Investment Strategy

Brokered Certificates of Deposit: Pros and Cons

Brokered Certificates of Deposit are an excellent product.  But they are more complicated than their bank-issued counterparts. You can purchase brokered CDs through many major investment firms.  They often settle same day, although sometimes settlement can be several days in the future.  There is typically a selection of banks offering CDs for sale, and that …

Never Buy Based on a Star Money Manager

Buying a fund due to the celebrity reputation of its manager is not a good idea. When I worked for a large brokerage internal wholesalers visited our office.  Their job was to convince us to put our clients into house mutual funds. They would weave colorful stories about managers’ experience and track record.  It made …

Throw Out The Rules and Think For Yourself

Commonly held ideas should not be relied on as gospel.  People who spend time with investments come into contact with many experts expounding market theory. When you are new it is not a bad thing to listen to some of this.  It helps build a framework for your own thinking.  Reading such things will introduce …

Go Small When Entering an Unfamiliar Sector

Caution should be an investor’s number one priority when expanding portfolio scope. Examining and testing out new opportunities is necessary for portfolio development. But initial investment should be limited. Every investment sector has behavioral traits. When you do not have experience with these it could lead to large losses. In 2003, while working in banking, …

There Is No Such Thing as Socially Responsible Investing

Investors should focus on one thing: will this opportunity make money? Trying to complicate the issue by screening out companies that do not act in ways harmful to society or the planet is an impossible task. I have heard many people talk over the years about how they do not want their money to be …