Increases in the market risk premium analyzed, with assessment of implications for individual investment strategies relative to risk tolerance and investment timeframes, as well as risks to corporations with and without access to capital, in their abilities to prosper and produce superior returns.
Review of the more than run-of-the-mill market corrections and diagnoses of actions by the government to stem the failures by such entities as Fannie Mae and Freddie Mac, while permitting the collapse of Lehman and Bear Stearns. Implications of the political uncertainty in light of the upcoming presidential elections and market reactions.
A discussion and primer on the hidden costs of mutual funds, the primary types of "pre-packaged" investments that many investors get "advised" to put their money into. This is a must-read for investors who want to know what their advisor earns, what their real costs are for owning mutual funds, and why total fees are not easy to ferret out even when you delve into the fine print of those pesky prospectuses.
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 occurance.
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.
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.
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.