Monday, September 25, 2006

Time to get started Part 3 the Talk: "Asset Allocation"

September 22, 2006


This is when most investment professionals give you the talk; you know the talk about how you should be diversified into different asset classes. I think this is the most over used bunch of BS the investment community throws at investors and I have a bit of a different take on asset allocation.

First and foremost it is important to recognize that for new investors with small amounts of money asset allocation becomes a meaningless gesture, as a new investor you need to concentrate on building your asset base so you have something too diversify with. Secondly if you were an investor in the early 2000 during the market melt down you noticed that everything you owned no matter what it was or where it was invested sold off and if there is one thing we learned from the bubble bursting in 2000 was that in a serious bear market asset allocation does not work. I will repeat that in a serious bear market asset allocation does not work.

For many investors some asset classes are just not viable or not suitable or simply conflict with the investor’s investment style or risk tolerance. There is also the practical problem that some asset classes remain in very long periods of Bear markets and from time to time arise for very short Bull runs leaving investors buying at the highs and selling at the lows more often than not. And finally I have come to think that most asset allocation models are set up to feed money manager’s businesses not increasing investors return .It is more about the money manger full employment act than anything else.

For most investor’s assets the allocation process can be accomplished with the use of common sense ie… large cap, mid cap and small cap or Aggressive Growth, Value, Fixed income or Energy, Technology Consumer Products. It is most important to not to violate the viability, the suitability, your investment style or your own risk tolerances.

Another important issue is to make sure the funds are not all holding the same stocks .I know this sounds silly but the dirty little secret of the mutual fund business is that most of the larger mutual funds can only buy certain stocks that have a large enough capitalization that allows the fund to purchase a significant amount of shares to effect change in the total portfolio of the fund. With careful observation most investors will notice the same 10 stocks in every fund they own .Now that’s not much diversification is it?

Thank you again for all the referrals you have passed my way the last couple of months I really appreciate it.

Through I am entering in to an agreement with Elliott Wave International to provide additional content on Elliot Wave Specific strategy and commentary. Contact me if you are interested in using the Elliott Wave to more effectively manage your portfolio.

New Phone Numbers are toll free 1(866) 492-3959
Cell 1(201)966-7788


Friday, September 22, 2006

news News news

Sept. 14 (Bloomberg) -- China halted acquisitions of domestic brokerages by international firms, delaying Wall Street's expansion in the world's fastest-growing stock market.

Sept. 15 (Bloomberg) -- Prices paid by U.S. consumers rose in August at half the previous month's pace, pointing to an easing in inflation pressures as forecast by Federal Reserve policy makers.

Sept. 15 (Bloomberg) -- Manufacturing in New York state expanded at a faster pace this month as shipments rose and order backlogs increased, a Federal Reserve report showed.

Sept. 15 (Bloomberg) -- Rodrigo de Rato, head of the International Monetary Fund, is struggling to curb the influence of some European nations in favor of faster-growing economies like China.

Despite the long term warming trend seen around the globe, the oceans have cooled in the last three years, scientists announced today. (MSNBC)

Sept. 19 (Bloomberg) -- Eurotunnel SA shareholder Nicolas Miguet stood on a rusty ladder outside the old Paris stock exchange on Sept. 14, addressing a crowd of 200 through a megaphone, before leading a march to the Paris Commercial Court. ``If people invest their money it's for their children or their retirement, not to give it to jerks in Manhattan who buy Dom Perignon by the case to fill up their bathtubs,'' shouted Miguet, 45, who plans to seek the French presidency next year. ``This is a fight of good against evil.''
Irate over the painful bloodletting, Amaranth's investors, including big government pension funds in New Jersey and Pennsylvania, were exploring their legal options yesterday. Anticipating a flood of lawsuits, Amaranth hired bigtime Wall Street law firm Skadden Arps Slate Meagher & Flom to defend it. (NY POST)

CABLEVISION AWARDED options to a vice chairman after his 1999 death but backdated them to make it appear they were awarded when he was still alive. Cablevision restated its results as an options probe escalated. (WSJ)

Monday, September 18, 2006

Phone Service and Other Updates

Dear friends and clients,

Some Updates :

Phone Service ; Here they are NEW PHONE NUMBERS 1(201)301-2780
Toll Free 1(866)492-3959 Mobile 1(201)966-7788

Through I am entering in to an agreement with Elliott Wave International to provide additional content on Elliot Wave Specific strategy and commentary. Contact me if you are interested in using the Elliott Wave to more effectively manage your portfolio.

I am continuing to increase the number of new clients setting up covered call writing programs in their accounts, turning more clients accounts into “cash machines” .

