“Laws, enforced by the sword, control behavior but cannot change hearts.” – Author, Greg Boyd Many brokerage firms are launching themselves head-first into a brave new world of fee-based planning. This is a dramatic shift from their former conflict-heavy, commission-based sales model. The choice was not theirs to make. The Department of Labor was kind…
Babe Ruth is Dead! Throw Strikes!
Many investors need their own form of “Tommy John surgery” to repair their injured portfolios. Applying strenuous effort to beat the market has no correlation to successful investing. We can look at the rash of injuries to young flame-throwing major leaguers, like Stephen Strasburg and Matt Harvey, for some insights. Leo Mazzone, the former hyperactive…
The Donald Trump of 1912
Is Donald Trump’s vulgar behavior inspired by a former white supremacist and Princeton University President? The answer is probably not, but there are some interesting similarities. Democrat, Woodrow Wilson, our nation’s 28th President, often makes Donald Trump’s social views seem downright liberal! If you skip over the Disney-like, sanitized textbook version of Wilson, you might…
Young People Must Be Long-term Greedy
Almost no one in our system of public education is teaching young people how to build lasting wealth. While A.P. exams, private tutors and sports trainers are the current rage, Wealth Building 101 is being completely ignored. What’s next after getting into the “right” school and finding the “perfect job”? Young people need someone to…
Too Many Americans Invest From The Back Row
“We are a divided country, split along race and class. The divide is at its core about having different concepts of value and personal meaning.” Chris Arnade, Divided by meaning This statement accurately describes the investor schism in our nation. Simply put, front-row investors run the world, while those in the rear are barely…
Why Do Investors Fear The Insane Clown Posse?
Creepy clown sightings have been reported in at least ten states over the past few weeks. These social media fed hallucinations are no different than many bizarre unfounded investor fears. My 13-year old twins said they were scared to go play football with their friends because the “clowns might get them.” My not-so-new-age, anti-helicopter parent…
The World’s Most Sexist Investment?
Dina, here… In a world where women continue to earn just $0.79 for every $1 earned by men, there is another inequity at work that seems to threaten their financial security when they will need it most, in retirement. Designed to be a “benefit,” their retirement plans may do more to secure the financial…
The Dumbest Idea In The World
Maximizing shareholder value may be the dumbest financial and social concept ever created. According to conventional wisdom (which rarely is either conventional or wisdom) guiding a company for the sole benefit of its shareholders, rather than stakeholders, will maximize shareholder return and societal contribution. Wrong! There are many reasons why time has proven this theory…
How “Reasonable Compensation” May Turn Out to Be Very Unreasonable
New fiduciary regulations designed to decrease investment costs might end up doing the opposite, in spite of its good intentions. The law of unintended consequences has a tendency to show up in places one would least expect. This time may be no different. The Department of Labor (“DOL”) has demanded Broker-Dealers follow “reasonable compensation” requirements…
The Art Is Not in Making Money, But in Keeping It
Jesse Livermore, the so called “Boy Plunger” and probably the greatest Wall Street Trader who ever lived, died $340,000 in debt. Many look at his life to learn the secrets of his often extraordinary trading success. A better track for financial prosperity is to study and learn from mistakes he committed in his personal life….
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