ZimZum

“Asset rebalancing” may be the strangest investment strategy ever created and unfortunately, this a strategy we are seeing more frequently in 401k plans, 403b annuities, as well as in section 457 deferred compensation plans that we advise on for our clients. Don’t use it!

“Asset rebalancing” means setting your portfolio parameters…say you plan to have 15% each of your portfolio in certain areas…healthcare, 15% in technology, 15% in consumer goods, 15% in financial stocks like banks and insurance companies. Or you could have 20% in large cap stocks, 20% in small cap stocks, 20% international…you get the picture.

Now, according to the asset re-balancing program, every quarter, you re-examine these parameters. If, for example, the technology portion of your allocation has grown significantly and now represents say 22% of your portfolio, instead of the original 15%, the computerized program would sell enough to get that portion back in line, and also move money into the other sectors which have not kept up, to balance everything again.
The concept is to get investors to take gains off the table (a good idea, in theory) and also re-allocate it to the sectors that are not working. “The pitch” with asset rebalancing is that you would essentially be selling a group when things get high and putting money in other sectors when they are low.

It is totally acceptable to take “some” money off the table when things work really well. My clients know our game plan for taking money off the table before we even begin. But putting money into areas of the market that are not working? Hmm. A few questions pop into my mind:

1. Why are you investing in an area of the market that is not working to begin with?

2. Why would you put more money into it?

There is an easier way to keep your assets in the right areas of the markets, without re-balancing your assets every quarter. And it has been at our disposal for over 50 years, but very few people use it.

In the 1940’s, Earnest Staby (an early point and figure chart pioneer) came to the conclusion that when the markets were frothy, it seemed that every chart he examined looked great. And when the markets were low, all the charts looked abysmal. Staby wanted some indicator that would tell him when the risk in the market was high and also when the risk was low.
What Staby came up with was the concept of the “bullish percent indicator.” The bullish percent indicator is merely the PERCENTAGE of stocks in a group that are on point & figure buy signals.

When the bullish percent for a group of stocks is high, that means most of the stocks in that group are already on buy signals. There are only a few stocks left in the group that could generate new buy signals…only a few names left that could continue propelling that group higher.

Another way of explaining a very high bullish percent reading for a group of stocks is that all the money that is going into that group of stocks…is probably already in it.

And when you see the percentage of stocks on buy signals in that group falling, the risk is that supply (not demand) is in control. Then the risk becomes greater for a loss of principal.

Using the bullish percent indicator can tell us when a group of stocks moves in favor and when a group falls out of favor. In the year 2000, the bullish percent charts were telling us to avoid large cap stocks and also to move into small cap stocks. These indicators can also tell us what sectors of the market remain low risk and other sectors that are now becoming higher risk. That should be pretty useful information!

Using the bullish percent indicator will tell us what sectors to STAY in and what to get OUT of…instead of letting a computer automatically “rebalance” our assets every quarter! This way we permit ourselves to stay in a sector that continues to run higher.

Here is a good example: throughout this year 2005, as oil has tracked higher & higher, a computerized asset rebalancing program would have been taking progressively more & more OFF the table, instead of sticking with a winning sector!

Thomas P. Mullooly, President of Mullooly Asset Management, LLC (http://www.mullooly.net) has spent over twenty years in the investment industry, as a broker and as an investment advisor. Mullooly Asset Management is a fee-only registered investment advisory firm based in New Jersey, specializing in retirement plan accounts, particularly managing 401k, 403b, and deferred compensation accounts for individuals. If you would like to know which sectors your portfolio should be avoiding right now, contact us by sending an email to tom@mullooly.net, call 732-223-9000 or by visiting http://www.mullooly.net/403b-plan.html or sign up to receive the market report and tips on how you can soundly invest your money at http://www.mullooly.net

The financial characteristics of the automobile dealership are attractive:

“. . . moderate growth and risk and high returns. Franchised new car dealer revenues have grown at a 7.2% annual rate since 1992, about twice the rate of GDP. Moreover, this growth has come with only moderate risk, as the dealer body didn’t lose money (on a pretax basis) for a single year in the last twenty - even during the 1989-1991 industry down-cycle. Finally, despite major changes in the auto industry’s structure, dealer returns have remained high, with pretax ROE averaging 26.1% over the last twenty years”. [MerrillLynch, April 19th, 2004 Report on “Automobile Dealers”.]