Again I want to thank everyone for all the referrals the last couple of months


Thursday, September 14, 2006

I just wanted too take a moment to thank everyone for all the referrals I have received over the last couple of months.
Thank You

Wednesday, September 13, 2006

news News new

VIENNA, Austria - The world has tapped only 18 percent of the total global supply of crude, a leading Saudi oil executive said Wednesday, challenging the notion that supplies are petering out. (Boston Herald)

FALLING OIL PRICES have pushed gasoline prices down and could help spur consumer spending while easing inflation pressure. (WSJ)

September 13, 2006 -- Gas pump relief spread through the New York area yesterday with prices plunging to a six-month low, pushing a gallon to as low as $2.68 here.(NY POST)

The total number of worldwide cellular connections now stands at 2.5 billion -- just 12 months after passing the 2 billion mark. Wireless Intelligence, which tracks the global mobile market said growth is currently running at more than 40 million new connections per month -- the highest volume ever.
A quarter of the growth is coming from China and India, with China's market expanding at more than 5 million new connections per month. (Local6.COM)

NEW YORK (AP) - AT&T Inc. (T) is launching an Internet TV service where subscribers can watch live cable channels such as Fox News on any computer with a broadband connection for $20 per month. The AT&T Broadband TV service announced Tuesday features about 20 channels of live and made-for-broadband content. The channel lineup includes the History Channel, the Weather Channel, the Food Network, Bloomberg and Oxygen. Additional channels will be added soon, the company said without elaborating.

Ministers of the Organisation of the Petroleum Exporting Countries arriving in Vienna on Sunday have indicated concern that oil prices may fall. Though the eleven-nation group is unlikely to officially reduce its production quota when it meets on Monday, the change in ministers’ tone could be a harbinger of things to come. (FT.COM)

Treasury Secretary Paulson said he plans to encourage China to continue to embrace capitalism and open its markets. (WSJ)

September 13, 2006 -- In hopes of building cash cushions for its newspapers, The New York Times Co. is selling off its nine small-town TV stations, giving up on the medium.(NY POST)

oil and gold along with other commodities continue to sell off dramatically

Normally September into the middle of October is the seasonally weak time for equities as we come back from the summer fun the market hits the skids bringing us all back to reality. But this selling season may bring us an entirely different scenario. Yes the pundits saw the summer slow down and as they always do and mislabeled it as they always do into a more serious chronic condition than what it really is which is too many people on too many vacations all at one time. The last several weeks have brought us a major shift in market dynamics .The former market leaders such as oil and gold along with other commodities continue to sell off dramatically. Most of us have noticed at the pump that gas prices have dropped precipitously the last 3 weeks. On the economic side inflation seems to be under control, the string of interest rates increases that put downward pressure on equities for some time have come to an end and the economy contrary to popular belief continues to grow. If you add the large amount of underinvested cash on the sidelines, the massive level of corporate profits and plain fact that the market has basically stood still for the last 5 years a rally at this juncture seems to be more of an accident waiting to happen .

Tuesday, September 12, 2006

Phone Problems

Dear Friends and Clients

We are encountering a dispute with our current phone service; please feel free to contact me on my cell phone at (201)966-7788 in the mean time. We are working diligently to settle the issue.

Thank you

news News news

Sept. 11 (Bloomberg) -- Oil fell for a sixth day, its longest losing streak in almost three years, and gold tumbled below $600 an ounce after negotiators reported progress to resolve a dispute over Iran's nuclear research.

ABU DHABI, United Arab Emirates (AP) -- A top Iraqi official called for partnerships with international companies to boost his country's oil industry on Sunday, saying Iraq's emergence as a "secure petro-democracy" could quell rampant sectarian violence.

Sept. 11 (Bloomberg) -- General Motors Corp. is planning its bond market comeback. General Motors Acceptance Corp., the finance subsidiary of the world's biggest carmaker, may sell the first bonds in two years once a group of buyout firms purchases a stake in the unit, said Joanne Krell, a spokeswoman for GMAC in Detroit. The sale may be completed by the end of the year, she said.

Sept. 11 (Bloomberg) -- In July, Merrill Lynch & Co., the world's biggest brokerage firm, said it traded 2 million shares of Houston-based pipeline operator Kinder Morgan Energy Partners LP. The New York Stock Exchange said Merrill traded barely a sixth of that amount, or 351,000 shares, for the month. No one except Merrill will ever know whether it handled the other 1.65 million shares. The discrepancy is increasingly unsettling to institutional investors and has everyone from AIG SunAmerica Asset Management Corp. in Jersey City, New Jersey, to American Century Investments in Kansas City, Missouri, in an uproar over the integrity of some of the U.S. stock market's most important data.

September 11, 2006 -- The fate of embattled Hewlett-Packard boss Patricia Dunn was put on hold after the tech giant's board of directors failed to reach a decision at an emergency board meeting yesterday afternoon. The board is scheduled to meet again today to decide whether Dunn should be asked to step down for spying on journalists and on other directors.

The iPod, the digital music player beloved of everyone from Coldplay's Chris Martin to President George Bush, is in danger of losing its sheen. Sales are declining at an unprecedented rate. Industry experts talk of a 'backlash' and of the iPod 'wilting away before our eyes'. Most disastrously, Apple's signature pocket device with white earphones may simply have become too common to be cool. (UK Observer)

SHANGHAI, China - China tightened its control over the distribution of news by foreign agencies Sunday, further restricting international access to the already tightly regulated Chinese media market. (AP)

Sept. 11 (Bloomberg) -- China, under pressure from the U.S. and Europe to let the yuan strengthen, is starting to hear the same calls from its own currency experts.
Dell said it plans to delay its fiscal second-quarter filing, citing probes by the SEC and a newly disclosed investigation by the Justice Department. The company is also suspending its share-buyback program. (WSJ)

Sept. 11 (Bloomberg) -- Russian bonds are returning more than any other debt in Europe as increasing oil prices spur growth in an economy that collapsed following a 1998 debt default.

