Calling all financial consultants on DU:

[The Backlash Cometh]

Since Bush is pushing for private accounts and since we don't trust anyone on Wall Street, I figured I would pave the way for the future by getting my financial advice on a pseudo blog that has proved to be more accurate than our MSM.

Taking into account all our "inside" information on how this country will be going to hell in a hand basket while Bush plays out his chaos theory economics*, what banks and what investments would you recommend for someone who gets a modest amount of found money?

I'm assuming a bank that specializes in Euro dollar investments, and to stay away from Repub banks. But, to the uninitiated, can you help identify which banks are better than others? And which investment vehicles do you recommend? i.e. CDs versus stocks, etc.

*Chaos economics: keep the public in chaos, while money gets diverted to private cronies.

[SpiralHawk]

1. Chaos Theory Econmics (CTE)

Love it. At last a vivid descriptor of reality.

VooDoo Economics = CTE

[The Backlash Cometh]

5. Free market theft.

I can't understand why the moderate man keeps getting seduced by concepts which they are in no way politically connected enough to cash in on. It just floors me.

[FormerDittoHead]

14. If you can't understand, here's how it works...

Know thy enemy.

The concept is based upon the fact that *everyone* would like to pay fewer taxes, and most people can't perceive the benefits that government gives them.

Here in NJ, for example, there's a drive to lower property taxes. ***NOBODY*** asks, "WHERE will they raise the money lost in property taxes"?

While USA citizens pay LOWER tax rates than most other industrialized countries (outside of the oft-cited example of Taiwan) there is NOBODY who wants to pay MORE taxes. It's simple economic behavior.

Many, many people in the majority race (white) suffer from the impression that the majority of their tax dollars get 1) burnt up in bureaucracy and then 2) given to people who want to support an immoral lifestyle (unwilling to work, crack whores popping out babies to get more money, aids research, state funded late term abortions, etc).

They are given the impression that taxes are UNFAIR (ie: you don't directly see waving in front of your face every morning what you've paid for). You hear the word "billions" and they figure, hell, I could work all mah life and never make the kind of money they're givin' away to 'dem 'dere crack whores!

So you're told the SOLUTION is FAIRNESS. Keep what's YOURS. FAIR IS FAIR. Flat is fair. (Rinse and repeat 24x7) Hell, with a national sales tax, 'dem crack whores will have to pay taxes like *I* do!

DESPERATE for a $300 check, they're willing to ignore what TRILLIONS in debt will mean to the future (one wag I got rangled into a conversation said, the debt will be paid off with devalued dollars(!) not stopping to think what the implications of devalued dollars will mean to oil prices, wages, etc.) If you remain employed, no matter how much your health insurance goes up out of proportion to your salary, you think you have more in common with Bill Gates than with those collecting food stamps.

THE PROBLEM of course, is that if you look at average NET WORTH, Mr. Sixpack has more in common with "'dem crack whores" than the ones he admiringly gives tax breaks to!

Any suggestion of "class warfare" (an EXCELLENT frame created by the right) evokes accusations of COMMUNISM, and as we know, communism doesn't work!

Of course, there is nothing inbetween.

[The Backlash Cometh]

21. Very nice.

I would only add this: The only reason why Bush is in trouble with Social Security is because the Republican constituents want Social Security. Therefore, the Republicans have shown that they are willing to accept a little socialism in this country. Why are the Dems not pointing this out to the right-wing neanderthals?

[newportdadde]

2. My take.

If your looking to invest in foreign currency, like a foreign CD or savings account I've heard good thinks about everbank.com. I haven't used it myself, my wife didn't like the idea of doing euro currency etc. She had some good arguments why so I went with two CDs at different terms recently at Corus Bank online, the 6 month was at 3.2, the 12 month was at 3.5.

If your looking to do some banking and avoid Republicans then good luck to you its one of their spawning grounds :evilgrin:.

If your looking at an inflation hedge you could try physical gold or some gold stocks. NEM is a large gold stock I was in for awhile. I'm not entirely sold on gold or gold stocks because I believe a stock crash would drag gold stocks with it, although they would recover faster.

For stocks I would recommend oil stocks like XOM or an oil ETF. My ETF which holds oil stocks is up 30% since July. Figured Bush would fuck up our oil situation so that why I got in it. One thing of note here is that these stocks have been red hot lately so they are probably overbought currently.

