Mad Money Machine

MMM-122: Risk and Liberty (No Pain, No Gain)

Investing is risky. Cramer calls this the bottom. Bogle’s take. What’s on every coin? The Philosophy of Liberty. Standard Deviation as a risk measurement. Return to Risk ratio. Watchless. Foliodex no workie. The Grossman – Stiglitz Paradox.

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MMM-122: Risk and Liberty (No Pain, No Gain) [ 30:51 ] Play Now | Play in Popup | Download

The Mad Money Machine is proud to be sponsored by Index Funds Advisors at ifa.com

  Topics in this week’s show include:         

• Investing is risky. Don’t invest unless you are prepared to lose money. Of course  if you don’t take risk you’ll be stuck with low returns.
• We begin our study of Riskese.
• Last Wednesday, Jim Cramer called the bottom in the market. Dmcmahon, Xenogear3, and MTWC all respond at Bogleheads.org.
• John Bogle says this is his 10th bear market. And although it would be great to be able to jump out of stocks at the high and get back in at the low, but in his 55 years in the business he doesn’t have any idea how to do it.
• What’s on every one of your U.S. coins? One of at least 4 things is “Liberty.”
• I read Ken Schoolland’s “Philosophy of Liberty” but I ENCOURAGE YOU TO WATCH THE VIDEO ALSO.
• This week’s Learning Earning segment looks at Standard Deviation as the way we measure an asset’s risk. How much return did an asset have per unit of risk?
• Which stock was the better investment, Disney or Hewlett Packard? Don’t forget to look at the risk. But hey, neither stock is a good choice because the S&P 500 index had an even better return to risk ratio. And look, the IFA Index Portfolio 100 had an even better return to risk ratio than the S&P 500.
• Risk is coming up on its 50th anniversary.
• I’ve worn a watch every day for 40 years. I’ve tried stopping recently and instead relying on my iPhone. Its a weird feeling!
• Will they every make a watch tatoo? Or even better, an iPhone tatoo!
• What’s the deal with Foliodex.com? No workie very well recently.
• Next week I’ll review the Lazy Portfolio Smackdown results thru July.
• Two more banks were added to the FDIC Is My Account Fully Insured list.
• The Grossman – Stiglitz Paradox.

Music from music.podshow.com:
ALTA PLAZA – XRAY DOGS
Money Control – Voide
Runaway Train – Under Feather