The MoneyMan Speaks to Me

Are Your Lights On?

2008-07-16T23:49:00.005-05:00

I’ve always appreciated juicy stories- you know the kind you listen to with your jaw wide open anticipating a fabulous ending-but I’ve never been a fan of scary ones. Those usually end up making me paranoid in the early hours of the morning and have me sleeping with all the lights on. However, I never imagined one of those scary stories being about my future, much less about an issue relating to oil!

My ears perked up during one of Daniel’s last segments, as a guest voice suddenly brought clarity on a difficult topic. I saw my life flash before my eyes, and yes, it was an OMG moment - let me explain.

Oil expert Matt Simmons was on with Dan and exposed the hard truths about oil. Now of course, I’m not an authorized judge of character when it comes to analyzing oil experts, but the reason I call Mr. Simmons an expert is because he made such a complex subject easy to understand.
Here is the thing, seriously read on carefully. Have you ever heard of Kübler-Ross’ 5 stages of grief? In case you haven’t, let’s briefly re-cap.

First, there is the stage of denial. We all know what this is. “No, we are okay on oil supply and production” – Yeah, that’s a lie!

Then there is that really attractive anger stage that involves cursing at the oil as if it could ever respond, c’mon we can’t stoop to this pathetic stage.

Next we have good ol’ fashioned bargaining, which goes a little something like this “No really, we have a couple more years left until we should really worry about a back-up plan for oil.”

We can't forget Xanax’s best friend, the depression stage. This is essentially losing hope and living in a state of fear.

Well, the 5th and final stage kills all the lies and brings you back to reality--the wonderful stage of acceptance. This is where Matt Simmons comes into play. He has studied and lived in the world of oil. He has accepted the truth, which is that we need to stop using precious oil!
The problem is not oil scarcity. The problem is the drilling locations; there are so many parameter facets to consider that it simply wouldn’t be worthwhile to do off shore drilling. Not only this, but who in the heck is going to operate the machinery, and is anyone keeping in mind how costly this is going to be? Presidential candidates are presenting their future solutions to defeat the oil crisis, but are they being realistic?

I find myself agreeing with Simmons, it’s all a bit for political publicity. Just like every other issue constantly upheld in the presidential debates.

It’s simply not realistic ,you know? We can’t possibly build oil rigs right now! Last time we did that was, whoof, back in WWII and that was accomplished by shutting down the economy. If we shut it down now, we will fall apart. As a leading country, we can’t afford to fall apart.

Don’t live in those dangerous stages of grief, learn to accept the truth. Simmons couldn’t have been louder and clearer, there is no other way out. We need to stop digging and use less oil. Same idea goes for the gas prices I explained in the last blog, the way to solve increasing prices is by making more money. Making more opportunities and improving your status.

Bottom line is . . . it’s not just another scary flick keeping me awake at night. Worrying about the future because it involves me and will ultimately affect my generation is more than enough to keep this chick sleepin’ with one eye open! So tonight, don’t stop to wonder why my lights are on, because I’m totally freaked out!

When Life Gives You Lemons

2008-06-03T17:15:00.002-05:00

4p.m. usually finds me winding down the day and eating a long over-due lunch. Daniel, on the other hand, is adjusting his headphones, getting a fresh glass of H2O, and waiting for Peggy’s countdown to start his show…

I was ready to hear about the market, or what the Fed is talking about these days. I had Google ready to start researching questions I’d have during Dan’s monologue, and a separate notepad to write down notes on the Money-lingo. But to my surprise, Daniel brought up a topic that I truly understood. He exposed what many are talking about but offer no real solution to. Gas prices!

Ok. Seriously, OMG I don’t know one person who isn’t affected by gas prices! Whether you drive or you’re driven, everyone around me is wondering, “When will driving be affordable again, and when the heck will the gas prices go down?” The truth is, as long as people want to keep getting from point A to point B, and keep wanting to get a tan at point C, gas prices will keep going up. C’mon, are you really that surprised? Everybody knows this. The question isn’t when will prices come down, the question is what can I do about it?

Follow me for a minute . . . if you sold lemonade for a living, and every summer you took note that your inventory sold out due to the intense heat, it would be logical to increase prices in the summer to bring in the most profit, right? Well, gas prices are the same, except it’s always summertime in gas-land, and gas is selling big no matter what the prices are. Whether you drive a beat up boat of a car or a diesel Dodge truck, you still need to move yourself around, and will learn to manage your money around gas prices.

