Posts Tagged ‘Fundamental’

What’s Your Philosophy?

In my video today, I discuss “what’s your philosophy?”. I don’t mean stock investment philosophy, I’m talking about what you value in your investments. Liquidity, transparency, marketability. These are core values of mine. But, others can have a different approach with different importance placed on certain criteria, and that’s okay! What works for you doesn’t have to work for them, and vice versa. For a full discussion of this, listen to my 4 minute video.   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.   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 that it is understanding some investments will do different things at different times, and not ... Read More

Find Your One Thing

In the movie “City Slickers”, Curly is asked what the meaning of life is. He replies “One Thing”. It’s my belief that your financial success is so much more than just investments. That’s why I named my company “Generosity Wealth Management” instead of “Generosity Investment Management”. I feel 80% of acquiring and preserving wealth is behavior, not chasing after the home run investment. A colleague here at the office said “funny, the harder you work the luckier you seem to get”. I couldn’t agree more. My video this week is about the importance of finding the “one thing” that you’re ... Read More

Unemployment Rate / Participation Rate

Unemployment decreased to 8.3%. Good. Participation Rate of the work force at 30 year lows. Bad. In my opinion, we’re at a time in history where there is a dramatic shift in the employment make-up, skills needed, globalization, etc. This relatively short term (1 to 10 years) transition will not be without pain for many, but the market does eventually adjust. Click for the Full Article       Read More

How Bad Are Things? Corporate Profitability?

Worst recession since the Great Depression? Not really, although it’s not pleasant. Unemployment is down. Good news? Yes, but not the whole picture. Corporations profitable? You bet. They have lots of cash on their balance sheets, ready to expand and redeploy at the appropriate time. These are just a few of the things I talk about in this week’s video. I include some nice graphs too, so be sure to click on the video to hear more!!! TRANSCRIPT: Hi there, Mike Brady with Generosity Wealth Management, here in Boulder, Colorado. And today I’m thinking a little bit about corporate profitability. ... Read More

Where Do We Go From Here?

I’ve had a relatively low position in stocks for clients for quite some time, but I’ve decided to lower it even further. I’m quite concerned about the correlation between Europe and the US, emotion/news driven volatility, and the uncertainty about what the Fed will do. The risk just doesn’t warrant having as high a percentage as I’ve had. On the flip side, profitability, efficiency, and cash balances have all been rising in the firms that comprise the S&P 500. Is the return worth the risk? Click on video to hear more. TRANSCRIPT: Hi there, Mike Brady with Generosity Wealth Management, ... Read More

Conviction, Humility, Knowledge

This video covers a range of thoughts * Conviction — what do you believe in? * Humility — the market doesn’t care what you think * Knowledge — If you do action A, is B the outcome? I hope you click on my video and watch–I try to make it the best 3 to 5 minutes of your week. Okay, maybe that’s stretching it, but worthwhile nonetheless.   TRANSCRIPT: Hi there, Mike Brady with Generosity Wealth Management, and this week I’m going to talk about two or three different things, one is conviction, the second is humility and another is ... Read More

Another Troubling Rise in Money Demand?

For years pundits chastised Americans for not saving enough, but in the past few years savings rates have exploded from negative to positive 5%. An unintended consequence of that plus banks and companies building up their own cash on the balance sheets leads to the “velocity” of money to plummet. Money needs to change hands in a vibrant society in the fair exchange of goods and services. Unfortunately, a liquidity trap can occur and may be occurring now that does not bode well for the economy going forward. Read more about this at the link before. I’ll keep you updated ... Read More

Should you Freak Out? – Part 2

Part 1 was 1.5 weeks ago. This is part 2, updated as of Monday morning. It’s a particularly long video, but filled with my current thoughts * What does the S&P downgrade mean? * What should you have and not have in your portfolio? * Should you move everything to cash? * Is this emotional selling or fundamental? I’m going to have 2 or 3 videos this week since so much is going on. One of the aspects of my job, in my opinion, is to over communicate with you as the adviser/client relationship is a partnership. TRANSCRIPT:  Hi there, ... Read More

China and US similarities before a crash – 2011 06 22

I’ve been talking about the problems with the PIIGS (Portugal, Italy, Ireland, Greece, and Spain) for over a year now. Greece in particular has been very prominent in the news recently. Has this been a slow train wreck? Yes. Has our investment markets continued to go up during that time frame? Yes. Will our markets continue to go up? That’s always the question, and a harder one to answer. One of the things I’m trying to do is guide you and my clients to that answer, knowing of course the future is unknown. Anyway, this week I discuss what I ... Read More

Buffett’s Favorite Valuation Metric

I’m a big fan of Warren Buffett (as many of you know) as I admire his intellect, drive, and humility. There’s a reason he’s in the top 5 richest in the world. Warren Buffett has a chart that he’s described as his favorite. It’s the total valuation of the stock market versus the Gross National Product of the US. What is it telling us now? A = Stocks are modestly expensive. Should you sell everything to cash? A = No. It does, however, tell us to be very cautious going forward and watch the percentage we have allocated to the ... Read More

Quarter End Review / Preview

This week’s video is my 1st Quarter Review and my 2nd Quarter Preview. The first quarter was good (yeah!), and I list the items I’ll be watching and thinking about for the 2nd quarter. A must see video (if I do say so myself). TRANSCRIPT: Hi Clients and Friends, Mike Brady here. This is the first quarter review and second quarter pre-view for 2011. Now, in general, the first quarter was a little bouncy in February, but overall a positive quarter; actually, a very strong and nice quarter. The indexes, which of course you can’t invest in indexes, but they’re ... Read More

Globalization and Japan

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

Ten Things Making Me Nervous

If you look back at my 3rd Quarter Preview (here) I mentioned I forecast the 3rd quarter would be up. That’s proving to be a great move (if I do say so myself). But what makes me nervous? This article sums up a lot of my feelings. Does that mean I’m bearish for the 4th Quarter? I guess you’ll have to wait until my 4th Quarter preview in a couple of weeks to find out. Click on this link for FULL  ARTICLE   Read More

Dark Side of Deficits

Are we on the cusp of a secular bull market? Does the economy and the stock market go in sync? Is one a leading indicator for the other? How do you value the stock market? Forward P/Es or Reported P/Es? And how will our current deficits affect the answers to all these questions? This is one of the best articles of the year, packed with information for you to fully understand our current situation. For your convenience, I’ve highlighted what I think is most important. Read More

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