Modern Portfolio Theory --- The Root Of All Evil - Clearly, the MPT creators were once Mutual Fund investors, looking for something better after years of disappointing investment returns. True, mutual fund managers rarely beat the markets --- but why? And also true, private, individual, portfolio managers rarely fail to beat the market averages over significant time periods.

Commitment Of Traders – Why Use This Report - The commitment of traders report is an important one, but one that many overlook. Those that use it regularly commonly call it a COT report and those in the know do use it. This report provides important information that helps individuals to make decisions about what is happening in the market. It helps to break down the open interest and all of the traded futures contracts into various ways, including into short and long positions and by the type of player involved.

Investment Guru Interview - Money Matters Radio - My goal is to never leave a profit of 10% (net/net) on the table, and that's goes for income securities as well as for equities. I'm almost always buying and selling, every day --- there's no inconsistency in that. The Glossary in "The Brainwashing of the American Investor" defines terms like "bargain" and Investment Grade Value Stock.

Exchange Traded Funds - Exchange traded funds have been designed to provide ability to the investors to have trading vehicle that would have the characteristics of the mutual funds, yet, would be tradable as stocks (trading during the open market hours, trading on margin and ability to open a short trade).

Silver Surfing! - Good day lads! Like gold (see my gold-related post here), the price of silver has recently marked a new all-time high when it broke above its previous high at 21.34. As you can see, a break out from a symmetrical pattern managed to propel it towards the uncharted territory.

Not So Sterling! - The British pound (GBP) is weak across the board today as BOE Governor King re-iterated that a weaker currency should lead to a recovery in the economy. This comes on the heels of a better than expected unemployment report, though not enough to buoy the sentiment for a rapid economic recovery.

Diversify Your Portfolio Outside the US - Asset allocation is the most influential factor on investment outcome. There have been growing signs that the worst of the global crisis might have passed. While the US dollar may continue to weaken and the US loses significance in the global landscape, an allocation to other developed markets is deemed necessary.

Mid-Week Commodity ETF Update! - Commodities and stocks have been on fire the past two weeks and I think it just may be time for things to take a breather. Profit taking could happen anytime from now.

Where's the Bottom? - Economies move through a series of expansions and contractions known as the business cycle. This should not be news to anyone with even a modicum of financial acumen, yet it amazes me that those who are tasked with understanding this basic concept get it so wrong time after time.

Employment (NFP) Report and the Effect on Markets - I have to admit last week, I was little skeptical about this stock market. I was thinking that when the un-employment numbers came out (next week) tomorrow we could see a big sell off in stocks. The stock market has been off the charts lately, and everyone is trying to figure out whether or not they are under invested in it.

Why you have to love Tech Stocks! - As someone who spent a lot of time as a Financial Planner after the Tech Bubble in the late 90's, it is not easy to say you have to love Tech stocks. Why? Because, the Tech market of the late 90's became the poster child of what not to do when investing. It became a cliché for anyone who taught people how to diversify and be a balanced investor.

Markets are Hyper-sensitive to Political Rhetoric - Some things never cease to amaze me. Just when you thought we were about to settle in to a lazy summer of sideways markets, some fools just can't help themselves to be quiet. I am talking about politicians. And government officials. When are they going to learn that the markets are hyper-sensitive to not only what they do, but what they SAY?

Market tells Bernanke: Take a Hike! - Much has been made of the inflation vs. deflation debate as of late, but at the end of the day neither will be seem important if investors have no confidence in our economy. If you want the markets to be stronger, then you have to project strength and not weakness.

Fed Decision: Deflation vs. Inflation - With the Fed in meetings the next two days, and fears of heavier inflation much greater than ever before, Bernanke and company find themselves in a very difficult spot and will have to tip toe around inflation fears and focus on their bigger fears of deflation.

BRIC Countries: Unified in their Hatred of the Dollar - The BRIC ETF (EEB) and the US dollar have an inverse relationship; that is when the dollar is going down, the BRIC ETF is going up and vice versa. So it makes sense that some of the BRIC countries would like us to have a weak dollar. But yet we always hea r that China is concerned about our weak dollar? What gives? What do they want from the dollar?

Obama Health Care and Your Money! - The US dollar has been in a down trend for years because of our massive deficits and we are already spending money like a 20 year old with their first credit card. There really is no philosophical or ethical debate here. Socialized Health Care will lead to a national bankruptcy.

The Insider's Guide to Penny Stocks, Part 2! - Despite all of the warnings, the appetite for penny stocks is greater than ever. Investors routinely see triple digit gains and think that even if they can capture even a portion of those returns they are ahead of the game. Sadly this rarely happens, as they become victims of a "pump and dump" scam. Here's how it works.

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