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Posts Tagged ‘Fear’

The Fiscal Cliff

I reference the important Tax Policies in my video that should be addressed by the end of the year.

 With the election over, will Congress finally address it?… Read More

3rd Quarter Preview – Heading into the Election

The 2nd quarter distinguished itself by significantly increased volatility and ultimately seeing the unmanaged stock market indexes down.

Those same market indexes are still up for the year, and it’s my belief they will end the year positive, but with continued volatility.

November is the big election here in the United States, and regardless for whom you feel is better and hope will win, the market likes a reduction in uncertainty. At that point, at least some semblance of planning can be done for a few years by the private sector as it analyzes… Read More

Winners and Losers for the 2nd Quarter 2012

Much of the unmanaged stock market index gain for 2012 was in January, April, and June. May was brutal.

In my opinion, you must have a well diversified, long term strategy for your portfolio and for reaching your financial goals.

Do you have a plan and strategy you’re comfortable with? If the answer is “no” in any form, I encourage you to call me so we can discuss what needs to happen in order for you to emphatically answer “yes!” to… Read More

Thoughts After a Tough Month

Sorry in advance for a longer than usual video this month (7.5 minutes), but I have some charts and graphs in there to provide some context for the slow ride down in the un-managed stock market indexes that we saw for May.

The question we always have to ask ourselves is “what is this telling us?” and “what does this mean for the future?”.

Click to watch my video.

 

TRANSCRIPT:

Good morning, Mike Brady with Generosity Wealth Management speaking to you from Boulder, Colorado. And today I want to talk… Read More

Don’t Buy on Hype

I have no idea what Facebook stock will do over the next 2 to 10 years. I hope it does great.

That being said, the above chart is the reason you don’t buy on hype or let your emotions lead your investment mind.

Be the smart money. Do your homework. Know why you buy a stock, under what conditions you’ll sell it, and be sure it’s part of a long term diversified strategy.

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Waving the White Flag

John Mauldin is one of my favorite newsletter writers.

This week’s newsletter speaks exactly to what my video above addresses–the elephant in the investment room is Europe.

I highly encourage you to set aside 10 minutes to read this weekend’s newsletter. It goes into greater depth than I can in the 3 to 4 minutes for my video.

Europe is the concern as we enter the dull summer months.

 Waving the White Flag

Active Management – Market Timing?

I’m asked periodically what I think of “market timing” or “active management” versus a straight buy and hold philosophy.

My first response is usually to ask for a definition of those terms. While it may be obvious to the person asking the question, if you ask 3 people you’ll get 3 different answers.

In this week’s video, I propose some definitions, but also share that while I think active management is preferable over your traditional buy & hold, market timing is great in theory but hard to execute in the real world.… Read More

Defeating the Myth You Must Win on Every Trade

If you’ve been following my newsletters over the years, you know I believe in diversification and that one of the key ingredients to reaching your goals is to avoid catastrophic financial events.

It’s important to note, as the table above illustrates, that not every investment has to make money. Limiting the size and number of the losses is important, and if avoiding any kind of loss at any time is your strategy, then you’ll always be on the sidelines.

Risk management is key, and with… Read More

Stay the Course?

Are you a “lane changer”? In traffic, he’s the guy who’s constantly changing lanes, expending a lot of energy but doesn’t really get ahead.

We all know we’re supposed to “buy low and sell high”, but unfortunately your average investor doesn’t do that. When we look at the flows into and out of equity funds we find that people are pouring tons of money in when the markets are high and withdrawing at market bottoms.

Why? By the time people feel comfortable with the direction of the market (investor confidence is increasing), they’re looking at recent past data… Read More

Japan Slowly Awakening to Debt Situation

One of my goals in my newsletter is to bring to your awareness things that I find interesting or alarming.

The article below is in the “alarming” category.

Japan borows more than it raises in taxes, and its debt amounts to two years’ worth of Japan’s economic output.

