Archive for September, 2008

Don’t react emotionally to falling stock prices

Friday, September 26th, 2008

This article gives a nice overview of asset allocation and reminds us several times not to get too emotional. I especially like the ending:

Advice on investing in Malaysia

Friday, September 26th, 2008

Interesting article here on investing in Malysian real estate. I like the idea that about 50 grand can buy a nice proprty 15 minutes from KL.

Scapegoat for American economic woes?

Wednesday, September 24th, 2008

Michelle Malkin seems to be blaming America’s current problems on illegal aliens. That’s not stated directly it’s more like aliens got sub-prime mortgages, now they are defaulting, now comes the bailout.

The problem is that you hear so many rants against illegal aliens that it takes quite a bit of research to figure out where the truth is. You can’t really believe something just because you read about it on the internet. It doesn’t help that when she gives stats, she says “hispanics” since we might be talking about people in America legally.

So I don’t know if we can really blame over-generous treatment of illegal aliens for this mess.

Helping your money survive the current market

Wednesday, September 17th, 2008

Here is what one person I know is saying about investing in the current market:

I’ve moved the 401k to (about a month ago, after being more aggressive before hand and losing about 10% YTD):

45% Blue Chips (called disciplined equity)
50% Fixed Income
5% Intl Large Caps

Also a modest investment portfolio, not in an IRA, has a similar allocation.

My bigger problem is that I work for a mid-sized financial with a good deal of unvested stock. The stock is in the 21 range, down from 30 at the beginning of the year. This is my kids education, retirement, nest egg etc. so I’m concerned.

I know people at BSC, LEH, MER etc. have bigger concerns than I, and my heart goes out to them.

Cash, gold, shorts, and Berkshire Hathaway are also popular with people I know.

Advice for beginning to play the markets

Tuesday, September 9th, 2008

Question: I was wondering if anyone had any suggestions as to the best online site to use to begin investing. I’m not looking to use a broker but rather make my own decisions and see how I could do because I find myself getting increasingly more interested in the markets and would like to start to get a feel for them. Preferably a site with smaller commissions and an abundance of technical information would be best. Thanks for your input.

Also, I believe RIMM, the company who makes blackberries, is due for a big drop in the near future for more reasons besides the iPhone and wondered if anyone had any input on that.

Answer 1: You just want to buy and sell stock shares? Or do you want to invest in bonds and the money market? Have you ever done it before? Do you have a nice amount of money to play with? If the answer to either of those questions is “no,” I don’t know if you should just dive in.

Do you currently invest in a 401(k), 403(b), or IRA? If so, what about those investments leave you unsatisfied? If you’re just interested in learning and experiencing more about stocks and stock prices, you can find out the holdings in your retirement account and watch those.

If you want to learn by doing, but don’t want to risk anything, you can buy and sell shares of stock with play money at Investopedia.com. It’s a great learning resource.