May
02
2012

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I Dislike Rising Stock Markets

Every week, my wife and I stuff our grocery cart full of food from the local supermarket. 

And obviously, it bothers us when the bill creeps upwards with the rising cost of food.

My dislike for arising stock market, however, is far stronger than my aversion for higher food costs.  After all, a soaring market is a heck of a lot more expensive.

As a 41 year old, I’m still relatively young.  

I’ll be buying stock market assets for many years. 

When prices are low, my  indexes have higher dividend yields, giving me higher dividend proceeds per transaction, which can be reinvested into more shares, which throw off more dividends, which allow me to buy more shares.

Read the rest of this entry »

Permanent link to this article: http://andrewhallam.com/2012/05/i-dislike-rising-stock-markets/

May
01
2012

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Mysteries and Lessons from Millionaire Central

Per capita, Singapore has more millionaires than anywhere in the world.

 

Do you wonder why?

 

Permanent link to this article: http://andrewhallam.com/2012/05/mysteries-and-lessons-from-millionaire-central/

Apr
28
2012

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Investing Mistakes: Fear and Greed

Here’s a Millionaire Teacher radio interview that aired on BFM 89.9 Malaysian radio recently.

 

I’m talking about the foolishness of chasing high investment returns, while telling a story of something silly (downright stupid, actually) that I once did with my money – click play to listen:

 

 

 

Alternatively, to listen or download the podcast go to the web site:

BFM.my

Permanent link to this article: http://andrewhallam.com/2012/04/investing-mistakes-fear-and-greed/

Apr
25
2012

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Some Bizarre Results From Loser Stocks

Two years ago (April 14, 2010) I asked my blog readers to put their heads together to pick the worst stocks they could think of.

I wanted absolute bottom dwellers, stinkers, sulphur reeking pariahs that were destined for bankruptcy or a painful demise.

And my readers responded.

One person’s junk is another person’s treasure, but there’s no denying the public sentiment of most of these stocks.

In total, readers selected 23 of them.

From that date in 2010, the S&P 500 gained 11.3%.

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Permanent link to this article: http://andrewhallam.com/2012/04/some-bizarre-results-from-loser-stocks/

Apr
24
2012

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Index funds offer a simple plan for retirement riches

Everybody knows the mantra Buy Low, Sell High.

But when stocks are on sale, most investors shun them. They freak out, sell stocks and stuff money into mattresses, tin cups…and bonds. Then, when stocks increase in price, investors stampede into the same stock products they previously shunned…

 

Read My Full Article on Canadian Business

 

Permanent link to this article: http://andrewhallam.com/2012/04/index-funds-offer-a-simple-plan-for-retirement-riches/

Apr
20
2012

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Millionaire Teacher’s Money Moves

The world’s stock market index and the S&P 500 have gained roughly 5% during the past three months, to April 18, 2012.

Depending on your age, and your response to the gain, I can tell whether or not you’re an astute investor:

If you’re employed, below the age of 50, and you’re happy to see the markets rise, then you probably don’t understand how investing works.  And that’s a shame.  Investors are collectors.  And while you’re collecting assets, you shouldn’t celebrate when those assets rise in price while you’re stockpiling them.

If you’re like most people who celebrate rising prices, you’ll buy when you’re happy and shift your money when you’re sadly disappointed.  Writing for Barron’s, Martin Conrad wrote in The Money Paradox that the average investor made just 1.9% per year from 1988-2008, while the average actively managed mutual fund made 8.4% annually.  If you’ve read my book, Millionaire Teacher, you’ll know that an indexed strategy is far better than investing in actively managed mutual funds, but that isn’t the point of my argument here. 

An investor’s behaviour is far more crucial than decisions based on what funds or stocks they buy.

While the world’s stock markets were sinking in 2011, I bought nothing but stock indexes with my monthly savings.  I even sold $50,000 of bonds to add to my stock component, on October 20th.

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Permanent link to this article: http://andrewhallam.com/2012/04/millionaire-teachers-money-moves/

Apr
18
2012

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Could a Zurich International Rep Do Jail Time For Selling A Variable Annuity?

Anything’s possible. 

A variable annuity salesperson was just given a 90 day jail term for selling….a variable annuity. 

These are the same products that Zurich International reps sell to just about everybody they can collar in Singapore.

I just wrote a fun article about variable annuities here: 

Read My Article Here

Permanent link to this article: http://andrewhallam.com/2012/04/could-a-zurich-international-rep-do-jail-time-for-selling-a-variable-annuity/

Apr
10
2012

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Warren Buffett’s Latest Investment Tip

Warren Buffett is often asked why his holding company, Berkshire Hathaway, doesn’t invest in real estate.

His response: Why buy real estate when the stock market is so easy?

The multi-billionaire, who many regard as the greatest investor of the 20th century, has given investors plenty of timely guidance over the past 50 years.

Today, he’s changing his tune about real estate.

He may or may not be buying it for Berkshire Hathaway, but recently, on CNBC, he suggested that it’s currently a tantalizing investment opportunity— for the handy.

Exactly how good has Buffett’s advice been, in the past, when making recommendations to the public?

You be the Judge.

Read My Full Article at AssetBuilder.com

 

Permanent link to this article: http://andrewhallam.com/2012/04/warren-buffetts-latest-investment-tip/

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