Wednesday
Apr232014

FinalPitch at With Sarah Lawrence College

I was recently a judge the Sarah Lawrence College Final Pitch Entrepreneur Contest.  The three finalists included a media technology startup idea, a non-profit service organization, and an artist showcase application.

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Friday
Apr182014

Why Is Good Friday A Stock Market Holiday

U.S. stock exchanges have had a strange relationship with Good Friday. After being closed on Good Friday off and on, 1907 was the final year in which the exchange was open on Good Friday. However, Good Friday is not a national holiday. The Fed wire and thus, the bond markets are open. While most European countries close for several days around Easter, the United States has no such holiday.

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Monday
Sep102012

FINRA Test Confusing to Investors

Visit the FINRA Investor Education Foundation Website


There is list little quiz at the Finra website on investor education.  It has one confusing question.

Which type of bond is the safest?

A. U.S. Treasury bond

B. Municipal bond
C. user response Corporate bond

 D. Don't know/Not sure

 

FINRA's Answer
"Treasuries" are issued by the federal government. Unlike corporate or municipal bonds, they are backed by the "full faith and credit" of the U.S. government, which guarantees that interest payments will always be made and the bonds redeemed at maturity. To learn more about what makes Treasury bonds unique, read Investment Choices.


The regulator charged with protecting individual investors (among other things) thinks that the U.S. government is the least risky place to stash your money.   Standard and Poors seems to disagree with FINRA. They rate the bonds of Exxon and Microsoft all AAA, while the rate the U.S. treasury one-notch lower at AA+.   To be fair to FINRA for most of the history of financial academia governemnt bonds were always considered the risk free asset.  It's just ironic now that that the ratings agencies are worried a bit more about Uncle Sam than Big Brother (IBM). 

Wednesday
Mar212012

Goldman Misses The Point: Equities Aren't Cheap Bonds Are Insanely Expensive

Goldman portfolio strategists Peter Oppenheimer and Matthieu Walterspiler are out with a report getting big of attention.  The report presents the generationally important bullish case for stocks relative to bonds. 

I'm worried this report will be the case for everyone to go 100% into equities and then get clobbered when the bond bubble bursts.  I agree that equities are stupidly undervalued relative to government bonds but it's only because EVERYTHING is at an historic low valuation relative to government bonds.

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Monday
Mar122012

Kapitall in Barrons

When students ask me what books to read to learn about investing, I tell them to start reading Barron’s.  I started reading Barron’s in college.  Yes, I was a serious finance nerd then too.  It is my favorite and most educational financial publication.   I am old enough to remember the first Barron's online brokerage survey 17 years ago.  I never dreamed that when I saw the first list I would be part of a team that would create a broker from scratch that would be included ON the list.  For me, this is a thrilling moment and the biggest milestone at Kapitall so far.

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Thursday
Jan122012

Four Easy Ways to Save Money On Your Monthly Bills

I was on with Live at Five News Anchor Marni Hughs today talking about saving money on your bills without changing your lifestyle or spending habits.

 

Four Money Saving Ideas for 2012:

1. Getting rid of their home phone

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Tuesday
Nov152011

Made My Annual Donation to Wikipedia Today

Support Wikipedia
Thursday
Nov032011

Lighting Round on Seattle Fox News Q13

Bill and Lilly didn't let me take a breath today.   In five minutes we discuss: Greek debt default and politics, European bank contagion, Occupy Wall Street and the Tea Party, saving money on your cable bill, my U.S. economic forecast and Bank of America's debit card fees fiasco.

 See today's Finances with Neubert.

 

 

 

 

 

Tuesday
Sep132011

Stocks for the Bernanke Money Printing Machine

You’ve been asking about the US debt downgrade by S&P.

First, remember that rating agencies are private companies with private opinions. They may be more informed than the big mouth down the block but what they issue are opinions not facts.

S&P is the same company that rated all the sub-prime debt packages AAA. Those who listened to them lost billions when losses and defaults came in those packaged AAA (risk free) loans.

Smart people who ignored the rating agency opinions and didn't invest in "AAA" mortgages did quite well during the meltdown. Many even made money.

I'm not listening to them now and neither are investors like Warren Buffet. I'm not listening to them now and neither are investors like Warren Buffet.

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Monday
Aug152011

Companies Hoarding Cash

Where will all the cash hoards on U.S. corporate balance sheets turn up?  Too often companies with large cash holdings blow it on wasteful acquisitions rather than return it to shareholders.  However, there is so much cash on U.S. corporate balance sheets that it will end up in investors pockets somehow.  Companies will either give it directly to thier own shareholders via dividends and buybacks or they will spread it around the market as a whole (donating it to other shareholders) through acquisitions.

It's appropriate that nasdaq.com found my comments on the matter at Kapitall.  After all, the companies with the famously largest cash positions (Microsoft, Apple, Cisco) are also the largest companies listed on the NASDAQ Exchange.

 

Disclosure:  I own Apple and Microsoft.  I am short in-the-money puts on Cisco.