Investments
Investments

Breaking Down "Sell in May & Go Away"

Sell in May and go away is a well-known trading adage that warns investors to sell their stock holdings in May to avoid a seasonal decline in equity markets. The "sell in May and go away" strategy is that an investor who sells his or her stock holdings in May and gets back into the equity market in November - thereby avoiding the typically volatile May-October period - would be much better off than an investor who stays in equities throughout the year.

Investments

Investing in Biotech

Biotech stocks have been on a tear in 2013. Initial public offerings or IPOs, totaled $1.7 billion in the first half of the year, greater than in 2011 and 2012 combined.  The Nasdaq Biotech Index, a measure of industry performance, is up over 42% year to date.  According to Deutsche Bank, consensus for annual earnings growth in the biotech industry over the next 3 years is estimated at 21 percent, compared with 9 percent for the S&P 500. In 2012, the FDA approved 39 drug therapies, more than in any year since 1996.
Investments

Tax-Free Bonds in Focus

Interest rates have moved up, and with higher taxes a reality for many investors in 2014 and beyond, investments that are tax-free have particular appeal.  Despite some recent high profile defaults, and problems in troubled municipalities like Detroit, Municipal bonds have an exemplary track record of safety, and bonds issued within the state of South Carolina offer returns that are free from both federal and state taxes. Let’s look at some basic background on these investments, as well as a few tips on getting started.
Investments

Dividends...Why Not?

Warren Buffet’s letter accompanying Berkshire Hathaway’s annual report has long been required reading for investors,(including The Bedminster Group) seeking a glimpse into the strategy and thinking of the bard of Omaha. Besides an in-depth discussion of financial results, this year’s missive touches on the planned activities at the annual meeting, including a 5k run, a 194,000 square foot hall featuring products from many of Berkshire’s holdings (Buffet himself promised a shift behind the sales counter at Borsheim’s Jewelers,) and interestingly enough, dividends.
Investments

Bear Baiting

In 1919 Oliver Wendell Holmes, Jr., the noted Supreme Court Justice, wrote in a seminal  case regarding the freedom of expression under the Constitution , “The most stringent protection of free speech would not protect a man falsely shouting fire in a theater and causing a panic.”  While Holmes reconsidered his opinion in later years, with these words he articulated a canon of public morals; that there is nothing protected and no inherent right to speak falsely or maliciously, causing a public panic or disarray.

What are we then to make of the various pundits, talking heads, money personalities and purveyors of financial  pornography on TV, the internet and in print?

Investments

Financial Patriotism

Lots of investors have accumulated a stack of savings bonds in their safety deposit box over the years; often, they aren’t quite sure what to do with them.  This may be the right time sit down and review your holdings. First, these bonds don’t continue to pay interest indefinitely. Second, it may also be appropriate to reconsider savings bonds as a viable investment alternative. The fixed rate on EE bonds has just been increased as of May 2011, and these bonds offer a number of other attractive features as well.
Investments

Against The Grain - Contrarian Investing

Most investment analysis involves some degree of fundamental research, the study of individual companies, sectors or markets, and the economic forces driving them higher or lower. Other strategies involve market timing, trying to discern where the markets are going and acting accordingly, or technical analysis, studying price and volume changes in order to make near and longer term judgments on individual company stocks or the broader markets.