Like it or not, globalization is here to stay. Japan, and the impact on supply chains throughout the world, is only going to reinforce the move towards a diverse, diffused world economy. In the coming years, we’ll see an even greater push toward interrelatedness amongst countries, and each country’s businesses will rely on many countries for their materials. Diversification of supply is key. Japan is going to recover and recover quickly. TRANSCRIPT: Hi Clients and Friends, Mike Brady here. This week I want to talk about globalization. It’s here to stay and Japan is just an example of why it’s ... Read More
Most Americans have less than $25,000 saved for retirement. If you’re reading this, you’re probably not that person. But, let’s be honest. Those of us that are delaying consumption, investing well, and planning for our retirement will be asked to subsidize those who are not doing the same. What does this mean for you? Continue to do all the things that will put you in place for a good retirement. Especially, get a retirement plan together so you know what it will start to look like with what you currently have and are currently saving. Let me know if I ... Read More
The average tax refund for 2010 is $3,129, up from about $3,000 a year ago. This may seem like winning the Lotto to someone who’s receiving it, but let’s not forget that it was your money to begin with. So, before you get too excited, remember it’s a refund, not a gift. CLICK FOR FULL ARTICLE Read More
While the official unemployment rate has decreased in the past few months, the number of people in the work force is close to 30 year lows. This is due to baby boomer’s retiring, but also people who are simply tired of looking for jobs! The unofficial unemployment rate is closer to 17%. Click on the link below for a more detailed article. CLICK FOR FULL ARTICLE Read More
Many of you know I’m on the Board of Directors for BeadforLife, a poverty eradication project based in Uganda. Ugandan women turn colorful recycled paper into beautiful beads, gather shea nuts to make shea butter for cosmetics and soaps, and women worldwide sell the items and educate themselves and others about extreme poverty. This Sunday the 27th at 7pm at the Boulder Theater eTown, a nationally syndicated radio show, will interview founder Torkin Wakefield and present the organization with an E-Chievement Award! Yeah! Come join me in celebrating the good work this charity is doing in the world. BeadforLife Award ... Read More
The tsunami that hit Japan last week and has affected their nuclear reactors is causing great concern in the stock markets. The Nikkei dropped 11% a few nights ago. The US markets have dropped 2% this morning (Tuesday as I write this). Now is the time to determine if you’re gambling or investing?. Is this an emotional sell off or a harbinger of things to come? I discuss Emotional Selling in my video this week. TRANSCRIPT: Good Morning Clients and Friends, Mike Brady here. This week I want to talk about emotional selling. The tsunami hit Japan late last week. ... Read More
The article I link to below expands on the themes I bring up in my weekly video. You want a double dose of “emotional selling”? You know you do. Click on the link. Don‘t forget the unexpected happens. The “Peace Dividend” after the Berlin Wall (quite a euphoric event) saw the next 2 years in a stock market recession. After 9/11? 6 year stock rally ensued. It is uncertain the long term effect of the Japanese troubles. Let’s not make long term decisions based on short term emotions. That’s what separates the amateurs from the pros. Be a pro. CLICK ... Read More
I’m in a constant pursuit of improving my skills as I manage your money and guide you towards your goals. This study, which I find interesting, studied decisions made by people with empty and full bladders. The full bladder people made better decisions. While I don’t necessarily think having a full bladder is the true answer to wisdom, I read this study that good decisions are made when there is a deadline, sense of urgency, and you’re focused on your goal so you can move on to other things. Good takeaways. Just in case, I’m drinking some water while I ... Read More
There is a significant amount of money being held by corporations at the moment. $1.9 trillion. 7% of their cash. That’s the highest level since 1963. This is rational (from their point of view) due to the uncertainty in the world, including mixed signals from Washington. But as they reinvest in technology, efficiency, and new products, this bodes well for the longer term value of their firms, and ultimately our investment markets. CLICK FOR FULL ARTICLE Read More
In my continued pursuit of winning at Rock, Papers, Scissors (see my previous newsletter where I gave strategies), the New York Times has an active webpage where you can play against a computer, and the computer learns from you in order to beat you in subsequent tries. It’s pretty good. Of course, it’s really an exercise in statistical averages and that we’re really not as random as we think we are. But knowing that takes the fun away, so forget you just read that. I encourage you to play at the link….. ROCK, PAPER, SCISSORS – LINK Read More
If you’ve been reading my blogs and watching my videos religiously, I not only love you, but you’ll also know that I’m a big Warren Buffet fan. One piece of sage advice he has given that I agree with is “don’t buy something you don’t understand”. In this week’s video, I expand upon that and talk about how I was once pitched one of the instruments that lead to the financial disaster of 2008. It just didn’t make sense to me, so I didn’t recommend it to clients. Be sure you have good transparency, understanding, and a tolerance for the ... Read More
Oil has been one of the big pieces of news recently, with some forecasters predicting much higher prices at the pump, whereas others are predicting a stabilization and downward trend as other countries start to increase their output. The price of oil is important for our economic recovery, and if prices continue to climb, this will not be good. A higher oil price can negate all the progress we’ve seen so far. To the right is the historical price of oil. Let’s not forget we’ve been here before and survived. CLICK FOR FULL ARTICLE Read More
In case you’re curious where the world’s oil supply comes from, there’s the breakdown by country. I think there’s a perception by most Americans that we get all of our oil from the Middle East, but that’s simply not the case. Saudi Arabia, for instance, is only 11.9% of the world’s supply. That’s a lot, but it’s certainly less than what most people perceive. CLICK FOR FULL ARTICLE Read More
You’ll see me in the coming months talk about the bond markets, particularly as the Quantitative Easing (QE2) comes to a close this summer. We have a huge federal deficit. We need people to buy Federal bonds to lend money to the government. With the huge influx of money from the Fed in the past few months, foreign investors were squeezed out. Will they come back? The answer is not as simple as you’d think. I’ll be writing more and more about this as the year goes by, particularly it’s impact on you. CLICK FOR FULL ARTICLE Read More
Continuing my public service to you, I feel the need to share with you the below product. I mean, who wouldn’t want a Shower Squid? It’s kind of funny looking (makes you laugh) yet appears completely useful. So, by reading my blog you’re not only organizing your finances and financial understanding, but you’re organizing your shower. What more can you ask for? CLICK TO LEARN MORE Read More
The information being provided is strictly as a courtesy. Our company makes no representation as to the completeness or accuracy of information provided at these sites. Nor is the company liable for any direct or indirect technical or system issues or any consequences arising out of your access to or your use of third-party technologies, sites, information and programs made available through this site. When you access one of these sites, you assume total responsibility and risk for your use of the sites you are visiting.
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.