What’s Worse: Losing Money or Not Making Enough?

Oct 6, 2010 | Behavioral Finance, Incentives, Personal Finance

It’s the old adage — Greed and Fear.

Is the pain of losing money greater than the joy of making money?

The problem is that most people NEED to take some risk to realize their retirement goals because the rate of return needed is greater than the risk free return.

With inflation, there’s opportunity cost as well.

One of the things I do for clients is work with them to balance these competing desires of growth and principal protection. Call me if you’d like to discuss this in your situation.

Click on the link for a discussion of which is worse–Losing Money or Not Making Enough.

 

Ten Things Making Me Nervous

Sep 23, 2010 | Asia, Banking, Europe, Interest Rates, Monetary Theory, Taxes

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