Uninformed Investors often suffer Catatstrophic Losses

A catastrophic loss is defined as a stock suffering a 70% or greater permanent loss. This means someone bought a stock at 10 and it went down to 3 and never went back up. Sadly this is the fate of many stocks. Since 1980 about 40% of the stocks in the Russell 3000 index suffered…

Money Won’t buy Happiness

Why is it that a tribesman living in a jungle without an I-phone is happier than the average American? Studies have proven that trying to keep up with neighbors and watching celebrity lifestyle programs have a negative effect upon happiness. In fact, many people will choose friends on an equal or lower economic scale than…

The Expensive Private College Rip-Off

While many exclusive and expensive private colleges have large endowments that are supposed to go to those in most need, this is not true. According to an article in that crazy left wing magazine Forbes, Maggie McGrath exposes a seedy side to the financial aid formula. It is called “financial aid leveraging” and it has…

“Holy, My 403(b) Plan Is Not Free, Batman!”

The reason most teachers do not have low-cost index funds in their 403(b) plans is because they are too inexpensive. Financial salespeople have little incentive to sell a product when they will receive a small percentage of a number like 0.10%, the cost of a typical total market index product. On the other hand, provide…

Can these guys stoop any lower?

Continuing with their tradition of diversified malfeasance. http://www.investmentnews.com/article/20140731/FREE/140739968/ex-ubs-broker-accused-of-defrauding-elderly-in-ponzi-scheme

Why working with a Stock Broker still sucks

In todays WSJ there was an article about how a Wall Street’s firm top producing brokers were being treated to an all expense paid junket to Maui. On arrival they were treated to “pillow gifts” such as Maui Jim sunglasses and GoPro cameras. These members of “The Chairman’s Club” are being rewarded for grossing the…

Why young people MUST invest in stocks

There are many studies showing that young people classified in the millennial generation are making two major mistakes with their money. First, they are not saving and investing at all. Second, when they do invest, they are way too conservative. It is understandable for a recent graduates not to invest if they are saddled with…

Why not just fire everybody?

Yesterday, the market to be kind was “weak.” Microsoft saw its stock rally. The reason was it announced plans to fire 17,000 workers; this means more profits for the company and greater dividends and buybacks for the shareholders. This is pretty good unless you were one of the 17,000 saps that got canned. While firing…

If they don’t buy it, why should you?

According to Morningstar, of the 7,700 funds tracked, fifty percent of the managers have not invested a single dime in their funds!! This is an outrage. Not only do the majority of these funds vastly underperform their index, their own managers are showing no confidence in their ability to beat the market. This is like…