Earnings Season – So Far So Good

With the first week of earnings season complete, we are encouraged by the good reports. We expect this current trend to continue as earnings and revenue growth are up. We also like the fact that $51 billion of cash came off the sidelines this past week as investor optimism about the recovery is growing. We.. read more →

Active or Passive Management-or Both?

We often see the debate in the financial press between those who tout the benefits of low-cost index investing versus those who favor actively managed mutual funds. Those who endorse a passive indexing approach often criticize the generally poor long-term results of active mutual fund managers. Those who favor active management usually tout their better.. read more →

Bargain Hunting

As we predicted in the 4th Quarter 2009 newsletter, the market was due for a correction. With that in mind, we have an extra 18-25% in a cash and bond position for all of our portfolios. This allows us to buy bargains and that is what we did on Thursday (2-11-2010) of last week. We.. read more →

Investors-Be Alert, Invest Wisely

Last year, as the sock market was recovering from the financial collapse, the stock market was rocked by one of the largest investment scams of all time. Bernard Madoff, a former chairman of NASDAQ, was convicted of stealing billions from investors through his New York based investment firm. Both the retail public and supposedly sophisticated.. read more →

Gold-Hedge or Investment?

Gold is often touted as an investment by ads on the television or radio, usually by companies that do little else but sell gold! Gold and other precious metals do have some value as a store of investment value and inflation hedge. But the value of gold as a long-term investment in your portfolio is.. read more →

Schwab Yield Plus Update

Recently the Charles Schwab Corporation received a Wells notice from the Securities and Exchange Commission (SEC) relating to the Schwab Yield Plus Bond Fund and another bond fund under its fund company management. A Wells notice signifies it is the SEC’s intent to recommend civil enforcement action for possible violations of securities laws at these.. read more →

Financial Plans are a JOKE!

“Plans are of little importance, but planning is essential.” –Winston Churchill “Plans are nothing; planning is everything.” –Dwight D. Eisenhower “Everyone has a plan until they get punched in the face.” –Mike Tyson It is time that we recognize that Churchill and Eisenhower (and even Mike Tyson) were right. We place way too much weight in plans;.. read more →

Transitioning into the “New Normal”

Paul McCulley, a managing director at PIMCO, coined the economic slogan “New Normal”. This term signifies a “changing of the guard” for consumers and businesses alike. From 1982 to 2007, the U.S. economy grew at an impressive 6-7% annual clip. This growth was aided by declining and low interest rates. low inflation, financial leverage, and.. read more →

Happy Anniversary!

A year ago today, on September 15, 2008, Lehman Brothers, one of the largest and oldest investment banks in the U.S. filed for bankruptcy, and set off a financial collapse that was felt across the globe. It seems like a long-time ago, but it was only one year, but what a year it was! Lets.. read more →

Rebalancing – Taking Chips off the Table

The market rally since March has been a nice bounce off the lows from last year’s credit crisis and market crash. Even though economic data shows that both the U.S. and global economy are gradually recovering, we are beginning to trim some of our positions that have performed the strongest during this rally. We believe.. read more →