Athletes from almost every major sport have invested in new car dealerships: Rick Hendrick, Roger Penske, John Elway, Troy Aikman, Evander Holyfield, Arnold Palmer, Michael Jordan, Scottie Pippen and Alex Rodriguez to name a few.

The idea isn’t new. Johnny Lujack, 1947 Heisman Trophy winner and Chicago Bear Pro-Bower, started a business in 1954 that would eventually expand to 16 franchises; spread over 40 acres, with sales of over 10,000 vehicles and $150 million, per year. Lujack retired from the auto business after almost 50 years as a successful dealer.

WHEN IS THE RIGHT TIME?

“This is the time you have been waiting for”, reports Greg Gilmore in the June 2005 issue of Dealer Magazine.
Dealer Executive reported that last year (2004) ranked as the 4th best for new unit sales by franchised new-vehicle dealers. Total dealership dollars exceeded $714 billion, up more than 2% from 2003.

The fact is that anytime is the right time. In 1991, in the depths of an automotive depression, John Elway asked me, prior to signing his purchase contract, if “this” (1991) was the right time to buy. I told him that it is how you buy it and how you sell it that count. That year he made a $20 million investment. At the time he had a single Mazda store on Arapahoe Road, in Englewood. I sold the Mazda franchise for him and Nissan gave him its franchise to put in the old Mazda building. Shortly thereafter, I put together another transaction that had John buy the Mazda store on 104th Avenue, in Thornton. John then terminated Suzuki and put the Mazda store with his Oldsmobile and Hyundai franchises. After that he bought one more dealership (a Ford franchise) and then, in 1995, sold the entire package to Republic Industries for $86 million.

A lot of people were afraid to buy a dealership in 1991 and thought that John took a big gamble. But, he didn’t “gamble”. He structured his purchases and sales correctly, and then capitalized on his investment.

For example, although GM and Ford lost money (as they did in 1991), individual dealers made millions, according to NADA (National Automobile Dealers Association) and Automotive News statistics, the average dealers’ pretax margin varies between one and two percent of their total sales. Why? The dealers capture a broader business base than the manufacturer. While the manufacturer makes its money on new car sales, the dealers have the additional balance of the parts departments, service departments, used car departments, finance departments, insurance departments and, in some instances, body shops. Consequently, while the manufacturer is dependent upon each year’s new car sales, a dealer’s success is based more on the total number of vehicles in operation.

DOES THE DEALERSHIP’S HISTORY MATTER?

A little, but don’t be intimidated by it. After Jimmy Vasser won the CART racing championship for Target, I put together a transaction for Jimmy to buy a dueled Chevrolet-Toyota franchise, in Napa, that lost money for the previous 10 consecutive years. I put Jimmy together with a dealership manager and Jimmy’s dad, who had some previous used car experience, signed-on as used car manager.

Subsequently, after going to dealer school and passing through the chairs, Jimmy’s dad took over as General Manager; the store thrived; and Jimmy not only bought the dealership land and facility, but bought the Ford store in the next town, and is currently building a new Toyota store so that his Chevrolet and Toyota franchises can have separate facilities.

WHAT DOES IT TAKE TO BE SUCCESSFUL?

Good advice. Good advice is both important and hard to find. In the words of Trace Armstrong, past president of the NFL Players Association: “There’s just so much bad advice out there being given to these guys. It’s really kind of scary.” [Reported by Eric Fisher, March 27, 2000.]

