Asset Allocation: Investing By The Numbers
Post by Sanserve in Stock Market InvestingUno. Asset Allocation is an investment planning tool, not an investment strategy… few investment professionals understand the distinction. Investment strategies are used to implement the asset allocation formula that investment planning produces. Many investors incorrectly believe that investment planning and financial planning are one and the same. Financial planning is the broader concept, one that involves such non-investment considerations as: Wills and Estates, insurances, budgeting, trusts, etc. Investment Planning takes place within the Trusts, Endowments, IRAs, and other Brokerage Accounts that come into existence as a result of, or without, Financial Planning.
Zwei. Asset Allocation is a planning tool that allows the investor to structure his or her investment portfolios in a manner most likely to accomplish the goals established for each portfolio and for the investment program as a whole. It is the process of planning how the portfolio is to be divided between the two broad classes of investment securities: Equities and Income. Security sub-classes have little relevance, and should be avoided. K.I.S.S.
Tres. Equities are the riskier of the two classes of securities, but not because of the price fluctuations that are their basic character trait. They are riskier because they represent ownership in a business enterprise that could fail. The risk of capital loss can be moderated or minimized in the security selection process and with a management control activity called diversification. The primary purpose for buying Equities is to sell them for capital gains, not to save them as trophies to brag about in chat rooms. But, they can be screened and selected in a manner that can make them less risky than other, non-fixed income, investments and speculations.
Shi. Income securities are less risky than equity securities because they represent debt of the issuing entity, and owners of debt securities have a “superior” claim on the assets of the issuer. Stockholders have to rely on their salivating class-action attorneys to mitigate their losses if the company fails. With proper selection criteria and diversification, the risk of capital loss is negligible and price fluctuations can be mostly ignored except for the trading opportunities that they provide. The primary purpose of these securities is income generation, either for current consumption or for use later in life. Capital gains here should be taken… and bragged about in those chat rooms.
Cinque. An Asset Allocation Formula is a long-range, semi-permanent, planning decision that has absolutely nothing to do with market timing or hedging of any kind. It is designed to produce the combination of Capital Growth and Income that will achieve the long-range personal (pay those bills) goals of the individual. Thus, it must not be tinkered with because of expectations about anything, or rebalanced arbitrarily because of natural changes in the market values of one asset class or the other. An asset allocation mutual fund is an oxymoron.
Hat. Asset Allocation is the only proven cure for inflation. If properly managed using The Working Capital Model, it will almost certainly increase the level of portfolio income by more than the rate of inflation, which is a measure of the purchasing power of your dollars, not the dollar value of your purchased securities. Any 100%-equity investment portfolio, regardless of size, is less inflation proof than any same-size, more balanced, portfolio. This is because the income on equities, and the capital gains that they may produce, are not contractual, and too often ignored when they do make an appearance.
Sju. In addition to the potential of failing to keep up with inflation using an Equity Only asset allocation, regardless of your age, greed management becomes much more of a problem. In a rising market, evidenced by the presence of more profit taking opportunities than lower priced bargains, investors tend to take positions in lower quality issues, current story stocks, newer issues, etc… just to be in there. A 30% or so Fixed Income allocation can be a major focus factor, and it will keep the base income line moving upward.
Tam. Many investors, and even a large number of Investment Professionals, think that income securities have some claim to price stability in addition to their role in providing present or future disposable income. They just don’t, and their prices may fluctuate in either direction in anticipation of changes in expectations about the direction of interest rates.
Isishiyagalolunye. If you focus exclusively on market value, dwell upon comparisons of your unique portfolio with the market averages, expect performance of some kind during specific time intervals, and listen intently when someone speaks about the future, any asset allocation work you do will be ineffective.
Desyat. Cash is not an investment and, therefore, is not a class of assets within an asset allocation model. Most entities that include cash or money market balances in their portfolio mix are using it as a hedge against market movements in one direction or the other… in the future. This is a market-timing effort that has no place in asset allocation planning or thinking. Asset allocation transcends both short-term market trends and long-term market cycles.
Steve Selengut
Sanco Services, Inc.
Why Car Alarm Systems Are Crucial In This Day And Time
Post by Teahupoo in Cars and TrucksWith the world we live in today I am surprised that every car doesn’t come with a stock alarm for the car. People today will do anything they can to break into your car they will just break your windows that is why you need an alarm on your car. With most insurance companies today they won’t even insure you unless you have a proper alarm on your car. That is because people are probably doing so much fraud to get free money from the insurance company or the rates of peoples cars getting broke into are getting so high that the insurance company just wants you to have the proper equipment so that you wont have to call them complaining.
