2010: There is a big difference between doing what is right and doing what is legal!

There is a big difference between doing what is right and doing what is legal!

What’s the difference and why is it important to me and my money?

Most investors are not aware of the different standards of service / care as it relates to their money. With all the controversy surrounding financial reform and the SEC’s pending lawsuit against Goldman Sachs, now may be a good time to explain the differences. I will touch base on each one’s role and its potential impact to you as an investor.

Registered Investment Advisor (RIA) = Fiduciary responsibility

RIA’s are registered with and overseen by the U.S. Securities and Exchange Commission. For example, IIA is a fee-only RIA firm. Under this arrangement, the work that we perform for our clients requires that we put their best interests first.

Weekly Commentary – 4/23/10: Let’s party like its 1999, but not repeat it

Here are some positive economic nuggets:

This week it was reported that home sales were up and jobless claims were down.

Microsoft saw higher revenues from corporations increasing spending on computers.

Amazon saw profits surge in the first quarter as consumers felt comfortable buying online. Reinforcing this was American Express noting that it saw a big jump in cardholder’s spending in the first quarter.

Restaurants and hotels are beginning to see customers return. This is especially good for hotels because this is a sign that business travelers are back, which means business activity is picking up and/or these companies are feeling more confident.

Weekly Commentary – 4/16/10: The market likes good news

This week Intel, JP Morgan, CSX and UPS all reported earnings in excess of analysts’ expectations, and this is in addition to the last week’s good news when various retailers (i.e., Macy’s, GAP, Target) reported sales gains.

The real positive is that companies across various industries – technology, finance, transportation and consumer services are seeing a rebound. A broad based rebound is exactly what this economy needs, and the stock market is responding quite positively to the news.

In addition, I particularly liked reading that a representative with CSX (a railroad company) stated that the company sees “gradual and steady growth” in the economy, and UPS noting that it cited strong growth in overseas shipments. There must be economic activity taking place: otherwise, there would be no need for shipping.

Weekly Commentary – 4/09/2010: Taking a break!

As a birthday present to myself, I am taking a break today from the weekly commentary. Read more

Weekly Commentary – 4/02/10: Manufacturing expanding globally

The Wall Street Journal (WSJ) reported today that manufacturing is up globally, but in particular the U.S. manufacturing index in March registered its best month in nearly six years. As a result, most economists believe that a double dip recession is not in the cards for the U.S.

Also announced in today’s WSJ was that U.S. car sales surged 24% in March. Thus, supporting the prior claim that manufacturing is rebounding. It appears to me that many consumers that have held off purchasing / replacing cars, appliance, etc. are no longer waiting to do so. In spite of this good news, unemployment still remains stubbornly high because most companies are holding off on hiring.