Tag Archives: financial
The Financial Media Continues to Misunderstand the Stock Market
Much ado has been made about the fact that the Dow Jones Industrial Average is flirting with the 13,000 mark; the same level it was on May 19th, 2008 just before Lehman Brothers collapsed and led the total meltdown of the world financial system. The problem? Once again, this thinking points out how totally clueless and pathetic most of the financial journalists in the world are. (That is one of the reasons I love really good financial writers who are knowledgable about their topic; they are rare and should be valued.)
We are coming up on the four year anniversary of that event. That means the Dow Jones Industrial Average has churned out 16 quarters of cash dividends. Those are real checks, consisting of real dollars, mailed to the owners of the companies that make up the Dow. It represents real profit earned by McDonald’s selling hamburgers and 3M selling Post-It notes, Coca-Cola selling soft drinks and Johnson & Johnson selling pharmaceuticals and baby lotion.
To make the point, imagine you had bought 1,000 shares of the Dow Jones Industrial Average SPDR ETF $ 129.71 per share when it opened on March 19th, 2008. Your total investment would have been $ 129,710 plus a couple of bucks in commissions to your stock broker. In that time, you would have collected $ 10.368 in cash dividends per share, or $ 10,368.
Last Friday, the fund closed at $ 129.66 per share, or $ 129,660 for your investment. You’d have made $ 50 in capital gains. That isn’t the point. You would also have $ 10,368 in cash sitting in your brokerage account from the dividends that had been distributed to you. These “journalists” don’t seem to count that is income. You’re actually up around 8% since then thanks entirely to the dividends.
But that is only a first level analysis. To adjust for inflation, you would need to have at least $ 140,760 in your investment account to break even. With your dividends, you are now at $ 140,028. On a pre-tax basis, you are, more or less, in the same economic place you were before looking at purchasing power.
Funniest Financial Tweets of the Week
[View the story "Funniest Financial Tweets of the Week " on Storify]
Minyanville.com – All Articles
The next financial crisis: Student loans
Soaring student debt won’t likely start another banking crisis, but the problem could slowly drag down future economic growth.
College savings advice – CNNMoney.com
Financial Counseling Strategies: How To Help Others
Since becoming a Dave Ramsey certified financial counselor in 2006, I have been privileged to serve doctors and engineers, welders and carpenters, widows and teenagers. Some have been home runs while others have been strike outs, but, with each client, I have continued to learn ways to counsel more effectively. Hopefully, by sharing some of these strategies, I can help readers better analyze their own finances – or perhaps help others.
Because the vast majority of my clients are married, I will be assuming in this post that I am working with a married couple.
Both spouses must attend our first meeting.
In scheduling the first appointment, I establish my counseling expectations by insisting that we find a time when both spouses can be present. If they can’t find such a time, I explain that they are not going to be able to use my services. My rationale is simple: I cannot help this couple by working with only one of them.
Free 30 minutes
Wealth Management in Any Market: Timeless Strategies for Building Financial Security
Wealth Management in Any Market: Timeless Strategies for Building Financial Security
Expert wealth manager Bishara A. Bahbah offers a complete guide to creating financial security. From explaining the basics of wealth management to providing an in-depth look at setting up an estate plan, managing debt, purchasing insurance and employing tax-saving strategies, Wealth Management in Any Market is a one-stop-shop for individuals looking to protect their assets and build wealth to weather any financial climate.
List Price: $ 49.95
Financial Tweets of the Week
The Greek situation seems hopeless the former head of the IMF inspires a new cologne and investors cheer the strength of their stocks. Here are our picks of the funniest financial tweets this week. Share your favorites below or connect with us on Twitter at @Minyanville. 2/20/2012 @TheOnion: [American Voices] The nickel and penny now cost more than twice their face value. #WhatDoYouThink? onion.com/xMgKfP 2/21/2012 ‏@GSElevator: #1: Holding German debt is like holding the driest turd. ‏@zerohedge: In the time it took to write this tweet Greek Debt/GDP increased by 0.01% @ReformedBroker: Rihanna is back with Chris Brown the Greeks
Minyanville.com – All Articles
Top 10 Financial ETFs
There are currently nearly 40 ETFs oriented to the financial sector. The following analysis features a reasonable list of ETF selections. We believe these constitute the best index-based offerings individuals and financial advisors may utilize.
ETFs are based on indexes tied to well-known index providers including Russell, S&P, Barclays, MSCI, Dow Jones and so forth. Also included are some so-called “enhanced” indexes that attempt to achieve better performance through more active management of the index.
The financial sector has been at the epicenter of economic and stock market woes during the 2008-2011 (and perhaps beyond) periods owing primarily to the housing bubble bust and collapse of security products created to accommodate rising real estate prices. As investors know this collapse has led to ongoing bailouts and bankruptcies. The sector is on the mend to start 2012. It’s quite remarkable that from mid-November to mid-February 2012 (a three month span) many ETFs featured have gained as much as a stunning 50%. Even the most seasoned issues like XLF have reversed from 25% losses to 12% gains. This puts the entire sector as overbought since this pace of gain is typically unsustainable.
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Cramer Lightning Round – People’s United Financial Is Like Watching Paint Dry (2/8/12)
By Miriam Metzinger:
Stocks discussed on the Lightning Round session of Jim Cramer’s Mad Money TV Program, Wednesday February 8.
Bullish Calls:
Covidien (COV): “I think you should buy more. That is in the sweet spot.”
Goldman Sachs (GS), Morgan Stanley (MS): “Goldman Sachs is going higher. Nobody likes the stock…I also think Morgan Stanley is a buy, buy, buy.”
Pfizer (PFE), Bristol Myers (BMY): “Don’t sell (Pfizer)…it’s got that big buyback…is it my favorite? No, I like others more…but PFE is protected by that yield. Don’t forget BMY. I don’t care that it’s come down. I like it even more.”
Bearish Calls:
Standards And Ethics For Financial Professionals
Scandals and fraud have given financial professionals a black eye. Learn some typical ethical dilemmas and how to stay clean.
Investopedia: Articles and Tutorials
Common Sense Investing: Ten Simple Rules to Finance Your Dreams, or Create a Roadmap to Achieve Financial Independence by Investing in Mutual Funds with a Personal Financial Plan
Common Sense Investing: Ten Simple Rules to Finance Your Dreams, or Create a Roadmap to Achieve Financial Independence by Investing in Mutual Funds with a Personal Financial Plan
Learn basic financial concepts to make it more likely that you’ll achieve common life goals such as owning a home, providing for yourself or your family, taking fun vacations, and retiring in comfort–all free from financial stress. Topics include:
* The ten rules to successful investing
* How to write a personal investment plan
* How to diversify your investments
* How to know a good mutual fund
* How to be a tax-savvy investor
The 108-page book (17,000 words