Sunday, September 10, 2006

September 11th................................

news news news

( - As the fifth anniversary of the 9/11 terror attacks approaches, a group of New Yorkers is continuing its protest of the design selected to redevelop the site where the World Trade Center towers once stood.Members of the Twin Towers Alliance will gather Sunday in New York City's Central Park to rally for rebuilding the Twin Towers as they stood before 9/11, in spite of the fact that construction is already underway on the Freedom Tower, a single tower that will fill the void left in Lower Manhattan.

( - The word "memorial" brings to mind images of statues, buildings and other permanent structures erected to honor the memory of a significant person or group of people. But the non-profit organization One Day's Pay is asking Americans again this year to honor those who died in the 9/11 terrorist attacks with a living memorial."It is an initiative that rose from the ashes of September 11th, soon after the tragedy," said co-founder Jay Winuk, who lost brother Glenn Winuk - a volunteer firefighter - in the collapse of the World Trade Center.The group's website,, offers suggestions for activities that can be completed on or around the anniversary of the attacks that will help others and serve as fitting memorials to the 9/11 victims.

( - Many government officials and counter-terrorism experts argue that Americans are safer now than they were when terrorists attacked on Sept. 11, five years ago. But in New York City the fears of another attack are a daily part of life, as are memories of the Twin Towers' collapse.

Despite a firestorm of criticism and the reality that it will have to absorb the entire $30 million cost of production without any recouping of cost from ad dollars, ABC will go ahead with its scheduled plans to air the five hour "docudrama" miniseries The Path to 9/11 on Sept. 10 and Sept. 11 in prime time. (MEDIAWEEK)

CAIRO, Egypt (AP) - A video posted on the Internet late Sunday, purportedly by al-Qaida, showed footage of a smiling Osama bin Laden meeting with top planners of the Sept. 11 attacks that struck the United States five years ago.

Western leaders are increasingly aware of the global nature of the struggle against Islamic extremism led by Iran, but within Western public opinion "there is a big battle to be won." Tony Blair UK PM

Wednesday, September 06, 2006

It just doesn’t make any sense …..

September 6,2006

In a thought provoking critique of contemporary American society I ask if Iran is such a threat why are oil prices going down. It just doesn’t make any sense …..

If I would have told you late last year that the housing market would have cooled off some say crashed, inflation was in check, consumer spending is steady, corporate earnings grew at 17% and the economy is holding its own. You would have said I am crazy. It just doesn’t make any sense…

Meanwhile the back to the 1970's media is reporting "peak oil forecasters have been winning coverts on wall street" Hummm I have so heard that before, so the fact the gasoline prices have dropped in price almost 20% in the last couple of weeks during heightened international tensions, there has been a cut off at the US's largest oil field and energy shares have declined would not be suggesting the opposite? Add the fact that oil price have increased from $24 a barrel to over $70 a barrel over the last couple of years yet gasoline has only gone from $2 to 3$ a gallon .Add again the perceived deep well oil find in the gulf of Mexico perhaps adding 50% to the total amount of US oil reserves. It just doesn’t make any sense .

Recent commentaries on the market are suggesting that the markets are not taking the threat to terrorism seriously .Really, the US GDP has increase by almost 50% in the last 6 years, productivity has increased at the fastest pace since the industrial revolution and companies earnings cleaner and larger than ever before and there is more cash on hand that at any time in my life time ? Yet the stock market has been at a virtual standstill for the last 6 years and still down significantly from the 2000 highs. I think the market has factored in the end of the world. It just doesn’t make any sense…


Tuesday, September 05, 2006

Time to consolidate and rollover 401k’s and IRA’s into one new account

Hope you had a great summer, with the opening of the school year this new season gives us another opportunity to get our financial house in order. Time to consolidate and rollover 401k’s and IRA’s into one new account, it is easy and very simple. Often you can transfer stock, bond and mutual fund positions without liquidating them saving you money on transactions. Most retirement accounts can be transferred in 10 days to two weeks. There are many advantages to hiring a financial professional to help you reach your financial goals. The most important factor is the process it self. Investing is a long term process filled with many ups and downs good years and bad, but over the long term you simply have to put a plan in motion and follow thru.

As your financial representative I can not offer you guarantees or exaggerated claims but I can offer the following:

First, confidentiality is the cornerstone of my business. Each of my client relationships is distinctly separate and totally private.

Second, thoughtful and courteous service is guaranteed. This is a people business.

Finally, I do not do “cookie cutter” financial planning, everyone is unique with there own specific needs and risk tolerances. I will never give advice and counsel to a client without thoroughly understanding his or her needs.

Best Regards,

James J. Foytlin Jr.