Lessons from George Washington... Don't Be a Pawn in Wall Street's Game
If you missed any of our Investment U columns from last week, here's a
quick rundown of the top stories...
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Selling Your Investments: Why the Gordon Gekko Philosophy Could Lose
You Money
http://www.investmentu.com/2010/September/selling-your-investments.html
"Greed, for lack of a better word, is good. Greed works."
Famous words uttered by Gordon Gekko in the movie, Wall Street (the
highly anticipated sequel - "Money Never Sleeps" - will be released in five days,
by the way.) But should you take the ruthless Gekko's words to heart when
investing?
Karim Rahemtulla says "no." He argues that while the decision to buy an
investment is a big one, the decision to sell is arguably more important.
Why? Because with greed being a primal emotion that drives the stock
market's behavior, it's crucial that you don't allow it to cloud your judgment
when it comes to selling - particularly in the volatile, time-sensitive options
world.
Karim warns investors against getting greedy when sitting on gains and
gives examples of when you should take the money and run.
http://www.investmentu.com/2010/September/selling-your-investments.html
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What George Washington Can Teach You About Portfolio Diversification
http://www.investmentu.com/2010/September/george-washington-teaches-portfolio-diversification.html
Did you know that in addition to being America's first president and
Redcoat-conquering General, George Washington can also teach you a lot
about investing?
With many investors wondering how to allocate their portfolio assets
properly, Carl Delfeld explains that you can take lessons from George
Washington if you want to have a well-balanced and diversified portfolio.
Carl illustrates this with a model portfolio.
http://www.investmentu.com/2010/September/george-washington-teaches-portfolio-diversification.html
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Don't Be a Pawn in Wall Street's Game
http://www.investmentu.com/2010/September/a-pawn-in-wall-streets-game.html
Do you know who's supplying your investment research?
More importantly, do you know the motives behind the research and
recommendations? In the often-shady Wall Street world, where so much
happens behind the scenes that can hurt everyday investors, Marc
Lichtenfeld warns investors not to become a pawn in Wall Street's game.
He discusses the importance of knowing where your investment research
comes from and ensuring that the firms/analysts whose advice you're taking
don't have a conflict of interest with the companies they're recommending.
http://www.investmentu.com/2010/September/a-pawn-in-wall-streets-game.html
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Bonehead Alert: How Washington's Latest "Brainwave" Could Crush Our
Prosperity
As the old adage goes, there are only two certain things in life: Death and
taxes.
Actually, make that three. Toss Congressional stupidity into the mix, too.
So says David Fessler, who notes that with Congress currently bickering
over the Bush tax cuts (due to expire on January 1, 2011), there's an even
more onerous tax debate happening - one that could pose a serious threat to
the U.S. economy if it goes the wrong way.
David explains how some members of Congress want to eliminate a tax
deduction known as the IDC ("intangible drilling costs"). Simply put, this
allows oil and gas companies to offset some of the huge upfront costs
associated with exploring and drilling by deducting these IDC expenses.
Given that the United States (and the world) needs all the energy it can get,
David outlines the ramifications of eliminating this tax deduction for the
companies concerned... for oil and gas prices... for the U.S. job market...
and most of all, for American citizens. And ironically, he says a decision to
scrap this deduction might have the opposite effect that Congress wants -
lowering tax revenue instead of raising it.
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Are You Ready for The Evergreen Portfolio?
http://www.investmentu.com/2010/September/the-evergreen-portfolio.html
Do you know how to handle the stock market's "new normal?"
Specifically, this includes high unemployment and consumer debt levels,
excess housing capacity, difficult-to-obtain credit and lower-than-historic
returns from stocks, bonds, real estate and cash.
Rather than run and hide from these negatives, or fight them, Pimco's highly
respected and top-performing portfolio manager, Bill Gross, is advising his
clients to adjust to the "new normal."
And on that theme, Alexander Green profiles a new book - The Evergreen
Portfolio - which doesn't try to convince investors that the climate isn't
tough or that pessimism doesn't exist. Rather, the authors encourage investors
not to lower their expectations, but to simply learn how to adapt to today's
factors.
Packed full of many well-respected experts, the book features economic
insights, investing wisdom, wealth advice and shows exactly how investors can
adjust to today's "new normal." Forget buy-and-hold... the authors outline
unconventional and unusual ideas, plus proven strategies and
recommendations that are likely to produce high returns with an acceptable
level of risk - including The Evergreen Portfolio itself.
Read on to find out the reasons why you need to read The Evergreen
Portfolio.
http://www.investmentu.com/2010/September/the-evergreen-portfolio.html
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INVESTMENT U - Extra
Be sure to check out some of the other investment stories that we've
published this week on our website at: http://www.investmentu.com.
- Bank of Japan Steps In as Yen Hits 15-Year High Against U.S. Dollar
http://www.investmentu.com/2010/September/yen-hits-15-year-high-against-dollar.html
- Nokia's Precarious Position in the Mobile Phone Industry
http://www.investmentu.com/2010/September/nokia-and-the-mobile-phone-industry.html
- China's IT Services Industry Challenges India in Outsourcing
http://www.investmentu.com/2010/September/chinas-information-technology-services-industry.html
- Daktronics: Dominating the Digital Display Industry Since 1968
http://www.investmentu.com/2010/September/daktronics-dominates-digital-display-industry.html
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Contributing Editors
Alexander Green: Chief Investment Strategist
Louis Basenese: Advisory Panelist
Karim Rahemtulla: Advisory Panelist
David Fessler: Advisory Panelist
Marc Lichtenfeld: Advisory Panelist
Lee Lowell: Advisory Panelist
Dr. Scott Brown: Advisory Panelist
Executive Committee
Julia C. Guth: Founder
Robert Williams: Publisher
Martin Denholm: Senior Editor
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