Login

3 Practical Solutions for Investors Over Age 50

Worried about the next financial crisis, but still need to retire securely? We have answers.

Click here to access
- FREE WEBINAR -

Asset protection

Here's the Biggest Mistake People Make With ETFs

Share on Facebook Tweet on Twitter

Posted by Jared Dillian - NewsMaxFinance

on Wednesday, 20 September 2017 01:48

Screen Shot 2017-09-20 at 4.19.25 AM

Pretty cheap to trade these days—$7 or whatever. Costs less than lunch. Some online brokers will give you the first 50/100/200 trades free. What a deal!

But there are consequences.

Have you ever gotten nervous about one of your positions, sold out of it, then watched helplessly as it shot up 40% in six months?

Chances are you are overtrading. And that’s one of the most common mistakes investors make, especially with ETFs.

High Commissions Are Better

I’m going to say something truly radical: high broker commissions are better.

Let me give you an example. You buy 2,000 shares of XYZ at $20 a share, paying a $7 commission. It goes up to $40/share. Hooray! But then it goes down to $30/share.

You panic and sell it, paying a $7 commission. It then goes up to $80/share. You cry yourself to sleep on your big, fat pillow.

What if your commission structure was not $7 per trade, but $.07 per share?

In this case, you would have paid a $140 commission to sell your shares of XYZ.

Would it have prevented you from selling it? Maybe!



Read more...

Banner

Asset protection

Surviving the Plight of the Black Swan

Share on Facebook Tweet on Twitter

Posted by Brent Woyat, CIM, CMT - Canaccord Genuity Wealth Management

on Tuesday, 19 September 2017 06:27

Screen Shot 2017-09-19 at 6.37.37 AMA brief look over time at periods of extreme volatility in the stock market shows us that many of these periods are associated with unpredictable, large-scale disruptions, often termed as “black swan” events. We have experienced these events within our own lifetime – the 2011 tsunami in Japan, the collapse of Lehman Brothers in 2008, and the unforgettable 9/11 terrorist attacks in 2001.

The origin of the term “black swan” dates back historically to a time when swans were only believed to be only white in colour. At that time, a black-coloured swan was seen as an impossibility. More recently, former Wall Street analyst and Chicago options exchange trader Nassim Nicholas Taleb redefined a black swan event to be an outlier which has an extreme impact but, due to human nature and rationalization, becomes explainable.

A look back over time shows that black swan events occur fairly frequently. They may have a significant short-term impact on the financial markets, but oftentimes do not create any long-lasting impact. These abrupt market-changing events often cause discomfort and, due to human nature, often pressure investors to hastily react. However, in hindsight, after these black swan events are over and things have returned to normal, the simple act of staying-the-course may also be a viable defense.

Are there any pre-emptive measures that you can take to prepare for a black swan event? Here are some practical investment tactics that you might consider to help you to black swan-proof your investment portfolio.



Read more...

Banner

Asset protection

Pension Storm Warning

Share on Facebook Tweet on Twitter

Posted by John Mauldin - Mauldin Economics

on Monday, 18 September 2017 06:37

Storms from Nowhere
Blood from Turnips
Promises from Air
Chicago, Lisbon, Denver, Lugano, and Hong Kong

This time is different are the four most dangerous words any economist or money manager can utter. We learn new things and invent new technologies. Players come and go. But in the big picture, this time is usually not fundamentally different, because fallible humans are still in charge. (Ken Rogoff and Carmen Reinhart wrote an important book called This Time Is Different on the 260-odd times that governments have defaulted on their debts; and on each occasion, up until the moment of collapse, investors kept telling themselves “This time is different.” It never was.)

Nevertheless, I uttered those four words in last week’s letter. I stand by them, too. In the next 20 years, we’re going to see changes that humanity has never seen before, and in some cases never even imagined, and we’re going to have to change. I truly believe this. We have unleashed economic and technological forces we can observe but not entirely control.

I will defend this bold claim at greater length in my forthcoming book, The Age of Transformation.

Today we will zero in on one of those forces, which last week I called “the bubble in government promises,” which I think is arguably the biggest bubble in human history. Elected officials at all levels have promised workers they will receive pension benefits without taking the hard steps necessary to deliver on those promises. This situation will end badly and hurt many people. Unfortunately, massive snafus like this rarely hurt the politicians who made those overly optimistic promises, often years ago.

