If you've been smart enough to allocate your savings appropriately, invest using index funds, and not have touched it during the 2008 crash, then at this time you'd be outperforming the vast majority of active investment managers. Congratulations!
But, now that stock markets have recovered and reached new heights, and your index fund savings have surpassed pre-recessionary highs, what are you going to do with all of your new found gains?
Do you want to be a miser? You can't take it all with you when you go.
Consider giving some of your savings away to a good cause. Now is the right time to give it away.
A donor-advised fund is a philanthropic vehicle established as a public charity. It allows donors to make charitable contributions into the fund and receive an immediate tax benefit.
Donors can then invest those contributions among the various type of investment choices offered by the fund, recommend grants from the fund to charities of the donor's choice, and to donate at times determined by the donor.
Along with being allowed to personally-manage my investment contributions to the fund, the most appealing aspect of a donor-advised fund to me, is that I can donate to a charity without constantly being bombarded with telephone calls, emails, and postal mail requests for more donations, even after I ask not to be contacted. The fund serves as my intermediary. Learn more at Vanguard.
Monday, March 25, 2013
Friday, March 8, 2013
Weekly Wrap | It's A Jungle Out There
It's been a while since I've posted a weekly wrap, so it's about time to let my zero readership know what's been going on with my positions and my forecasts, and to keep track about how the stock markets have been performing for my own records.
As I'm sure everyone knows already, the markets have performed well over the past couple of months, especially including this past week. The S&P 500 Index closed out this week at 1551, up 8.8% year to date, and the DJIA has passed pre-recessionary levels to close at record highs.
Economically this week, the jobless rate fell to 7.7% for the first time since December 2008, and job growth outpaced expectations. But there are still many mixed results being reported, including last quarter's "unexpected" -0.1% GDP rate (later revised to +0.1).
Personally, I haven't been posting about market movements because nothing about my portfolio has changed. I sold my position in DEG, and have some open sell orders for a few long-term microcap banks stocks that I've owned for many years, but I'm still sitting fully in cash as I reported back in September 2012. As of this writing, the S&P 500 Index is about 100 basis points ahead of when I moved into cash. So, it looks as though I'm being left behind.
But short-term appearances can be deceiving. Although the stock markets have been rising, nothing concerning my views and opinions has changed. Although the mainstream media seems to be trying to convince the public to invest in stocks right now, I think just the opposite, that it's a good time to get out of stocks.
While my timing may be off, I still fully believe that it's going down, and I'm prepared to stay invested in cash until that happens. I could be wrong now - but I don't think so. Like always, time will tell.
As I'm sure everyone knows already, the markets have performed well over the past couple of months, especially including this past week. The S&P 500 Index closed out this week at 1551, up 8.8% year to date, and the DJIA has passed pre-recessionary levels to close at record highs.
Economically this week, the jobless rate fell to 7.7% for the first time since December 2008, and job growth outpaced expectations. But there are still many mixed results being reported, including last quarter's "unexpected" -0.1% GDP rate (later revised to +0.1).
Personally, I haven't been posting about market movements because nothing about my portfolio has changed. I sold my position in DEG, and have some open sell orders for a few long-term microcap banks stocks that I've owned for many years, but I'm still sitting fully in cash as I reported back in September 2012. As of this writing, the S&P 500 Index is about 100 basis points ahead of when I moved into cash. So, it looks as though I'm being left behind.
But short-term appearances can be deceiving. Although the stock markets have been rising, nothing concerning my views and opinions has changed. Although the mainstream media seems to be trying to convince the public to invest in stocks right now, I think just the opposite, that it's a good time to get out of stocks.
While my timing may be off, I still fully believe that it's going down, and I'm prepared to stay invested in cash until that happens. I could be wrong now - but I don't think so. Like always, time will tell.
Thursday, February 7, 2013
Inequality For All
I happen to think that our three branches of government have already been captured and assimilated by major corporate interests and the 0.1% of the population at the top of economic pyramid. Unfortunately, I've become so cynical that I believe a corrupted system won't change until it fails first.
But, in case you may be one of those people who believes that change can be accomplished before failure, the following soon-to-be released documentary may appeal to you.
Robert Reich, secretary of Labor in the Clinton administration, and director Jacob Kornbluth discuss economic inequality in America in their Sundance film "Inequality for All."
But, in case you may be one of those people who believes that change can be accomplished before failure, the following soon-to-be released documentary may appeal to you.
Robert Reich, secretary of Labor in the Clinton administration, and director Jacob Kornbluth discuss economic inequality in America in their Sundance film "Inequality for All."
Sunday, January 13, 2013
Bill Moyers | Crony Capitalism
Bill explains how last week’s fiscal cliff deal gave tens of billions in tax breaks to Wall Street and corporations -- what even the Wall Street Journal calls a “crony capitalist blowout.”
Bill Moyers Essay: The 'Crony Capitalist Blowout' from BillMoyers.com on Vimeo.
Bill Moyers Essay: The 'Crony Capitalist Blowout' from BillMoyers.com on Vimeo.
Sunday, January 6, 2013
Weekly Wrap | The New Year
It's a New Year now and time to start it out with a weekly wrap. As anyone keeping up with the Oracle of Burbank would know, I exited the stock markets in mid-September after the Fed announced QE3, and moved my entire portfolio into cash.
At that time, my intuition told me that the stock markets reached their highs for the year and that I would exit the markets for the rest of the year. As it turned out, my prediction for 2012 market peak was correct. But after the S&P 500 index pulled back around 100 points from it's yearly high, my prediction for more market pain didn't fully materialize.
Little by little, the stock markets absorbed the punishment, avoided the knockout punch, fought back hard, and pulled out a victory at year end as a result of the fiscal cliff being addressed. For the first end of the trading week in 2013, the stock markets reached new heights.
The S&P 500 index closed out this week at 1466, slightly ahead of the mark when I bailed out.
It looks like my originalfeces thesis that the current administration will do anything to avoid both an economic and market catastrophe is still in effect. So, does this mean that I'm going to jump back into stocks so as to not be "left behind"? Of course not.
There are very little actual market forces at work helping stocks climb back to their pre-recessionary levels. Stocks are at these heights only because of both Federal Reserve and political intervention. The markets are still highly speculative and full of unnecessary risk. So, I'm going to remain in cash.
I'm not competitively playing around with someone else's life savings in order to justify a high fee or to impress someone else. This is MY money. I'd rather be left behind, than to be left holding the bag.
At that time, my intuition told me that the stock markets reached their highs for the year and that I would exit the markets for the rest of the year. As it turned out, my prediction for 2012 market peak was correct. But after the S&P 500 index pulled back around 100 points from it's yearly high, my prediction for more market pain didn't fully materialize.
Little by little, the stock markets absorbed the punishment, avoided the knockout punch, fought back hard, and pulled out a victory at year end as a result of the fiscal cliff being addressed. For the first end of the trading week in 2013, the stock markets reached new heights.
The S&P 500 index closed out this week at 1466, slightly ahead of the mark when I bailed out.
It looks like my original
There are very little actual market forces at work helping stocks climb back to their pre-recessionary levels. Stocks are at these heights only because of both Federal Reserve and political intervention. The markets are still highly speculative and full of unnecessary risk. So, I'm going to remain in cash.
I'm not competitively playing around with someone else's life savings in order to justify a high fee or to impress someone else. This is MY money. I'd rather be left behind, than to be left holding the bag.
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