Articles by Steve Selengut on ArticleSnatch.com

How's Your Investment Portfolio Doing? Seven Long-Term Indicators

Thu, 09 Jul 2009 00:00:00 -0400

Before Wall Street and the media combined to make investors think of calendar quarters as "short-term" and single years as "long-term", market cycles were used as true tests of investment strategies over the long haul. Bor-ing. There were four types of standard analysis used by most financial institutions, Peak-to-Peak, and Peak-to-Trough being the most common found in annual reports. There were also basic differences in purpose and perspective in the old days, and a focus on results vs. reasonable expectations for actual portfolios. Even more boring, and not nearly as profitable for "the wizards" as today's super Trifecta, instant gratification, speculative, mentality. Portfolio performance analysis was intended to be a test of management style and overall methodology, not a calendar year horse race with one of the popular averages. The DJIA was (I believe) originally conceived as an economic indicator, not as a market-performance measuring device. No real-life, personalized, portfolio should ever be a mirror image of any other, or comparable to any particular market index. Analysis should be of process, content, and operating strategy; the objective should be fine-tuning of either the philosophy or the discipline. **End Summary** Topics: investing]]> derivatives]]> investment products]]> closed end mutual funds]]> wall street]]> finance]]> cycles]]> working]]>]]> About the Author: ]]> Steve Selengut Sanco Services Kiawah Golf Investment Seminars Author: "The Brainwashing of the American Investor: The Book that Wall Street Does Not Want YOU to Read" and "A Millionaire's Secret Investment Strategy".

May The Investment Force Be With You

Wed, 01 Jul 2009 00:00:00 -0400

Investment markets got you down, Bunkie? Been blown away by derivative stun guns? When will portfolio market values move back to 2007 levels--- and then what will you do about it? It's time to overthrow the evil Masters of the Universe and deactivate their weapons of financial destruction. Let's outlaw the brainwashing that has changed how average investors look at and value their investment portfolios. It's time to exorcize the Wall Street demons and return to stocks and bonds--- and to QDI, "the Force" for long-term investment portfolio security. Speculating is complicated, even for financial rocket scientists. What most of us want (or would certainly settle for) is simplicity, stability, and reasonable growth in our productive working capital. A return to plain vanilla investing strategies with operating procedures that minimize risk and encourage understanding of the financial markets needs to become part of our financial force field. **End Summary** Topics: Dark side]]> investing]]> derivatives]]> investment products]]> closed end mutual funds]]> wall street]]> skywalker]]> fi]]>]]> About the Author: ]]> Steve Selengut Sanco Services Kiawah Golf Investment Seminars Author: "The Brainwashing of the American Investor: The Book that Wall Street Does Not Want YOU to Read" and "A Millionaire's Secret Investment Strategy".

Golf And Investing: Working The Ball

Mon, 15 Jun 2009 00:00:00 -0400

I think it was the immortal Ben Hogan who quipped: I can put "left" on the ball and I can put "right" on the ball--- "straight" is essentially an accident. Most amateur golfers would make a slightly different observation. We can hit the ball left or right with no problem; we just have no idea when either will occur. As to straight, most of us refer to that phenomenon as "the dreaded straight ball"--- and it's this lack of straight that makes it so critical for us to master the art of working the ball. We need to understand how to move the ball left or right, consistently, on the golf course, under pressure, but without ever aiming out-of-bounds or into a lateral. Yeah, sure, just like that. It is doable though, and Ehow is a great place to start. There, at "work-golf-ball" is a simple five-step tutorial that anyone should be able to master with countless hours of range work. Of course it's more difficult on an actual golf course, with those red and white stakes, trees, bodies of water, marsh grasses, and back yard barbequers. **End Summary** Topics: Golf]]> investing]]> income]]> bogey]]> par]]> asset allocation]]> quality]]> fundamentals]]> Moe Norman chip shot]]> ]]> About the Author: ]]> Steve Selengut Sanco Services Kiawah Golf Investment Seminars Author: "The Brainwashing of the American Investor: The Book that Wall Street Does Not Want YOU to Read" and "A Millionaire's Secret Investment Strategy".

