The Financial Coach Show » Commodities

Middle East Crisis & Market Volatility

Bryan Binkholder — Fri, 11 Mar 2011 00:57:55 +0000

The Financial Coach discusses and explains why we don’t know what the future will be or what will ever happen. All we can know is that things probably won’t ever be the same tomorrow as it is today! As an investor you must TRULY DIVERSIFY (not the kind of diversification that the brokerage firms teach!) and realize different parts of the market behave differently at all times. As of of this posting, the SP 500 is down nearly 3% the last couple of days while commodities and US Treasuries have surged. If you’re using some of the big firms learn the truth before your portfolio takes another beating!

Oil & The dollar

Bryan Binkholder — Tue, 10 Nov 2009 12:15:51 +0000

Commodities are a major hedge against inflation and as a recent article in the Wall Street Journal points out, as the dollar
continues it ‘drop’, the price of oil will naturally rise since oil is bought and sold in dollars. Why do I say all of this? If you are concerned about the dollar becoming worth less money and inflation approaching, commodities make up an important part of your portfolio. In fact, the 38 year historical analysis for commodities is the same as small companies that give investors the most return–albeit with the most risk. Finally, notice how the price of oil in this article is also shooting up because of a Hurricane and the worries about potential damage.

Final Note: As we can see, prices are impacted by peoples emotions, weather, unknown world events and a host of other things that we have no control over. Stop trying to guess and stop using mutual fund and active managers that believe and tell you they can spot winners. It can’t be done consistently & predictably.

http://online.wsj.com/article/SB125775476770637981.html

Gold and The Dollar–What’s Happening?

Bryan Binkholder — Mon, 02 Nov 2009 23:20:00 +0000