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Market timing is detrimental to Investor Returns   [Posted on: 07/07/2014 ]
Investors chasing recent performance of equity funds (by jumping into the funds with euphoria), and yanking moneys out of these funds in response to market declines (dynamics of greed and fear) is costing them severely by cutting into their wealth compounding. Investors are well advised to ignore short-term volatility , to dollar cost average their investments, and buy and hold. Please read the attached article based upon the St. Louis Federal Reserve's study.
So much for currency hedging on foreign investments!   [Posted on: 02/18/2014 ]
Currency hedging on foreign investments held in local currencies (to US dollars)is often offered by fund managers to either reduce or eliminate the additional risk and volatility. However, investor experience documents the futility of this (rather expensive) exercise. Please read this informative article from Bloomberg.
Are financial markets efficient? Can portfolio managers beat market indices?   [Posted on: 10/19/2013 ]
Investors often confuse "speculating in stock markets" with "wealth building". They are sold a bill goods by "portfolio managers" claiming that they can "beat the market indices" by their "stock picking" or "market timing" process. However, all such endeavors are doomed to fail (as the 2013 Nobel Prize in Economic winners suggest), and are injurious to investors long - term financial security. Best path for investors is to adopt a "discipline of investing" that is suitable to their risk tolerance, and make "time" their friend via compounding of wealth.
Obamacare is suffering a bit of starting trouble   [Posted on: 10/15/2013 ]
Obamacare is supposed to be off to a flying start on October 1, 2013. However, it is having a bit of starting trouble, primarily due to political posturing on both sides of the isle in US Congress, and due to the administration's desire to ram through the program down America's throat by any and all means. Please read the attached Bloomberg article that give a rundown on current state of affairs in the launch of Obamacare.
Managed (dismal) futures investing..   [Posted on: 10/08/2013 ]
Managed futures funds often hold themselves as a risk reduction tool for investor portfolios. However, real world experience of investors is quite different. Attached is an article from Bloomberg that discusses this conundrum.
Buffet calls Fed a Hedge Fund!   [Posted on: 09/20/2013 ]
In the name of preventing the US banking system going bust (from all the genius financial engineering practices banks did to goose their profits during the hay days of the credit bubble in 2005-2007), and to help recover housing from the bust it did go through, the US Federal Reserve resorted to unprecedented monetary policies - to the point of denying basic price discovery in the bond markets and becoming a hedge fund (with public money) along the way. No one knows how, why, and when this extraordinary experiment ends, and with what longer term consequences. Legendary investor Warren Buffet adds his voice to this debate.
You think gasoline prices are high!   [Posted on: 09/12/2013 ]
Americans think that gas prices have jumped up in the recent years ($3.50 per gallon or approximately four litres) and are pinching the family budgets. However, it is worth comparing the gas prices around the world to get a perspective on gas prices!
Unemployment rate falling for the wrong reasons..   [Posted on: 09/10/2013 ]
US unemployment rate fell to 7.3%, the lowest since December 2008, mostly due to workers leaving the workforce rather than improved hiring. Attached article from Bloomberg sheds light on the jobless recovery since last recession and part-time jobs dominating the new hires.
Challenging road ahead in Emerging Markets   [Posted on: 08/27/2013 ]
The US federal reserve is expected to implement a major change in its monetary policy of intervening in the long end of the US bond markets in September 2013. An unintended consequence of its policy change is about to impact Emerging Market currencies, bonds and stocks in a negative manner. Please watch this highly informative video from Bloomberg TV.
Et Tu, Gold!   [Posted on: 06/28/2013 ]
The past five years have been turbulent times in the financial markets - with credit bubbles, real estate bubbles, bond bubbles (yet to burst) and major central banks printing well over ten trillion USD to prop up their economies and respective stock markets. In this uncertain world, investors sought refuge in Gold (hoping that it would some how hold value and protect their investments) - only to be disappointed. Now the question being asked in the investment community is how low will the gold prices drop? Watch this interesting Bloomberg video.
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