Golf And Investing Lessons: Fundamentals

Thu, 04 Jun 2009 00:00:00 -0400

Is it luck or skill that gets us to the goals and objectives we set for ourselves--- gimmicks and software programs or practice and understanding? How many golfers are still using the putter they started with decades ago at a nine-hole cow pasture? How many of you are still bouncing between investment gurus and hedges in your search for the investment holy grail? The best athletes come to the competition with sound fundamentals, well thought out objectives, and the discipline to hone their basic technique with countless hours of practice. The most successful investors come to the process with sound fundamentals, realistic goals and objectives, and a consistently applied discipline that embraces the cyclical nature of markets and economies. Discipline is an ingredient in most long-term success recipes--- business, sports, relationships, politics, veal scaloppini, etc. Well, maybe not politics. There are "fundamentals" involved in each. Favorite foursome conversations provide clues to the particular fundamental that just failed you, as your duck-hooked tee shot comes to rest at the base of the dead pine tree, and possibly, just beyond the white stake. "Have you weakened your grip?" comments Larry. "Nah, he was lined up that way; **End Summary** Topics: Golf]]> investing]]> income]]> bogey]]> par]]> asset allocation]]> golf outing]]> hook]]> target]]> ]]> About the Author: ]]> Steve Selengut Sanco Services Kiawah Golf Investment Seminars Author: "The Brainwashing of the American Investor: The Book that Wall Street Does Not Want YOU to Read" and "A Millionaire's Secret Investment Strategy".

Golf and Investing: Tin Cup Lessons

Tue, 26 May 2009 00:00:00 -0400

Benjamin Graham was an economist, financial analyst, and professional value investor. He was one of the first to advise investors to look beyond the media hype and confusion to find undervalued stocks that would become part of a diversified portfolio. Roy McAvoy is a fictional professional golfer (in the 1996 film "Tin Cup") whose pride, ego, and stubbornness combined to let the U. S. Open championship slip through his fingers. Graham developed his skills and understanding of the financial markets into a discipline that, most expert investors would agree, helps to minimize the risks associated with investing. McAvoy recklessly ignored the risks associated with visible hazards while he allowed his internal environment to bring a defeat he clearly had the skills to avoid. For an endless variety of reasons "tin cup" amateur investors bring on their own demise by failing to minimize risks using well known basic techniques that are thoroughly documented and supported by sand traps full of statistical evidence. They hit driver with every selection--- it's the only club in their bag. Institutional plus-handicappers defied the investment gods by developing derivative monstrosities. **End Summary** Topics: Golf]]> investing]]> bogey]]> par]]> asset allocation]]> equities]]> investors]]> golfers]]> Benjamin Graham]]> ]]> About the Author: ]]> Steve Selengut Sanco Services Kiawah Golf Investment Seminars Author: "The Brainwashing of the American Investor: The Book that Wall Street Does Not Want YOU to Read" and "A Millionaire's Secret Investment Strategy".

Investment Performance Evaluation Re-Evaluated: Part One

Fri, 24 Apr 2009 00:00:00 -0400

It matters not what lines, numbers, indices, or gurus you worship, you just can't know for certain where the stock market is going or when it will change direction. Too much investor time and analytical effort is wasted trying to predict course corrections--- even more is squandered comparing portfolio market values with a handful of unrelated indices and averages. Annually, quarterly, even monthly, investors scrutinize their performance, formulate coulda's and shoulda's, and determine what new gimmick to try during the next evaluation period. My short-term performance vision is different. I see a bunch of Wall Street fat cats, ROTF-LOL, while investors beat themselves senseless over what to change, sell, buy, re-allocate, or adjust to make their portfolios behave better. Why has performance evaluation become so important short-term? What happened to long-term planning toward specific personal goals? When did it become vogue to think of investment portfolios as sprinters in a race with a nebulous array of indices and averages? Why are the masters of the universe rolling on the floor in laughter? --- Because an unhappy investor is Wall Street's best friend. **End Summary** Topics: Wall Street]]> investment management]]> WCM]]> base income]]> stock market]]> stocks]]> bonds]]> equity investing]]> trading]]>]]> About the Author: ]]> Steve Selengut Sanco Services Kiawah Golf Investment Seminars Author: "The Brainwashing of the American Investor: The Book that Wall Street Does Not Want YOU to Read" and "A Millionaire's Secret Investment Strategy".

