Friday, June 10, 2011

The Great Stagnation a TED Talk

Tyler Cowen's perspective on our economy. I have listened to Tyler on a number of occasions as a guest on the podcast EconTalk. Here is a link to his recent TED talk:

http://www.youtube.com/watch?v=_93CXTt2K7c

He always has interesting insights, he also may be one of the most well read economists in the world. See this very interesting recent profile in Business Week:

http://www.businessweek.com/magazine/content/11_23/b4231066695798.htm

Monday, June 6, 2011

Lounge by the pool or follow Mad Money's James Cramer?

Jim Cramer's recommended trades since 1/1/2002 earned 39.2%.
But,
Simply holding the S&P 500 index fund since 2002 would have earned you 38.3%.

You could have bought the index and not looked at a thing, went on with enjoying life, or you could have followed Cramer's advice through a service - Actions Alerts PLUS and earned 39.2%.

To earn the 39.2% would have required an average of 774 trades/year over the last 3 years. Remember, with trades comes trading costs, taxes and the cost of the newsletter ($299.95 for the 1st year). Also, the return assumes you made all the trades when you were supposed to.

I would be surprised, if after fees, the Cramer advice outperforms the S&P 500.

The choice is yours, spend your time trying to beat the market year after year, or accept the returns of a well diversified portfolio and have more time to golf, read, lounge, be with kids, etc.

The above information is from Jason Zweig's  June 4, 2011 Intelligent Investor column in the WSJ:

http://professional.wsj.com/article/SB10001424052702304563104576363892725584866.html?mg=reno-secaucus-wsj