As with the Entertainment and Sports Industries, there is so much money in the car business, that everybody wants to get a piece of it. Consequently, everybody thinks he or she is an expert in analyzing and structuring deals, when in fact they just want to be a broker that gets a commission from the deal.
Sidebar: New car dealership revenues reached almost One Trillion Dollars in 2004. The dealerships and dealer related industries account of over 15% of the Gross National Product of the United States.

HOW TO CREATE A SUCCESSFUL TEAM?

An investor needs a team. Generally, it’s the same team they have, supplemented by an expert in the car business. Don’t get lulled into a false sense of security that loyalty is synonymous with the “factory” or “bankers”.

For example, Ford made one of its black dealers (a superstar athlete) the point man, brokering meetings with senior executives and acting as a conduit between the company and Jesse Jackson. He mediated disputes between Ford and its dealers, and he promoted the company in public appearances. He even had a close relationship with some Ford family members.

“He had some friends in high places,” said John Clissold, a retired Ford Credit executive. “[The head of Ford Credit] was a very strong supporter.” But, when trouble came, it didn’t matter. Business was business. ” . . . one factory executive familiar with the situation summed up the prevailing feeling at corporate headquarters: ‘[the superstar] was headed for a cliff and we weren’t going over with him.’” [Story by Bill Vlasic and Mark Truby / The Detroit News Sunday, May 26, 2002.]

The fact is that the factory and bank employees have a duty to do what is best for the factory or bank, not what is best for your client. It’s the law. They have a legal obligation to their shareholders - no matter how nice or how close your client is to them.

Financial statements and an accountant are not enough. Your client needs a member of your team that is a student of the industry. A profitable automotive statement can be certified and comply with every principle of accounting, yet still convey a false impression of success. There are so many nuisances in defining and structuring automotive transactions, that your client needs an expert in the field who can determine both what automotive deal is best for the athlete and what is the best way to get it.

So while your team may consist of accountant, attorneys, agents and managers that are excellent at their jobs, unless a student of the industry is added (someone who does nothing but structure buys and sells everyday), a key ingredient to success will be missing.

Think of it in terms of any sport or business. If a person wants to create a championship team in a particular sport, is it created with people who play the game 50% of the time, 75% of the time, or someone who plays it everyday?

Remember: The nicest thing they ever said about Richard Nixon was: “He looks like a used car salesman.”

John Pico holds a Doctorate of Jurisprudence, is a vice president of Automotive Advisors of America, Inc. and in the last 33 years has completed over 1,000 dealership transactions. In addition to lecturing about buying and selling automobile dealerships, Mr. Pico has published two books and numerous articles on the subject. For more tips, sources and a list of references and experience, go to http//:http://www.automotiveadvisors.com

© Automotive Advisors of America, Inc.

The one place to go for advice when investing in an automobile dealership is Automotive Advisors of America, Inc.

A powerful new development has made purchasing Dinar (Iraq Currency) top of the wise investor’s list!

You need to take some time to read the powerful documentation and credible speculation concerning the power and excitement of the Iraqi Dinar market.

The Math makes it clear: Currently through FreeDinar.com you can purchase Iraqi Dinar at less than 1/10th of a US Cent per Dinar. Buy 100,000 Dinar for $100 today! Looking back at history it is possible that the Dinar value could be as high at $0.20 to a US Dollar. If that is the case a $100 in dinar could potentially return $20,000!

