Why the Concern over Negative TIPS Yields Is Overblown – CBS MoneyWatch.com

Why the Concern over Negative TIPS Yields Is Overblown – CBS MoneyWatch.com

On Monday, the Treasury Department sold $10 billion of five-year Treasury inflation-protected securities (TIPS) at yield of -0.55 percent, marking the first time ever that the government has sold TIPS with a negative yield. This announcement drew quite a stir, despite the fact that the real yield on five-year TIPS had been negative since late September. However, this situation has simply been overblown.  ….. read the complete article here:

via Why the Concern over Negative TIPS Yields Is Overblown – CBS MoneyWatch.com.


From the “If it sounds too good to be true” file

John Elway escaped many tackles during his career as a quarterback for the Denver  Broncos, but he was no match for the lure of a hedge fund manager.

The Colorado District Attorney alleges a massive Ponzi scheme by Sean Mueller, who ran a hedge fund. Elway and his business manager reportedly invested $15 million in the fund.
The alleged scheme was a garden variety fraud. New funds were used to pay existing investors and phony account statements were sent to hapless “investors”.

We are all too familiar with this scenario. ….

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Young? Have Your Finances Under Control? You Might Benefit from Financial Advice Too‏

Call it youth. We don’t think we need help with much. And according to a few articles I’ve come across recently, young people on the whole generally don’t perceive a need for professional financial advice.

Although age is just a number, let’s assume for purposes of seeking financial advice that being ‘young’ ranges from the early 20’s to mid-40’s.  And as someone who would be considered a young client, I completely understand the hesitation. The interaction that many have up until they accumulate some wealth is typically a lack of service since you are not a big account, or being sold a product like home owners insurance. We may even
have friends or acquaintances starting careers in the financial world who we can’t imagine paying for advice from.

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Dan Solin: Jim Cramer’s Shame Meter Is Broken by Dan Solin on October 13, 2010

I don’t watch Jim Cramer’s aptly titled Mad Money.  A reader sent me CNBC’s summary of his October 6, 2010, show, which he thought would be of interest.  He was right! Cramer outlined a recommended trading strategy.  It was quite simple.  You should sell stocks that had “flown too high,” “let them cool off” and then buy them back at lower prices.  According to Cramer, this is a “tested strategy” that had served him well for 30 years.  Here is the part that really got my attention:  “And if there were proof that buy-and-hold-or simply buying an index fund, for that matter – generated the kinds of returns earned from actively managing your money,” Cramer would “offer a mea-culpa immediately.”   Hold on to your hats …….

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5 Simple Living Bloggers Show Downsizing Can be Smart-sizing

Here are some great thoughts for anyone thinking about downsizing to simplify your lives:

Early this month, I moved from what I considered a relatively spacious half-bedroom apartment in Santa Monica — to a tiny,  less-than-400-square-foot apartment in West Hollywood.  I just tried to figure out exactly how small it is — but I can’t locate the measuring tape in its new hiding spot!

In any case, the move got me seriously thinking about tiny living,  downsizing, simplicity, organization, and efficiency. And thanks to both the economy and the environmental movement, many other women are rethinking their personal American dreams, wondering if smaller can, indeed,  make for a better, happier life.

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US Stocks Rally in September, but Many Investors Missed It – CBS MoneyWatch.com‏

At first glance, it looks like investors still don’t get it when it comes to the right strategy for investing.  But look a little deeper, and there’s some hope on the horizon.

According to Morningstar, assets in U.S. stocks decreased for the fifth straight month, meaning that investors have pulled $65.1 billion from domestic-equity funds since April. How were those who fled the asset class rewarded?  We just experienced the best September for domestic stocks since 1939, as the S&P 500 Index rose about 9 percent for the month, and the third quarter saw the index rise by more than 11 percent.  The performance of the third quarter debunks another bit of “conventional wisdom” that markets follow cash flows. If they did, the market would have fallen in the third quarter.

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