Category Archives: Personal Finance

Like a Cardinal, The Price Action Will Be Red

Okay, let’s roll the promoted stocks scoreboard: Ticker Date of Article Price @ Article Price @ 1/20/15 Decline Annualized Dead? GTXO 5/27/2008 2.45 0.011 -99.6% -55.6% BONZ 10/22/2009 0.35 0.000 -99.9% -72.5% BONU 10/22/2009 0.89 0.000 -100.0% -82.3% UTOG 3/30/2011 1.55 0.000 -100.0% -92.0% Dead OBJE 4/29/2011 116.00 0.069 -99.9% -86.3% Dead LSTG 10/5/2011 1.12 […]

Living in the Land of Worries, Part 1

There is always a reason to worry, and always enough time to panic. Look over there, behind that bush: interest rates are rising. In Europe and China, deflation is threatening. The geopolitical situation is in many ways tense over Russia and Middle East issues. Japan is a mess. Emerging markets will get hit when the […]

Out and About with The Aleph Blog

1. Recently I appeared on RT Boom/Bust again.  The interview lasts 6+ minutes.  Erin Ade and I discussed: Who benefits from lower energy prices. The No-Lose Line for owning bonds, Whether you are compensated for inflation risks in long bonds How much an average person should invest in stocks with any assets that they have […]

On Financial Risk Statements, Part 1

Most formal statements on financial risk are useless to their users. Why? They are written in a language that average people and many regulators don’t speak. They often don’t define what they are trying to avoid in any significant way. They don’t give the time horizon(s) associated with their assessments. They don’t consider the second-order […]

Have Your Cake, Eat It Too, And End Up With Only Crumbs

Beware when the geniuses show up in finance. “I can make your money work harder!” some may say, and the simple-minded say, “Make the money sweat, man!  We have retirements to fund, and precious little time to do it!” Those that have read me for a while will know that I am an advocate for […]

Risk Tolerance — The Ability to Deal with Loss

No one knows their financial “risk tolerance” outside of the context of losing money.  Part of the trouble is that risk and return are often described in the same breath as if they are inseparable, when they are more weakly related than most think, and certainly not linear. Surveys, no matter how well-intentioned or -designed […]