Of course you would prefer to skip this step and jump right into some new product athletic shoes that will hurdle you over the work and directly into the profits. How’s that been working out for you? It was once written (somewhere): no work, no reward.

Risk is compounded by ignorance, multiplied by gimmickry, and exacerbated by emotion. It is halved with education, ameliorated with cost-based asset allocation, and managed with disciplined: selection quality, diversification, and income rules— The QDI.

For the “rest of the story”:

http://kiawahgolfinvestmentseminars.net/Inv/index.cfm/6995

 Steve Selengut

http://www.sancoservices.com

Author of: “The Brainwashing of the American Investor: The Book that Wall Street Does Not Want YOU to Read”, and “A Millionaire’s Secret Investment Strategy”

But what is hedging all about in the first place?

Conspiracy theorists have their hands in the air. What’s that? Portfolio hedging strategies were created to expand the market for the first generation of derivative products— options and futures contracts. Hmmm, not so far fetched an idea, really. Just back up a bit and think about what they are trying to accomplish.

Hedges are designed to massage your market value numbers, a kind of security blanket that softens the highs and lows of the market cycle. But why focus on the fluff of transient market values in the first place? Cycles eventually correct themselves without the unnecessary drama, guesswork, risk, and trading fees.

It’s not the market value of the portfolio that is of primary importance. It’s the actual content of the portfolio and how you deal with the natural dynamics of the securities you own. Why can’t the media reinforce that kind of stuff instead of the emotion of the month?

If a portfolio has a semi-guaranteed “base income” of 4%, a 4% cushion (or hedge) is always in place, one that grows annually with proper asset allocation management, and adds to the market value in upward cycles— nah, too simple.

For the “rest of the story”:

http://kiawahgolfinvestmentseminars.net/Inv/index.cfm/6979

Steve Selengut

http://www.kiawahgolfinvestmentseminars.com/

http://www.sancoservices.com

Professional Portfolio Management since 1979

Author of: “The Brainwashing of the American Investor: The Book that Wall Street Does Not Want YOU to Read”

But it’s not nearly large enough to pay the bills, reduce the national debt, grow the economy, and come to the aid of all of the people in the world who need us. Why, because nearly half of us (some legally, some not so) pay little or no federal income taxes at all— and because our elected representatives have no financial management skills.

The only taxes that always get paid are those that reduce the amount of spending money in our pockets and which raise the cost of the goods and services we purchase — thus retarding economic growth.

First KISS: Create Jobs Right Now

Create jobs immediately by eliminating the corporate income tax (and all other fees, local taxes, assessments, ad nauseum) for any corporation that adds 10% to its permanent workforce and/or 20% to its total workforce.

Second KISS: Lower and Eliminate Taxes

Third KISS: Produce Sustainable Economic Growth

“The Rest of the Story”: http://kiawahgolfinvestmentseminars.net/Inv/index.cfm/6942

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Steve Selengut

http://www.kiawahgolfinvestmentseminars.com/

http://www.sancoservices.com

Professional Portfolio Management since 1979

Author of: “The Brainwashing of the American Investor: The Book that Wall Street Does Not Want YOU to Read”

Many of the advantages of Closed End Funds are discussed below. It should be abundantly clear that this form of investment has eliminated nearly all of the drawbacks of conventional mutual funds. The two have very little in common.

Trading Liquidity – Flexibility – Cost: Closed End Fund shares may be bought or sold at any time during the trading day, just like common stocks, and share prices will fluctuate. They are excellent start up investment vehicles for smaller accounts where diversification would otherwise be difficult to achieve.

There are no penalties for leaving the CEF when the stock is sold. The only direct cost involved is the commission paid when buying or selling the shares.

For “the rest of the story”: http://kiawahgolfinvestmentseminars.net/Inv/index.cfm/6938

Steve Selengut

http://www.kiawahgolfinvestmentseminars.com/

http://www.sancoservices.com

Professional Portfolio Management since 1979

Author of: “The Brainwashing of the American Investor: The Book that Wall Street Does Not Want YOU to Read”

Certainly, it’s a no brainer to sell a Jim Cramer, Peter Lynch, or Robert Kiyosaki effort while a “newbies” approach to solving the puzzles of Wall Street, requires some major financial risk. 

Are they responsible for the problems in the financial markets? Of course not, but they do have a perverse, if indirect, impact. By constantly publishing the same Wall Street friendly message, they contribute to the brainwashing. 

These reviews describe a book that Wall Street wants to keep in the closet, an educational and strategic breakthrough that would have allowed most investors to avoid the bubbles and derivatives that caused the three financial crises of our lifetimes — and if you don’t learn something (there will be a test) I’ll refund your purchase price. 