For other stocks well I would have told you to stay out for the past 2 years and you would have missed some good returns just like I did. I made just 5% on my 401k plan through my employer last year while my idiot friends who don't even follow the market fumbled their way into 13% + returns. Its truly amazing how long this market is holding on given the signs.

[The Backlash Cometh]

4. Thanks!

Lots of stuff to chew on here. Interesting about being forced to go to the net to avoid Repub banks.

[BlueEyedSon]

7. Which oil ETF are you in? thx nt

[newportdadde]

9. I'm in

IXC, but have been watching XLE as well.

[SpaceCatMeetsMars]

3. I'd appreciate hearing any general advice too

I've been thinking about looking for a fee-based adviser for at least a one-time consultation, if there are any that talk to middle-class people. But at this point, I'm so confused, I don't even know what questions to ask the person.

Up to now, I've followed the Motley Fool/Peter Lynch type of advice for saving for retirement. But for the past few years, I feel like a naive patsy sitting around waiting to get handed the bag by the con artists, if that hasn't happened already.

[The Backlash Cometh]

6. This financial insecurity, knowing that we're patsies for the real

large accounts in a bank, is the reason that people who make very little money just stop trying. If middle America doesn't have the security to see their investments grow, then what chance do the poor have?

[SpaceCatMeetsMars]

12. I know

We can't trust our government or the banks or the corporations and companies. First we were fed a lot of hype for ten or twenty years and then all the widespread sleazy dealings became too apparent. I don't know anywhere to trust.

I feel lucky, at least, not to be in debt. People who have few resources are really sitting ducks for all the games. I feel like I'm getting reamed with the health insurance thing, but I feel incredibly lucky to be able to have it at all at the moment. Something has got to give with that situation, as well as the widespread debt situation.

[nonews]

17. fee based..

find someone who can work on line for you--it will be cheaper; also, someone who is "Independent" and not associated with a major firm.

[SpaceCatMeetsMars]

20. Thanks, hadn't thought of that

I'll check that out.

[BlueEyedSon]

8. Anyone know anything about buying euro denominated bonds

or euro bond funds?

[nonews]

18. Foreign investments...Why?

you pay taxes on the interst anyways.

[BlueEyedSon]

23. Because you get the interest AND the currency appreciation on the

principal, whereas anything denominated in dollars is losing value.

[nonews]

24. buy high and sell low...

that makes a lot of sense. You pay extra taxes on foreign interest, too much paperwork, hassle, etc. How about a nice USA preferred stock paying better then 7%?

[BlueEyedSon]

27. Because by year end, the $50 shares will be WORTH $40.nt

[nonews]

28. interest rates

so what you're saying is that interest rates are going to 10% by year-end; that's the only way the value of a preferred stock would drop by 20% Like I said, can't let emotions get in the way of your financial decisions. Keep the money under your bed.

[BlueEyedSon]

29. (dollar value against a basket of foreign currencies) nt

[Robb]

10. "I'm putting my money in shotguns and canned food!"

;)

[SpaceCatMeetsMars]

13. I joke that I'm saving up

for a nice motorized shopping cart when I retire, instead of an ordinary push one to collect my cans.

[tanyev]

15. You jest,

but I am upping my supply of canned food. When we have to start loading our wheelbarrows full of our worthless cash to go grocery shopping, it will be much more efficient to barter with cans of peas and tuna.

[radwriter0555]

11. Advice: Stay away from Banks with Neil Bush & SILVERADO in the names...

just a tip...

Also, stay away from any bankers and companies who are just plain friends of bush, ala "Ken Lay".... (Enron and all)

Oh heck, stay away from investing with any GOP owned and operated scam operation.

[nonews]

16. Investments, etc.

I am in financial planning/invetments for 30 years. Some items to consider:
1-Don't let emotions get the best of you. If you stay away from an investment soley because it's "Rebug" owned, you eliminate future gains. Eg. some of you have mentioned oil ETF's; most of these lage oil companies have both Dems and Repubs in them. Remember the "Social Conscious" funds of a few years ago. They were very poor performers staying away from Tobacco,oil/mineral and companies that did business with S. Africa.

If you want me to continue, I will... let me know. But if you start flaming me...I'll take the hint.

