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December 2008
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Thursday, September 9, 2010
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The 5 Biggest Investment Mistakes of 2008
Did You Make Any? Take This Quiz To Find Out!
Take the following quiz to see if you made any of the 5 biggest mistakes that investors made this year.
[FULL STORY]
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Warren Buffett: "Buy American. I Am."
I Couldn't Agree More, And Couldn't Say It Better
As you may know, I am a lifelong student of my fellow Omaha native, Warren Buffett. He is widely regarded as the most successful investor in the history of the United States. Enclosed is the letter he released on October 17, 2008. I couldn't say it better!
[FULL STORY]
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Two New Bubbles: One In U.S. Treasury Securities & Another In Pessimism
You Heard It Here First
About two thirds of my clients, during meetings this last quarter, made some unsolicited reference to the end of the world, expressed in their own, distinct belief systems. These are educated, stable, serious people. Doctors, executives, business owners, and so on. Since I started doing these interviews with clients in 1999, I have never seen anything close to this pervasive level of pessimism--which is one of the sources of my optimism. All bubbles start with a foundation in reality, such as the current recession, the limited supply of oil, the beautiful tulips of Holland in the 1600s, or people's desire to buy houses with the low interest rates of the early 2000s.
[FULL STORY]
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Should You Consider International Investing?
During the 1990s, the U.S. stock market
significantly outperformed international stock markets. International
investments drew little attention during that time. But now the
situation has reversed, with international investments outperforming
U.S. stock investments over the past few years. Is now the time
to take another look at international investments? Before deciding,
consider these points.
[FULL ARTICLE]
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The Basics of Currency Fluctuations
An international investment's return is
based on two factors - the investment's return in its local currency
plus currency fluctuations. For example, suppose you purchase
a British stock whose price increases 10% in one year in terms
of British pounds. If, during that same year, the British pound
increased in value by 5% compared to the U.S. dollar, your total
return would be 15% - 10% from the investment's return and 5%
from currency fluctuations. However, if the British pound decreased
by 5%, your total return would be 5%.
[FULL ARTICLE]
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Don't Underestimate Inflation
Inflation has been tame for so long that
it's easy to ignore when planning for retirement. However, even
inflation of 2% or 3% per year, over a period of many years, can
seriously erode the purchasing power of your funds. At 2.5% inflation,
$1 today will be worth 78 cents in 10 years, 61 cents in 20 years,
and 48 cents in 30 years. That can have a major impact on those
entering retirement
[FULL ARTICLE]
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Make Saving a Habit
Habits are all about the principle of human
inertia: we tend to keep doing what we've always done and shy
away from doing something new. That principle may work against
you at first. If you're not used to saving money, it can be hard
to get started. But once you gain some inertia in your new saving
habits, it'll be relatively easy to keep it up.
[FULL ARTICLE]
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The Changing Dynamics of Home-Equity Loans
When home prices were increasing, home-equity
loans were a convenient way to finance numerous types of expenditures.
While the loan is secured by the home's equity, the proceeds can
be used for anything, including expenditures that have nothing
to do with the home. But with declining home values and increasing
numbers of foreclosures, lenders are not as anxious to approve
home-equity loans.
[FULL ARTICLE]
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Greg Peterson holds a bachelor’s degree in Global Economy from BYU and an MBA in Finance & Entrepreneurship from the Marriott School of Management at BYU, where he was a Dean’s Scholar and 1st runner up in The Student Entrepreneur of The Year Award. He has started & managed several successful companies. After tenures at Merrill Lynch, Fisher Investments, & Smith Barney, he founded Peterson Wealth Management in 2007 to focus on high-quality, low-cost
401(k) plans as well as wealth management for households with over $100,000 to invest. He and his family reside in Orem, Utah and in Timberlakes Estates, Utah.
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Published by
Greg Peterson, CFP®
Copyright © 2008 Integrated Concepts Group, Inc.. All rights reserved.
Securities offered through NEXT Financial Group, Inc., Member FINRA/SIPC. Peterson Wealth Management is not an affiliate of NEXT Financial Group, Inc.
Some information provided in this newsletter was prepared by Integrated Concepts. This newsletter intends to offer factual and up-to-date information on the subjects discussed, but should not be regarded as a complete analysis of these subjects. Professional advisers should be consulted before implementing any options presented. No party assumes liability for any loss or damage resulting from errors or omissions or reliance on or use of this material.
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TELL A FRIEND
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