Top 9 Tips for the Successful Investor in 2012: Tip #5
5 – Look for the U.S. economy to continue to slog along When economies emerge from recession, Gross Domestic Product (GDP) tends to accelerate very quickly and in steep fashion as consumers who have held off purchases begin to buy and companies who became lean and mean during the cleansing are not left with much inventory. That’s in “normal” times. What we experienced in 2008 and 2009 was the bursting of a credit bubble and subsequent deleveraging (reducing debt). Recoveries […]
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Date: February 14, 2012
Top 9 Tips for the Successful Investor in 2012: Tip #4
4 – Don’t get complacent! After a horrific climate in late 2007, 2008 and early 2009 where most asset classes were decimated, the last 9 months of 2009 saw tremendous “bounce back” where most people began to feel better as their portfolios and the economy stabilized. Don’t get complacent and lazy, thinking the markets going to party like it’s the 1990s all over again. That time will come later this decade. The modern investor has a short memory and has […]
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Date: February 9, 2012
Top 9 Tips for the Successful Investor in 2012: Tip #3
3 – Beware the “Money Magazine Jinx”. What worked well last year isn’t likely to be repeated next year. When the popular publications like Money and Fortune give kudos to a particular investment’s success last year, it’s usually close to the end. That’s been the case the vast majority of the time in bull and bear markets with geographic regions like Asian emerging markets, asset classes like commodities, mutual funds like the Fairholme Fund and Legg Mason Value Trust, sectors […]
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Date: February 7, 2012
Top 9 Tips for the Successful Investor in 2012: Tip #2
2 – Asset allocating among stocks and bonds hasn’t worked well this century and it’s unlikely to work in the next decade. Modern Portfolio Theory (MPT), which espouses fixed portfolio allocations of stocks and bonds, may not be dead, but it’s critically wounded and has hurt hundreds of thousands of pre-retirees and retirees just in the past 12 years. Folks who retired in 1999 and 2000 have been decimated TWICE in 10 years. Not only were they drawing income off […]
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Date: February 2, 2012
Top 9 Tips for the Successful Investor in 2012: Tip #1
It’s amazing how powerful the turn of the calendar can be. New Year’s resolutions dominate the landscape with all of the weight loss programs and workout products at the top of the list. I’ve never been a huge “resolution” person, probably since there’s just too much I need to change and it’s a little overwhelming! But each year, I may pick one single project that needs to get done and is manageable. Last year, my office resolution was to become […]
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Date: January 30, 2012