Investment Performance Evaluation Re-Evaluated: Part Two

Fri, 24 Apr 2009 00:00:00 -0400

The Working Capital Model (WCM) looks at investment performance differently, less emotionally, and without a whole lot of concern for short-term market value movements. Market value performance evaluation techniques are only used to analyze peak-to-peak market cycle movements over significant time periods. Security market values are used for buy and sell decision-making. Working capital figures are used for asset allocation and diversification decision-making. Portfolio working capital growth numbers are used to evaluate goal directed management decision-making over shorter periods of time. WCM tracking techniques help investors focus on long term growth engines like capital gains, dividends, and interest--- the things that can keep the working capital line (see Part One) moving ever upward. The "base income" and "cumulative realized capital gains" lines are the most important WCM growth engines. Please refer to the chart which appears in Chapter 7 of "The Brainwashing of the American Investor: The Book that Wall Street does not want YOU to Read", or search Working Capital Model. The Base Income Line tracks the total dividends and interest received each year. It will always move upward if you are managing your equity vs. fixed income asset allocation properly. **End Summary** Topics: Wall Street]]> investment management]]> WCM]]> base income]]> stock market]]> stocks]]> bonds]]> equity investing]]> trading]]>]]> About the Author: ]]> Steve Selengut Sanco Services Kiawah Golf Investment Seminars Author: "The Brainwashing of the American Investor: The Book that Wall Street Does Not Want YOU to Read" and "A Millionaire's Secret Investment Strategy".

Stock Market Corrections Are Beautiful - And Necessary

Thu, 16 Apr 2009 00:00:00 -0400

Every correction is the same, a normal downturn in one or more of the markets where we invest. There has never been a correction that has not proven to be an investment opportunity. You can be confident that governments around the world are not going to allow another Great Depression "on their watch". Every correction is different, the result of various economic and/or political circumstances that create the need for adjustments in the financial markets. While everything is down in price, as it is now, there is actually less to worry about. When the going gets tough, the tough go shopping. In this case, an overheated real estate market, an overdose of financial bad judgment, and a damn the torpedoes stock market, propelled by demand for speculative derivative securities and Hedge Funds, finally came unglued. But it is the reality of corrections that is one of the few certainties of the financial world, one that separates the men from the boys, if you will. If you fixate on your portfolio market value during a correction, you will just give yourself a headache, or worse. **End Summary** Topics: Stock Market]]> Correction]]> Investment Plan]]> government]]> mutual fund]]> Inflation]]> Economy]]> smart cash]]> IGVSI]]> ]]> About the Author: ]]> Steve Selengut Sanco Services Kiawah Golf Investment Seminars Author: "The Brainwashing of the American Investor: The Book that Wall Street Does Not Want YOU to Read" and "A Millionaire's Secret Investment Strategy".

Hedge Funds: An Under The Radar Crisis

Thu, 02 Apr 2009 00:00:00 -0400

The other day, with the market giving up about a third of its March gain in DJIA points, I went looking through my favorite market stats to see if any remaining profits could be pounced upon. Typically, profit possibilities can be identified quickly on NYSE lists of the largest dollar and percent gainers. Alarmingly, 75% of the largest percent gainers were ETFs, and many of those operate using the same strategies as classic hedge funds--- most owned no common stock at all! At the same time, 93% of the largest dollar gainers were ETFs with a large proportion plainly operating like a hedge fund. Earlier in March, while we were all sunning ourselves in the far-too-infrequent-lately UVs of a brief rally, I was doing a similar search for undervalued IGVSI stocks. Yes, Virginia, there is an equally impressive array of hedge funds betting that the markets (and the South) actually will rise again. What is a hedge fund, and just what does it try to accomplish? I think the key legal element is that they don't say how they intend to get the job done. **End Summary** Topics: Hedge funds]]> derivatives]]> equities]]> ETFs]]> CEFs]]> RFN]]> FAZ]]> EDZ]]> UOY]]> ]]> About the Author: ]]> Steve Selengut Sanco Services Kiawah Golf Investment Seminars Author: "The Brainwashing of the American Investor: The Book that Wall Street Does Not Want YOU to Read" and "A Millionaire's Secret Investment Strategy".

Who Created The Financial Crisis And Why

Wed, 25 Mar 2009 00:00:00 -0400

"The Big Takeover" by Matt Taibbi is probably the best article written to date explaining the financial crisis and how we got to where we are now. Taibbi's necessarily lengthy article explains the problems, names the "poipetrators", and exposes all of the conflicts of interest--- absolutely a must read. AIG, Goldman Sachs, and J. P. Morgan turn out to be the major players causing perhaps the greatest financial crisis in modern history--- even if the pain is unlikely to get near Great Depression proportions, the dollar losses to individual investors have certainly gone as far. JPM was the brewmeister of the CDO, a vat full of various kinds of income securities, determined to be less risky because the income on most would almost certainly keep flowing--- kind of like the once popular junk bond fund that Wall Street insisted was not risky at all because of the great diversification. A few years later, the Captains of the Universe created a breed of high yield foreign government bonds where the interest was guaranteed but not the principal. (Read that again.) Certainly, the CDO product should have been looked over thoroughly by all the normal scam detectors and regulators. **End Summary** Topics: Financial crisis]]> AIG]]> Goldman Sachs]]> Paulson]]> Liddy]]> Cassano]]> J P Morgan]]> CDO]]> credit swaps]]> ]]> About the Author: ]]> Steve Selengut Sanco Services Kiawah Golf Investment Seminars Author: "The Brainwashing of the American Investor: The Book that Wall Street Does Not Want YOU to Read" and "A Millionaire's Secret Investment Strategy".