[The Backlash Cometh]

22. Most of this is over my head,

as it would be for the average American. To keep it simple, I wish Paul Krugman would just write his recommendations in an article. I know he said to reduce debt and to avoid flexible interest rates; and I believe he said to invest in Euro dollars, but it would just be easier if he said, "Go here and buy this CD, or get into this money market." I'm not interested in anything that I have to babysit, nor anyone I have to babysit in order to secure high yields over a period of years.

[nonews]

25. Professional

That's why you need to call a professional who is resonable with fees.

[The Backlash Cometh]

30. But who can you trust? No one in this day and age.

I already have a financial consultant from one of the top investment firms. My husband did a better job on his own than the consultant. I don't like the fact that every time we deposit money into our bank, if it's a sizeable amount, he calls to see if he can help us invest it. No thanks. We're still waiting for his other recommendations to work out for us.

[nonews]

31. Financial Professional problems...

As being in the industry, one main problem that we face is trying to match an investment with the objectives of the client. That's why I rely on simple measures for my clientele. For example, asset allocation for a given portfolio. In my locale, my fees are $45/hr for on-line cases and $65/hr. for any 'hard-copy' cases. NO brag, just a fact, but I have an ability to 'simplify' each case for my clientele. AS for your consultant, probably one of my negatives, is the fact that I do not call my clientele enough. Hope this helps.

[radwriter0555]

33. I invest with a social conscience. I'd rather set aside some profits for

the sake of NOT supporting liars, murderers, criminals, thugs, thieves and New Americanazi Gestapo Republicans.

I'm just not that greedy.

[TreasonousBastard]

19. The problem with retail investing...

for the little guy is that not only do the fees eat us up, but we are always a little behind the curve set by the professionals.

And, the pros aren't always that smart themselves.

I have been completely out of the loop for a long time now, but a few things seem to always ring true:

Gold and precious metals are a decent hedge against other things going belly up. Money moves there when it is scared of paper.

Overall, stocks may show spectacular short-term gains but unless you spend a lot of time in the market, and find a way to trade with minimal fees, long term gains aren't all that hot considering the risk. Stories abound about those who got in on IBM or Xerox back in their early days, but it ain't that easy to foretell the future. And, look at where high fliers like Polaroid are now. AT&T anyone?

Moving the money out of the country is sometimes a good idea, but you get stuck with retail currency trades at a lousy rate and you get hit with fees. I remember years ago when Bank Leumi was giving a premium interest rate to get dollars into Israel and you could open an account at a local branch. Deposits had some backdoor insurance from the US government, too. Such deals aren't that easy to find, though. With the dollar low, you are betting that it won't rise and any gains get wiped out with a triple whammy of those fees, spreads, and the basic loss.

Wanna make big bucks-- find alternative investments like getting on some local trying to open a chain of coffee shops-- Starbucks does not have a lock on the business. Risky, but the payoff can be huge.

Wanna not lose money-- stay with interest-bearing stuff, and find the best yield/safety mix.

[DemocracyInaction]

26. If they enact this consumption tax...........

Whether they actually enact the 26-30% they want (and Frist said it will not be a replacement for income tax but a blend) or even settle for half that, I think it's a nobrainer that we are going to have massive business collapses in the US. People will streamline on needed things and eliminate those that are not essential. That means massive layoffs and an out of control downward spiral. Quite frankly I think the wise person would grab any investments they have and run before this hits. You can bet the rich aren't going to hang around to take a blood bath. There is no way this insane idea is going to stimulate business nor savings (just have to pay far more for necessities).

[elehhhhna]

32. Let your Senator manage your portfolio! Details here:

Financial Times February 24 2004

Senators' stocks often outperform market

By Deborah Brewster in New York

US senators' personal stock portfolios outperformed the market by an average of 12 per cent a year in the five years to 1998, according to a new study.

"The results clearly support the notion that members of the Senate trade with a substantial informational advantage over ordinary investors," says the author of the report, Professor Alan Ziobrowski of the Robinson College of Business at Georgia State University.

He admits to being "very surprised" by his findings, which were based on 6,000 financial disclosure filings and are due to be published in the Journal of Financial and Quantitative Analysis.

"The results suggest that senators knew when to buy their common stocks and when to sell."

First-time Senators did especially well, with their stocks outperforming by 20 per cent a year on average - a result that very few professional fund managers would be able to achieve.

"It could be argued that the junior senators most recently came out of private industry, so may have better connections. Seniority was definitely a factor in returns," says Prof Ziobrowski.

There was no difference in performance between Democrats and Republicans.


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