Since this new investment system does not yet have much diversity, I was looking for different investments. One of the most interesting that I found was the Euro Pacific International Value Fund. A mutual fund? Yes, I am a bit surprised myself.
After writing many posts about how bad mutual funds are, why am I considering this one? Because it makes sense. It follow’s Peter Schiff’s investment approach. I read a few of his books and I agree with his investment philosophy. You can read about it here.
As Social Security begins to collapse and the millions of baby boomers begin to retire, many will wonder where all the money went. It was only last year when would-be retirees lamented,
“My portfolio is down 50%, so I can’t retire. I don’t even open up those statements anymore”
Dow 2006 - 2010
Did you see these people on the news? I remember them clearly. But now that the market has recovered, they are long forgotten. And the lesson was not learned. Most people have their entire retirement account invested in mutual funds. As soon as the market goes down again they will be in the same unenviable position.
After watching those financial shows and listening to a few financial “advisors”, I have come to the conclusion that they don’t really know what they are talking about. Yes, it’s true that the words are pieced together to creates some meaning, but there is no value.
Here’s a clip from Stock Watch.
Most of the time, they say something like, “If this happens, then that will happen.” And I think, “OK, that’s nice. But it doesn’t really help me.”
Here’s what you need to do. First, you need to strike a claim. Actually, before that you should probably buy a mule and change your name to a more authentic-sounding “Jasper” or “Festus.”
Then you take a pick and begin cutting away…
No. No. No.
Investing in gold does not require you to prospect or dig a mine.
Here are four ways you can get your gold bug on without getting dirty. Or changing your name to Festus. Read more…
I found this great story on Yahoo about an octopus named Paul, who has the ability to know who is going to win each of the world cup games. It sounds incredible, but it’s true. His picks have been televised on live TV. Plus, even though he is German, he correctly chose Spain over Germany. So that means he is not prejudiced.
Is this octopus really clairvoyant, or could there be another explanation?
A few weeks ago China let its currency float against the dollar. The result has been that the Yuan is getting stronger and the dollar weaker. I don’t think anyone is surprised…
Just when the dollar was in its worst shape, Greece defaulted on its debt. This had a powerful strengthening effect on the dollar. Now some people think the EU will disband, and the Euro will die a quick death. Personally, I think it is fairly likely. As soon as more global financial turbulence causes other EU countries to default (like Spain, Portugal and Italy), the strong will bail.
After reading this great post at Early Retirement Extreme, I was reminded about the low quality of financial advice that most people accept. Not only do they accept it, but they actually pay for it!
Mutual fund companies make billions of dollars from unsophisticated and naive investors who buy mutual funds and hold them. What most of these would-be investors don’t realize is that each year the mutual fund managers take some of the money for themselves. It seems like a small amount, only about one percent.
Automated Trading systems use computers to trade stocks and other assets. It may sound like science fiction, but computers are playing a more pivotal role in trading. Huge companies utilize computers to conduct complicated trades.
I know what you’re saying… how does that help you? All these big companies with deep pockets can invest in technology that you can’t afford.
But things are changing and advanced Automated Trading Technology will rapidly reach more investors and more self-directed investors.
There are a number of ways that Automated Trading is equal to–or better than–mutual funds as a tool for the self-directed investor. This performance should only improve over time. Read more…
Many people equate investing with a buy and hold strategy. They put money into their 401K or IRA account, and then buy mutual funds. They get their investing advice from the people who sell the mutual funds. They say, “No matter how far it goes down, don’t sell. Just wait until it comes back up.” And, they forget about their investment until their quarterly statement arrives.
On the other hand, the richest and most successful investors don’t buy mutual funds at all. One of their more popular investment choices are hedge funds. Hedge funds are similar to mutual funds in that the manager chooses which assets to buy and sell. Most people think that hedge funds are riskier because they are not limited in the investment strategies that they can use.
While nearly all mutual funds buy and and sell stocks, hedge funds can profit from a wide variety of strategies. For example, they can sell stocks short. They can participate in options, futures and currency markets. These markets offer higher leverage than stocks, so the government has labeled hedge funds as “risky”. Only accredited investors are allowed to invest in hedge funds.
The recent market crisis has made many people question the idea of investing in mutual funds. Many people have seen their retirement portfolios plummet by as much as 50%. To add insult to injury, Bernie Madoff’s theft of $50 billion of investor money has made people wonder whether the government is protecting them at all.
One of the problems with mutual funds is that they charge high fees. These fees are described as just a few percent of the portfolio value. A few percent sounds like a very small amount, right? They sound small but they are big. Over time, these fees eat up most of the portfolio profit. How did this happen?
The Singularity is Near by Ray Kurzweil is the book that started it all. If you want to know about the future, it is the best book I've found. Absolutely fascinating.
Rich Dad Poor Dad by Robert Kiyosaki. This is one of the most popular personal finance books of all time. A must read for anyone who wants to become financially successful.
The Millionaire's Secrets is one of my favorite financial books of all time. It's an allegory about a guy who has a terrible job, and how he overcomes challenges to achieve his dreams.
The One Minute Millionaire is a great book about how to become a millionaire. Written by Mark Victor Hansen and Robert G. Allen, this book combines an inspirational story with practical everyday skills.
The Art of Learning is the fascinating story of Josh Waitzkin, the world champion in both chess and Pushing Hands. His style is mesmerizing, and the strategies for learning are priceless.
The Alchemist is one of the best-selling and most inspirational books of all time. Anyone who has ever had a dream in life needs to read it. Perhaps my favorite book of all time.
Love is the Killer App is a powerful, step-by-step book about how to have a wonderful experience and spread love in any working environment. Think the office has to be a source of bad energy? Think again.
The 4-Hour Workweek is a powerful book full of strategies about how to get more done in less time. For anyone who is looking for leverage or wants to achieve success quickly, this book is absolutely invaluable.
is one of my favorite financial books of all time. It's an allegory about a guy who has a terrible job, and how he overcomes challenges to achieve his dreams.
