“Success is nothing more than a few simple disciplines, practiced every day.” – Jim Rohn Investing and life are more like poker than chess. I recently listened to an interview with Annie Duke. Ms. Duke’s book, Thinking in Bets along with the interview really resonate with me because her thinking is quite similar to mine. In this quick video, I detail the parallels of investing and poker and why it is critical to keep a “poker face,” keeping your emotional composure during bad….and even good investment periods! About Thinking in Bets: Making Smarter Decisions When You Don’t Have All the ... Read More
I’ve mentioned all year long that I’m bullish and optimistic for the foreseeable future, and until data tells me something else, that’s where I remain. However, what would change my opinion? What are the data that I look at, and how would they need to change in order for my opinion to change? Good question, and one I address in this issue’s video: Hi there, Mike Brady with Generosity Wealth Management, a comprehensive full-service wealth management firm headquartered right here in Boulder, Colorado. The main topic for today’s video is that I am optimistic. I am very bullish and have ... Read More
As volatility has increased in the past 3 weeks, I want to keep you well informed of my thoughts. Are the past weeks normal, have the fundamentals changed, or is this the canary in the coal mine we’ve been waiting for? These questions are answered in my video. Hi, Mike Brady here with Generosity Wealth Management, a comprehensive, full service wealth management firm, headquartered right here in Boulder, Colorado. I last spoke to you a couple of weeks ago and at that time, I talked about the third quarter. I said it’s been a tough quarter, very volatile and it ... Read More
When you hear 9 – 10% in the stock market, you must remember that those returns contain every single type of market environment. Warren Buffet is one of the most successful investors ever, and he still has declines at some point. But, he has the right behaviors ingrained in him to “be greedy when others are fearful, and fearful when others are greedy”. No one likes declines, but they are part of a full market cycle. When constructing a portfolio for a client, I always try to understand the risk tolerance for them, understanding that unless you’re 100% invested in ... Read More
One third (1/3) of workers and retirees have less than $1,000 in savings and investments in their retirement nest egg. Only 44% have done a calculation to find out how much they should be saving. With longer life expectancies, your retirement years can be the best years of your life, but outliving your money is a real risk! One of the biggest and best values I bring to clients is the ability to put the pieces of retirement planning together, and chart the progress along the way. Please contact me if you feel I can help you with your retirement ... Read More
Here’s a good paper that studies returns going back to 1920 to see how buying a country, company, or industry that has had a decline of 60% or more does for the next 3 years. Basically it’s saying there’s validity to Warren Buffet’s phrase “be greedy when others are fearful and fearful when others are greedy.” Of course, there were notable exceptions to the rule, but an interesting article and study nonetheless. Betting Against the Crowd Read More
The first quarter was a strong quarter, particularly for the unmanaged US stock market indexes. But what is going on in Europe? What might the unintended consequences be of the Cypriot banking issues? I talk about all of this in my video, so I highly encourage you to take a few minutes and listen to my thoughts. Graphs referenced in the video: Full Graphs Transcript: Good morning. Mike Brady with Generosity Wealth Management, a comprehensive full service wealth management firm here in Boulder, Colorado, and I am so pleased to talk with you this morning because we’re going to ... Read More
You’re probably hearing a lot about the Fiscal Cliff, and may be wondering • What does it really mean? • What are the implications? • What can, or should, I do? In order to answer these questions, I have a slightly longer than usual video this week (about 10 minutes), but one of the best ones I’ve done in a while (if I do say so myself). This is a very timely subect, and you’ll be hearing about the Fiscal Cliff in all the media for the next month or so. Now is your chance to be as informed as ... Read More
I reference the important Tax Policies above that need to be addressed by the end of the year. With the election over, will the Congress finally address it? Click here for a full discussion of this. You’ll be hearing a lot about it in the next 2 months. Read More
The 3rd quarter was good, essentially across the board. However, I’m concerned about some leading indicators that are slowing and indicating a tough economy ahead (notably Chicago PMI) and I’m factoring that in. That being said, I’m still looking for a nice finish to the year, but watching this next quarter very closely. If it’s weak, then I’m concerned about 2013. I’ll keep you posted throughout the quarter, but watch my video now to get my current thoughts. Read More
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 the tax and regulatory environment it ... Read More
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 about what’s been going on in the markets; what’s ... Read More
There are few things the stock and bond markets hate more than uncertainty. Currently, part of that uncertainty is the unraveling of the European Monetary Union and the impact that will have on us here in the United States. Since the beginning of the year (see January and April videos in particular) I have been optimistic, but I have to say my enthusiasm for this market is waning. The summer months, historically difficult in themselves, have me concerned with lower GDP numbers, continued unemployment leading to the election, but most importantly concerns about the debt problem in Europe and domestically. ... Read More
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 Read More
With increasing life expectancies, there is a very real risk of outliving your money or not living in the lifestyle you’d like. This article is how to plan for a 30 Year Retirement, with some great suggestions about the retirement plan you create. One of the best things I do for my clients is the planning, creation, and monitoring of a retirement plan. This is not only before retirement, but after as well. If you don’t have a retirement plan already, my best advice is to get one as soon as possible, and I’m always here to help. Plan for ... Read More
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. Click to watch my video. TRANSCRIPT: Good morning! ... Read More
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
The first quarter of this year was very forgiving of any errors. We’ve had low volatility, generally positive economic reports, and even Europe has been less in the news than previously. Watch my video for my thoughts about the 1st quarter, and to find out if I’m still optimistic for the 2nd quarter and rest of the year. TRANSCRIPT: Good morning! Mike Brady with Generosity Wealth Management and I am here in Boulder Colorado, giving you my first quarter review and my second quarter preview. Absolutely wonderful first quarter; I’m going to throw some of the numbers up on ... Read More
The VIX (implied volatility index) has become very steep. The 7th contract (6 months out) is significantly higher than current implied volatility. What does this mean? It simply means that the market is pricing in risks of a correction later on in the year. Will it happen? Nothing is for certain, and if you have a long term diversified strategy (which hopefully you do) then this may just be a bump in the road 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.