Global Portfolios – the Japan Story

A global portfolio gives a family the best chance of having positive return and beating inflation over the long term.

It sounds like an obvious, banal statement, but there is more to it when you look at the components of a global portfolio over the decades. Financial markets, especially stock markets, will do wild and unexpected things. Japanese stocks and their amazingly bad run since 1990 (over 22 years ago) helps illustrate what I’m talking about.

The ride ...

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What is Going on With Gold?

Exactly what has always gone on with gold. It is a commodity. It is extremely volatile. It has always been like this!

As of right now, gold is down 3.46% today, but it is also way down from its all time high. It is too bad a lot of investors are surprised by the sharp drop in gold. Historically it is much riskier than the stock market. I imagine unsuspecting families have lost a lot of ...

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Will China Follow Japan’s Fate?

History repeats itself, but nothing happens the same way twice.

This is certainly true for the investment markets. I often use history as a guide, but I also keep in mind there will never be a perfect repeat of the past.

Like with wars

When I hear market analysis, I am often reminded of historical commentary on conflicts and wars. No two military conflicts have ever been exactly the same, but there is also a lot that can ...

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Was a Drop in Bonds Inevitable?

Yes, but that doesn’t mean you could successfully trade on that knowledge, nor does it mean it is sure to continue for the foreseeable future.

There are rumblings in the bond market, and the financial media is starting to shout panic. Here is a graph of the Vanguard Intermediate Term Bond Index Fund since its peak on May 2, 2013. Returns have been -4.79% over this time period, roughly 7 weeks ago.

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Investment Head Fakes can Take Years

Most REIT (Real Estate Investment Trust) investments were down quite a bit yesterday. They have been taking some significant hits since interest rates started creeping up a few weeks ago.

I have been getting a lot of questions regarding real estate over the last few weeks. The real estate market seemed to have a nice  recovery going at the end of 2012 and beginning of 2013. Now (as always) the future is looking uncertain.

Remember that real ...

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Voices from the Past Warned about Bank Stocks

Weren’t bank stocks supposed to be “conservative?” Weren’t bank stocks the solid, low growth, dividend producing investments that are great for retirees?

That is what a lot of investors and, unfortunately, financial advisors thought prior to 2008. During that crash many financial institutions lost 80% or more of their value, almost as if they were fly by night tech stocks. Remember Bank of America, AIG, Citigroup, Washington Mutual (don’t forget Fannie and Freddie). The list goes ...

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Are Bad Stocks Easier to Identify?

No.

Although for someone new to investing it can be tempting to think this way.

I remember back when I was studying for the series 7 exam and first learned about shorting stocks. I was intrigued by the idea you can make just as much money betting a stock will go down as you can that a stock will go up.

It all ties back into the unpredictability of stock prices. When I say you can’t predict the ...

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More on the Shark Infested Waters of the Stock Market

Please click RIGHT HERE and watch this video from Yahoo! Finance.

I usually don’t do blog posts that are just links to other peoples’ posts, but on this issue I am making an exception.

Why? Because I think this video deals with the single most important concept that families must understand before they start investing. That is, 1) You are at a major disadvantage if you are an amateur active ...

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