HR 1207 is moving! Word of the Week: Cartel. Should you invest with IFA? Warren Buffet. Buying Puts on FAS.
The Mad Money Machine is proud to advertise Index Funds Advisors at ifa.com
Topics in this week’s show include:
- HR 1207 is up to 162 co-sponsors. Make the Fed Cartel more transparent.
- MMM Word of the Week: Cartel
- Email from Ed that I answer on this show:
Hi Paul,
I’m a long time listener to your podcast. Thanks for putting out such great shows.
I’m looking for a place to set up an IRA account and transfer my old 401-K plan. I looked at IFA’s web page and I have a couple questions.
1. In the unlike event that IFA goes belly up will my investment be protected?
2. Why should I go to IFA instead of signing up with a better known company like Merrill Lynch (yes they’re still around offering IRAs) or directly with Vanguard and cut out the middleman?
Thank you
Ed
- REHAB: I take you on a tour of IFA.com/Step1
- GURU: Warren Buffet says buy index funds.
- Didn’t hear today’s Paul Boyer Show? How to get it in iTunes: Go to the Podcasts section. Find Mad Money Machine. Click it. Then click Settings. Check Every Day. Don’t use Default. When New Episodes are Available: Download All. Episodes to Keep: ALL. Press OK.
- Then use the triangle to expand Mad Money Machine and if any are greyed out, press the Get button.
- My Active Investment Relapse: Puts on FAS.
- TOOL: Bloomberg on iPhone.
Got Feedback? Try any one of these methods:
- email: feedback AT MadMoneyMachine DOT com
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- Take the MMM Survey
Fri, May 15 2009 » Podcasts » Comments Off on MMM-158: Avoiding the Cartel
Got my Radius earphones. Want wireless ones though. Google Tasks outliner improvements. Losing weight. Podshifter.com works. Our geocache got muggled. HP MediaSmart backup server.
Topics in this week’s show include:
- My replacement Radius earphones arrived. Love ’em. I used electrical tape to reinforce the junction points of the wires to the connectors.
- I’m looking forward to getting WIRELESS stereo earphones for my iPhone. (AH, I just now remembered, it needs to have a microphone too!)
- Google tasks keeps getting better. Now larger screen, hotkeys, calendar support. Need EXPAND/COLLAPSE though! Is there offline support?
- New Year’s Resolution: Lose 30lbs. I’ve lost 18 so far… SmartForLife.com is the place for info. Costco.com is the place to purchase (cheaper).
- PodShifter.com is working again. I like it.
- Our geocache got muggled.
- HP MediaSmart EX487 is great. Not perfect. But adding a 1TB drive to it was dumb-simple.
- We bought a portable screen room. Poor Man’s Florida Room.
- And more…
Music from music.podshow.com from Theory in Motion’s songs Perfect Day, Wake Up. Kean Spiraling. Snow Patrol Take Back the City.
Got Feedback? Try any one of these methods:
- email: Paul AT PlanetBoyer DOT com
- voicemail: 571-366-7121
- Twitter me at Twitter.com/PlanetBoyer (And send a message that includes @PlanetBoyer to let me know you’re not a direct marketer)
Fri, May 15 2009 » PlanetBoyer, Podcasts » Comments Off on Paul Boyer Show, 15 May
This show goes into lots of fun topics. Don’t miss this one! SIMPLER Portfolio. Harry Browne. REHAB. Etc. on and on and on forever.
The Mad Money Machine is proud to advertise Index Funds Advisors at ifa.com
Topics in this week’s show include:
- Do you really need show notes? Lemme know if you miss ’em!
Small Cap: VB
International: VSS
Micro Cap: PZI or BRSIX
Precious Metals: GLD
Large Cap: VTI
Emerging Markets: VWO
REITS: VNQ
Got Feedback? Try any one of these methods:
- email: feedback AT MadMoneyMachine DOT com
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- Take the MMM Survey
Sat, May 9 2009 » Podcasts » Comments Off on MMM-157: The SIMPLER Portfolio
Earthbox update. Harry Browne. Great Music. Interesting Topics. Where’s the flu? Government, bah. Montana guns. Repeal the income tax amendment.
Topics in this week’s show include:
- Do you really need show notes? Lemme know if you miss ’em!
- And more…
Music from music.podshow.com from Theory in Motion’s songs Perfect Day, Wake Up. Kean Spiraling. Snow Patrol Take Back the City.