Filling The Investment Education Void With Web Workshops

Tue, 10 Mar 2009 00:00:00 -0400

Now more than ever, you can appreciate the need for comprehensive investment education. All of a sudden, fifty percent of your nest egg has disappeared--- and the bad news? There never was a plan for income generation. Ouch! Dwelling on coulda's, woulda's, and shoulda's isn't going to rebuild your portfolio. Attempting to become proficient in the speculation of the month will do little to decrease the long-term pain. Casting blame on government regulators and Wall Street scam artists does little to grow retirement income. There are at least three things you can do to protect yourself now, and throughout your more quickly approaching than you realize retirement years: (1) Actively support income tax code replacement surgery, be it Flat Tax, Fair Tax, or a combination; (2) actively support a Social Security reform plan with smaller mandatory contributions, higher guaranteed benefits, and trustee managed income portfolios; (3) attend investment web-workshops that prepare you for the long-term gyrations of economic, interest rate, and stock market cycles. It's important to find non-product-biased investment education, so that you can knowledgeably choose the investment vehicles that are most suitable for your plan--- avoid education generated by product sales organizations. **End Summary** Topics: Investment]]> Educatiostocks]]> bonds]]> CEFs]]> Wall Street]]> asset allocation]]> diversification]]> dividends]]> interest]]>]]> About the Author: ]]> Steve Selengut Sanco Services Kiawah Golf Investment Seminars Author: "The Brainwashing of the American Investor: The Book that Wall Street Does Not Want YOU to Read" and "A Millionaire's Secret Investment Strategy".

Global Investors' Bill Of Rights May Prevent Economic Deja Vu

Sat, 28 Feb 2009 00:00:00 -0500

The purpose of IBOR is to protect financial markets and to create self-sufficient investors who produce economic growth instead of government deficits. IBOR standards create transparent financial markets, regulate speculation, and protect retirement portfolios. Here's a Summary: Section One: Product Transparency. All investors have a right to see precisely what securities are inside any investment product by accessing real time information that includes names and cost-based allocation percentages. Investment companies will create no multi-level derivatives, and no product may operate in a manner that artificially impacts the valuation of the securities it tracks. Full layman's language disclosure is required for all risk-increasing activities. Section Two: Regulation and Education. Investors have a right to expect regulators to protect their interests. Specific risk assessment for all individual securities and derivatives is essential for informed decision making. Industry regulators will: Provide ground floor education to all investors; Develop standardized risk classifications and assessment tools; Regulate/control Internet investment advice; Prevent the development of multi-level derivatives; Eliminate conflicts of interest between financial companies and rating agencies. The "hierarchy-of-risk" tool compares the risk vs. reward characteristics of all investment securities, and imposes eligibility controls on speculations. Section Three: Protection from Speculators. **End Summary** Topics: Securities regulation]]> global]]> Bill of Rights]]> government]]> regulation]]> taxes]]> tax reform]]> Wall Street]]> scand]]>]]> About the Author: ]]> Steve Selengut Sanco Services Kiawah Golf Investment Seminars Author: "The Brainwashing of the American Investor: The Book that Wall Street Does Not Want YOU to Read" and "A Millionaire's Secret Investment Strategy".

