On Investing

In the Eye of the Storm?

Brian Schreiner — Thu, 11 Mar 2010 22:01:16 +0000

PIMCO CEO, Mohammed El-Erian had some unsettling comments today.

“Our sense is that the importance of the shock to public finances in advanced economies is not yet sufficiently appreciated and understood. Yet, with time, it will prove to be highly consequential.”

Ouch! Read the full article below.

How to Handle Sovereign Debt Explosion | Advisor Perspectives | March 11, 2010

Investors need to know the true nature of risk

Brian Schreiner — Wed, 10 Mar 2010 20:10:09 +0000

In this recent article from Investment News, Richard Fullmer and Zvi Bodie highlight the problem of misinformation on “investor education websites.” One all too common misconception is: The risk of investing in stocks decreases with time. That statement is plain wrong. The risk of investing in a risky asset does NOT decrease over time. In fact, for stock holders, the risk of experiencing a market crash increases with time! It’s like driving a car. The more you drive, the higher the probability that you will crash at some point.

Investors need to know the true nature of risk | Investment News | February 6, 2010

Our $100K Challenge to Passive Investors: The debate rages on, but talk is cheap.

Brian Schreiner — Tue, 02 Mar 2010 15:13:03 +0000

“It has been 193 days since John Bogle received My $100K Challenge by certified mail and almost six months since I opened my challenge to all passive investors,” writes Roger Schreiner of Schreiner Capital Management. “So far, no one has accepted.”

However, there is lively debate going, which could end in a showdown. (We hope.) The debate has included plenty of firey commentary and a counter-challenge. Below are links to all three articles. Enjoy.

The $100K Challenge to Passive Managers | February 16, 2010 | by Roger Schreiner

Response to The $100K Challenge | February 23, 2010 | by David Loeper

Response to Mr. Loeper | March 2, 2010 | by Roger Schreiner

Stay tuned. Subscribe to Advisor Perspectives. It’s free.

The Fed’s Exit Strategy: Unlegislated Bailout of Fannie, Freddie

Brian Schreiner — Mon, 01 Mar 2010 19:22:38 +0000

In his weekly commentary, John Hussman shows us step-by-step how the Federal Reserve, by way of the US Treasury, is planning to spend up to $1.5 trillion dollars of taxpayer money without Congressional appoval. Click on the link below to read the full commentary.

The Fed’s Exit Strategy: Unlegislated Bailout of Fannie, Freddie | Hussman Funds Weekly Commentary | John P. Hussman Ph.D.

Book Recommendation: This Time is Different

Brian Schreiner — Mon, 01 Mar 2010 17:10:53 +0000

The I study finance and investing, from a historical perspective, the more I’m convinced that the conventional wisdom (the consensus view, the “wisdom” of the masses, the average person’s opinion) is almost always wrong. And in many cases, the exact opposite is the truth. I can’t explain why, except to say that crowds are mad and people are woefully overconfident and under-educated (at least in areas of finance and probabilities). Maybe because the main stream financial services industry is forever trying to boil everything down to an ”easy, step-by-step, 1-2-3, quick fix, overnight, just do this” solution.

This book is a must read for anyone who wants to gain a good understanding of financial crises.

This Time is Different (Book) | Princeton University Press

A Detailed Look at TARP

Brian Schreiner — Wed, 24 Feb 2010 20:34:42 +0000

I’m very proud to be a Libertarian…

A Detailed Look at TARP | Visual Economics | February 2010

The Global Debt Bomb

Brian Schreiner — Wed, 24 Feb 2010 17:14:55 +0000

Forbes writer Daniel Fisher tells the truth. Spending our way out of worldwide recession will take years to pay back–and create a lot of pain. Read the full article below.

The Global Debt Bomb | Forbes | February 8, 2010

Keys to Building a Thriving Online Community

Brian Schreiner — Wed, 24 Feb 2010 16:06:02 +0000

Boston Interactive sent me a great article this morning. “Anyone can start a blog, create a Facebook page, or send a tweet. But many organizations find themselves talking into a vacuum, where few, if any users comment, post content, or otherwise interact with their brands. So how can your organization create an online community in which people find real value?” Read the full article below.

Keys to Building a Thriving Online Community | Boston Interactive | February 24, 2010

Starting from Scratch: Prospecting for High-Net-Worth Investors

Brian Schreiner — Mon, 22 Feb 2010 19:57:03 +0000

The article below by Bill Good provides simple, straight forward advice that can help any Advisor create a database of high-net-worth prospects.

Aiming High | Research Magazine | February 1, 2010

The Problems with Performanced-Based Fees

Brian Schreiner — Mon, 22 Feb 2010 15:37:36 +0000

I posted this comment on InvestmentNew.com today. A link to the article I was responding to is below.

My Comment: “Jeff Benjamin interviewed me for this article and mentioned one of the issues I raised (a potential conflict of interest), but not the other (the possibility of higher fees).

“I’m not opposed to performance-based fees. They can be appropriate, but overall, investors could pay more under such fee structures–potentially a lot more. As a money manager, I believe that performance-based fees would increase our bottom line. Revenues would fluctuate though, making business planning a bit more difficult.

“As far as I see it, the main issue is a potential conflict of interest. The money manager, in order to increase their fee, has the incentive to take on additional risk. Mr. Benjamin mentioned this very briefly and also mentioned the possibility that the money manager may take an overly deliberate (less risky) approach, in an attempt to keep their revenue stable, I assume. I see the risk of an overly aggressive manager as much more dangerous to the investor. Besides, most investors could use money managers that have an increased emphasis on risk management.”

Financial advisors should embrace performance-based fees | Investment News | February 14, 2010