To Raise or Not To Raise? That My Bonehead's is the question....

Well once again our fearless Federal Reserve Leader Janet Yellen or as I like to call her Old Yellen (https://en.wikipedia.org/wiki/Janet_Yellen) has once again done absolutely nothing today but put the fear of loss in the market again. This shit is getting old and for Bonehead Investors like you continues to screw you and your potential earnings in this market. Why you ask?

Ever time Old Yellen has either gone to the FRB or the HFS (look them up here if you don't know your shit - http://www.federalreserve.gov/, http://financialservices.house.gov/) she continues to spew pointless and vague  useless facts that either the USA economy has been improving and or some other shit like unemployment is down so the Fed may and yes the magic word is may raise rates sometime in the future. The immediate chain reaction is the market flips the hell out and equities fall, like the did today (http://www.reuters.com/article/2015/11/04/us-usa-fed-yellen-idUSKCN0ST22V20151104#MgSrGfq6VAg6Uy5T.97).

Bonehead's don't listen to the noise of this useless leader. Old Yellen and her band of Committee Members continue to pontificate on this market and each and every time they meet and continue to spout off crap that never ever comes to fruition. As a Bonehead we can't continue to be held hostage by words and more importantly lies to the American public. We continue to hear that employment is improving, bullshit (http://fortune.com/2015/02/04/unemployment-rate-gallup/). Manufacturing inventories are improving, more bullshit (http://www.census.gov/manufacturing/m3/index.html). How can any person without a PHD understand how to invest in this market? You can't! That is why Bonehead's stick to what they know. Companies that make real products that people use and services that people want,

This is a scary ass time for the US Stock Market  and  I am constantly worried will crash like hell..But don't fear Bonehead's. We can't listen to the noise of the talking heads, the liars, cheats and the most evil of all brokers and financial advisers! Bonehead's stick to what you know. If you don't know what is valuable to you in  a company then do not invest in this market. Stick to cash or something easy like a CD that pays a very low interest rate. I always tell investors I would rather make 1% on my money than lose 25% in this crazy ass stock market. If you believe in a company, know that it has great value and produces products and services that people want - then be fearless in your investing!

Things that I am digging now - https://www.etsy.com/listing/233209304/personalized-american-oak-aging-barrel?ref=listing-shop-header-1

Tell Your Financial Adviser "F' Off for 2016"

Man - it never stops amazing me how people just like you will give away money for free and trust some asshole who couldn't care a less about making you a profit with your hard earned money. 

Once again the wonderful world of USA Hedge Fund Managers have once again come out with a loss for 2015 and the only thing their clients get is an "I'm Sorry". Think about it for one second. If you are lucky enough to be a credited investor and can get into a hedge fund you would think you would at least trail the S&P. But not these assholes this year. Once again you lose they win and worse yet, if we see redemption calls ramping up like I think they will, the entire market gets screwed and these assholes running these hedge funds make out like bandits. 

It is amazing that hedge funds like Greenlight Capital, Pershing Square and Glenview are missing the easy calls and losing money for their clients. I continue and will continue to preach that if you are going to invest in the stock market no matter how big or small, do your damn homework. Don't ever assume some financial adviser is going to give two shits about your return once you hand over your hard earned money. Stand up for your hard earned money and learn how to invest in the stock market. I have preached for years that you if are going to enter this market you will need know your investments and watch your money like a hawk. There is absolutely no reason you need a financial adviser unless your are wealthy enough to plan tax break investing, etc... http://video.cnbc.com/gallery/?video=3000442307&play=1

Fire your financial adviser this year and take control of your own money. Stick to what you know. Avoid all mutual funds (high ass fees) and pick stocks that you know have value and provide products and services that people want and use. Recently a young investor asked me what to invest in and I turned the question back to him and said what do you believe in? He could not answer this simple and easy question. What do you believe in? What companies do you find value in and use their products or services? 

For me and the Bonehead Investor community I stand by my investments in companies that provide world class products and services. For me companies like Apple http://www.apple.com/ and NetFlix are amazing investments for now and the future! https://www.netflix.com/

Stand up and take back your financial freedom! Don't be a sucker for Wall Street! Be a Bonehead Investor! 

 

Where to Plow your hard Earned Dollars for 2007

Well I am back and ready for the New Year. When we left off last we were discussing where to out your money for 2007. Let's recap before we start to invest. By the way you can email me with any questions!

First, no debt before you invest! Only the house mortgage is acceptable debt and let's hope that mortgage is not and exotic loan... Next, do your homework. Find out what parts of the market interest you. Do your research. Be like Warren Buffet and never invest in anything that you do not understand. Last, make sure you have 3 full months of living expenses in your money market or savings account before you invest one red penny.

OK now that you have met all these requirements let's invest. Remember do it yourself and you will save thousands of dollars in worthless fees to so called money managers. What you want to do first is invest in your 401k (if you have this option). If you have a 401k offered by your company take full advantage of the program. Invest the maximum amount you can! Remember this is your only chance to prepare for your future so take full advantage.

If you have a 401k program you will want to make 2 investments into the plan. Make sure you always invest in two funds to mitigate your risk in the event the market goes up or down. Trust me, it will do both. The 2 areas I suggest that you invest in will be the International Market and Dividend Index or Mutual Funds. If you are able to invest in the International Market stick with a Total Index Fund or International Value Mutual Fund. Stay away from International Growth Funds or International Small Cap Funds. These are just to risky to invest in. Put 50% of your available money in the International sector.

Next place 50% of your funds in Dividend Index or Dividend Mutual Funds. There are lots of names for these funds. Just make sure you read the fund definition and make sure the fund or index you are investing in states Dividend Fund. The reason you want to be in Dividend funds or index's is because you will continue to get dividends paid to you for the basket of companies you own with the fund. Plus and this is a big one, in the event inflation continues to grow your investments will grow to and hopefully beat inflation. So you ask what is inflation? Follow this link to a great website on inflation www.inflation.com

If you do not have a 401k plan available you will want to go to Vanguard or Fidelity to set up a personal account or IRA plan with them. I only suggest Vanguard , www.Vanguard.com, or Fidelity, www.Fidelity.com, because they have the lowest fees and best investment options available. Don't be scared to set up your own account! It is very simple and only take a few minutes to do.

Here are my personal investment selections for 2007 from both my Vanguard and Fidelity accounts. Please note that I have selected 2 REIT funds. I am a firm believer that REIT funds will continue move up in value.

Fidelity:

1. Fidelity Dividend Growth (FDGFX) - 25%
   
2. Fidelity International Discovery (FIGRX) -40%
   
3. Fidelity Real Estate Investment (FRESX) - 15%
   
4. Fidelity Select Defense & Aerospace (FSDAX) - 10%
   
5. Fidelity Select Brokerage & Investment Management (FSLBX) - 10%
   

Vanguard:

1. Vanguard Dividend Growth (VDIGX) - 30%
   
2. Vanguard REIT Index Fund Investor Shares (VGSIX) - 40%
   
3. Vanguard High Dividend Yield Index Fund Investor Shares (VHDYX) -30%
   

These will be my core investment for 2007. Feel free to email me with any questions. I will be back next week with other ideas for you! Happy New Year!!