Do Investments Have Fashion Appeal?

Unfortunately, this is the way too many investments are sold.

Investment banks are always trying to figure out what will be most appealing to their customers. In most businesses, this can and should be business as usual. But with investments, it has to be different. Why? Today’s fashionable investments may not be what is likely to provide the best risk-return trade off in the future.

It is the investment advisor’s job to help clients sift through what ...

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Crimea and Putin Drag On

Didn’t I say that you can’t predict the market if you can’t predict what effects the market?

I haven’t written anything on the Crimea yet. In the end it will probably pass and be quickly forgotten. Remember the Japan earthquake and the impact it had on the markets?

Crimea provides a great example of the unpredictability of the markets. Can anyone predict what Putin will do? Sometimes he acts like a world leader. Sometimes he acts like ...

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You Can’t Predict…..

the weather, so how would you ever hope to predict the stock market.

Reports are now coming out that the extreme cold weather in most of the nation this winter had a noticeable impact on the economy.

I am amazed at all of the things we naturally accept are unpredictable (weather, lifespans, wars, elections, etc.)……but then assume the stock market, which is affected by these events, ...

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The Golden Ticket Trap

One of the toughest realities for investors to face is that it does not pay to try to get rich with one good pick.

The temptation to attempt this is strong and understandable. We can always look back into the past and say, “If I had only just bought ______.”

It can feel like the costs to try to buy the next big winner are small – much like the costs for a lottery ticket are small ...

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Gone Fishin’ Portfolio Posts Incorrect 2013 Numbers

In a previous post I speculated as to how the Gone Fishin’ Portfolio guys would react given how poorly their portfolio did in 2013.

I notice on their home page they now have a long explanation about asset allocation, diversification, etc, which is about half correct and half wrong. This is one of my major problems with them. They mix in deceptive principles like survivorhsip bias along with solid principles like diversification.

But more curious to me ...

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Fed Testimony – Congress Has Lost It!

Watching Janet Yellen’s first testimony to Congress as Chairman(woman) of the Federal Reserve.

It is one of the more ridiculous things I have seen in the political sphere. We all know that politics is a lot about posturing and show – then behind the scenes all sorts of deals take place that we aren’t told about. We also know that congressional hearings have little to do with finding truth and more to do with making a ...

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Bitcoin Exchange CEO Arrested

This is completely unsurprising, at least to those of us who understand money, banking and investment banks.

The CEO of a Bitcoin exchange was recently arrested for money laundering.

You see, banks and investment banks have a hard enough time keeping things honest, and they are dealing with real contracts and real investments.

Bitcoin  – a fabricated medium of exchange, specifically created so you can hide your tracks, is going to ...

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Bitcoin is our Cosmo.com

I can’t find a serious economist that thinks Bitcoin is going to work.

I can find a lot of programmer-libertarians and end-of-days prepper that think it is the wave of the future. Like I said, I can’t find a serious economist that thinks it will work.

Problems are beginning and are starting to persist. Prices plunged recently.

Who knows if Bitcoin prices will go back up in the short term, and ...

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