite for bonds or cash because every central bank is debasing their own currency and cash yields nothing.

[The adage "sell in May and go away" refers to selling one's stocks in May, going into cash, and then waiting until November before buying back into the market. That] has worked the past two years...[This time round, however,] we believe there is a high probability that you would be buying at a higher price [in November] than... [what if you were to sell out] in May of 2012. [Let us explain why we are of that view.] Words: 406

[No one would argue that] diversification is not a sound investment practice but exactly how much risk reduction, in actual numbers, is obtained through application of this philosophy? This analysis is an attempt to quantitatively determine its relevance - [and you will be surprised by the answer. Read on!] Words: 1317

You nolonger need to spend time surfing the net looking for financial, economic and investment articles of substance. The editors of munKNEE.com read 100s of articles daily, find the most informative, and then post edited excerpts for the sake of clarity and brevity to ensure a fast and easy read. Here is the latest Your Daily Intelligence Report which you can sign up to receive - and its free. Check it out! You won’t be disappointed.

MarketWatch's headine last Friday read You Have to Play to Win: U.S. stocks' stellar performance so far in 2012 is remarkable in part for the enemic trading volumns that have accompanied Wall Street's rise, and those on the sidelines, as with the lottery, stand no chance. I believe that this may be the single most deceptive and dangerous financial headline I have ever seen published by such an influential provider of financial information. [Let me explain why I think that is the case.] Words: 1232

We evaluate here the commentary of David Dreman at Forbes.com regarding the stock market via his archived articles since the beginning of 2001 [and what an accomplished record it is. He is tied for second place with Ken Fisher with a 64% accuracy rating which is well above the 46% rating of a list of 36 of his peers. Jack Schannep is the most accurate at 66%. Below are his market forecasts on specific sectors of the market over the years compared to how well said sectors actually did.] Words: 1706

Risk inherent to the entire market or market segment is referred to as systematic risk and modern portfolio theory says that a blend of investments has the potential to increase overall return for a given level of risk, and/or decrease risk for a given return that the investor is trying to achieve. The expected risk/return relationship is known as the efficient frontier. [If you have a portfolio of investments then you need to fully understand what all this really means and how you can apply it to your portfolio makeup to enhance returns under any circumstances. Let me do just that.] Words: 1325

As those familiar with the basics of Austrian economics can attest, an increase in the supply of money and credit [often leads to] asset bubbles in whatever sector(s) the new money and credit find their way into. With the U.S. economy so robust it will not go down easily and, as such, there is still the possibility that the Fed's radical inflationary policies will not break the dollar, but just kick the can down the road one more time, and unleash one more bubble before the bill for 40+ years of monetary madness is finally due. What sectors are most likely to be the recipient of a bubble? [Let's look at the possibilities.] Words: 1212

The growth in liquidity in global systems has become staggering...[reaching] a whopping $15 trillion - and rising - from the world's eight largest central banks [alone as shown in the chart below.]...[That's equal to almost] one-third of world equity values...which means that central banks are creating another bubble...No wonder the stock market is rising. [With so] much liquidity,...and with interest rates so low, there is no place to go but "risk on" assets. [That being said,] investors need to know how to capitalize on this short term phenomenon and how to prepare for the inevitable burst. [Let me explain further.] Words: 489