[I am surprised at the large number of] investment professionals who confuse risk and volatility… regularly and thoroughly confusing these two concepts to the point where the terms are treated as being virtually synonymous. This has resulted in the flawed investment principle that reducing volatility will (and must) reduce risk. Such thinking is deeply misguided, and following it has dire consequences for investors. [Let me explain more about what risk and volatility are and are not.] Words: 1100
November 26th, 2011 | Posted in Asset Allocation,Investing | Read More »
There is more than enough reason to believe that U.S. stocks are in a bear market regardless of what percentage drop has taken place. [Let's take a look at stock momentum, various moving averages, volatility and certain technical indicators to see what they have to say in this regard.] Words: 700
October 18th, 2011 | Posted in Investing,Stock Indices | Read More »
We are reading a lot of hype these days about gold and the necessity to own it but only about 2% of ‘investors’ actually have gold in their portfolios and those that have done so have insufficient quantities to offset the future impact of inflation and to maximize their portfolio returns. New research, however, has determined a specific percentage to accomplish such objectives. Words: 1063
October 16th, 2011 | Posted in Asset Allocation,Investing | Read More »
On a theoretical basis, everyone knows to buy when others are fearful, to be contrarian, to avoid panic. On a practical basis, [however,] hardly anyone has the discipline and courage to act. [Below I outline] three ways that the individual investor can profit from the current volatility. Words: 614
September 21st, 2011 | Posted in Investing | Read More »
The past few weeks traders and investors have been completely spooked by the surge of negative news and collapsing stock prices and reading the volume on the GLD exchange traded fund chart gives us a good sense of what the masses are feeling emotionally – fear….Fear is the strongest force in the financial market for moving prices and there are a number of ways to [ascertain the extent of] fear in the market and the more they line up at the same time, the higher the probability of trend reversal in the near future. [Let's take a look at a few such indicators and what they are currently suggesting.] Words: 700
August 21st, 2011 | Posted in Gold/Silver,Investing | Read More »
The commercial investment industry [- from Wall Street to your personal financial advisor/planner -] is more interested in milking its clients for fees and spreading lies, deception and propaganda than in actually acting to preserve and build their clients’ wealth. In my opinion, “safe diversification” and “less volatile” strategies are nothing but pure absolute rubbish invented by and regurgitated from the mouths of such consultants. [Let me explain and show you some graphs to make my case.] Words: 1680
July 4th, 2011 | Posted in Gold/Silver,Investing | Read More »
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