Investment Advice and Advisors

As some readers will remember, I have an investment advisor.  You don't need one.  I do.  Why?  Because I'm older.  You young 'uns can live through just about any economic disaster but I can't.  Not that I haven't.  My philosophy when the market was going up was It Will Go Higher so I just held on to my stocks.  When the market went down I would admit it was too late to sell so might as well hang on.  Plus there were tax considerations.  So I did what I do best--nothing.

The crash of 2001 was a bit of a wake up call.  A market that goes down 60% will do that.  So one day I looked through the rubble, analysed the portfolio and said This Makes No Sense.  Went looking for advice and, boy, did I find it.  Every shoe salesman on the planet is now in financial planning.  Their credentials are not very good and most work for large firms that do nice, color pie charts that always come down to 60% equities, 35% bonds and 5% cash with the allocations becoming more conservative as I head to the old folks home.  Hell, I can do that.

I was looking for somebody that would save me from myself, somebody that would get me off the tracks as the train came out of the tunnel.  I found him.  Well, at least, he says he will.  I want somebody that is objective enough to say Hey, this market is way over bought (sold) and will take action without incurring a bunch of tax costs.  Tax costs can be avoided with the use of puts and calls and options and black magic but I did my time in foreign exchange and that was enough fun for me.  The guy I found (actually he found me as I got a bunch of junk from him over the years since I subscribe to Forbes) is Ken Fisher and he is a columnist for Forbes. 

Met his guys, poked at it, turned it over, talked to other investment advisors that bad mouthed the group (every group puts down the other, it's a measure of degree-Fisher came out pretty good) and looked around again.  And found nobody, except Fisher, that said they would get me out of the market if they thought it was out of control.  Vanguard won't and Fidelity won't which is good because you, being young you, should be in the market.  Me, I've got to protect some capital.

So went with Fisher Investments.  Figured he was in Forbes and if Steven Forbes fired him then time to look at firing him as well.  So far Forbes hasn't.

Also, Fisher is kind of a show off, a bit of a bomb thrower.  He tends to go against the tide and is, thus, a contrarian.  So am I so I enjoy his stuff.  When I don't agree with it I will reconsider.  But by then it will probably be too late. 

Fisher likes to poke holes in conventional thought and this is what we will discuss because it is fun to look at the news and get all excited and then, sit back, and say "Does this really matter?"

Fisher sends out quarterly reports on CD's and host lunches twice a year.  Since my computer had to be replaced after the book blew it to pieces I can now listen to the quarterly reports.  Just got one and they went after a few things that show up bad in the press all the time that really may be good for you, the investor.

The topics are-

Why budget deficits are good for the market and you

Same for trades deficits

High oil prices will make you rich

Is there a real estate bubble?

I was going to do budgets today but I have to go find a house framer so will do it tomorrow.

   

Comments

[Ovett]

I thought you already had a framer? I hope all is well with the big project.