The President's $10,000,000,000,000 Economic Stimulus Package

Mon, 23 Feb 2009 00:00:00 -0500

For homeowners: Cut the interest rate on all mortgage loans by 50 basis points and extend the payment schedule by three to five years. Convert all variable rate loans to fixed, at prevailing rates, and extend the payment schedule by six to ten years. No fees, points or charges tolerated. More for homeowners: Provide a pre-paid $5,000 debit card to all free and clear homeowners. The cards are worth double for Ford or GM car purchases, and expire valueless if not used for retail purchases within 60 days of issue. For retirees: Eliminate all income taxation, at all levels, on any formalized retirement income program. Eliminate all income taxation on one half of all non-retirement plan investment income received by retirees. Provide totally free health care coverage. For Social Security tax payers below age 35: Reduce mandated contributions to 3% of salary, but allow for additional voluntary contributions. Redirect all contributions to personally owned but "untouchable until age 60" SSRIA contracts with private insurance and annuity companies. Participants would be permanently assigned to qualified providors. These fixed-income-investments-only contracts would be non-commisionable, management fee only, and benefit identical at all providors. **End Summary** Topics: President]]> economic]]> stimulus]]> homeowners]]> interest rate]]> mortgage]]> variable]]> debit card]]> Ford]]> ]]> About the Author: ]]> Steve Selengut Sanco Services Kiawah Golf Investment Seminars Author: "The Brainwashing of the American Investor: The Book that Wall Street Does Not Want YOU to Read" and "A Millionaire's Secret Investment Strategy".

Investment Performance Expectations: WCM Fine Tuning

Thu, 12 Feb 2009 00:00:00 -0500

Contrary to popular belief and Wall Street propaganda, investing is not a competitive event. Rather, it is a uniquely personal, goal-directed activity that individuals must organize and control for themselves. Too few appreciate that it is a long-term enterprise and only a handful, at best, have discovered that DJIA and S & P 500 numbers are only useful at their extremes. You need to be buying when the doom and gloom is thick enough to cut with a knife, and selling at reasonable profit targets when the averages seem like they can only go up. As much as you love (or loathe) to hear about quarterly market value numbers and comparisons with one of the averages over short-term blinks of the investment eye, you will not be accommodated here. Rather, we're going to talk about investing, and some more meaningful numbers that should allow you to fine-tune your "market value" performance expectations. Why is market value in quotes? Because the relevance of a market-value-only focus is, itself, suspect. Isn't it the type of thinking that has, since November of 2007, thrown the financial markets into a death spiral? **End Summary** Topics: Investment Grade]]> economy]]> market cycle]]> market stats]]> issue breadth]]> Value Stock]]> CEFs]]> ETFs]]> REITs]]> ]]> About the Author: ]]> Steve Selengut Sanco Services Kiawah Golf Investment Seminars Author: "The Brainwashing of the American Investor: The Book that Wall Street Does Not Want YOU to Read" and "A Millionaire's Secret Investment Strategy".

IGVSI Performance Expectations - WCM Portfolios

Tue, 03 Feb 2009 00:00:00 -0500

No investor should ever be surprised by the changes in market value that appear on his or her monthly brokerage account statements. In general, media noise throughout the month should lead to a feel for what has been going on and investors should understand that the market prices of investment securities are constantly changing. No investor should be particularly surprised by the changes in market value that have taken place over the preceding year. In general, short-term changes in portfolio values will correlate positively with shorter-term prognostications about the economy, interest rates, and government plans for the political direction of the country. No investor should make changes to his or her WCM portfolio based upon short-term events or media/Wall Street/Washington speculations of the impact of such events on the future direction any cycle or financial market. Most investors back into the portfolio development process by making short-term decisions based on guesswork, hype, "insider" information, media stories, etc. Their selections are expected to "perform" (Wall Streetese for go up in price better than other similar speculations.) quickly, or at least within the calendar year of their purchase. **End Summary** Topics: Investment Grade]]> economy]]> market cycle]]> Value Stock]]> CEFs]]> ETFs]]> REITs]]> market value]]> price]]> ]]> About the Author: ]]> Steve Selengut Sanco Services Kiawah Golf Investment Seminars Author: "The Brainwashing of the American Investor: The Book that Wall Street Does Not Want YOU to Read" and "A Millionaire's Secret Investment Strategy".

"Jim Dandy To The Rescue"--- Of The Economy

Tue, 27 Jan 2009 00:00:00 -0500

More than fifty years ago, LaVern Baker & The Gliders, brought Jim Dandy into the fray to lasso runaway horses, dry the tears in little girls' eyes, and to save special mermaids from the hooks of villainous fishermen. (Black Oak Arkansas' rendition on You Tube will help you understand what your parents and grandparents survived.) Go, Jim Dandy! Go, Jim Dandy! This generation's "runaway train" is a slip sliding housing market victimized by lender's greed, Wall Street's creative dark side, and congressional tinkering with a process that worked well for centuries--- and all by its lonesome, George. Our little girls' tears are those of small, vulnerable, main-street-residing investor's whose retirement dreams have been shattered by securities markets that are little more than casinos, and instruments of mass financial destruction that even their creators cannot explain. The mermaids? They are the taxpayers who have been victimized too long by the financial institutions, tax collectors at all levels of existence, and a congress that won't rest until it regulates our democracy into oblivion. Jim Dandy is in the house--- The White House. Go, Jim Dandy! **End Summary** Topics: social security]]> You Tube]]> 401(k)]]> IRA]]> housing market]]> defined benefit plan]]> pension]]> retirement income]]> Fa]]>]]> About the Author: ]]> Steve Selengut Sanco Services Kiawah Golf Investment Seminars Author: "The Brainwashing of the American Investor: The Book that Wall Street Does Not Want YOU to Read" and "A Millionaire's Secret Investment Strategy".

