TV, Radio and Print Financial advice?? Information??
Here are some items that I have heard that cause me to wonder if they thought of what they say before they say it. These are not a difference of opinion some are just obvious errors, and others they fail to point out a few major facts?so here are some,
1. 2009 at on point in time I was channel surfing and tuned in to CNBC for 5 minutes I was one of the 50,000 or so?., anyways Kudlow had a panel, and only heard one of his guests,
state that if they used different accounting rules Lehman Brothers could have had reduce their losses by 14 billion.
Larry then said I believe you are correct on that (to that effect, ) and then they went to break, and another item.
Around this time many people believed in not using mark to market accounting and argued not to state the true figures, it would easier for everyone. This wrong on so many points 1. 14 billion would not have save Lehman.
2. Japan did this during their real estate bubble, how not handle it, they allowed banks to keep high real estate debts on the books, (loans), they were then referred to zombie banks.
3. the market will assume the worse and then some, best to take the medicine, no matter how painfull, than to drag it out for years or a decade to two, ie. Japan.
2. 2013 Recently on CNBC Joe Kiernan was interviewing some expert, aren?t they all, about the possibility of AGF suing the US government. He made the point that no one knows what they could have sold the assets for in 2008 and of coarse the guest agreed with him.
That is wrong, 100%, the guest or trained seal should have said the obvious.
How could you get as much as now, as if you would sell it in 2008.
Now you have good credit markets, you can even borrow in the junk markets for less than 8%, and many corporations can issue paper for 3-4% or less, even long term. In 2008 the credit markets froze up, there was no lending, zero. Canadian banks that months before were paying 4-5% on debt, were now issuing paper at 10%. Many companies could not issue anything.
Ie. It is like you were going to sell your house when would you get top dollar, easy to a get a mortgage,
Or there is no chance you can borrow one dime. AGF should blame their management as they bought CDS near the end, like wanting to jump abroad the titanic before it sinks.
4. Radio During a CBC radio afternoon show they phoned up an (expert on RRSPs). 2013.
This is a general interest show, so this expert just said how important it was for (RRSPs/IRA) and even if you put in a GIC/CD making 1.8% and the power of compound interest. Not so much at 1.8%, he made several good general points. The only problem he should have stated how important it was to beat inflation, over the long term. What is the use if you make 1.8% over 5 years in your RRSPs/IRA if Inflation runs at 2-3% per year. It is important to invest for you retirement however one must be aware of inflation. The guest should have mentioned this?
5. 2013 Radio, CBC morning show, general interest show. I hit the roof during a short interview, again talking about RRSPs, and investments. The interviewer actually brought up the point that mutual funds,which many Canadians use have high fees.
The guest, she said that many people put to much emphasis on this point, that it is a minor point. That we have to pay in many walks of life for professionals.
I hit the roof, the guest is clueless, Canadians PAY THE HIGHEST FEES FOR THEIR MUTUAL FUNDS, IN ALL OF THE DEVELOPED WORLD,number one?
Whoever does not think this is important and I hear this plenty of times, either gets paid by a fund family or is -@#@##. Most Canadian equity funds can come in between 2.5%-3%, some are even higher.
Some funds charge .70%, however they are then in WRAP account which charge 2-4% on top of that. If you are charged 2-4% for in most cases a closet index fund, you will almost always underperform the market.
There are many (well only a few) funds, and many of them keep their fees low, and do not reflect the main indexes. Always consider the fees, most mutual funds are sold and not bought.
6. Print In a general interest paper, you get free at a coffee shop, restaurant, ect. There was a well written article on stocks. It was short and pointed out how some cdn. Stocks increased their div over time ie. A decade. However the author stated it would be better to wait for the market to go down and buy the stocks at a cheaper price. It is almost impossible to time the market. However these are good companies and though I would also like to buy them 20% cheaper or more. Still an investor beginning, should start today, and slowly build up a portfolio of good quality stocks, if the market corrects they can build it up at better prices.
My main problem with the advice is that many of the stocks had yields of 3-4% with growing divs, you could wait for a sale, and it may not come, meanwhile make nothing in cash.
For an investor starting it is best to slowly build up a portfolio.
If your portfolio is bigger it should be diversified, ie. bonds, stocks, short term ie. cash. Also Puts have been very very cheap, so to buy puts on major indexes, or many blue chip stocks, you can buy insurance to protect from more than a 10% drop, very cheap insurance.
