April 2012 Webinar: Why Sell is Not a Four Letter Word
As Apple Goes, So Goes Our Portfolios (Maybe)
DIY Appliance Repair
Charlotte NC June 8-10, 2012
Renaissance Charlotte Suites Hotel
Looking Forward to InvestEd?
When I ask a simple question to friends, I hardly ever get a simple answer. I posed the following question to my friends in New Jersey: "Which classes are you most looking forward to at InvestEd?" I was hoping they could give me a definitive answer, but when the choices of sessions are this varied and of such high quality, their answers were not definitive.
I first asked Rita Elias. Right away she responded that she’s looking forward to sessions she knows the least about. "While sometimes I just like to go back to the fundamentals, like classes on Return on Equity and Cash Flow," Rita, a 78-year old grandmother of five, "always is looking to learn something new." She adds, "I never want to stop learning." She is most looking forward to classes by Saul Seinberg and Mary Ann Davis.
Guy Werner admits that, "there are so many classes I wish to attend, getting down to a realistic number is going to be difficult." Guy also is looking forward to hearing Mary Ann Davis speak. His first choice is Tips for Option Selling. "I am always interested in what Mary Ann Davis has to say, especially on option selling." In addition, Guy is looking forward to hearing what Don Cassidy has to say about Trading Volume: The Psychology that Makes Technical Analysis Work. He adds, "I am interested in his suggested entry and exit points." Finally, Guy looks forward to Mary Ann’s class on price chart reading. "I need help in reading price charts and Mary Ann is an excellent teacher."
Saul, Mary Ann, and Don will be teaming up to present a track on Technical Analysis. Whether you want to know more about technical analysis or you want to stick with the fundamentals, you will find a session that interests you. In fact, with 52 sessions over two and one-half days and more than half of the sessions being taught for the first time, you’ll probably have a tougher time figuring out which sessions to put on hold and view on your conference CD after you get home!
Hope to see you at InvestEd in Charlotte, North Carolina, June 8-10, 2012. We are looking forward to welcoming you to our best InvestEd ever. Register Now!
InvestEd Inc. Free Webinar
Why Sell is Not a Four Letter Word
Sunday, April 22, 2012
8:00 PM-9:00 PM ET / 5:00 PM-6:00 PM PT
Instructor: Paul Madison
This Webinar will take a different look at the traditional Stock Selection Guide approach. It will provide some new twists to the traditional SSG Buy and Sell targets that might fit better within the context of our new information-rich, fast-paced market. Alternate Buy and Sell targets also will be explored. Finally, it will look at why even fundamental investors should sometimes think about taking short term gains (in other words holding a security for less than a year), even though this means paying a higher Short Term Capital Gains Tax Rate if held in a taxable account.
Register Now to attend the InvestEd Inc. free online investor education webinar. Space is limited.
Paul Madison has a BS in Chemical Engineering and is retired after working for nearly 25 years in several different areas at Conoco, including a few years as a crude oil commodity trader. He is a director and teacher for the Greater Tulsa Area Chapter of BetterInvesting and has been an investor in individual stocks for almost 35 years.
As Apple Goes, So Go Our Portfolios (Maybe)
Investors who recognized Apple's (AAPL: Nasdaq) potential have profited handsomely from its incredible upward run in share price. The recent announcement that AAPL will be sharing its huge cash reserves with shareholders by paying a dividend has placed an even stronger floor under the stock price and promises to attract a larger universe of shareholders. Of course, the stock's meteoric price rise to just over $600 a share may have been too steep, a case of too much too quickly, but how will this play out for those who don't own AAPL?
"Wait a minute," you'd say as a non-AAPL owner, "I don’t own any AAPL stock. Why should I care if it goes up or down?" That seems true. If you don't own AAPL stock, you can't directly profit if its share price goes up or agonize and suffer what could be a significant paper loss if its share price plunges. However, as it turns out, if you're an investor in today's market, even if you don't own any AAPL shares, its share price movements still may affect your portfolio. Here's how the changes in AAPL's share price can affect investors who don't own it.