Crisis Investing - Three-Pronged WCM Strategy

Tue, 20 Jan 2009 00:00:00 -0500

One of the great things about being a professional investor is the opportunity one has to apply his or her long-term experience to the investment environment that is unfolding (or coming unglued) in the present. If nothing else, most successful investors develop a consistent strategy that allows them to take advantage of short-term changes and the opportunities that they create in a somewhat unemotional manner. You can always tell a "newbie" by a "let's see how you do for a year" comment, or a "what's hot" question. Wall Street would like us to ignore the fact that the stock market is a cyclical beast that changes direction periodically, and almost never at the turn of a calendar quarter or year--- cycles vary in length, breadth, and direction. Inevitably, less experienced investors get caught with their portfolio egos unprepared for market realities. Similarly, Wall Street would like investors to look at income securities (bonds, CEFs, preferred stocks, etc.) with the same analytical eye that they use for equities. They too are expected to grow in market value forever, even though it's the income that the investor is after. **End Summary** Topics: Crisis]]> cycles]]> strategy]]> finance]]> WCM]]> investor]]> working capital]]> investment]]> products]]> ]]> About the Author: ]]> Steve Selengut Sanco Services Kiawah Golf Investment Seminars Author: "The Brainwashing of the American Investor: The Book that Wall Street Does Not Want YOU to Read" and "A Millionaire's Secret Investment Strategy".

The Investment Gods Are Angry

Tue, 13 Jan 2009 00:00:00 -0500

The Working Capital Model (WCM) is an historically new methodology, but with roots deeply imbedded in the building blocks of capitalism, and financial psychology--- if there actually is such a thing. The earliest forms of capitalism sprung from ancient Roman mercantilism, which involved the production of goods and their distribution to people or countries around the Mediterranean. The sole purpose of the exercise was profit and the most successful traders quickly produced more profits than they needed for their own consumption. The excess cash needed a home, and a wide variety of early entrepreneurial types were quick to propose ventures for the rudimentary rich to consider. There were no income taxes, and governments actually supported commercial activities. The investment gods saw this developing enterprise and thought it good. They suggested to the early merchants, and governments that they could "spread the wealth around" by: (1) selling ownership interests in their growing enterprises, and (2) by borrowing money to finance expansion. A financial industry grew up around the early merchants, providing insurances, brokerage, and other banking services. Economic growth created the need for a trained work force, and companies competed for the most skilled. **End Summary** Topics: Capitalism]]> psychology]]> finance]]> WCM]]> working capital]]> investment]]> products]]> Madoff]]> long-term]]> ]]> About the Author: ]]> Steve Selengut Sanco Services Kiawah Golf Investment Seminars Author: "The Brainwashing of the American Investor: The Book that Wall Street Does Not Want YOU to Read" and "A Millionaire's Secret Investment Strategy".

WCM-Investing Rules Of Engagement-The QDI

Sat, 27 Dec 2008 00:00:00 -0500

Crash! The 2007 thru 2008 financial crisis halved 401(k), IRA, and Mutual Fund values in a matter of months. For many, retirement dates had to be pushed back; for others, new jobs had to be found. The tragic flaw? No income allocation in the investment program. Market value builds egos; income pays the bills. Few employers cautioned Savings Plan participants that 401(k)s are just not defined benefit programs. Few mutual fund distributors suggested to benefit departments that their programs were missing something of critical importance. Throughout the meltdown, all investment securities fell in market value. But the vast majority of income securities, including closed end income funds (CEFs), have continued to pay interest and dividends. Market value builds over-confidence; income pays the bills. The Working Capital Model (WCM) is a comprehensive system for investment management that is based on uncompromising rules of engagement. The investor's focus must remain centered on the development of dependable cash flow and the creation of an expanding number of houses and hotels on his game board. **End Summary** Topics: Crash]]> financial crisis]]> WCM]]> working capital]]> investment]]> 401(k)]]> IRA]]> mutual fund]]> CEF]]> ]]> About the Author: ]]> Steve Selengut Sanco Services Kiawa Golf Investment Seminars Author: "The Brainwashing of the American Investor: The Book that Wall Street Does Not Want YOU to Read" and "A Millionaire's Secret Investment Strategy".