If the value reached, over time, is the pre-Desert Storm value of around $3.00 that same $100 could potentially be valued at $300,000! Our advice is to educate yourself as much as possible. Get your news reports from multiple media outlets and contrasting viewpoints. Only then can you begin to see the situation for what it is, a great, affordable opportunity. “More professional investors are buying. commodities, foreign currencies and equities, creating tension in the stock market.” Wall Street Journal 11/24/04 Iraq has been granted 32 billion dollars in debt relief. “The Paris Club agreement represents a major international contribution to Iraq’s continued political and economic reconstruction. I encourage (other) nations to agree to comparable debt reduction for Iraq.” George W. Bush 11/22/04 Opening International Trade has increased the wages to Iraq’s 25 million people who have pent-up demand for goods and services. An estimated $33 billion has already been collected for rebuilding Iraq. Coca-Cola, Chevron, Texaco, and more are investing! “…wages are triple those paid elsewhere in the Middle East.” Wall Street Journal 11/24/04 More Iraqis are holding on to the dinar as a savings vehicle after years of hoarding dollars. The limited circulation of the new currency as compared to the open-ended printing of old notes by Saddam’s political leadership. “Iraq has a stable currency; value of the new dinar has already risen 25 percent.” US Department of State ? Bureau of Public Affairs 06/30/04 Iraq has the World’s largest natural gas reserve and is the world’s 2nd largest oil producer. “No one doubts Iraq’s potential for enormous production. Only 17 of its 80 known oil fields have been developed, and the costs of new production are among the world’s lowest.”

“A senior Iraqi leader evoked the eternal dream that Iraq could produce 10 million barrels a day.” The New York Times 05/03/05 The Kuwait currency devalued by the same margin in the ’90’s has completely rebounded. “If post-war Kuwait is any example: A Kuwaiti dinar was valued at about a dime after the war. Each now brings in $3.40 …If (Iraq Dinar) jumps to a few cents, (investors) can start paying off mortgages.” Stars and Stripes Mid-east ed., 10/15/04 Following World War II, it took three years to institute a new currency in West Germany. Iraq has taken only six months. Oil revenues and existing assets from the Saddam dictatorship are being pumped into government operations and reconstruction projects such as: paying 350,000 teachers (rehabilitating 2,200 schools), 100,000 doctors and healthcare workers,(30 times more funds over pre-war levels, restoring 240 hospitals), upgrading electrical grids, water, sewage, irrigation systems, and expanding oil output. 3 dozen countries are contributing financially to the renewal of Iraq, and 19 countries are providing personnel for operations in Iraq. The new Iraqi Government and the US treasury are working together to reinstate a strong decentralized banking system in Iraq. Iraq has vast areas of fertile land and the most precious commodity of all in the Middle East, water. With the rejuvenation of the Tigris and Euphrates River, Iraq’s agriculture sector may once again be the Breadbasket of the Middle East.

Iraq holds the second largest oil reserve in the world, with 95 percent of Iraq?s revenue coming from exported oil. Combine that with the continued rise of oil prices and you have the makings of a strong economic comeback. The Iraqi Dinar has also managed to appreciate in value from it?s all time low of 3000 Dinar to one US dollar to the recent level of between 1500 and 1400 Dinar to one US dollar. Before the 1991 war it was 1 Dinar to 3 US dollar. Keep in mind that the new Dinar has only been in existence since October 15, 2003. The monetary system established by the new government encourages foreign investment, a key to developing a strong economy.

A new stock market opened recently with over record trading volumes pushing stock prices drastically upwards for the 27 firms listed, with over 2 billion shares changing hands in only 6 trading sessions. Real estate in Iraq is booming, largely because of the severely depressed prices due to the restrictive policies of the old regime. With money flowing into Iraq, citizens are now buying houses in neighborhoods generally reserved for government officials.

Our advice is to educate yourself as much as possible. Get your news reports from multiple media outlets and contrasting viewpoints. Only then can you begin to see the situation for what it is, a great, affordable opportunity for investment.

Personally we wanted to check this investment out…and so went to http://www.freedinar.com (key in id: nzinvestor) and ordered a Starter Pack to see if they are what they say they are…and sure enough, within a week we had our dinar in hand by regular mail.

I can therefore recommend this to any savvy investor - as the next opportunity to potentially make millions!

Monday, February 27, 2006

This column is dedicated to those thuggish gangstas who relocate from inner city schools to “country” schools much like mine in years past. “Whas’ up yo!” Okay, some of these kids have roots in the city. But, we’re not going to go as far as to grant them total street cred since many are from gangsta paradises such as Long Island and suburban New Jersey. Just because you move to the country from a “city” doesn’t grant you the gangsta lean that you think you somehow deserve. Come on.

