Visualizing a Lost Decade

Would you like to see an ugly picture of long term investing in the last decade? Read on. Read more

Is a Crash Coming?

I can’t add much to a recent article from the Wall Street Journal. It contains a list of ten reasons why the market may due for another a big drop. They are reasons based on logic, not hysteria. Read more

Re-thinking Asset Allocation and Correlation

A bedrock principle of asset allocation for the long term investor is asset correlation. The theory is that a properly allocated portfolio includes investments in different asset categories or classes that are non-correlated. This means that as general market and economic conditions change, the different asset classes won’t experience a lockstep change in value. In other words, you don’t want the value of all of your investments to rise and fall together, particularly the “fall” part.  Read more

Bank of America Withdrawal and Investment Simplification

Yesterday and today I continued the process of disengaging from our relationship with Bank of America.   Read more

Anticipating a Second Market Collapse

The doomsday investors and prognosticators are out in full force. They are predicting another collapse of the markets. I am concerned, of course, as I am in the retirement home stretch. There are plenty of theories for why we should expect more bad news. Read more

Boosting Our Gold Holdings

We made a small adjustment in allocation of assets in our taxable investment accounts. I can’t say I feel great about it but that’s OK. Read more

There Are No Stock-Picking Geniuses

I shake my head when someone writes about managed funds or picking individual stocks as a preferred way of investing. For every lucky home run investor or fund manager genius of the day, there is a genius has-been. Read more

Municipal Bonds for Junk Collectors

Poor financial management exists at all levels of government. City politicians have to buy votes too. Also, local politicians and bureaucrats are more likely to be naive in their thinking about where the money will come from to pay for everything. It’s no surprise, then, that we have cities staring bankruptcy in the face, including a state capital. Read more

Are You Prepared for a Major Market Crash?

The market has been making me uncomfortable. Perhaps “more uncomfortable than usual” is a better description. I’m feeling more like a gambler than an investor. By that I mean that my feelings about positive market returns are closer to “hope” than they are expectations.  That’s not good. Feelings like I have about the market are more akin to being a lottery player or speculator. Read more

Investing 2010 – Whom Do You Trust?

Last week the equity markets fell, hard. Have you heard or read a reasonable explanation for this? Mr. ToughMoneyLove hasn’t.  He is disturbed yet not surprised about that. Read more

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