WCM Investing - The Process

Fri, 26 Dec 2008 00:00:00 -0500

Most people enter the investment process tip first. They hear something, grab an idea from a popular blog, accept a Cramerism or some motley foolishness, and think that they are making investment decisions. Rarely, will the right-now, instant-gratification, Internet-generation speculator think in terms that go beyond tomorrow's breaking news. It just doesn't work that way in the long run. Investing takes place in an uncertain environment with at least three important cycles working their way through time at different rates of speed. Each should have an impact on investor decision-making. More often than not, short-term thinking and impulse decision-making are ineffective long-term investment strategies--- Today, in the midst of a cyclical "perfect storm", how many Wall Streeters have the cold-blooded temperament required to focus on anything other than dwindling market values, depressing economic news, and income securities that just don't want to react normally to minuscule interest rates? The short-term mentality thrust upon investors by the tax code, the media, and the underground investment advice community obscures the big picture and makes investing more and more difficult as time goes on. **End Summary** Topics: WCM]]> working capital]]> investment]]> blog]]> Cramer]]> Motley Fool]]> uncertainty]]> long-term]]> Wall Street]]> ]]> About the Author: ]]> Steve Selengut Sanco Services Kiawa Golf Investment Seminars Author: "The Brainwashing of the American Investor: The Book that Wall Street Does Not Want YOU to Read" and "A Millionaire's Secret Investment Strategy".

Value Stock Investing - The November Syndrome On Drugs

Sat, 22 Nov 2008 00:00:00 -0500

Every fall, especially in opportunity rich markets like this, I encourage investors to think about some year-end strategies that make the final calendar quarter a special time in all markets. Several forces are at work, all of which have links to conventional Wall Street wisdom; none of which promote good long-term investment decision-making. This year, we have the added excitement of anticipating a new, perhaps economically too liberal, administration taking over with an already implanted, and demonstatably inept, congress. The markets are in a truly unprecedented state of "uncertainty overload". What's an investor to do--- or not to do? Typically, the November syndrome has features that impact in both directions. It causes weak prices to fall even further and strong prices to climb higher. This year, the strong category requires a microscope for candidate viewing, while the weak seem to have inherited the listings. Money Market funds and Treasury securities are the low yielding, lower-risk, depositories of choice. At the individual investor level, the mad dash to lose money on equity securities has begun. **End Summary** Topics: Value stock]]> investing]]> strategy]]> stock market]]> Wall Street]]> fixed income securities]]> CEF]]> money market]]> cor]]>]]> About the Author: ]]> Steve Selengut Sanco Services Kiawa Golf Investment Seminars Author: "The Brainwashing of the American Investor: The Book that Wall Street Does Not Want YOU to Read" and "A Millionaire's Secret Investment Strategy".

Making 401(k)s And IRAs More Like Pension Plans

Wed, 19 Nov 2008 00:00:00 -0500

Who's confiscating your 401(k) and IRA? Dateline Raleigh, NC, November 6, 2008: Democratic leaders in the U.S. House of Representatives discuss confiscating our 401(k)s and IRAs, by Carolina Journal Online reporter Karen McMahan. This shocking pronouncement is certainly an attention grabber, which if even partially true, would have an impact on nearly every employed and retired American. The basis for the report is testimony before the House Committee on Education and Labor in early October. Dr. Teresa Ghilarducci is one of many witnesses (scholars, retirees, activists, an investment mogul, and benefits experts) who were interviewed by the committee members. (I was skipped over once again, but a receptive person in the HCEL was willing to forward a listing of my articles to the right person. I expect an invitation to testify momentarily) McMahan writes: "Dr. Ghilarducci, professor of economic policy analysis at the New School for Social Research, drew the most attention and criticism. She proposed that the government eliminate tax breaks for 401(k) and similar retirement accounts, such as IRAs, and confiscate workers' retirement plan accounts and convert them to universal Guaranteed Retirement Accounts (GRAs) managed by the Social Security Administration. **End Summary** Topics: 401(k)]]> IRA]]> democrats]]> House]]> Ghilarducci]]> New School]]> retirement accounts]]> SSRIA]]> socialism]]> ]]> About the Author: ]]> Steve Selengut Sanco Services Kiawa Golf Investment Seminars Author: "The Brainwashing of the American Investor: The Book that Wall Street Does Not Want YOU to Read" and "A Millionaire's Secret Investment Strategy".

