This is a less serious video this week. It’s about incentives. I tell a story about a friend who has a $75,000 a year meal & entertainment budget, but the negative incentives put upon him by his accounting department have some unintended consequences. In evaluating an investment, public or private, be sure you think about the managers, organizers, and CEOs to ensure their goals are aligned with yours and with the right supportive incentives. Take 2.5 minutes to watch/listen to my video TRANSCRIPT: Hi Clients and Friends, Mike Brady here. I just got done with the detailed video of ... Read More
Japan has been in a continued recession for the past 20 years. The deficit levels of the Japan government are among the highest of the developed countries, and expected to increase in the coming years. This is not good news for Japan. As the rating decreases, the extra premium paid to borrow money goes up. So, a 3% cost of borrow might increase to 4%. Anyway, this is something to watch as the United States deficit to GDP is increasing rapidly. CLICK FOR FULL ARTICLE – S&P DOWNGRADES JAPAN FROM AA TO AA- Read More
You’ve been reading my newsletters and saying “boy, that Mike Brady knows everything”. That may be true, but it’s good to remember the markets have a mind of their own. The Euro has rallied against other currencies recently. Do I think this is a short term rally? Yes. Do I think the Euro and Europe in general still have long term problems? Yes. CLICK FOR FULL ARTICLE – JUST WHEN YOU THOUGHT THE EURO WAS OUT Read More
The poorest 5% in the United States are richer than 70% of the rest of the world. The poorest 5% in the United States are richer than the richest 5% in India. What conclusions do we draw from this? I suppose it depends on your view of the world. My liberal and conservative clients are going to draw different ones, so I guess I’ll sidestep the whole question. I know I’m a wimp. CLICK FOR FULL ARTICLE – WORLD INEQUALITY Read More
I try to make my newsletters useful to you, so what better public service can I provide than 10 foods you can make in a coffee maker. I know we’ve all been in the situation where there’s no skillet or oven around, you’re hungry, and there sits the coffee maker. Luckily, I’ve got your back. I gave you an article and you’re prepared. Read More
There are many indicators out there for helping to inform which way the markets are headed. None of them are perfect, or exact, or even able to be taken into account alone and without context. This week I discuss the CBOE Volatility Index (VIX) and how it’s negatively correlated with the equity markets. The fact that it’s at extremely low levels right now makes me concerned. Take 2.5 minutes to watch/listen to my video TRANSCRIPT: This week I’m thinking about volatility index. I mentioned two or three weeks ago on my annual preview, that I was concerned that the, Vix, ... Read More
If you’ve been listening to my videos and reading my newsletter, you are minimally affected by the Municipal Bond declines over the past 2 months. Yeah! Outflows are huge right now and I anticipate they will continue while states determine how to balance their budgets. To do: Continue to avoid Municipal Bonds unless you’ve really done your homework CLICK FOR FULL ARTICLE – MUNI FUND OUTFLOWS Read More
2008 and 2009 were devastating to state revenue, so in comparison to those hard years, 2010 showed an increase AS A PERCENTAGE from the previous year. Revenues are still way down, and without the big influx from stimulus money the worst is yet to come. CLICK FOR FULL ARTICLE – MUNICIPAL REVENUES REBOUND Read More
The head of Boston Consulting Group is in Davos, Switzerland talking about all the contributions older employees make to a company. Duh. The wisdom accumulated over years of experience are finally being acknowledged. CLICK FOR FULL ARTICLE Read More
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The Dow Jones Industrial Average is an unmanaged, price-weighted index of 30 large capitalization stocks with dividends reinvested.
The Standard & Poor’s 500 Index (“S&P 500”) is an unmanaged, market capitalization weighted index of 500 widely held stocks, with dividends reinvested, and is often used as a proxy for the stock market.
The Nasdaq Composite is an unmanaged, market capitalization weighted index of stocks listed on the Nasdaq Stock Exchange, and are reported as price return without reinvestment of dividends.
Indexes are often used as a proxy for the stock market and cannot be invested in directly.