My wife Cassidy and I will be on the staff of a retreat in Rwanda again this April.
It’s very powerful.
Over this 5 day retreat, we will bear witness to the horror and tragic impact of the 1994 Rwandan Genocide as well as the current sate of healing and reconciliation efforts within Rwanda.
Consider attending this with us. We’d love to have you in Africa with us.
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What is your interest rate sensitivity? If you reply “what does that mean”, then you definitely need to listen to my video below.
I talk about a quick and dirty way to estimate how a Rising Interest Rate will negatively effect your particular bonds and/or bond funds… Read More
If you’ve been reading my blog for the past 2 years you’ve been hearing me talk about the slow disaster that is Europe and our municipal governments.
We’re now seeing the worst falls in Municipals since Lehman’s collapse back in September 2008. Ouch! I also say that the worst is before us, not behind.
To do: Watch your municipal holdings and know what your exposure is!
Ireland has a bailout (thank you EU and IMF) and now the yields for Portugal, Spain, and Italy are going… Read More
It's a TARP – Get it?
Finally a government program with cost estimates LESS than projected.
The $700 billion Troubled Asset Relief Program is estimated by the CBO to come in at $25 billion dollars.
At the time, if you remember, it was billed as a gift and we were out the money. However, due to repayments and other fortunate events, most of the money allocated has either not been used or has been repaid.
AIG and the auto industry are costing about… Read More
I believe that the coming 2 to 3 years will be pivotal in how our changing government relationship with medical care will affect the healthcare industry.
“Duh?” you say?…….
I bring this up because this is a huge part of our economy and it will have an impact on your portfolio and personal expenses. Unfortunately, the early signs are not encouraging.
Recently the 23% cut in federal Medicare reimbursements to doctors has been delayed….for 1 month.
To do: What is your healthcare exposure in your… Read More
I’m sure all of you know how much I love Boulder, Colorado, and the entire Rocky Mountain area.
I guess I’m not the only one.
Compared to other parts of the country, our economy is doing really well.
Check out this graph.
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This week I’m thinking about the human tendency to do something just to be doing something.
I’ve found that we Americans love to solve problems, and if we’re not selling this investment to buy that one, or reallocating something else if feels like we’re standing still.
Are you falling into ‘busy work” or is changing nothing the right answer?… Read More
I’ve been warning about the municipal bond market for some time now.
I think the problems are starting to hit and 2011 will be a big year of reckoning.
Look at the chart to the right. Ugly.
Why is this happening?
There’s the looming end of the Build America Bonds program, questions about how state and local governments will manage their debts, and the impact of huge pension and health care obligations that seem unsustainable.
Ireland is in preliminary talks with the EU for a Greek type bailout.
Wonderful.
Remember that the PIIGS countries are Portugal, Ireland, Italy, Greece, and Spain.
Two down, three to go. Like municipalities (see above) they’re going to continue to have problems in 2011.
20 million people will be paying the “tax on the rich” AMT come January if Congress doesn’t amend the law.
Will they? My guess is yes.
Will they resolve the estate tax issues by the end of the year? I doubt it.
FULL ARTICLE: BIPARTISAN VOW: WE’LL FIX AMT
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Next week is Thanksgiving and I certainly hope you have a wonderful holiday filled with food, wine, and family.
I’m Thankful for so much, including the fact I have a great business with wonderful clients and friends.
Thanks for reading my newsletter and all your warm thoughts.
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What’s the difference between Fiscal and Monetary policy?
It seems like discussions about these 2 similar, but very different, topics are forever getting confused.
If you’re worried about taxes, deficits, and the debt, is that a fiscal or monetary issue?
I want you to know the difference so you’re the smart one at the cocktail party discussion.
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One important lesson in managing a portfolio is:
Take your losses quickly and move on!
We’re all going to make mistakes. The right thing to do is admit it was a mistake, sell the loss, and move on to your next investment.
It’s that simple. It’s what separates the pros from the amateurs.
CLICK FOR FULL ARTICLE – LEARNING TO TAKE SMALL LOSSES QUICKLY
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Starting next year, the FDIC limit on checking accounts will increase from $250,000 to an unlimited amount.
What? Isn’t the FDIC broke already?
Yes, but why let that get in the way of a government (or quasi-government) policy.
This coverage amount will last until the end of 2012.
CLICK FOR FULL ARTICLE – BROKE FDIC EXPANDS CHECKING INSURANCE
There is an interesting study that says states that ban texting while driving actually have rising accident claims.
Why? They theorize that drivers try to evade police by lowering their phones when texting, which increases the risk by taking their eyes even further from the road and for a longer time.
Why do I bring this up? Because the unintended consequences of every action should be taken into consideration.
A good think to remember when we’re talking about economic policies–monetary or fiscal.
Continuing my fascination with Mr. Potato Head on his 60th birthday, I’m amazed by the special edition Potato Heads over the years.
After looking over the list, I don’t see a Mike Brady Mr. Potato Head or even a Generosity Wealth Management Potato Head.
Hmm, I wonder how I can make that happen?
We’re 1/3 done with the quarter, elections were yesterday, and lots left in the year.
In this week’s video, I give a little update on the quarter and year so far, plus a discussion about why you have to take the comparison of your portfolio to an unmanaged index with a grain of salt.
Listen to my video below to find out more.
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This is a quarter you’re going to hear about Quantitative Easing.
I hate it.
It’s my belief the increased money supply will stay on the books of the banking industry to offset any potential commercial real estate downgrades they’ll be making in the future.
From the banks’ point of view, it makes perfect sense. For you and me, not so good.
How did QE work in Japan and the UK? Not well at all.
We’ve heard all about the disastrous PIIGS this year (Portugal, Italy, Ireland, Greece, Spain), but Eastern Europe is doing pretty well.
I’m doing more research into this developing area of the world this next week.
I’ll keep you posted.
CLICK FOR FULL ARTICLE – EASTERN EUROPE
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I love Warren Buffett. He has such wisdom and humility that I count him as one of my business heroes.
What can we learn from him today? How about from his biggest mistake?
CLICK FOR FULL ARTICLE – WARREN BUFFETT’S WORST TRADE & BIGGEST MISTAKE
