Prediction: 2012 Central Bank Intervention

2012 central bank intervention GUARANTEED #forecast | will post to blog as marker | #fed #ecb #QE28 [hattip Jim Sinclair’s “QE to infinity”] — Cafe AJM Open 24/7 (@ajmcafe)

Update
On June 20, 2012 US Federal Reserve announced extending Operation Twist. Kicked can. Other tool: QE or quantative easing or “inflation” or devalue currency. Maybe Aug-Sept 2012 (Rickards on Capital Account). Or when another crisis event, the proverbial Taleb “black swan”….stay tuned.

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Facebook & Ethical Investment Banking

RT @John_Hempton: Bronte Capital: Facebook and the sad case of ethical investment bankers… http://t.co/PYYbDSfS // This is so Ayn Rand. — hedgefundinvest (@hedgefundinvest) Hmm…a interesting case study for effective IPO implementation.

Facebook Lesson #1: Research is fundamental

Facebook’s stock should trade for $13.80 – Mark Hulbert – MarketWatch http://t.co/ywmMTQsq via @MarketWatch — Cafe AJM Open 24/7 (@ajmcafe)

John (Jack) Bogle (Net Worth $4 Billion) – “If you have trouble imagining a 20% loss in the stock market, you shouldn’t be in stocks.” [from Barry Ritholtz “The Big Picture” blog @ritholtz]

How many Facebook investors bothered to read the S-1? http://sec.gov/Archives/edgar/data/1326801/000119312512034517/d287954ds1.htm

As an individual retail investor who once bought AAPL shares when it was priced in the 20s and sold it in the 60s, it pays to do some research when evaluating a stock price.  Of course, merely pouring over a corporate balance sheet does not guarantee you will make a gain on that hot growth stock but it may take the emotional air out of a trigger trade. The stock market may not look like a casino but many of its players treat it like one. Don’t be a sucker; be an investor!

Some thoughts on personal investment portfolio management.

Know that the stock market is the flea market of the financial world. There are professionals and amateurs trading.  If you don’t work in the financial services industry, then you may likely be an amateur.  While there a great instinctual stock pickers, they are a rare breed even among the professional managers. First of all, you must have a plan when investing in the stock market. Ask yourself: Why am I allocating capital (often hard-earned income) in this manner? If you are thinking “overnight millionaire” then stop right there. Put down that mobile device, log out of that brokerage account. Go to the library (download e-book, buy paperback) and read The Millionaire Next Door.  After you let that best seller marinate your brain, ask yourself again: why are you investing?

In another post, I’ll present the case for and against investing in the equities (stock) market.

The writer’s tool

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Let’s write!

A fresh start

I’m switching to WordPress as the new home for thoughts on personal finance and nearly anything that affects it.

Why “personal finance”? There are countless books, sites, bloggers, magazines, gurus, and services that drive home the point better than I could. Many have credentials that would put me to shame. I am not special – just a guy with an interest in expressing a point of view about a topic of signficance in our world.

Personal finance is more than dollars and cents. It’s about how decisions affect each of us and shape the future. I did learn a lot from reading books from the “best” in the industry but the “one size fits all” is simply a starting point. As with most sites, I will write about the journey – in much the same way as Laurence Sterne did in A Sentimental Journey Through France and Italy – observing then trying to make sense of it all.

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