RSS Feed
Twitter
Facebook
Email
HomeLet’s Get a First Down
Posted by Larry Doyle on February 21st, 2009 9:10 AM |
Football fans know that ball control and time management are two very critical factors in determining outcome. While a coach may at times “go deep” in order to catch the opponent off guard, victory is determined by the hard work in the trenches and grinding out first downs. I know of no team that has ever established a winning discipline by “throwing Hail Mary’s.” The same can be said of investing. In the midst of these challenging markets, do not lose sight of your long range goals and the disciplines necessary to achieve them. Leave the “Hail Mary’s” for the gridiron entertainment.
The Wall Street Journal provides us with an excellent piece on this topic:
Desperate investors do desperate things.
A few months ago, most people were too terrified to do much more than wring their hands while sitting on them. But now, as the stock market takes another bullet every day and the yields on cash dwindle away, some investors seem to be flinging caution to the winds.
You can read the rest of the article at your leisure. Enjoy your weekend. – LD –
As Stock Losses Loom, Don’t Throw a ‘Hail Mary’
by Jason Zweig
illustration by Heath Hinegardner
The Wall Street Journal; February 20, 2009
Let’s Not Forget About Insurance Exposures
Posted by Larry Doyle on February 20th, 2009 11:47 AM |
While the markets and media are focusing predominantly on the banks and their capitalization needs, there are significant problems throughout the insurance industry as well. The primary exposures within insurance companies causing concerns lie within their commercial real estate holdings.
We have yet to see the actual defaults and foreclosures on a large swath of the commercial real estate market, but they are out there and they are coming. Let’s review the insurance industry along with some personal finance tips from an interview I had on my weekly No Quarter Radio program with an expert in these spaces, Sean D’Arcy. A lot of what Sean highlighted during his interview on January 11th is happening currently and likely will occur in the weeks and months ahead!!
You can listen to the archived audio of the January 11th interview on No Quarter Radio. In addition, I transcribed the interview in my piece “Got Insurance? 529 Plans? Financial Planning? Read On . . .”
LD
Legalized Bribery
Posted by Larry Doyle on February 16th, 2009 6:57 PM |
Quality business relationships are always mutually beneficial. If they are not mutually beneficial, then they will not thrive or perhaps even last at all. A strong business relationship, like any personal relationship, needs a foundation of honesty and
integrity. As in any relationship, there will be plenty of instances in which the parties have disagreements and misunderstandings. If the relationship is strong enough, it can not only endure through these times but often grow stronger as a result of them.
The challenge in any relationship is when one party is conflicted and attempts to serve two masters. These conflicted relationships – whether personal, political, social, or business – must change in order to grow or are doomed to languish and underperform if not die completely. On Wall Street, a business that so grossly prioritizes short term profits versus long term customer relationships will not grow. Perhaps for a period of time the excess profits will be addicting and mesmerize management, but over time that model will not work. Bear Stearns is a classic example of this principle. From having worked there for 7 years in the 90s, I evidenced it firsthand. (more…)
An $800 Billion Mistake
Posted by Larry Doyle on February 7th, 2009 4:40 PM |
The American populace knows that the primary architects in the formulation of the Stimulus Plan working its way through Congress are Rahm Emanuel, Nancy Pelosi, and Harry Reid. This contingent, along with President Obama, have not been bashful in stating they view the November election results as effectively a mandate to change policies emanating from Washington. Against that backdrop, the initially proposed Stimulus Plan was so loaded with pork that the Republicans and the American population at large slammed it as more a promotion of the Democratic agenda than a true stimulus plan.
I will give President Obama credit for formulating a Panel to Advise Obama on Economy. This panel will be known as the White House Economic Recovery Advisory Board. The Board will be headed by former Fed chair Paul Volcker. He will be joined by Jeff Immelt of GE, James Owens of Caterpillar, William Donaldson, former SEC chair, Roger Ferguson Jr. of TIAA-CREF, Richard Trumka of AFL-CIO, Anna Burger of SEIU, and Martin Feldstein, renowned Harvard economist. The group will be guided by Austan Goolsbee, an economic adviser to the White House.
Do you think President Obama and his economic team would listen to Mr. Feldstein or is that a “mere courtesy” having him on the board. Let’s review what Mr. Feldstein said about the Stimulus Plan just last week.
Stimulus Bill . . . Where’s the Accountability?
Posted by Larry Doyle on February 4th, 2009 4:31 PM |
I fully appreciate the dire circumstances of our current economic times. I am fully supportive of promoting programs that help those who are unemployed, losing their shelter, healthcare, and basic necessities. In times of crisis, Americans need to take care of our fellow citizens. History has proven we need bold moves and strong leadership. In the face of these needs, the politicians in Washington who crafted the economic stimulus plan loaded it up with so much pork that it is more in the camp of “feeding from the trough” than providing critically important stimulus.
We had written previously that we were concerned this bill would be more a promotion of the Democratic agenda than a focus on judiciously allocating capital to generate the greatest immediate impact and laying the foundation for real long term sustainability. Leave it to the base elements of our political process to start from a bad spot and work towards something acceptable than displaying real statesmanship right from the outset.
Who understands this? The American people understand and are voicing their opinions en masse to their elected officials. The pols are hearing them and representatives on both sides of the aisle are working to refine this piece of legislation. A lot of the “fat” in this bill must come out. Why can’t we get a public accounting of the politicians who include the different requests for shameless funding?
Why is it that virtually every economist I have read has repudiated the structure of this bill. Where’s the leadership? I am fully supportive of funding programs that will address real needs and pay long term dividends. In regard to water parks, Hollywood film production tax cuts, STDs, and the like, what country is this? Who proposed these programs? While Obama continues to defend this stimulus plan, the American populace is rallying for significant changes.
LD
Will Be Held to Account
Posted by Larry Doyle on January 21st, 2009 8:25 AM |
All eyes were fixed on Washington on Tuesday. Prior to addressing dramatic developments in the world of finance, I would like to make a brief comment about the inauguration of Barack Obama from a historical perspective. I am proud to be an American and revel in seeing the smooth transfer of power. I think back to the stories my Dad shared with me as to how Irish politicians in Boston gained power. In the late 1800s, many job listings in Boston, and I assume other cities as well, included the letters NINA. “No Irish need apply” branded my ancestors as second class citizens. My Irish forefathers had a burning desire to move out of the ghetto. That desire was aided by the general ascent of the Irish to political power in Boston.
While I certainly do not agree with President Obama on a wide array of issues, I do hope President Obama’s ascendancy to the highest office in the land inspires current and future generations of African Americans and others who may have felt disenfranchised. For our country and all her citizens, I wish him well as he undertakes his role.
In the course of his speech this afternoon, President Obama remarked, “those of us who manage the public’s dollars will be held to account–to spend wisely, reform bad habits, and do our business in the light of day–because only then can we restore the vital trust between a people and their government.” I am going to take him up on this.
As I heard this remark, I thought of my desire to pursue further questioning of proposed SEC chair Mary Schapiro. Rest assured, we will push on for the simple reason that our democracy deserves no less. I hope everybody who reads our work will join our efforts and, as necessary, will write or forward material to your respective representatives in Washington. (more…)