Earlier this year I called the pension mess “The Crisis We Can’t Muddle Through.” Reflecting since then, I think I was too optimistic. Simply waiting for the floodwaters to drop down to muddle-through depth won’t be enough. We face an entire new ocean, deeper and wider than we can ever cross unaided.

170916-01

Storms from Nowhere?



Read more...

Banner

Asset protection

Market Complexity Could Trigger the Next Crash

Share on Facebook Tweet on Twitter

Posted by Visual Graphics

on Wednesday, 13 September 2017 07:15

Screen Shot 2017-09-13 at 7.40.02 AM

Double Click Image for the Whole Story in Graphics

Complex systems are all around us. 

By one definition, a complex system is any system that features a large number of interacting components (agents, processes, etc.) whose aggregate activity is nonlinear (not derivable from the summations of the activity of individual components) and typically exhibits hierarchical self-organization under selective pressures.

In today’s infographic from Meraglim we use accumulating snow and an impending avalanche as an example of a complex system – but really, such systems can be found everywhere. Weather is another complex system, and ebb and flow of populations is another example.

MARKETS ARE COMPLEX SYSTEMS

Just like in the avalanche example, where various factors at the top of a mountain (accumulating volumes of snow, weather, temperature, geology, gravity, etc.) make up a complex system that is difficult to predict, markets are similarly complex.

In fact, markets meet all the properties of complex systems, as outlined by scientists:

1. Diverse
System actors have different points of view. (i.e. bullish, bearish, long, short, leveraged, non-leveraged, etc.)

2. Connected
Capital markets are over-connected, and information spreads fast. (i.e. chat rooms, phone calls, emails, Thomson Reuters, Dow Jones, Bloomberg, trading systems, order entry systems, etc.)

3. Interaction
Trillions of dollars of securities are exchanged in transactions every day (i.e. stocks, bonds, currencies, derivatives, etc.)

4. Adaptive Behavior
Actors change their behavior based on the signals they are getting (i.e. making or losing money, etc.)

And like the avalanche example, where a single snowflake can trigger a much bigger event, there are increasing signs that the complexity behind the stock market has also reached a critical state.

MARKETS IN A CRITICAL STATE

Here are just some examples that show how the market has entered into an increasingly critical state:

Record-Low Volatility
The VIX, an index that aims to measure the volatility of the market, hit all-time lows this summer.

Bull Market Length
Meanwhile, the current bull market (2009-present) is the second-longest bull market in modern history at 3,109 days. The only bull market that was longer went from the 1987 crash to the Dot-com bust.

Valuations at Highs
Stock valuations, based on Robert Schiller’s CAPE ratio (which looks at cyclically-adjusted price-to-earnings), are approaching all-time highs as well. Right now, it sits 83.3% higher than the historical mean of 16.8. It was only higher in 1929 and 2000, right before big crashes occurred.

Market Goes Up
Investor overconfidence leads investors to believe the market only goes up, and never goes down. Indeed, in this bull market, markets have gone up 67 of the months (an average gain of 3.3%), and have gone down only 34 months (average drop of -2.6%).

Here are some additional signs of systemic risk that make complex markets less stable:



Read more...

Banner

Asset protection

After A Wild Trading Day, Here Is What You Need To Know…

Share on Facebook Tweet on Twitter

Posted by Bill Fleckenstein via King World News

on Tuesday, 12 September 2017 06:30

2015-Will-Be-A-Year-Of-Panic-Desperation-Radical-Change2-864x400 cThe stock market exploded out of the gate, gaining about 1% in the first hour, apparently because North Korea didn’t cause any trouble over the weekend and — fortunately — Hurricane Irma was not as bad as had been feared. 

A Lot of Hot Air
The only problem with using those two arguments....

....continue reading HERE

...also

Legendary Short Seller Covers Gold & The Dollar Ahead Of KWN Maguire Interview Release



Banner

<< Start < Prev 1 2 3 4 5 6 7 8 9 10 Next > End >> Page 3 of 87

Free Subscription Service - sign up today!

Exclusive content sent directly to your Inbox

  • What Mike's Reading

    His top research pick

  • Numbers You Should Know

    Weekly astonishing statistics

  • Quote of the Week

    Wisdom from the World

  • Top 5 Articles

    Most Popular postings

Learn more...



Michael Campbell Robert Zurrer
Tyler Bollhorn Eric Coffin Jack Crooks Patrick Ceresna
Josef Ozzie Jurock Mark Leibovit Greg Weldon Ryan Irvine