The Peculiar Alchemy of Hedge Funds (October 2006)
Shining a bright light into the dark caverns erected by hedge funds to assess where their gains come from and who actually gains from the under-acknowledged risks assumed by unregulated hedge fund managers. Explaining, in the process, why so many hedge funds suddenly collapse and why this could well become a more common occurrence.
Hidden Cost of Investing: Closed-End Funds (July 2006)
Dr. Tiemann wanders into the bizarre world of closed-end funds to answer the curious question of why these fickle investments so often are found to be trading in the market at a discount to their underlying portfolio value, even in investment categories where there are perfectly good alternatives available.
Head Over Heels for the Yield Curve (May 2006)
Examines the perils of prediction and the relationship between an inverted yield curve and recession, the stock market and the economy as a whole. Explains why the disciplined investor would not make sudden, sharp changes in portfolio strategies to “beat the gun” based on an inverted yield curve.
Meet Ben Bernanke, the New Fed Chair (February 2006)
A summary of the Federal Reserve’s shift in policy and transparency during the tenures of Paul Volker and Alan Greenspan. Discusses the changes in the Fed’s approach to monetary policy from managing money supply to managing short term interest rates. The new Fed Chair, Ben Bernanke, supports a Fed policy targeting inflation rather than interest rates or money supply. Reviews Mr. Bernanke’s credentials, his relationship with Congress and the market’s reaction to him since his nomination.
“Dude, Where’s My Pension?” (December 2005)
The bankruptcy filings of Northwest, Delta and Delphi reveal some of the pitfalls and perils that have emerged in the historically but possibly transitioning “paternalistic” system of planning for retirement benefits in the U.S. Discusses causes for the changes, impact on the Pension Benefits Guaranty Corporation and impacts on employers and employees.
Can News Be Neutral? (October 2005)
Offers insight to the bias inherent in financial news reporting and the risks involved from trading on “news” from a fax alert, mailer or television program. Explains how looking at the broader picture and diversifying your data sources will result in better choices for the long term disciplined investor.
What to Do with a Concentrated Portfolio (May 2005)
Investors often hold on to concentrated stock positions due to tax implications, loyalty and continued involvement. Reviews the risks of a concentrated portfolio without any compensating benefit and examines the balancing of risk and opportunity by selling at least part of the concentrated position and investing the proceeds in a diversified portfolio.
The Right Porfolio at the Right Price (March 2005)
Describes the bewildering array of options that exist for investors seeking solutions to portfolio management. Reviews the perils of doing it yourself and going with certain styles of traditional advisors. Explains why complexities in the market as well as the needs of individuals can expose investors to unknown risks, unnecessary taxes and hidden or excessive costs.