You cannot stir things apart. This line comes from page 269 of James Gleick's book The Information. I'm finding more and more examples in the investment world of just how true it is. You cannot stir things apart and you may not want to try. World news and economic headlines often prompt investors to seek rapid change or a quick fix to what they perceive to be a problem. Here is a short list of recent things I have been asked to stir apart: 1) … [Read more...]

Good Health comes from many sources and few things can get my clients to voice an opinion more easily than the state of health care in the United States. The concerns of investors about how the system is going to deal with increased demands and government involvement as the baby-boomers age has kept some on the sideline. I have consistently recommended some exposure to the sector but am not oblivious to some of the headwinds. I simply believe … [Read more...]

Burt White is the Chief Investment Officer at LPL Financial and the following excerpt is from his letter of today. To receive a complete version, please do not hesitate to ask. I wish to add only that, having been raised in a predominantly Japanese society, my heart aches for them but I truly believe we will see their true nature through this and I know that to be incredibly strong and wise. "Much of the catalyst for improved investor sentiment … [Read more...]

Calculating Dividend Yields Recently, I have heard many people refer to the yields being paid on the stocks they own. It usually sounds like "I'm getting 6%" or "my stock pays 4". I don't usually hear any reference to the actual price of the stock. Yield depends on the price. Neither is static. As the price of a stock falls, the dividend yield rises. As the price of a stock rises, the dividend yield falls. A stock selling for $20 per share … [Read more...]

Inflation is a process. The process can move slow or fast and isn't always as easy to identify as you may think. When the price level of goods and services rise and money is losing value, the process is alive. The rising gasoline prices of the past week are making everyone notice the inflationary process. Many price levels were rising before this, especially food. Here are some terms and ideas for investors to know regarding … [Read more...]