For the rest of the article: http://kiawahgolfinvestmentseminars.net/Inv/index.cfm/5758

 Steve Selengut

Author: The Brainwashing of the American Investor

The Stock Market is a dynamic place where investors can consistently make reasonable returns on their working capital if they comply with the basic principles of the endeavor AND if they don’t measure their progress too frequently with irrelevant measuring devices.

The classic investment strategy is so simple and so trite that most investors dismiss it routinely and move on in their search for the holy investment grail(s): a stock market that only rises and a bond market capable of paying higher interest rates at stable or higher prices — just not going to happen.

This is mythology, not investing. Investors who grasp the realities of these wonderful marketplaces recognize the opportunities and embrace them with an understanding that goes beyond the media hype and side show performance enhancement barkers.

Through the application of a few easy to memorize rules, you can plot a course to an investment portfolio that regularly achieves higher market value highs and (much more importantly) higher market value lows.

Five simple concepts of Asset Allocation, Investment Strategy, and Psychology are summed up quite nicely in what I call “The Investor’s Creed”:

For the rest of this article, go to:

http://kiawahgolfinvestmentseminars.net/Inv/index.cfm/5663

Steve Selengut

Author of: “The Brainwashing of the American Investor: The Book that Wall Street Does Not Want YOU to Read”

Prices go down because of speculator reactions to expectations of news, speculator reactions to actual news, and investor profit taking. The two former “becauses” are more potent than ever before because there is more self-directed money out there than ever before. And therein lies the core of correctional beauty!

Mutual Fund unit holders rarely take profits but often take losses. Additionally, the new breed of Index Fund Speculators over-react to news of any kind because that’s what speculators do. Thus, if this brief little hiccup becomes considerably more serious, new investment opportunities will be abundant!

Here’s a list of ten things to think about doing, or to avoid doing, during corrections of any magnitude:

For the rest of the article: http://kiawahgolfinvestmentseminars.net/Inv/index.cfm/6923

By Kate Gibson, MarketWatch

NEW YORK (MarketWatch) — U.S. stocks caved on Thursday, with the Dow industrials making a comeback of sorts from a drop of nearly 1,000 points, as Europe’s financial troubles took hold on Wall Street.

At its height, the major stock indexes were all down 8%, with the Dow Jones Industrial Average (INDEX:INDU) diving almost 1,000 points before halting its decline.

Yields on 10-year treasury notes dropped the most since September 2008 and the euro fell to a new 14-month low, below $1.26.

“The markets have an eerie feeling similar to the timeframe when Lehman went down,” said Andrew Brenner, head of emerging markets at Guggenheim Securities.

“You can go back to Goldman Sachs Friday when the market sold off. Since then the market has been prone to headline risk and looking for a reason to sell off,” said Jay Suskind, senior vice president at Duncan-Williams.

“Is the market now seeing Greece and Europe as the canary in the coal mine for us? We all know we have budget and deficit issues,” Suskind said.

The major U.S. stock indexes gave way shortly after 2 p.m. Eastern, with the Dow Jones Industrial Average (INDEX:INDU) lately off 366.69 points, or 3.4%, to 10,501.43 with all 30 components on the decline, led by Bank of America Corp. (NYSE:BAC) , off 6.9%, and Caterpillar Inc. (NYSE:CAT) , off 4.2%.

The S&P 500 Index (INDEX:SPX) dropped 41.33 points, or 3.5%, to 1,125.07, with financials and utilities down the most among its 10 industry groups.

The Nasdaq Composite Index (NASDAQ:COMP) shed 77.93 points, or 3.2%, to 2,324.36.

More than 10 stocks were falling for every one on the rise on the New York Stock Exchange, where 1.7 billion shares had traded as of 3.10 p.m. Eastern. Composite volume topped 8.1 billion.

Exposed

As Greece looked to a $144 billion rescue from the International Monetary Fund 15 other nations that use the euro to help cover its debt, some questioned if some of the nations helping foot the bill — namely Portugal and Spain — would eventually need to be bailed out as well.

U.S. economic data was mixed, while retailers reported April sales slowed from March’s robust gains, with a majority of those reporting missing expectations.

Gap Inc. (NYSE:GPS) was among the underperformers, its shares down 6.6% after the apparel chain reported same-store sales dropped 3%.

Abercrombie & Fitch Co. (NYSE:ANF) shares declined 11% after the teen-clothing seller after its same-store sales fell 7%.

Ahead of Friday’s jobs report for April, the Labor Department reported initial claims for unemployment benefits fell by 7,000 last week to 444,000.

The government data is expected to show the U.S. economy added between 189,000 to 200,000 jobs last month, while the rate of unemployment held at 9.7%.

Separately, the Labor Department on Thursday said U.S. productivity climbed 3.6% in the first quarter.

In Washington, Treasury Secretary Timothy Geithner and former Treasury Secretary Henry Paulson pitched financial reform, telling a fact-finding panel the economic crisis came in large part because regulators didn’t have the power to limit risk.

