Sorted Weekly Tweets
China China’s first bond default could be good market medicine http://t.co/8ShFniYM Bond trader: “We don’t really have a credit risk culture.” $$ Mar 31, 2012 Is China’s slowdown worse than previously estimated? http://t.co/CkZw8tLK Could b business conditions that are worst since 2009. $$ Mar 31, 2012 China Banks Said to Underestimate Local Government...
Replacing Defined Contributions
I think that it is pretty certain that defined contribution [DC] plans 401(k)s, 403(b)s, 457s, much as they have grown to be dominant, have been a failure. Many, though not all people like the illusion of control, and seeing their cash balance — makes the pension plan tangible, even if they don’t get what they...
Book Review: Backstage Wall Street
I have long wanted to see a book that would teach ordinary investors how to avoid being cheated by those that create/sell financial products. If this book isn’t it, the one that surpasses it will be astounding. If Wall Street is a show, this book gives you a peek behind the curtain. This book is...
Book Review: Pandora’s Risk
This is two books in one, and very well done. The main part of the book explains risk and uncertainty in general terms, such that most people can understand it. But for those that can deal with complex math, the latter part of the book offers a lot of additional firepower. Risk is a tough...
Buy-and-Hold Can’t Die, Redux
When I wrote my piece last night, I did not write it to say one ought to buy and never sell. In investing, I encourage the concept that one must look to relative valuations and trade assets that are worth less for those that are worth more. In doing so, one maintains exposure to the...
Buy-and-Hold Can’t Die, Redux
When I wrote my piece last night, I did not write it to say one ought to buy and never sell. In investing, I encourage the concept that one must look to relative valuations and trade assets that are worth less for those that are worth more. In doing so, one maintains exposure to the...
Buy-and-Hold Can’t Die
There’s this mistaken idea trotting around in the popular media, which usually only shows its face in bear or sideways markets: buy-and-hold investing is dead. This is wrong in several ways: 1) The average investor is horrible at market timing. They buy high and sell low. The more volatile the asset subclass the more pronounced...
Difficult Decision
We would all like our practical decisions to go easily, and bear quick positive results. That’s not reality. As for me, I needed to decide whether I would: borrow against my home at 3% for 15 years. liquidate a portion of my taxable brokerage account liquidate shares in best private manufacturer of commercial lawn mowers...
Recent Sorted Tweets
Finance Business Breaking Ranks: Former Broker Turns Bomb Thrower http://t.co/q1vpz9dh @reformedbroker interview previews his book: http://t.co/Yigg2sEE $$ Feb 24, 2012 Why CLO managers continue to struggle http://t.co/a13j8jVG Low issuance, warehousing is tough, need more subordination, fewer senior buyers Feb 24, 2012 My Favorite Quote from Baupost’s 2011 Annual Letter http://t.co/VOvbqab3 DIstressed bond mgrs get...
There has never been a better time to be an individual investor
There has never been a better time to be an individual investor. Said another way one could argue that we are in the golden age [...]
On Multiple Asset Allocation Methods
From a reader who is a dear friend of mine: There are obvious many disparate approaches to asset allocation. Similar to the disparate approaches of any style of investing, each asset allocation approach has its own particular pitfalls. Some of these you can plan for and perhaps hedge against or at least mitigate the potential...
Stocks versus Gold and Bonds
I have great admiration for Warren Buffett, even though I am critical of him at a number of points. When I read the piece in Fortune where he talks about asset allocation issues, I agree with him 75%. Where should money be invested? Stocks. And as for me, 75% of my net worth is there. ...
