Cramer on End of QE Myths

Jim Cramer has a decent piece on the end of Quantitative Easing (QE). He calls on Wall Street pundits to apologize for their incorrect predictions.

Cramer breaks it down quite well into several specific predictions that went wrong. The basic idea under fire — The Federal Reserve was propping up the economy with QE, and the moment QE ended the economy would crash like a house of ...

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QE Over…Interest Rates Down?

Big news is that that Federal Reserve announced the end of Quantitative Easing (QE). Interest rates are supposed to spike up now, right?

They certainly haven’t yet. Of course this is only the first day after the announcement. Short term movements can send markets in any direction, and who knows if rates may actually rise over the next year.

But my point is that there is never a situation where you get “direct” and “predictable” market movements, ...

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The Dow vs. Another Index

The Dow Jones Industrial Average is not behaving like the other market indexes today. The reason is IBM.

Interestingly, I have another post that deals with precisely this issue and how it can occur, especially because of IBM.

Here is a link to that post: The Dow, IBM and Benchmarking

I think it is worth a read because having a good understanding of indexing can help calm a lot of stress ...

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Is CalPERS Dropping Hedge Funds?

Apparently CalPERS (the California State retirement pension fund) is no longer going to invest in hedge funds, according to this post from Gawker.

I hope this is true. The Gawker article does a nice job of identifying that this is a good move on the part of CalPERS. This is not a “neutral” event or a “wait and see what happens” occurrence. This is, without a doubt, a ...

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Do Higher Interest Rates Mean Better Return?

Many investors are frustrated with low interest rates, but the actual (real) return is not as bad as they think.

We’ve all heard the complaints. Interest rates are at historic lows, which frustrates many investors that want income, especially from low risk investments such as CD’s, money market funds or high grade bonds.

Interest rates on low risk investments have been near zero for several years now. Many investors are remembering the old days when government bonds ...

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Do Inheritors Need to Beat the Market?

“Beating the market” shouldn’t be anyone’s investment goal, and this especially applies to families that have inherited investment portfolios.

Oddly enough, most of the investment industry and investing public is fixated on the idea of “beating the market.” For too many investors, that ends up being the point of it all. Why? I’m not entirely sure, but I think it has a lot to do with trying to make the client feel like they are “winning” the ...

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What is Investment Banking?

A few days ago I ran across the best definition of investment banking that I have encountered to date.

When I was fresh in the industry it was somewhat of a clouded subject for me. People would talk about “investment banking,” but what, exactly, was that? I was working for a brokerage firm at the time. Was I in investment banking, I wondered? And if not, what did investment banks do that my firm didn’t do?

The ...

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Honest Crap is Better than Fools Gold

Investment advisors and stock brokers see a lot of crap.

Good advisors know crap when they see it. Bad advisors don’t recognize crap for what it is.  The really bad advisors take the crap and sell it to their own clients for fat commissions.

Advisors and brokers are constantly bombarded with products and services in the hopes they will turn around and sell these products to their own clients.

Today I got one such e-mail. It was a ...

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