The Securities Investors' Bill Of Rights (SIBORAP): Part One

Sun, 16 Nov 2008 00:00:00 -0500

We the securities investors of the United States, in order to form more transparent financial markets, establish effective regulations, defend against destructive speculation and manipulation, promote financial well-being, preserve working capital, and protect retirement income, do establish this Securities Investors Bill of Rights and Protections (SIBORAP). These rights are intended to replace, amend and/or abolish all laws and regulations currently in conflict with common investment sense, and are to be implemented by all parties to financial transactions. Any institutional efforts to create and/or market securities and/or derivative products that do not comply with the spirit of The Bill will result in fines to corporate officers and directors, congressional oversight committee members, regulatory agency directors, and their financial or legal counsel. All derivative investment products of any kind, any investment programs or specific recommendations promoted in any medium by non-professionals and professionals alike, SEC registered or not, must comply. Any non-plain-vanilla security, or derivative product containing college-level mathematical complexity, must comply with SIBORAP. **End Summary** Topics: Securities]]> Bill of Rights]]> government]]> regulation]]> taxes]]> tax reform]]> Wall Street]]> scandals]]> USA]]> ]]> About the Author: ]]> Steve Selengut Sanco Services Kiawa Golf Investment Seminars Author: "The Brainwashing of the American Investor: The Book that Wall Street Does Not Want YOU to Read" and "A Millionaire's Secret Investment Strategy".

The Securities Investors' Bill Of Rights (SIBORAP): Part Four

Sat, 15 Nov 2008 00:00:00 -0500

SIBORAP includes these ten specific sections: (1) Product Transparency, (2) Regulation and Education, (3) Protection from Speculators (4) Control of Hedge Funds, (5) Brokerage Account Statements, (6) Retirement Account Investments, (7) Executive Compensation, (8) Corporate Financial Statements, (9) Taxation of Investment and Retirement Income, and (10) Transactional Greed and Fear Controls. Section Seven: Executive Compensation Every dollar paid to corporate executives, directors, and employees (in any form whatsoever) in excess of two million dollars would be matched by a ten-cent per share extra dividend to all shareholders and a 10%-of-annual-pay bonus to all employees. All golden parachutes, separate "non-qualified" retirement plans, stock option and deferred compensation programs, and others that do not benefit all employees and shareholders will be unwound over a three to five year period. Any employee who receives in excess of $250,000 in compensation must buy (and retain while employed by the company plus 3 years) 10 common shares for each $1,000 of his or her highest career compensation--- retroactive three years. **End Summary** Topics: Securities]]> Bill of Rights]]> government]]> regulation]]> taxes]]> tax reform]]> Wall Street]]> scandals]]> USA]]> ]]> About the Author: ]]> Steve Selengut Sanco Services Kiawa Golf Investment Seminars Author: "The Brainwashing of the American Investor: The Book that Wall Street Does Not Want YOU to Read" and "A Millionaire's Secret Investment Strategy".

Wall Street Garage Sale Produces Closed End Fund Bargains

Fri, 31 Oct 2008 00:00:00 -0400

There's a bright light at the end of the tunnel--- finally. Most of the really well respected, long term investors are advising their audiences to hang in there, to stop the panic selling, and to look for the great companies that have withstood the economic downturns of the past. Buffet, Bogle, Gross, Schwab, and company offer sound advice--- don't run and hide, it's time to hit the Wall Street Mall and go shopping! They've seen the indicators; they've been there before. So have many of you. Clearly, it's time for action. With IGV stock prices down 50% or more, and income securities as low or lower, Chuck Jaffe points out in MarketWatch that the case for loading up on managed Closed End Funds (CEFs) is a strong one. The great companies are in garage sale mode, and managed CEFs are selling at an additional 25% below net asset value (NAV). Jaffe writes: "With investments, investors can only guess at how big a bargain they are getting. The one exception is CEFs, where investors looking for both bargains and income streams get a price tag that shows the actual amount of their discount--- an intriguing choice for current market conditions. **End Summary** Topics: Closed end]]> mutual fund]]> CEF]]> ETF]]> sale]]> Wall Street]]> Buffet]]> Bogle]]> Gross]]> ]]> About the Author: ]]> Steve Selengut Sanco Services Kiawa Golf Investment Seminars Author: "The Brainwashing of the American Investor: The Book that Wall Street Does Not Want YOU to Read" and "A Millionaire's Secret Investment Strategy".