Friday, June 30, 2006

Ooh, getting smacked down by Walter Updegrave

I'm a big fan of Walter Updegrave, who among other things writes the Ask the Expert column at CNNMoney. His advice is usually pretty solid, and is intended to be applicable to a broad audience, including somewhat newbie investors. This is as opposed to people like Robert Kiyosaki, who assumes that everyone wants to spend all their time managing their assets. I particularly enjoyed the recent Ask the Expert piece - the letter reads:

QUESTION: I'm 56 years old and nearly 100% invested in equity mutual funds. I'd like find something to cushion the blow of another stock market decline, but with residential real estate seemingly having run its course and commodities topping out, what alternative do I have? Can you suggest a type of investment that has not recently peaked, and which may offer long-term growth? Real estate in Costa Rica, pipeline limited partnerships...something? - James E. Good, Orlando, Florida

This is the type of person that bugs the crap out of me. They assume that there is always easy money to be made somewhere, if only you know the magic words to say that will open up an investing opportunity. Yes, people have made money in foreign real estate, and whatever the hell a limited partnership is, but he wants it to be as simple as his equity mutual funds are. These exotic investments take a lot more due diligence and knowledge, and without both of those you can lose your shirt. In fact, consider it lost from the second you decide that easy money is yours for the taking, and that a random internet answer guy is going to turn you on to the secret investments of the Rothschilds. (Incidentally, the Rothschilds were involved in one of the least exotic industries of all time - banking. They did not make their money by buying pipeline limited partnerships.)

I applaud Updegrave's patience. His answer to this man is to give him a primer on how you should put together a well-balanced stock and bond portfolio, with some allocation ideas to keep the portfolio afloat among the turbulence of the stock market. I would have said, "Hmm, something to offset the stock market.. How about bonds? Goodnight! I'll be here all week! Try the veal!"


Anonymous said...

Hi. It seems that you are really getting spammed by the Costa Rican vacation people.

Anonymous said...

Do you know what "captured media" is? Search the Internet for captured media -

It's all captured media - the journalists are paid to write what they are told to write, it's not independent journalism.

I hate that guy Updegrave - who writes that sort of stuff in this economy? He's a captured journalist paid by CNN Money to pump the stock market.

Anonymous said...

Furthermore, he's a shrill for the Mutual Fund industry. Look at his job experience... um.. there isn't one really after he graduated. He took a job as a commercial banker then started writing for Money.

Anonymous said...

perhaps, but he just wrate a piece in Oct. 2012 issue of Money mag in which he states dividends are an illusion because the stock price drops by an amount equal to the dividend paid ... huh .. show me a list of dividend paying utilitiy stocks with a steadily decling price ... disingenuous ..