When I started invested there was a sharp correction, I did not really care since I did not have much invested to begin with and saw it as a chance to buy at cheaper prices?ie. Stocks yielded 8-10%....good old days?.lol
Thanks
selkirk
Here are some items that I have heard that cause me to wonder if they thought of what they say before they say it. These are not a difference of opinion some are just obvious errors, and others they fail to point out a few major facts?so here are some,
1. 2009 at on point in time I was channel surfing and tuned in to CNBC for 5 minutes I was one of the 50,000 or so?., anyways Kudlow had a panel, and only heard one of his guests,
state that if they used different accounting rules Lehman Brothers could have had reduce their losses by 14 billion.
Larry then said I believe you are correct on that (to that effect, ) and then they went to break, and another item.
Around this time many people believed in not using mark to market accounting and argued not to state the true figures, it would easier for everyone. This wrong on so many points 1. 14 billion would not have save Lehman.
2. Japan did this during their real estate bubble, how not handle it, they allowed banks to keep high real estate debts on the books, (loans), they were then referred to zombie banks.
3. the market will assume the worse and then some, best to take the medicine, no matter how painfull, than to drag it out for years or a decade to two, ie. Japan.
2. 2013 Recently on CNBC Joe Kiernan was interviewing some expert, aren?t they all, about the possibility of AGF suing the US government. He made the point that no one knows what they could have sold the assets for in 2008 and of coarse the guest agreed with him.
That is wrong, 100%, the guest or trained seal should have said the obvious.
How could you get as much as now, as if you would sell it in 2008.
Now you have good credit markets, you can even borrow in the junk markets for less than 8%, and many corporations can issue paper for 3-4% or less, even long term. In 2008 the credit markets froze up, there was no lending, zero. Canadian banks that months before were paying 4-5% on debt, were now issuing paper at 10%. Many companies could not issue anything.
Ie. It is like you were going to sell your house when would you get top dollar, easy to a get a mortgage,
Or there is no chance you can borrow one dime. AGF should blame their management as they bought CDS near the end, like wanting to jump abroad the titanic before it sinks.
4. Radio During a CBC radio afternoon show they phoned up an (expert on RRSPs). 2013.
This is a general interest show, so this expert just said how important it was for (RRSPs/IRA) and even if you put in a GIC/CD making 1.8% and the power of compound interest. Not so much at 1.8%, he made several good general points. The only problem he should have stated how important it was to beat inflation, over the long term. What is the use if you make 1.8% over 5 years in your RRSPs/IRA if Inflation runs at 2-3% per year. It is important to invest for you retirement however one must be aware of inflation. The guest should have mentioned this?
5. 2013 Radio, CBC morning show, general interest show. I hit the roof during a short interview, again talking about RRSPs, and investments. The interviewer actually brought up the point that mutual funds,which many Canadians use have high fees.
The guest, she said that many people put to much emphasis on this point, that it is a minor point. That we have to pay in many walks of life for professionals.
I hit the roof, the guest is clueless, Canadians PAY THE HIGHEST FEES FOR THEIR MUTUAL FUNDS, IN ALL OF THE DEVELOPED WORLD,number one?
Whoever does not think this is important and I hear this plenty of times, either gets paid by a fund family or is -@#@##. Most Canadian equity funds can come in between 2.5%-3%, some are even higher.
Some funds charge .70%, however they are then in WRAP account which charge 2-4% on top of that. If you are charged 2-4% for in most cases a closet index fund, you will almost always underperform the market.
There are many (well only a few) funds, and many of them keep their fees low, and do not reflect the main indexes. Always consider the fees, most mutual funds are sold and not bought.
6. Print In a general interest paper, you get free at a coffee shop, restaurant, ect. There was a well written article on stocks. It was short and pointed out how some cdn. Stocks increased their div over time ie. A decade. However the author stated it would be better to wait for the market to go down and buy the stocks at a cheaper price. It is almost impossible to time the market. However these are good companies and though I would also like to buy them 20% cheaper or more. Still an investor beginning, should start today, and slowly build up a portfolio of good quality stocks, if the market corrects they can build it up at better prices.
My main problem with the advice is that many of the stocks had yields of 3-4% with growing divs, you could wait for a sale, and it may not come, meanwhile make nothing in cash.
For an investor starting it is best to slowly build up a portfolio.
If your portfolio is bigger it should be diversified, ie. bonds, stocks, short term ie. cash. Also Puts have been very very cheap, so to buy puts on major indexes, or many blue chip stocks, you can buy insurance to protect from more than a 10% drop, very cheap insurance.
When I started invested there was a sharp correction, I did not really care since I did not have much invested to begin with and saw it as a chance to buy at cheaper prices?ie. Stocks yielded 8-10%....good old days?.lol
Thanks
selkirk
