Bill Gates, the richest man in the world, often talks about his mentor Warren Buffet, who just happens to be the world’s most successful investor. It is well documented that Buffet was mentored by famed investor Benjamin Graham who is known as the father of value investing. Many businesses have formal mentor programs as its benefits have been proven over and over. Successful people often mention that a prime reason of their achievement was having a mentor. So, if the Gates and the Buffets of world have mentors, so shouldn’t you have one? I would like to suggest that trading without a mentor is like flying blind. Continue reading “Trading Without a Mentor is Like Flying Blind”
Dollar Declines After Reuters Says China May Diversify Reserves
I wrote an article a few months back titled “A Simple Relationship to Put Money in Your Pocket”. In that article, I talked about how interest rates and bonds were inversely correlated. Well, the dollar and gold is another inverse relationship. The big news on Thursday was that China plans to diversify its foreign-exchange reserves. Its reserves are approaching $1 trillion with nearly 72% in US based assets. Any change in allocation will put downward pressure on the dollar pushing gold higher. The mere suggestion was enough to drive gold up 3%.
Don’t Bet on Gridlock
Just when I was starting to feel good about the potential for gridlock Peter Schiff throws a money wrench into the situation. Many of the pundits have been saying that gridlock is good and will prevent Washington from passing any legislation that will adversely affect the markets. Thus, giving Wall Street one less thing to worry about. However, Schiff sees it differently.Â
Peter is concerned that we may face bi-partisan cooperation.  How could cooperation be a bad? His position is “that the most likely result of both parties “working together” is Democratic support of Republican pork, in exchange for Republican support of Democratic pork, which will wreak further havoc on the country’s already dismal balance sheet. In addition, grandiose and ill conceived pet programs on both sides have much better chances of actually being passed. The last thing we need is Democrats and Republicans actually working together.”
Wow, I would not have thought that cooperation could be bad. I need to think that through some more.
The Dollar Cost Averaging Experiment Results thru November 6 – Gold Rebounds
In last months update I was concerned, but had not given up hope – that the No-Brainer Strategy would deliver double digit returns this year. The No-Brainer strategy is simply dollar cost averaging into the S&P 500 (financial assets) or Gold (tangible assets) based on where we are in the market cycle. Read “The No-Brainer Investment Strategy to Double Digit Returns” for more details.  My premise is that we are in the tangible asset phase of the cycle.  CEF and GDX are the investment vehicles of choice representing tangible assets. Here is my voice of concern last month:
“It is going to be a challenge to meet our goals of double digit returns in CEF and GDX using this strategy. However, even after this month’s drubbing – I still believe that both will out-perform the S&P before the year is over. No, I am not smoking anything. My theory is that the general market is being propped up for the mid-term elections. We want voters happy when they walk into the booth. Afterwards, all of the geopolitical issues will resurface and money will flow back into commodities.”
Gold is already off to a stellar start this month.  Closing today at $630.10/oz up 3.84% in only 10 days.
Continue reading “The Dollar Cost Averaging Experiment Results thru November 6 – Gold Rebounds”
Five Things Women Need to Know about Investing in Stocks
Source: About . com
by Ken Little
There are five basic concepts women new to investing in stocks need to know to be successful. These concepts range from the psychological to the practical and once you accept them, you’re ready to begin learning about investing.
The concepts are:
- Investing in stocks is not a “man’s†game.
- You already know more than you think.
- You should invest for your retirement.
- You should avoid being too conservative.
- Learn and practice asset allocation.
Some of these concepts, like the last two, clearly apply to every investor, whether you are a man or a woman. I single them out for women so they will pay particular attention to them as they begin the learning process of investing in stocks.