FVIM's Insights

News and information about preserving your life savings

Managing the Market Menagerie

Have you ever noticed how often we compare market conditions to the animal kingdom? There are the long-familiar bulls and bears . Given the hoopla we’ve seen so far in 2016, perhaps the market knows that it’s the Chinese year of the monkey , a period of heightened tumult and trickery . We’ve also seen the market compared to the fabled tortoise and the hare . With a nod toward spring, there’s the related notion that we might be in a bunny market, in which returns are seen hopping up and down – but to what end? In our opinion, the...
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3026 Hits

Foolish Predictions Make for Dangerous Decisions

It’s nowhere near April 1st, but it seems there already are plenty of pundits making foolish predictions about what the markets have in store for us for all of 2016 – as if a few, admittedly raucous days foretell the tenor for the rest of the year. The popular media – and, let’s face it, we readers – seem to enjoy shivering over scary market absolutes, indulging in oversized headlines like, “ Dow has worst four-day start to a year on record ,” accompanied by the usual images of anxious exchange traders clutching their heads in disbelief. The implication is that...
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2536 Hits

Reflections on the Nature of Independent Advice

There are several ways investors can go about making important financial decisions. One way is described by financial commentator Barry Ritholtz when he tweeted: “My training as a trader consisted of being push[ed] into [the] deep end of the pool while someone yelled ‘swim.’” Fortunately for Ritholtz, he managed to stay afloat in his sink-or-swim trial. He’s a no-nonsense New Yorker, so maybe that explains it. For most of us, there is a much easier way: working with an objective and independent advisor who has your back as well as your best interests in mind. But don’t just take my word for...
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2409 Hits

Investing for What It's Worth

Having begun his career with a “modest” inheritance of around $100 million, is Donald Trump now worth $3–4 billion, or in excess of $10 billion? As described in this article by Reuters’ James Saft , it depends on whether the media’s estimates or Trump’s own proclamations are closer to the truth. For practical purposes, it’s a moot point either way. Of greater interest, Saft’s article also explored an alternate universe, in which Trump decides to skip all of his high-profile business dealings, plop his original nest egg into a basic, index-based investment strategy and let the market do the heavy lifting...
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2907 Hits