The only reason for a person to assume the risks associated with investing is the possibility of achieving a higher rate of return than is attainable in risk free savings depositories for their capital (money). Investing is a get rich slowly process, conducted in an uncertain environment — one that must be understood and managed in a way that minimizes the risks involved.

The Working Capital Model accomplishes this by eliminating the need for impersonal comparisons with arbitrary and unrelated numbers and time periods. It works best with portfolios that are diversified among individual securities that are at the same time of high quality and income producing.

The key to successful investment management is Asset Allocation, the process of dividing the available investment dollars into two, and only two, buckets: equity investments and income producing investments.

All investment grade securities fit within one of these two classifications, based solely upon the primary purpose for their ownership. There are several key issues involved in successful Asset Allocation:

For the rest of the article, and links to Parts Two and Three:

http://kiawahgolfinvestmentseminars.net/Inv/index.cfm/6886

Steve Selengut

http://www.sancoservices.com

http://www.kiawahgolfinvestmentseminars.net

Author of: “The Brainwashing of the American Investor: The Book that Wall Street Does Not Want YOU to Read”, and “A Millionaire’s Secret Investment Strategy”

Stages of Market Emotion - CBSNews.com

During every correction, I encourage investors to avoid the destructive inertia that results from trying to determine: how low can we go; how long will this last? Investors who add to their portfolios during downturns invariably experience higher market values during the next advance— particularly if they focus on Investment Grade Value Stocks (IGVS).

IGVS valuations have been trending upward for nearly a year; Market Cycle Investment Management portfolios are eclipsing the all time highs achieved in 2007, and income Closed End Fund values have risen with surprisingly high yields still intact. The investment gods are smiling once again— but not on everyone.

Corrections are as much a part of the normal market cycle as rallies, and they can be brought about by either bad news or good news. (Yes, that’s what I meant.) Investors always over-analyze when prices become weak and over-indulge when prices are high, thus perpetuating the “buy high, sell low” Wall Street lunacy.

Waiting for the perfect moment to jump into a falling market is as foolish a strategy as taking losses on investment grade companies and holding cash. Corrections in both equity and income securities produce the same kind of hysteria as a spring sale at Macy’s— but in reverse. Waiting for the perfect moment to bail out of a rising market is as foolish a strategy as buying the most popular stocks at 52-week and/or all time highs.

The fundamental quality of securities does not change simply because their prices rise and fall in response to market conditions. The investment gods work in surprisingly un-mysterious ways, and they get pretty annoyed when you don’t pay attention to their teachings. When all value stocks are moving lower, it’s an opportunity, not a problem. When all IGVS stocks are moving higher, it’s also an opportunity— an opportunity to capture reasonable profits.

During every correction, I’m amazed at the shocked reaction of the Media, the confused explanations from market gurus, and the poor advice streaming from Wall Street. It’s no wonder that the average investor panics. If they could buy a new car, a new business suit, or a new house for half price, they would be ecstatic.

Only on Wall Street are lower prices villains and higher prices heroes. The Market Cycle Investment Management methodology understands the inevitability of both, anticipates cyclical changes, and takes advantage of market gyrations, big or small, and in either direction.

The equity securities in your portfolio are inventory, not fixtures. Inventory is best acquired at lower prices, marked-up a reasonable amount for quick sale, and replaced with new inventory— and repeat the exercise as often as possible.

The income securities in your portfolio are fixtures— and the highest quality ones last the longest and produce the best. Their purpose in your investment portfolio “business” is to generate the spending money needed for current expenses now, and living expenses later.

The calendar year has no particular investment relevance— and if we tried hard enough, we could possibly do something about a tax code that rewards unsuccessful investments more than it encourages profits. Investment performance analysis should be an objective based program monitor instead of 365-day horse race with irrelevant market indicators.

Rallies and corrections could be looked at like children— learn to love them equally and their parents (the investment gods) will reward you with stable long term market value growth within a balanced portfolio that produces annually increasing base income. (Can you tell me what that is?)

There is an investment mindset solution for the problems that most people have dealing with corrections, recessions, inflation and the Red Sox. Bad news creates opportunities; so does good news. We have allowed Wall Street and the media to turn the process of investing into an endless series of circus sideshows.

The direction of the market isn’t nearly as important as the actions we take in anticipation of the next directional change. Performance evaluation needs to be “rethunk” in terms of cycles. You need to overcome your obsession with calendar period market value analysis, and embrace a more manageable approach that centers on your portfolio’s unique business model.

The Market Cycle Investment Management methodology seems to get people to where they want to be less stressfully and more consistently than the more “conventional wisdom” based strategies— and, you do want to keep the investment gods happy by appreciating their market cycle children equally.

Steve Selengut

http://kiawahgolfinvestmentseminars.net

Author of: “The Brainwashing of the American Investor: The Book that Wall Street Does Not Want YOU to Read”, and “A Millionaire’s Secret Investment Strategy”