When I saw the movie, I Am Legend, the whole theatre gasped when the futuristic prices at the pump started at $6. Forget the whole end life as we know it, and how humanity lingered in the hands of Will Smith, right? It shocks me that gas prices seemed to scare everyone else so much more! I didn’t really find myself gasping, because truthfully, it seems like pure logic. $6 may seem cheap in a couple of years!

So what can a poor soul do in such a powerless situation, you ask? Well, complaining isn’t filling up your tank honey, and expecting the money experts to rectify the situation is about as likely as money growing on trees.

Daniel made it a point to say that what you should be doing is learning how to not care. Yes, I said it, who cares about the gas prices! I’m still going to visit my brother in Hempstead, a good 45 minute drive away. I’m still going to go from the office to school, and if the weather isn’t Houston-like (humid & sticky & gross) I’ll take a drive out to Galveston. Do I have an electric car? No. Do I car-pool? No. Do I ride Metro? God no, I am horrible with buses! What I do have is Daniel’s theory, focusing on making more money. (Yup, cha-ching!! Show me the money, right?)

Now, Daniel has the sufficient means to fill up his tank quite frequently without a real problem, but for us students trying to make a dollar out of our chump change, and for those families car-pooling, listen up!

Talk to your supervisors and see how you can make more money. If paychecks increase, then gas prices will be no match for us. Take side jobs, inform yourself! Improve the quality of your work performance. That’s how you forget about gas prices!! Don’t ask for raises, ask for opportunities. What else can you as an employee do to be more successful and earn more money? Think about it.

Next time you find yourself worried about your tank running low, remember what to do when life gives you lemons! You sell them in at growing pace, keep your prices up, look for different ways to improve your lemonade with fruits and additives, and for God’s sake, keep making lemonade! It’s hot outside!

Fear is a State of Mind

2008-05-12T10:47:00.011-05:00

"I have learned over the years that when one's mind is made up, this diminishes fear; knowing what must be done does away with fear."
– Rosa Parks

Daily life has changed drastically over the years. Ever since 9/11, things have been chaotic, and it’s become a necessity to look over one’s shoulder. I turned 16 when 9/11 happened and I instantly knew that by my 17th birthday, things would be vastly different within our country. Fear has been instilled on Americans so much that we willingly enforce the banning of liquids as carry-ons on our airplanes will somehow protect our freedom from the hands of terrorists.

Fear however, does more than cause an inexplicable paranoia. It calls for precautions and defense mechanisms. Having a great friend of mine in the USMC, I have come to understand a different side of the war. Although some spend time protesting against war efforts, it is essential to understand that the war is being kept away from home. In an ideal world, a country wouldn’t have to sacrifice lives in the name of freedom.

Among the skeptics, patriots, and enemies at large, there exist minds born to analyze such heavy issues. One such mind is Arnaud de Borchgrave, who Daniel had on his show a couple weeks ago. He has been an authoritative journalist for sixty-two years, has covered eighteen wars, and has written for publications including the Washington Times. As impressive as his journalistic career is, it is not Borchgrave's main focus. He serves as the director and Senior Advisor of the Transnational Threats projects at the Center of Strategic and International Studies. It’s a mouthful of a title because it’s a handful of an occupation. Borchgrave's project was initiated after the 9/11 terrorist attacks. He is an expert in U.S. foreign policy, the Middle East, counter-terrorism, cyber space, and organized crime.

Whether we realize it or not, the conflict in the Middle East affects our daily lives whether we realize it or not. Borchgrave proves how fitting Newton’s Law is, which states that for every action there is an equal and opposite reaction. The main objective as Director and Senior Advisor is to help the current and future president strategize and help prevent future attacks from happening. At the moment, he values Iran and feels that the Bush Administration should be focused on maintaining its stability because they are most likely waiting to see who becomes the next president. He wants to prevent Iran from blowing up and causing the next regional war. He feels that this was an ideologically well motivated war where good intelligence was ignored.

Borchgrave commented that the economic status quo is out of whack due to companies increasing prices. Meanwhile, fortune 100 CEO’s are working on an 11 million dollar salary averages. This only increases the gap between the poor and the mega rich. This is a truth I'm sure we are all familiar with. Borchgrave currently has 4 million dollars in retirement funds, but due to the market conditions, he is currently not moving any funds because at this point, financial advisors don't know what move to make next.

