Tuesday Financial Reading

With no major economic indicators due for release until Wednesday, there’s a chance to do some more general reading. Here are a few of the gems from the Carnival of the Capitalists and Carnival of Personal Finance.

Firefinance tackles one of the hot topics lately – investing in precious metals – in “Investing – Digging for Gold – Online”.

In order to diversify a portfolio many experts suggest adding few sector funds or ETFs. Why? Such diversification helps hedge a portfolio during a bear market. Sector funds having higher negative co-relation to stocks help dampen the losses when the stock market takes a nose dive as during the tech bubble burst. Quite often one of the sectors suggested is precious metals.

In other words, when the stock market takes a hit, gold usually does well, so you need a little gold for balance. That’s the theory. There are all kinds of wild claims out right now that gold is destined to double or triple in value…Maybe. But a healthy dose of skepticism is in order with gold already way, way up and stock performance much less spectacular for several years. The rule as I recall is buy low, sell high…

Canadian Financial Stuff shares thoughts on mortgage payments to family and singing horses. An amusing post whose meaning I’m still pondering. The Jester’s theory reminds me of the rule I was told with regard to taxes, “Delay, delay, delay.”

Escape from Cubicle Nation reminds us that saving money isn’t the only important thing in life – sometimes a cup of joe gives you the sanity to make the dollar in the first place:

So could I save a thousand bucks a year if I would leave my coffee habit behind? Most definitely. But you can bet I won’t give it up.

Financial advisers, hold me to the wall and make me clip coupons, lower my credit card interest rates and stop all impulse shopping. But please don’t take away my latte.

Personal Finance Advice advises that if your goal is a $1 million portfolio you won’t be getting the top service you might expect from the bigger brokerages.

It would seem to me that a Wall Street company that would cater to these “leftovers” could do pretty well considering that they represent 10% of total households in the US, even if it were a scaled down version of the eight figure customers.

In the meanwhile, your doing your own research and by the time that happens, you may be perfectly happy with the discount broker.

The Big Picture has a roundup of trading contests and there are a lot of them.

personal finance,investing

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