1. Trader Feed explains why it’s so easy to lose money in the market. He also looks at what can contribute to profitability. If nothing works, you can take some consolation in knowing that trading can teach you a thing or two about life.
2. Bill Miller is quite a legend in the world of funds management. He is the manager of the Legg Mason Value Trust, the only mutual fund to beat the Standard & Poor's 500 index for each of the last 15 years. The fund is probably related to Legg Mason Inc, which has acquired 12 million Green Packet shares at RM2.625 per share in July 4 this year.
Anyway, the fund managed by Miller was in the news recently for the wrong reason. It was off 5.67% in the second quarter; it has lost nearly 9% this year, making it pretty much the worst large-cap stock fund out there in 2006. Miller admitted that the fund’s under-performance might be due to it being over-weight on big-name Internet stocks and under-weight on the high-flying energy sector. But Barron has offered an alternative theory why Miller is flagging: This summer he bought a humongous yacht.
3. How to earn Warren Buffet-like returns? Invest like Warren Buffet.
4. One theory why the market is inefficient?
5. Big Picture’s Barry Ritholtz thinks 2007 may be the year of the big cap. How did he come to this conclusion? Well, Barry has been tracking the ratio of Big Caps (S&P100) to Small Caps (S&P600) for sometimes. "When that ratio is trending lower, the small caps are outperforming the big caps. When its trending higher, the big caps are doing well... It's apparent that, after 3 years, the downtrend ("Channel") of this relationship has been in has been broken, as has the 50 week moving average." See the chart below.
6. Roubini talks about the similarities between 2006 & 1987.
7. Some really scary forecasts from some big-time Wall Street analysts.
8. Mark Leibovit, who was ranked the top intermediate—term market timer for the 10- year period through year-end 2002 by Timer Digest, thinks otherwise.
9. From Humblemoney, we have 11 Trading lessons:
(1) invest in your business
(2) question orthodox thinking
(3) be patient
(4) be flexible
(5) be consistent
(6) network
(7) trade small
(8) have the courage to win
(9) analyze your results
(10) maintain perspective
(11) walk your own path
Read all about them here.
10. 8 principles of strategic wealth management from GARP, the Global Association for Risk Professionals.
(1) Take charge and do it early.
(2) Align family and business interests around wealth-building goals and strategies.
(3) Create a culture of accountability.
(4) Capitalize on your family's combined resources.
(5) Delegate, empower, and respect independence.
(6) Diversify but focus.
(7) Err on the side of simplicity where possible.
(8) Develop future family leaders with strong wealth management skills.
Read all about them here
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