The reality we all know could change when the next president comes into office, and right now Borchgrave isn’t too confident with John McCain. This is primarily because McCain’s campaign speeches do not consist of realistic proposals if not they ramble and overuse the word “etcetera.” As Daniel says, Borchgrave may not say things we like to hear, but more than often he is right on the money.

Changes Are Happening Now

2008-04-20T15:53:00.003-05:00

“We must become the change we want to see.”
-Mahatma Gandhi

Hello BizRadio listeners! As you may have already noticed, this blog is not under the same maintenance anymore. I’d like to utilize this first entry to recognize the wonderful human being who began this blog, Cuc Roettele. Miss Roettele served not only as Dan Frishberg’s Executive Assistant/No. 1 Fan, but also as a wonderful co-worker and friend of the BizRadio staff. Not to mention, an amazing mentor for my writing.

At this moment, I would also like to formally introduce myself. My name is Marylu Rodriguez, I’m 22-years-old, and a firm believer that everyone has a story. I have been entrusted with writing about the sound of your money growing, and I hope I can offer another perspective on Dan’s amazing expertise. Although I won’t be able to fill Miss Roettele's shoes, I intend on leaving fine footprints of knowledge within my future readers. My goal is to become a journalist and bring light to issues that remain unnoticed in the shadows.

My journey with BizRadio started on a hot summer day in 2006. Elisea found me at the Houston Polo Club, where I live and, at the time, worked with my father. My father is a horse trainer who takes great care of Polo horses. I must’ve been wearing the oldest shirt I owned that day, but nonetheless - Elisea struck up a conversation with me. We talked about education, my goals, and most importantly my family. I shared that I was a Broadcast Journalism major and that I took a lot of pride in helping my dad on his ranch. Before I knew it, the conversation turned into an interview, and the next thing I knew – I had an internship set to start that Monday. The rest of the story is easy; I ended up working alongside some of the most creative and efficient people I’ll ever meet.

Now present day, I have come to the great realization that the staff of both BizRadio and FJSK Advisors has become a unity – an extended family if you will. We co-exist together like any other family would, through difficult times and the most spontaneous moments we’ll probably ever live. I’m surprised our IT department puts up with us, and at the same time very thankful for their patience. We depend highly on our technology to broadcast efficiently and carry out our company motto being, “Our success is directly correlated with the number of people we serve, and how big our impact is on their lives.”

We wish Miss Roettele the best in her future, and this blog is evidence that she will be greatly missed. Stay tuned to read about the sound of your money growing.

Frozen by Fear

2008-03-18T08:03:00.000-05:00

Many people have been asking Dan if it is way too late to protect themselves. Are you sitting out there thinking is it too late to protect your savings? Maybe you shouldn’t have been so heavily invested in stocks? Are you afraid that you’ve placed yourself or your family in a horrible situation?

My MoneyMan says that it is still a matter of pride –that it would be even more humiliating to make the price move, to protect yourself, and just as you do it, people are running and they start buying and the prices go up and you get whipsawed—and this would feel horrible! Is that what people are really worried about?

Personally, losing my life savings would be devastating enough, but being worried about how horrible I was going to feel, how tiny and smashed my ego would be . . . silly, but simple humanity. The idea that the same idea hits the whole herd at simultaneously and drives them to act out of panic and fear is sadly true.

Dan’s been watching people and the markets for over 50 years, he believes that all of us, as a group, are connected by more than the things we say and the thoughts we have, more so than a strict psychology course could ever teach us in college . . . millions of people around the country are thinking the same thing at the same time--I wish I would have sold these stocks a long time ago, now if I sell them, it's going to turn out to be too late. So what do they do instead? Nothing. They are paralyzed, like deer in headlights.

This one is simple, according to the MoneyMan . . . If you buy more stuff at the bottom, it will make your money back for you and you won't have to lose any money. This is why he’s pretty convinced that we will go a lot lower, based on all of this market x-ray stuff that he does (mostly about the intensity of supply and demand).

It is quite straightforward if you ask me. When there is no demand for stock, the price is going to go down. How can the price of something go up when there are no buyers, right?