If your parents hadn’t been worried about your upbringing and getting your ass kicked everyday by real thugs, they would have never moved you away from the city to begin with. And if you really were so “hard”, why the hell would you have to leave the city? Couldn’t you fight your own battles in the “streets?” Whatever the case, the bottom line was these kids were mostly phonies. You have the saggy pants, two strap backpack wearing kid who draws amateur graffiti with sharpie pens on his sneakers and clothing. So by creating “tags” with bubble letters you are proving to us that you grew up in the worst circumstances in the “hood? Jackasses like Vanilla Ice and Marky Mark just reinforced the image.

Real disadvantaged youth from hellholes like Compton and Watts existed on MTV and deserved all the credibility in the world, but then there were also the phony white kids who acted all hard and transformed their “whitespeak” into a loose tongued southern-slang sounding mangling of the English language. “Whas’ up B?” The lanky white kid from the Garden State, yes, he worked on his father’s TOMATO farm in New Jersey and had migrated to the suburbs in the tri state area and had all of a sudden gained a “street” accent, and thought that he had qualified for Section 8. It just didn’t make any sense.

You cant’ “transform” yourself into a hardcore gangsta. If you weren’t forced to live that way due to your surroundings then you’re just a phony ass punk who deserves scorn. If only “Malibu’s Most Wanted” had been released about ten years earlier so that these dumbasses could have seen themselves on the big screen.

By: W.U.
http://www.baseballcarddeath.com
http://www.icomplain.blogspot.com

All rights reserved. Content may not be duplicated without proper crediting. All content is the original, registered trademarked content of the aforementioned websites, subsidiary companies of IComplain.net. Unlawful use of this content will be prosecuted.

First off, just what is convergence?

The word originally came from the world of math and science. Its earliest use was
by a man named William Derham, who was working at trying to measure the speed
of sound by timing the flash and the roar of a cannon. That was in the
1600’s-1700’s.

The term has been used in technology, business, science and journalism -
everything from explaining corporate strategy to Darwin’s “The Origin of
Species” (still a “hot” topic today, what?).

What we want to approach today is convergence in the digital media.
Convergence refers to the power of digital media to combine voice, video, data,
text, and money in new applications, devices and networks.

Television is probably the most amazing invention of mankind. Sending pictures
and sound through the air has a magical quality that challenges the imagination.

Next in line is the computer. This cool electronics - that takes ones and zeros and
turns them into words, pictures, sounds, data - and places them in the palm of your
hand is nothing less than amazing in itself.

You can’t leave out the telephone - which has passed from being connected by
wires to wireless voice, then audio and sounds, then video, then internet, then ….

Convergence. Convergence is taking all of these media and combining
them into one delivery system. Major companies are gearing up for entering into
this new development.

Here are some things coming up through this cool electronics melding:

• AOL is putting old TV shows on the Internet

• CBS and NBC are offering current TV shows online - and ABC, Apple and
Disney are putting shows on the new Video iPod

• Google is into offering video - Chris Rock’s new show premieres online before
it is aired over regular network channels

• MTV has bought the independent film network iFilm and launches a 24/7
Internet TV Network [MTV Uber]

What does all this mean to you?

With the proper cool electronics coming available, you can expect that within … say
five years … your TV watching will expand beyond network - cable - satellite, and
the private video networks of companies like TiVo and RePlay - to what one person
has called “ubiquitous content.” In other words, any show or video you can think of
will be delivered to you over the Internet. Think 1000 channels?!

And this Internet TV will be delivered to your home TV set (HDTV big screen) and
more. There will be gadgets and devices that hook up your TV set directly to the
Internet to deliver video directly to your set instead of your computer.

Anyone with a camera will be able to upload video to the net. You will see the good,
the bad and the ugly for awhile - but the cream will rise as they always say - and
levels of video will form into communities of like style, ability and value - all
through the new cool electronics that are becoming available now.