Got Feedback? Try any one of these methods:
- email: Paul AT PlanetBoyer DOT com
- voicemail: 571-366-7121
- Twitter me at Twitter.com/PlanetBoyer (And send a message that includes @PlanetBoyer to let me know you’re not a direct marketer)
Fri, May 8 2009 » PlanetBoyer, Podcasts » Comments Off on The Paul Boyer Show for May 8th, 2009
The impact of Swine Flu. An additional quote from Dollar Crisis. GURU: G. Edward Griffin tells us where the money comes from to pay the bank’s interest. GoogleFinance function.
The Mad Money Machine is proud to advertise Index Funds Advisors at ifa.com
Topics in this week’s show include:
- Another quote from Richard Duncan’s The Dollar Crisis .
- GURU: G. Edward Griffin: Where does the money come from to pay the bank’s interest?
- the impact of the Swine Flu pandemic alert.
- Survivalblog.com and Barrons’ both have a "BUY" on Smith & Wesson (but for different reasons).
- REHAB: Riskese takes a look at the THREE factors that explain stock returns.
- TOOL: =GoogleFinance(EWZ)
Got Feedback? Try any one of these methods:
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- Take the MMM Survey
Fri, May 1 2009 » Podcasts » Comments Off on MMM-156: Investing in Smith & Wesson
Running Barefoot. Buying a Chevy. A trip to the dentist. iPhone earphones reviewed. A tip for your iPhone microphone.
Topics in this week’s show include:
- What TWiT sounds like to me
- Running barefoot, more healthy? Check out the Vibram Five Fingers running shoes.
- Buying a Chevy?
- Superglue my Tooth?
- iPhone Earphones
- iPhone Earphone Microphone tip
- And more…
Music from music.podshow.com from Theory in Motion’s songs Perfect Day, Wake Up, and Devil’s Playground.
Got Feedback? Try any one of these methods:
- email: Paul AT PlanetBoyer DOT com
- voicemail: 571-366-7121
- Twitter me at Twitter.com/PlanetBoyer (And send a message that includes @PlanetBoyer to let me know you’re not a direct marketer)
Fri, May 1 2009 » PlanetBoyer, Podcasts » Comments Off on The Paul Boyer Show – PlanetBoyer
Solin vs. Cramer. Toxic Leveraged ETFs. Efficient Markets. Marylin answers. iPhone tool. GURU Richard Duncan.
The Mad Money Machine is proud to advertise Index Funds Advisors at ifa.com
Topics in this week’s show include:
- Dan Solin vs. Jim Cramer
- Ben Stein says , "I DON’T blame Mr. Cramer for trying to act as if he knows the future. That’s his gig. But the most that economic seers can do is apply broad, generally acceptable principles to current situations and try to go from there. When I stray far from that, I hope that thoughtful readers will call me to account."
- Leveraged ETFs are Toxic. See my mathematical proof . But of course, they work in your favor if the underlying index does nothing but go your way.
- REHAB: What does Efficient Market mean?
- Subscribe to Index Funds Advisors podcast to get the DFA "What Should Investors Do Now?" episode?
- Marilyn answers, "Where did the money go?"
- Thomas Woods from his book Meltdown explains why the amount of gold we have can cover it all.
- TOOL: Get WSJ app in your iPhone.
- GURU: Richard Duncan’s The Dollar Crisis .
Got Feedback? Try any one of these methods:
- email: feedback AT MadMoneyMachine DOT com
- voicemail: 571-366-7121
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- Take the MMM Survey
Fri, April 24 2009 » Podcasts » Comments Off on MMM-155: Dollar Crisis
NY Times losing $$. Texas Secession. Susan Boyle. Baptist checkpoint crosser. FRE CFO. Pirate advice. Twitter. iPhone radar. Golf adventures.
Topics in this week’s show include:
- Advice for the NY Times.
- Checks and Balances: Texas is checking Federal power.
- Baptist preacher stopped at checkpoint, beaten.
- Susan Boyle is a staged event.
- Freddie Mac CFO found dead.
- What is this Twitter thing all about anyway?
- Garage door update. Strange sounds.
- Golf adventures.
- iPhone Tech Tip: i.wund.com and click on Interactive Radar. When that full page radar appears, click + at the bottom and say Add to Home Screen. An icon will appear among your iPhone apps to get you there quickly.
