"Success in almost any field depends more on energy and drive than it does on intelligence. This explains why we have so many stupid leaders."
-- Sloan Wilson
Charts and table up....
Another week, another battle. First, to minimize risk and second, to maximize return. Understand that when I'm talking about risk, I'm talking about two kinds of risk. The first kind of risk is outright losing money for no good reason other than laziness and ignorance. Like when we lost approximately 25% of our pension funds between 2000 and 2003 by not knowing that our money manager was underperforming. Or by being long stocks regardless of whether or not that is working. The second kind of risk is not making money for no good reason other than laziness and ignorance. Like being heavily invested in bonds when that is an inappropriate allocation of funds for your particular circumstances. When I'm talking about maximizing return, I'm taking about making the effort to take care of the pension savings that you worked for. If you recount the money you get when you cash your check and when you get change, fix the roof when it leaks, and change the oil when it's time, taking care of your 401 is more of the same. And not much more work.
I've way over performed since 9/04 as per the charts on my site. That was easy. Now it gets harder.Again as per the tables, I'm allocated to primarily one stock fund and 30% cash. It's cost me return to date, as my personal account is lagging the returns of all the individual stocks funds.
It's like buying insurance. The insurance premiums are a waste of money... hopefully. Some times you are unfortunate enough to have the insurance pay off. I judge that the risks in the domestic market are outsize to the downside, so it's about cash. If I'm right, I'll make up some of the returns I've missed out on. If not, I've traded a lttle money for peace of mind. It's not like I haven't been on the other side of the trade before.
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Charts and table up....
Another week, another battle. First, to minimize risk and second, to maximize return. Understand that when I'm talking about risk, I'm talking about two kinds of risk. The first kind of risk is outright losing money for no good reason other than laziness and ignorance. Like when we lost approximately 25% of our pension funds between 2000 and 2003 by not knowing that our money manager was underperforming. Or by being long stocks regardless of whether or not that is working. The second kind of risk is not making money for no good reason other than laziness and ignorance. Like being heavily invested in bonds when that is an inappropriate allocation of funds for your particular circumstances. When I'm talking about maximizing return, I'm taking about making the effort to take care of the pension savings that you worked for. If you recount the money you get when you cash your check and when you get change, fix the roof when it leaks, and change the oil when it's time, taking care of your 401 is more of the same. And not much more work.
I've way over performed since 9/04 as per the charts on my site. That was easy. Now it gets harder.Again as per the tables, I'm allocated to primarily one stock fund and 30% cash. It's cost me return to date, as my personal account is lagging the returns of all the individual stocks funds.
It's like buying insurance. The insurance premiums are a waste of money... hopefully. Some times you are unfortunate enough to have the insurance pay off. I judge that the risks in the domestic market are outsize to the downside, so it's about cash. If I'm right, I'll make up some of the returns I've missed out on. If not, I've traded a lttle money for peace of mind. It's not like I haven't been on the other side of the trade before.
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