Mutual funds

In the last post Nate had asked about the evaluation of mutual funds. Well it is my opinion that mutual funds are not evaluated very well. First of all, the principal evaluator of mutual funds, Morningstar, has less than perfect methods for evaluating the funds. That organization has high turnover. After all, many of their analysts were not talented enough or highly regarded enough to land a job...
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Comment from Nate answered

Happy Friday! I hope that this message finds each of you doing well. Thankfully, here in Santa Fe we have snow falling for the first time in awhile. Today’s post is an answer to a question asked by Nate in the comments section. Here is what Nate asked: “I haven’t bought anything yet, and I’m now kicking myself a bit about it. My main problem is the lack of boldness....
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Rah-rah, the rally

You have of course heard about the recent large rally in the financial markets? The rally feels good to me. This is because it is based on strong and positive news, rather than just “bargain basement” price taking. I also like the rise in asset prices because the financial markets were strong on Monday in response to Treasury Secretary Geithner’s toxic asset removal plans, and...
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21st century business

Some of you may have noticed that I am not happy with U.S. businesses. It’s not that I am opposed to making money – far from it. In fact, I think that capitalism easily does the most efficient job of allocating resources; and that is the purpose of an economy in the first place.   No, my problem is that many business leaders and business employees feel as if a blind, zombie-like...
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Taxing of bonuses

You are probably aware of the public furor about AIG’s numerous million dollar bonuses paid out even after the Company received public monies, yes? You are also probably aware of the fact that Congress passed legislation that would tax these bonuses up to 90%. Am I right? It will be very curious to see the ramifications of this choice by Congress. My guess is that the financial markets...
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The Federal government’s toxic asset program

According to my reckoning this is the blog’s 100th post. Thank you for your continued interest in my little endeavor. I hope that each of you is enjoying it and hopefully getting something of use from it as well. ***** Late in the afternoon on Friday, March 20th, the Federal government leaked that, as early as Monday, it will announce the details of a plan to remove “toxic”...
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The Wealth of Nations revisited

OK, so I am on a roll over the last week and you are probably a bit overwhelmed by all of these postings. However, there is much food for thought out there and I am only posting regarding things I believe are essential.   This post has to do with the endless quotations of Adam Smith’s bible of capitalism, “An Inquiry into the Nature and Causes of the Wealth of Nations.”...
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