When sellers want to sell, and there aren't buyers for them to sell to, the sellers have to cheapen the offer, they have no choice but to take it down . . . the more desperate they are, the more they will bring it down. That’s what Dan says they are doing right now, it’s basic supply and demand.

Now hold on, here's the part that you don’t see.

Demand in the market is way lower than the last time we were down here at this level, which was just a couple of weeks ago, back in January . . . and supply seems to be much higher. The truth is that nobody wants to buy, but lots of people are getting more and more anxious to sell, people are less willing to buy stocks, more eager to sell stocks than the last time we were at this level. You are above the lows in January, you are way above the lows of last July, (as far as the S&P 500 anyway). You have prices still higher at the moment than those times, but demand AND supply are way worse.

Here is the psychology factor: There is an insidious trick that nature is playing on you right now, many of you, not all of you, but according to my MoneyMan, who has been studying this particular thing in bear markets for 20 years, the reason we do this is because . . .

Listen for yourself at BizRadio AM1110 for the sound of your money growing.

To hear this particular podcast, click here.

What's Goin On?

2008-03-11T08:00:00.000-05:00

"May you live in interesting times," is an ancient Chinese blessing and/or curse, depending on one’s personal perspective.

Is there a crisis occurring in our economy today? John F. Kennedy once noted, "when written in Chinese, the word "crisis" is composed of two characters--one represents danger, and the other represents opportunity."

Could our choice for president determine our prosperity for the next few years, decade or ever the next generation? I really enjoyed Dan’s last segment with Dr. Laffer where they discussed “HillBama” and the potential effects on our economy.

Dan says that any bad market right now is not being caused by the anticipation of HillBama. He also thinks that if they do get into office, this will cause people to speed up and act quickly, which in turn will make the economy look better when the markets start to go up because everyone is getting ready. Dr. Laffer explains that even if HillBama wins in November, it won’t be until august that congress will start to implement big pieces of legislature, which leaves us looking at new agendas and operations by Jan 2010. Dr. Laffer shares some convincing evidence to back this theory, citing Kennedy, Reagan, and even Harding and Coolidge’s campaign.

Whether we are blessed or cursed, we definitely live in interesting times and how we choose to react to what happens is how we ultimately define our lives.

Listen to the entire podcast here: The MoneyMan Report

2008-02-08T10:00:00.004-06:00

So my MoneyMan says that there is pent up demand for stocks right now. He mentions a decline in the momentum to the downside . . . brewing demand will cause a lil bit of a rally and things get pretty interesting towards the end of each trading day--Could this be it? Should I be a part of this demand? Is this the time for me to jump in and test the waters?!?!?

I don't think so, my friend. The waters are full of hungry sharks and the scent of fresh blood may already have them circling in a frenzy!

"Chill out!" He tells me. For a newby like myself, picking this time of all times to dive in--even with arm floaties--could be the be most erroneous decision for me to make.

So he recommended that I pick up a Barron's and keep reading through this "crisis." I'm still acquainting myself with market jargon--subprimes, dividends, margin calls, ankle biters, traction---it is all very exciting! I figure the more knowledge I accumulate the more chances I have of being successful as an investor. KNOWLEDGE IS POWER!

Dan also says that there should be a couple of weeks of rallying. He explains in more detail how this works on his blog . . . more or less, he does it by not allowing his decisions to be led my his emotions about what is going on in the market on a minute-by-minute, hour-to-hour or even a day by day basis. This way you cant' be fooled by "daily movement," and you can focus more on more meaningful developments.

I've heard many people compare him to a surgeon, operating with precision and remarkably skillful with his tools . . . the market-his table, the patient-his portfolio, buying and selling, only at the right times.

What do you think holds us back? What keeps us from making the right decisions when it comes to investing and managing our own money, stocks and bonds? Do we act out of fear of failure; is it our lack of courage that keeps us from holding on longer tahn we feel comfortable doing?

Courage is about doing things that are scary even if you are scared . . . heed my MoneyMan's words: Have confidence in yourself!

Tune in to BizRadio 1110AM to hear the sound of your money growing.

Don't Panic!!!

2008-01-22T13:12:00.000-06:00

so let's start with what's going on today----the market opened 500 POINTS DOWN! it's been trying to recover all day, the FED cut interest rates 3/4 of a point to avert a recession which is good news for home buyers! Dan's message??