With so many people and so many cars in the U.S. studies have shown that every 20 seconds a car is being stolen and someone doesn’t even have a clue that it is happening. If you do not want to end up like a person that is trying to get their car back then you need to put a good alarm system on your car so that nobody will break in or steal your car from you. When you get a good alarm system for your car you get a little remote so that you can lock or unlock your car from a distance or if you see someone breaking in to your car or trying to break in you can hit your little panic button that is on your remote as well. You will love your alarm system after you have had it for awhile and notice its good use.
With all the new cars coming out today you would think that someone would come up with something new for an alarm system on a car something that would change alarm systems forever. This something would be digital fingerprint technology. These sorts of alarm systems you have seen before in movies like James bond or national treasure. The example would be you having a pad on your car that is where you put your finger. You put your finger there on the pad and it scans and reads your finger to make sure that it is you that is trying to open the door and if it is you it allows you to enter the car. These cars still require a key but you have the option to not use them. That is how advanced we are becoming to be, many cars have this kind of alarm system, Mercedes, BMW, Lincoln are the leaders.
There are many other cars that have this kind of new technology and it is up to you if you are going to buy one of these cars or get a good alarm system installed on your new car. You need to make up your mind and get your choice. So before your car is in trouble you need to get to your local mall or car shop and buy an alarm and have it installed so you and your car are now safe. The last thing that you would want is to come to your car and see someone had broken in.
Gregg Hall is an author living with his 18 year old son in Jensen Beach, Florida. Find more about car alarms as well as a car care products at http://www.5starshine.com
Hypertension Also Known As The Silent Killer
Post by Cowleydave in Diseases and ConditionsSome researchers claim that almost one out of three adults living in the United States has high blood pressure also known as hypertension, however researchers believe that about one third of the adults that have high blood pressure don’t realize they have it due to a lack of obvious symptoms. hypertension can cause heart attacks, strokes, heart failure as well as kidney failure. Hypertension is often called the silent killer because people do not realize they have it. The best way to determine if you have hypertension is by checking your blood pressure.
Your blood pressure level is basically determined by the quantity of blood your heart pumps and also by the level of resistance to blood flowing in the arteries. The larger the amounts of blood that the heart pumps as well as the narrower the arteries the higher the blood pressure will be.
A good starting point for normal blood pressure is 120/80. The first number represents the systolic pressure. This is the maximum pressure in your arteries that is created during the contraction of the left ventricle. The second number represents the diastolic blood pressure. The diastolic pressure is the measurement of the pressure in the arteries when the heart relaxes. A sign of high pressure is when the systolic pressure is over 130 or when the diastolic pressure is over 90. You should contact your health care provider when either of these conditions occurs.
Unless people have their blood pressure checked they might not realize they have hypertension. Some people who have reached an advanced stage of hypertension might experience dizzy spells, or dull types of headaches or nose bleeds. For the vast majority of people who have been diagnosed with hypertension the exact cause is unknown.
About five to ten percent of people who have hypertension have acquired it due to a health condition and it typically happens very quickly. This type of high blood pressure is known as secondary hypertension and can be caused by tumors located in the adrenal glands, kidney problems and by some types of congenital heart defects. It can also be caused by cold medicines, birth control pills, prescription medications as well as over the counter types of pain relieving pills.
Age
The chance of getting high blood pressure goes up as people get older and African Americans have a higher risk of acquiring high blood pressure when compared to whites. Studies have shown that hypertension runs in some families. In order to avoid hypertension, the silent killer do not become overweight and lead an active lifestyle with plenty of exercise.
Inactive Lifestyle
People who live an inactive lifestyle typically have a higher heart rate than active people. If you have a high heart rate, your heart has to work hard with every contraction it makes and this creates a strong force on the arteries. Avoid tobacco since it can harm the linings of the artery walls. To avoid hypertension, the silent killer be careful with the amount of sodium you have in your diet since it can cause excess fluid retention an increase your blood pressure. If you have hypertension it’s important to seek advice from your doctor.
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David Cowley has created numerous articles on heart disease. He has also created a Web Site dedicated to heart disease and how to treat them. Visit Heart Disease
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