An article by Carl Swenlin in the StockCharts Blog cogently speaks to this apparent anomaly. Apple is a component, and an influential one, of several important indexes and ETFs. Swenlin cites SPX (S&P 500), OEX (S&P 100), NDX (NASDAQ 100) and XLK (Technology Spider, an ETF) as examples.
These indexes and ETFs are capitalization weighted. Capitalization is determined by multiplying a company's share price by the number of shares it has outstanding. This means that high share price companies have a disproportionate and greater influence on the index in which they are included than their smaller cap brethren. We can see several instances in the past, due to the quirks of a capitalization based index, where the whales in the index drive the index price upward, while the greater number of index minnows actually are in a bear market, at the same time!
Swenlin offers an insightful view of how this capitalization effect works. He says: "The Nasdaq 100 (NDX) provides us with a great example. The QQQ reflects the performance of the cap-weighted version of the NDX. Thanks to AAPL, the QQQ has moved about 10% above the resistance line drawn across the July 2011 top. Contrast this, Swenlin points out, with the QQEW, ". . . the equal-weighted version of the NDX. Note that it has barely moved above the resistance line, because AAPL has the same weight as the other 99 stocks in the index." You can better appreciate these points by reviewing the charts included in the article.
What does this mean to you if you don't own AAPL? Well, if you own mutual funds or ETFs that track popular capitalization weighted indexes that include AAPL and other high cap or high priced stocks (such as GOOG or IBM), your portfolio's performance will be more sensitive to the share price movement of these stocks. Swenlin correctly concludes that ". . . radical moves by AAPL will have an inordinate (or disproportionate) effect on cap-weighted indexes of which it is a component."
Bottom line – performance of your portfolio likely will be influenced by stocks you don't directly own, as well as by stocks you do own, and your understanding this can be important. That's the inherent result of owning popular funds and ETFs that include well performing stocks, and it's usually a good thing even if you’re not sure what’s in your fund or ETF.
Saul Seinberg is an InvestEd advisory director and an instructor. A former vice president for education of InvestEd, he teaches at local through national investor education events. He is a former director and vice president of the Rocky Mountain Chapter of BetterInvesting and is a current member of the online CGAB Alumni Investment Club. With degrees in electrical engineering and law, Saul spent most of his career as a corporate attorney. In addition, he was an adjunct professor at Albany Law School in New York for several years.
DIY Appliance Repair
Judith Russ Leon
The RepairClinic.com website provides resources to diagnose and fix household appliances, vacuum cleaners, lawn mowers, and outdoor power equipment. When appliances show warning signs of trouble or conk out, avoiding costly service calls and expensive repairs, using the troubleshooting visuals, diagrams, videos, and text documents may be possible.
Start your research at RepairClinic.com. Click the Repair Help link in the middle section at the bottom of the page.
For demonstration purposes, select Air Conditioner manufactured by Emerson. Use the links on the new page to view a detailed illustration of the machine, as well as diagnostic help, maintenance tips, recall information, etc.
Use the Repair Help from the Repair Guru link to obtain additional help via email. The key to finding accurate information is identifying the model number on your faulty piece of equipment. Return to RepairClinic.com, and click the blue link for help locating the model number.
The link takes you to a screen titled, Help Me Find My Model Number.
Select the Image link for your troubled appliance to see where the model number may be located. The corresponding Video link explains how to accurately record the model number.
With a little luck, you will track down the problem and find a fix. The model number will help you find replacement parts. Even if you determine that the appliance is irreparable, you've saved the hefty price of a service call, and you may have learned something about the mechanics of appliances.
Questions? Contact InvestEd
InvestEdInc. is a 501(c)(3) non-profit corporation.
InvestEd 2012 conference