Hold on. Don't panic! Look at this as a great buying opportunity. Dan says that there are a couple of things you should keep in mind:

the market will bottom out over the next two months

when tv commentators begin talking about the Fed's cuts not working, that's the signal that we're reaching the bottom

three months from now, it WILL get better-just don't add to the panic!

Here's what I really got excited about--as a parent, you should always welcome sage advice and a lil drop of wisdom goes a long way.

Dan shared his views and a new perspective on teaching our kids to avoid debt and understanding the true value of money . . .

if you have kids, listen up!

First of all, why teach them to avoid debt? it is nearly impossible to accumulate wealth without debt--the catch is what kind of debt are you creating for yourself?

Smart debt vs dumb debt--if you gotta have it, you really should make sure its of the good variety. When talking to our kids about money, we need to model and show them actual numbers and real world consequences. Don't create debt to better your lifestyle--of course we all want the 745 in the garage and going out to eat 4 times a week--but when your income does not support that lifestyle, don't create debt for yourself in order to make this happen.

Smart debt is money you borrow to make more income for yourself. Taking loans in order to invest in property or an idea that will ultimately create more income for you in the future is debt that is used properly. These "investments" will surely make your life better down the road.

A conversation with my son, Jonah erupted from this next segment. If you know anything about 13 yr olds--then you'll understand how rare and joyous these precious moments of conversation can be. . . Dan suggests that we do away with the traditional "allowance." Can you imagine how my kid reacted to that one!?!?! :)

this is how my MoneyMan does it:

rewarding the completion of around the house chores (such as making your bed, taking the trash out, or vacuuming)with a few dollars teaches his kiddos that doing maual labor really doesn't pay. Instead, he rewards their accomplishments by degree of inspiration. He creates a price list or menu of sorts for his kids to choose from, this leaves the responsibility of choosing how much they want to earn and how much effort they are willing to put forth in their court.

When one of his kids writes a great paper about Ronald Reagan or figures out the frequency that dolphins communicate at and charts it in a science project, he pays them more for their mental efforts . . . $20-$40 a project

Now, when they compose a beautiful song or produce a video of it using their imac, he REALLY rewards that accomplishment. . . $100-$200 a composition.

Dan's belief is simple, when you exercise the most important muscle in your body--your brain--you are far better off and very well compensated for your efforts.

Listen for yourself:
The MoneyMan report

Harry Potter or Hairy Spotter?

2007-12-27T08:04:00.000-06:00

I couldn’t resist—it’s a corny play on words--but right on the money!

Is my Moneyman a stock market wizard or a mathematical genius with the uncanny ability to spot hairy situations in the market?

Here is my MoneyMan-ism of the week: The key is in Buying Fear and Selling Happiness

The trouble is not many of us can judge clearly when there is enough fear and when there is enough happiness in the air. I like formulas. I’m not a nerd—well maybe I possess geek-like qualities . . . but in all fairness, I think I’m pretty average. I kinda like formulas . . . velocity is equal to distance over time . . what goes up must come down, for every action there is an equal and opposite reaction. Picking good and making timely choices—it’s not just a gift he possesses. . . . by golly, there is a method behind his madness!

Last Tuesday, Dan invested 35 million into some puny tech stocks – only to turn around 2 days later and sell for a 7-8% profit. . . .roughly making 2.8 million and some change.

Two questions? How did you know to do this? And how come I didn’t get the memo???
;)

Dan says to keep in mind that “an oversold market can continue to go down and an overbought market can continue to go up-the real power is generated when it swings in a rhythm.” The “rhythm” that Dan speaks of is a distinct vibration--sensitive to a multitude of external factors.

Dan relates this rhythm of the market to that of a small child on a swing. Paying attention to the movement of his swing as it reaches its apex. In this particular case, he paid attention to the 10-day moving average—it is a simple matter of advancers vs decliners . . . . subtract decliners from the advancers, then take the 10-day moving average. . .positive numbers makes the numbers move up, a neutral market will make numbers come back down . . . the market moves at a rhythm with a tendency towards changing directions at any moment. What you need to learn is how to recognize the clues that tell you exactly at what point in that curve does the number start changing directions.

So who is more powerful? A Harry Potter, with a few magic tricks and spells, a slight of hand to create illusions to please your eyes—pulling quarters from behind your ear? Or the one who learns to see the world as it is, understanding the rhythm, spotting the hairy situations of fear and happiness—creating realities and putting quarters in your pocket?

