Covering Your Shorts

Posted on August 1, 2006

Covering Your Shorts The term “covering your shorts” sounds sort of nasty, kind of like something my 16 year old son might come up with, but shorts are just investments that go up as a market goes down. Covering means getting out of a short investment. An investor who thinks the market is high and will be headed lower can borrow certain number of shares

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Messages from the Bond Markets

Posted on July 23, 2006

Messages from the Bond Markets The fact that so many people expect interest rates to be on the rise is a contrarian’s delight. When it comes to investments, the biggest crowd is almost always wrong. The brave souls willing to buy their straw hats in winter normally get the best bargains. Listen to news reports, read articles by financial pundits and talk to people you know

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Posted in Money Matters Newsletter affecting, aggregate, appearing, backwards, borrowers, businesses, commodities, contraction, contrarian, definition, engineering, expansions, financially, government, indicators, investments, meaningful, nonetheless, pronouncements, purchasing, rationalizations, recessionary, relationship, themselves, treasuries

Diversification: When It Doesn’t Work

Posted on June 12, 2006

Diversification: When It Doesn’t Work The most common description of diversification is to not keep all of your eggs in one basket. However, Andrew Carnegie, steel magnate of the late 1800s, had a very different philosophy regarding diversification, “keep all your eggs in one basket and then watch that basket very carefully.” Carnegie was mighty successful, having made so much money by age 65 that

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Posted in Money Matters Newsletter aggressively, backwards, carefully, categories, commodities, contrarian, correlated, correlation, correlations, description, difference, diversification, diversified, diversifiers, everything, generalities, increasingly, investment, investments, likelihood, philosophy, portfolios, strategies, successful, undiversified