11/18/2009 Historical Post

From: Dale BEALS Financial Wisdom LLC <dbfwllc@me.com>
Subject: Fwd: bloomberg article
Date: November 18, 2009 4:02:54 PM CST

Dear client and friends,

I thought you would enjoy the attached article from Bloomberg Magazine talking about the changes in the financial industry. Investors are leaving traditional banks and brokerages in droves for independent Registered Investment Advisors…. like us!
Thanks,
Dale

Access to your Morningstar Reports from PortfolioWisdom.com

As you know, we use Morningstar to produce our client performance reports. Until now, you needed to remember a separate web address to reach the web portal for a look at your current portfolios. You also needed to store performance reports as you received them for later reference.

No longer. Now, just go to www.portfoliowisdom.com and look at the menu line across the top of the page. At the left is a link directly to the Morningstar web site. From now on, your performance reports will be available there also, archived for your convenience and later reference.

Thanks again for your business.

Market Indecision

For the life of me, the markets seem to be holding their collective breath. I really do not believe that anyone who really knows what happens behind the scenes is going to say anything on the news. So, I advise you to ignore most of what we are seeing and hearing on CNBC and Bloomberg. I doubt that any market movement is truly attributable to the after-the-fact “causes” and “reasons” they give each day for why the market went up or down.

We continue to be very cautious, currently holding a lot of cash, which we will move gently in to the market between now and year-end, unless one of these fiscal problems explodes.

You may notice some other posts to our web site. I’m creating a free section of the web site called portfolio wisdom to help individual investors who do not have financial advisors. I’m actually going to make available a limited but very useful version of the methodology to anyone who wants to learn from it. So, those posts you see may not apply to you, but if you have friends who need help with their 401k’s or IRA’s, send them our way.

Volatility Slowly Decreasing?

Although the news continues to reflect great fear and uncertainty, volatility seems to be gradually diminishing in almost all asset classes (which is a good thing). Each peak of fear in the market is a little lower than the peaks of fear in August, September, and then October. If this trend continues, I expect to be fully allocated back into the model portfolios by the end of the year.

Things look risky

This is my first post to portfoliowisdom.com. I’ll be adding a few past client communications for context, but this is the first… here goes…

Over the next few days, I will be adjusting my client portfolios to raise cash and lower risk until things are a little more clear. The risk of financial loss  is greater, in my mind, than the risk of missing a big rally in equities, and I’m not comfortable that a big drop in stocks would be cushioned by a rally in bonds, given their already high levels. Continue reading “Things look risky”