Listen for yourself: the moneyman report

I'm gonna be at the BizRadio Money Fair on Jan 9th!!!!!! Come listen to some of the greatest financial thinkers of our generation!!!!

Christmas is coming, the goose is getting fat . . .

2007-12-21T06:15:00.000-06:00

please put a penny in the old man's hat!

these days, a penny will not do--how bout a twenty ;) the holidays are upon us--two blinks and there's hardly twelve days left to sing about. So forgeddabout the dancing ladies and the lords-a-leapin . . . BRING ON GUITAR HERO III, MAN!!!

what a great time of the year for our economy!

everyone's spending, more and more people are saving time by shopping online--why not? no headaches, no mile-long lines, no crying babies or salespeople who always would rather be somewhere else than behind that register, providing you and me with quality customer service. . . YEAH RIGHT!

happy holidays to you and yours! I'll be writing again very soon!

Lesson Learned

2007-12-03T05:58:00.000-06:00

So the Big DoorBuster Plan was a bust indeed! Chalk it up to being a “newby Black Friday shopper!” Driving by the BestBuy at midnight—there was already a line meandering around the corner of the building. Disbelief . . . that’s all I could feel and DOHHH! Maybe next year I will pack a turkey sandwich and park it outside in my soccer chair and forgo the thanksgiving festivities for an early place in line. Count me in as one of thousands of Americans who will overpay for an IBook that my son really needs!
____________________________________________

How did we get to be such patsies?

I heard an enlightening story on my Money Man’s show the other day. Dan was analyzing the reasons people are acting or reacting the way they are to the market’s current situation. The tale crossed between Freud and Skinner (anytime mom is involved you can betcha Freud thought it up—but the story had a definite behaviorist POV). Dan tells it way better than I do but here’s a recap . . . he says that inside all of us there is a little kid, a kid who is playing nicely as he was taught to play. He is good, responsible and obedient. He runs out into the street, very innocently after a ball and gets pulled back forcefully by the arm, spanked and scolded by his mother. So hard is her grasp that all he knows is the feeling of pain in his arm and the words--the harsh words are like daggers from the woman he cherishes and respects the most in this world.

Mom had acted out of love and care when she saw the oncoming car approaching you—she didn’t stop to think, she acts in your best interest and all you can associate with this experience is pain, shame and fear.

So we take that instance with us and store it away in our sub conscience. We are grown-ups now. We are responsible for our family and the financial well-being and futures of our children. We invest and save, we follow the market and it’s pendulum of ups and downs. We are good, responsible and obedient . . . we listen to what the market tells us to do with our money. Just when we are playing nicely—we are abruptly pulled back, jolted by a force that came out of nowhere to twist our arms and egos and punch us in the gut of our wallets and portfolios! Ouch!!!

You’re hurt. You did what you were supposed to yet you are in pain. So now you act out. You make decisions like a hurt, scolded child rather than a clear-headed, rational adult. Making emotional, desperate decisions—selling out when everything’s already gone down or being aggressive and buying more and more and getting burned like the guy who lost 6 billion dollars on a disastrous natural gas buy.

Dan’s message: Take control of your own mind.

Listen for yourself,
The Money Man Podcast: Short Term Trader's Perspective

2007-11-22T12:05:00.000-06:00

Happy Thanksgiving!

As we come together with family and friends, we should keep in mind why holidays like these exist. . . a time to eat with no guilt, enjoy a football game, share laughter and smiles with loved ones, be thankful for all we have, and last, but not least, SHOP!

It is amazing that BestBuy would list on their website the steps to ensure DOORBUSTER purchases--which can only be bought with the possession of a little ticket. . . a ticket you can only get starting at 3AM on Friday morning. . . where you have to make sure you are in line hours before hand. You better believe it---there is a line at 2AM! It is my endeavor this year to secure a laptop at an outrageously reduced price for my son (as a christmas present).

No money talk today. When you're shopping on Black Friday, feel good that you are pumping more life into our economy! Buy smart and be safe.