- See you Friday on the Mad Money Machine.
Music from music.podshow.com from Theory in Motion’s songs Perfect Day, Wake Up, and Devil’s Playground.
Got Feedback? Try any one of these methods:
- email: Paul AT PlanetBoyer DOT com
- voicemail: 571-366-7121
- Twitter me at Twitter.com/PlanetBoyer (And send a message that includes @PlanetBoyer to let me know you’re not a direct marketer)
Wed, April 22 2009 » PlanetBoyer, Podcasts » Comments Off on 090422 PlanetBoyer
Leveraged Exchange Traded Funds (ETFs) such as FAZ, FAS, and SKF are designed to multiply the DAILY PERCENTAGE change of the underlying index by factors of 2 or 3. They are thus toxic to your wealth and must not be held. Here’s a simple explaination of why. Take the FAS which is the 3X of XLF, the Financials fund. When XLF rises 1% in a day, the FAS is supposed to rise 3%. When things are going your way, everything is fine. But when the XLF drops, very bad things happen to FAS.
Have a look at this table:
On day 1, XLF rose 10% so FAS rose 30%. Great, you’re in the money.
But on day 2, XLF dropped back down to its starting price of $10.00, a decline of 9.09%. The bad news is that FAS declined 3X this amount or -27.27%. This takes its share price down to $9.45 instead of the $10 that you might expect.
So whereas XLF is unchanged after 2 days, FAS is down 5.45% after those same two days.
Why? The power of daily compounding instead of cumulative compounding. The leveraged ETFs are structured in a way that they compound on daily percent changes, not cumulative price changes. The day 2 decline of FAS should only be 23.08% to take it back to its original $10.00 per share price. But because it is 3X of XLF’s daily change, instead it declines 27.27%.
Said another way, the leveraged ETFs operate on the daily percent change not on the price of the underlying index.
Definitely not a buy and hold type of ETF! Not even for one day. Traders: set tight stops!
Mon, April 20 2009 » Analysis, Blog » Comments Off on Levered ETFs are Toxic. Here’s Why.
Boosting the S&P 500. Fooled by Randomness. Grandpa Lapin. MUST SEE TOOL. How about our portfolio being marked to market? We need a bailout too!
The Mad Money Machine is proud to advertise Index Funds Advisors at ifa.com
Topics in this week’s show include:
- Don’t like the future prospects of the S&P 500 index? Change it!
- Active Investor Rehab: Fooled by Randomness .
- GURU: Rabbi Daniel Lapin. Listen to show 107 from Lew Rockwell’s podcast at the 2009 Austrian Scholar’s Conference.
- TOOL: MUST SEE: Dimensional’s presentation What Should Investors Do Now?
- Do we have to mark our stock portfolios to market? Where’s our bailout?
- Mad Money 100th episode: who cares?
Got Feedback? Try any one of these methods:
- email: feedback AT MadMoneyMachine DOT com
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- Take the MMM Survey
Fri, April 17 2009 » Podcasts » Comments Off on MMM-154: Marked to Market?
Celebrating Life, Liberty, Health, and Property. Coming to you from the Belly of the Beast in the DC Metro Area.
Topics in this week’s show include:
- Celebrating Life, Liberty, Health, and Property.
- Government should do what only government can do.
- Golf is not a game for athletes.
- I am now a certified hunter in VA.
- Socialism? Fascism? Totalitarianism? Progressivism? Tyranny? We need to re-inject Liberty.
- Dark clouds are not really dark.
- How to make your garage door work smoothly again.
- For the first time in 30 years, more people are selling gold jewelery as scrap instead of buying new items.
- April issue of Wired has an article on the board game Settlers of Catan. Great game. Also Puerto Rico and San Juan are great.
- Update on my diet.
- I am now officially an OLD MAN. Listen to find out why (18 minute mark)
Music from music.podshow.com from Theory in Motion’s songs Perfect Day and Wake Up.
Got Feedback? Try any one of these methods:
- email: Paul AT PlanetBoyer DOT com
- voicemail: 571-366-7121
- Twitter me at Twitter.com/PlanetBoyer (And send a message that includes @PlanetBoyer to let me know you’re not a direct marketer)
Wed, April 15 2009 » PlanetBoyer, Podcasts » Comments Off on 090415 PlanetBoyer