15 Dumb Moves with Your Money

via CNN/Money, we see this list of some of the dumbest things you could do with your money:

1. Putting all your eggs in company stock
2. Cashing out your 401(k)
3. Buying an investment you don’t understand
4. Not checking out your advisor
5. Retirement plan folly
6. Buying last year’s top performing mutual fund
7. Buying tax-free bonds and variable annuities for your IRA
8. Stretching out loan payments
9. Poor claim management
10. Applying for more than two credit cards
11. Buying life insurance on your kids
12. Getting a tax refund
13. Job hunting at work
14. Paying retail right off the bat
15. Filling up the rental car

At the site, there’s a paragraph explaining each monetary lapse . . . 

Category: Finance, Investing

Rent vs CPI

Category: Economy, Real Estate

Method to the Madness: Alpha Chasing Beta

Category: Investing, Markets, Trading

Apprenticed Investor: Tracking Elephants, Part I

Tscm_1The latest "Apprentice Investor" column is up at TheStreet.com. Its called  "Tracking Elephants, Part I." 

Don’t be fooled by the title to this piece: "Tracking the Elephants" could just have easily been named "The non Technicians Guide to Technical Analysis (in two parts)." The idea was to reveal to fundamentalists a few of the more significant ways they can use charts to improve their results.

Podcast:

Here’s the ubiquitous excerpt:

"Here’s an interesting question: If you could look at one and only one source before buying your next stock, which would you choose: a fundamental analyst’s report (with no charts in it), or the chart of your choosing?  While I like having access to both, I cannot ever imagine buying something without first looking at the chart.

And so we wade into the ongoing battle between technical and fundamental analysts. Frankly, it’s one of the sillier debates in investing. But I’ve heard so many bad arguments and misleading theories about technical analysis that I decided to weigh in."

Before we wade too deeply into the controversy, ask yourself: "Why do I need to choose?" Why wouldn’t you use any tool that can be shown to have value? You wouldn’t build a house using only a hammer, but no drills or saws. Why limit yourself away from a tool that can assist you as an investor?

In the column, I used a chart of Ford — but it could have been just about any company , from JDSU to Lucent to World Con or Enron.
>

Ford’s Downtrend
click for larger graph

Fordaiannotated

Prior columns can be found here.

To keep the column a modest length, a discussion about Janus Funds
selling of AOL Time Warner was edited out.  For your reading
pleasure, that section is here.

Podcast:

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Category: Markets, Podcast, Technical Analysis

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