Archive for February, 2010

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Passive Approach?

February 23, 2010

Yesterday I Tweeted a short version of the following concept:

Like life, some may say, passive (investment) strategies assumes (market) efficiency. It predicates that you cannot beat what is a determined  surity for the future- a sort of fatalism I suppose. You can only move up in down with the trends and if you’re properly diversified (‘educated’ or ‘social’ or ‘attractive’ enough) you will gain from the long term (secular) upswing. It’s an unquestioned approach to both life and investments- again I make my Forrest Gump analogy. Is there a fallacy to this? To look at it from the other side, you pay more for more active (investment) management (‘adventure,’ ‘challenge,’ ‘chance’);  potentially gaining more by exposing your portfolio (‘life’: to keep the analogy) to opportunities that arise as a result of inneficiencies in pricing (i.e. it’s an unpopular company so it becomes market underweighted and cheaper due to nothing other than panic and will eventually rise to its true ‘intrincic’ value). Do we burn out and pay a higher cost due to greater asset turnover ( again more’change,’ or ‘adventure’ or whatever life parralel you draw) but at the hopes of a greater reward (in investment parlance you’ve obtained ‘alpha’ over the ‘systematic risk’ obtained by following the market blindly)? Do we simply admit our peace on the hopes of constant long term secular increases (‘wealth,’ ‘career,’ ‘family,’ etc), knowing that you will just gain in time? What if your ‘time’ is at one of those downturns and you’re trying to retire? All along you may have missed the opportunities, which now appear to be worth the extra costs. Or was it? What if you guess wrong and have a set back? What is the cost to your sanity of all the extra time spent studying and being educated on how to turnover your assets at each opportunity?  What choice would you make? That’s for you to decide.

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Zen Habits

February 22, 2010

Aside from my own rantings, I will rely on several sources that I believe support my life-balance approach. We must always come back to this when we obsess about our financial situation, good or bad. Its the ying to the yang so to speak.  See the following article from http://www.zenhabits.net about finding moments of stillness each day. http://zenhabits.net/2010/02/powerful-stillness/

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Work in progress

February 22, 2010

Have you ever spent your time building your brand? Actually we are always doing that. Some of us ignore impulse and knowledge out of routine (which I consider partly an enemy) and simply exist like forest gump, moving like moths toward whatever is handed to us. Some of us don’t have the vernacular to manage and control our life in a way that flights us towards our brightest light. Some of us are just told that we can’t and accept that blindly. Well, that’s not the only template for life.  The same holds true with your finances. Can you accept that your templates do not fit the current and future climate.  Its the vernacular and patterns of the wind that will give you those proper wings to wear and proper paths to follow… But first you must recognize  that there are other templates..i.e. first, you must know that you are allowed to put those wings on…I hope to help you provide this awareness and empowerment through some disspensing of commentary/advice/information on both life and money. First I have to build this blog. More to come.