The Shape of the Market

2007-11-21T09:11:00.000-06:00

what happens when "the wave" starts at a ball game?

at the beginning, everyone's really into it...you watch it going around, anticipating the right time to stand up, throw your hands in the air with reckless abandonment, and come back down in a gradual motion as to ensure the perpetuality does not lose its novelty before it comes around to you again. Yes, it gives you a sense of accomplishment, instant success--exhilaration for the moment . . . to be an integral part of a moving organism, THE WAVE. Big fun at ball games, but not so much in the game of investing.

the moneyman warns us of becoming a part of the herd. (that was completely an unintentional plug for his book--Escape from the Herd 2006)

To be a good investor means to recognize the pattern of how things work in the market--to understand where it is, where it's been, and where it's going. . . .seems too easy to be true.

Dan says that viewing the market as a series of waves on a daily basis, going up and down is a tragic mistake that many people make. Stock charts, money market watches bombarding our visual senses with an array of colors---seems like in every business section of any given newspaper or business journal , you can inevitably find a chart of some sort, predicting this or reporting the history of that---but they all look the same. . . Hills and valleys.

Pretty picture, huh?

That is exactly what people like to see . . . a pretty picture, one that shows them that if they are down, an eventual high is to be expected soon, very very soon . . . can we stay afloat in an ocean of waves forever? Do we not fear that shoreline in the distant?

My eyes have just been opened a little wider by my dear MoneyMan.

While these charts are pretty to look at and may very well be informational and helpful in one way or another, they don't show you the big picture, or even close to the whole picture—but isn't that what we want to see? Haven't we always been told that a smart man takes a step back to see things from a different perspective?

Dan says a smarter man takes a few steps back and looks at the whole picture from the left side, right side, underneath and 100 miles away--even 10,000 miles away.

Money makes the world go round, right? According to Dan, that is precisely the "whole picture." He sees the state of the market as being cyclical rather than a series of waves. Don't ride those waves with it's ups and downs . . . be proactive, analyze and predict. If the market is cyclical, then at any point on that circle, there is a complete 180 from that point--look directly across, not two steps in front of you.

Tune into BizRadio 1320AM Houston & 1360AM D/FW to hear more of what my MoneyMan thinks. . . in the meantime, enjoy your 7th inning stretch and pay attention to the shape the wave actually takes ;)

The MoneyMan Report . . . 4-6pm . . .BizRadio Network

2007-11-10T21:45:00.000-06:00

THE DOW IS AT AN ALL-TIME HIGH!?!?!? Holy smokes, that must mean my bucks rockin it! Not according to the MoneyMan Report . . .

Dan says it's easy to be fooled into thinking we have so much when we really don't--bummer right? Not really . . . better that we know what the truth is and how to fix it than live with our heads in the clouds . . . so this is good news for someone like me. I want to invest! I want to save! I want to understand what stocks I need to buy and what my dollar's worth.

Dan the MoneyMan says, “It doesn’t matter how many dollars or points it’s at, it’s how much stuff can you buy with it! In terms of gold or copper or steel, the DOW is falling miserably. Even in terms of medical care and college tuition, it’s been going down steadily over the past few years. "

So what works?

"Owning things that hold their value over time--owning companies, real assets, things that aren't just paper. Why are gold mining shares not up as much as gold and oil shares not up like oil?" Of course this doesn't mean that he is suggesting you get rid of all of the paper!

We like the real stuff! "Private equities," he says.

*note to self* what exactly is private equity-and is there a difference between private and public when it comes to equity?

~Private Equity is the ownership stake that results from investment in a private (not publicly traded) company. Investors in Private Equity generally are Individuals called Angel Investors, Business Development Companies, and Venture Capital Funds.~

Dan says," in this decade and going forward, the world values the real stuff more than it will value paper."

Paper is worth less-real companies are worth more, real assets are worth more! I can dig it. Makes sense to me how actually holding something in your hand means more than having a fortune cookie fortune on your plate---but i do fancy those lottery numbers on the back ;)

Did you know this? How could we have been so fooled by the ominous Mr. Jones? Do you find yourself sleeping better at night when you read in the WSJ how well the DJIA is doing? Think again, my friend.

So Dan asks, “why do we think the DOW looks so good to us?” Here is where I found myself on the edge of my seat . . .

Nuh-uh, not so fast . . . I’m not telling.
You’re going to have to find out for yourself: TheMoneyManPodCast

You should really tune in to 1320 AM in Houston and 1360 AM in Dallas/Fort Worth
between 4-6 PM week nights for

The MoneyMan Report with Dan Frishberg.

Ears perked, listen closely and you may hear
the sound of your money growing.