Sponsored videos will become more plentiful. One advertiser will supply and
sponsor programs - like the Hallmark Hall of Fame has done since the early days of
broadcasting.

Niche programs will become an important marketing tool for small companies - like
cooking shows sponsored by a local/regional grocery store - or health shows
backed by health food products. Do I hear “infomercial?” They may become the
norm. We can only hope that the creative people in our society will also be
challenged and bring us some real product that we can learn from and enjoy.

There will be improved search capabilities. you will be able to search video content
as well as titles. This will be done by transcribing dialogue into text and stored in a
database. Videos will be searched and rated just like websites are now.

Set-top boxes [like the new Brightbox] will connect you from living room to living
room by video phone and video email. Now you will have to dress up to answer
your email (at least cover up).

A user interface will become the most important feature of your TV because there
will be SO MUCH CONTENT. The interface will make suggestions based on your
mood, your astrological sign or what other people have chosen. This is already
happening in Japan.

Video communities will form to find and present content to fit various fields, moods,
interests, and levels to suit your needs.

Your home TV (DVR, DVD, Tivo, etc.) can be watched on your computer anywhere in
the world with a broadband connection and the cool electronics in devices like the
Slingbox - which is available now.

How about interactive shopping and education?
You watch a program and pause the program to respond to a commercial while you
think about it. Or - you are watching King Kong - you will be able to click on the
“King” and get a lesson about apes and their history.

TV’s are being built now (in Japan) with ethernet connections. this will speed up the
connection convergence.

Of course, the commercial value of TV will not disappear. Unfortunately, it may get
more imbedded in the programming. Shopping will be made easier - with the
ability to see products in real time and real size- or at least closer to real size - and
right from your home set in your living room, kitchen or bedroom. Point and click
and buy with the new cool electronics.

I’m sure there will be many more surprises as this new industry develops. The
emergence of convergence - Internet/TV/Communications - is expected to be the
biggest new industry since the telephone - then TV - then the computer - then the
Internet - then … who knows?

© 2006 Gary Cogley

Gary Cogley writes about all kinds of gadgets, gizmos and inventions. Get additional
information at his website:
http://www.gadgets-gizmos-inventions.com

Everyone wants to be rich. Hey, abundance is good. When you live abundantly, you will be satisfied, some say. That is why a lot of people tout the next get-rich-quick scheme. And that is why this business thrives. If everyone lives in abundance, who would want to attend a $ 500 seminar promising you to be rich within months?

What constitutes a get rich quick scam? For this, you need to use your common sense. If someone can promise you a return on investment of 20% monthly, is this scam? That depends. There are some decent way of earning that kind of return occasionally both in the stock market and in the real estate. Recent examples of stock investing include investing in companies called Seagate Technology (STX) or buying Korean based Webzen Inc. (WZEN). That includes both pure luck and skill. Without the two, it is less likely that you will achieve that kind of a return.

So now, if someone promise you that they can achieve that kind of a return for the next fifteen years, is that scam? Whip out your calculator and you find that one dollar compounded monthly with 20 % return on investment, will wound up to be $ 179 trillion after fifteen years. This is seven times the entire world’s Gross Domestic Product (GDP). Simply said, you will own the assets of everyone in this entire world and then some.

One of the best investors in the world is currently Warren E. Buffett. Even then, he only achieves compounded annual return of 25 % a year. And yet, he is the second richest person behind Bill Gates! I think this is the best gauge to measure investment scam.

How about leverage? Leverage can increase your investment return. Yes, it can. It also increases your risk. In the short run, you can get more than 50 % monthly return even without leverage. It happens a lot. Count yourself blessed. But, if you expect to make that much money for the next fifteen years, you are kidding yourself. The law of number will be against your odd after a while.

What is the best defense against investment scams? Education is foremost important. Furthermore, consulting with your friends and relatives will be the next best thing to do. The need for money is there and hence investment scam business can still thrive. The next time you heard some wonderful business opportunity, you should ask yourself if there is indeed a free lunch in this world.