Japan has the highest debt-to-GDP ratio in the world. Half of the country’s tax income is directed to simply servicing it’s debt.

In addition to Europe and China (which I’ve written about… Read More

This is Your Brain on a Hot Streak

Continuing the theme from my video, investor behavior has a significant influence on your success.

A recent study found that cells deep in the brain calculate a sort of moving average of past events, giving the greatest weight to the most recent outcomes.

So, even after a long term upward trend, or long term downward trend, a few months in the opposite direction can prompt impulsive investor decisions towards or away from stocks.

Avoid the knee-jerk reactions.

This is

Corporate Profitability

I say in my video that “on balance” I’m more optimistic than pessimistic for 2012.

See graph to right.

Europe, China, Deleveraging, etc. are the forces against this we have to watch out for.

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2011 Recap and 2012 Outlook – Year End Video

Goodbye 2011 and hello 2012! What happened and what’s my outlook for 2012? Optimistic or pessimistic?

Watch my video to find out.

 

TRANSCRIPT:

Hi there, Mike Brady with Generosity Wealth Management, and today I want to talk to you about a little bit of a review on 2011, but spend most of my time talking about the current situation right now. And you know, maybe do a little bit of a, …, thinking about 2012 and what the future may hold.

2011 was a real volatile year. I mean frankly… Read More

Better Information, or Just More Information?

The year is almost over and as I prepared for this blog, I thought about a video I did last summer but never shared with you. The summer was so busy and volatile, I wanted to provide you with my current thoughts in such a tough time, so this video (which is one of my favorites) got pushed to the side.

The video is about information: more information doesn’t necessarily mean better information. I remember when having more publicly available information was a competitive advantage, but with free internet news sites with up to the second… Read More

Enough with Europe Already!

Europe has been, and will continue to be, the news event going forward. The effect it has upon the US is irritatingly large, whether we like it or not.

As I’ve stated in previous newsletters, the European Monetary Union (Euro) will have to change drastically for Europe to weather their problems. There will also be some drastic, fundamental ways the relationship between state and citizens will change.

The question is: what does this mean for your investments?

1. I continue to caution… Read More

A Spectator’s Guide to the Euro Crisis

By far the easiest and best chart I’ve seen to explain the European problem was published last weekend in the New York Times.

If you’ve been wondering if you’re the only person confused by what all the hub bub is about, this is your opportunity to get caught up.

Click for an outstanding chart on the European problem

7 Mistakes That Make Homeowners Targets for Burglars

I care about you, your family, and your property. I want you to be safe.

Here are 7 Mistakes that can make you a target for burglary

1. Leaving the burglar alarm off when you’re running out for a few minutes

2. Posting detailed alarm signs

3. Hiding valuables in the bedroom

Click for the rest of the list…….

3rd Quarter Review / 4th Quarter Review

The 3rd Quarter 2011 is over and I have a slightly longer video this week because I want to address the current environment and how things may shape up going forward.

A big theme is my advice to assess your overall plan and risk tolerance, and also to ensure you’re looking at both positive and negative points of view on the markets instead of just one view over the other.

I send my newsletter and videos on a weekly basis, so if you watch only a few througout the year, at least watch my… Read More

Forecasting

I’m a big fan of “behavioral finance” as many of you know. This includes understanding the importance of our human nature to the decisions we make in our lives–including finance.

This week’s video I talk about the tendency for us to only listen to data that supports our pre-concieved conclusion.

As investors, we have to avoid this!

Europe – Echoes of Lehman

The big question we need to answer is “what happens after a Greek default?”.

Lehman’s collapse was a full year before the financial crisis of 2008, and it’s very probable the full impact of Europe imploding won’t be felt for some time.

We, as investors, need to stay informed and ready to react.

Please continue to read my newsletters and blogs, and have my number in your speed dial. 303.747.6455

CLICK FOR FULL ARTICLE – EUROPE ECHOES OF LEHMAN

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