Sitcom Investing

A fickle stock market encourages good-humored mockery.

Recently, as I watched the premiere of a sitcom, an obvious omission breached television etiquette. Silence followed every exaggerated comedic set-up. There was no laugh track. Where were the premeditated giggles from the show's "audience?" At last, the viewer determines the funny moment.

It then occurred to me, the writers of this new show adopted an aspect used by investment news programs.

I will be the first to admit, in addition to the miscellaneous printed and electronic financial information, the television provides an abundance of supplemental financial news. However, the shows often leave me asking, "What's missing?" In addition, the shows may very well leave viewers with the ultimate responsibility, which segment is entertainment and which is practical advice.

Perhaps you may recognize one of the canned statements below that investment show gurus continuously utter. Although each may be applicable (and in may cases vital to successful financial planning), notice the missing "laugh tracks."

How many times have you heard "Invest For the Long Term?" The analyst may be leaving out "because I hope you forget my last appearance and the short term disaster I have caused for the viewers who actually acted on my recommendation." Each investor's long-term outlook is somewhat different for the other's and you should always review the guests' recommendations with caution. What is his or her reasoning for such revelation?

"Buy and Hold." The missing part: "because I have no idea of an exit strategy to recommend." True enough, the more successful investors are those who invest according to a well-planned strategy and stick to it. They generally hold onto their winners. There are, however, times that will dictate an exit strategy.

Finally, there's "Use Asset Allocation." The missing part: "because I cannot tell you which asset historically does better in this particular market environment." There are many ways to accomplish diversification in your portfolio and it does not always have to revolve around the division of stocks, bonds, and cash. Depending on your particular objectives, time horizons, and risks, an appropriate allocation may be derived from the use of just one type of asset. Either way, there are no guarantees when you place your money in the stock market and it is best to remind yourself of the risks of each investment. Try including real estate, collectibles and insurance products in your general financial plan.

We can all watch the appearance investment gurus make on financial shows. Perhaps we can include light-hearted follow-up statements as if we were watching a Rocky Horror film. We often enjoy the amusement provided by television personalities, however, it is important to review your investments regularly. Always examine your motive behind each buy and sell.

In actuality, your financial future is no laughing matter and should be guided with thorough commentary. Television shows come and go; your finances may one day be a legacy.

Wardlaw's belief is that familiar life elements best illustrate practical investment strategies; not typical investment jargon. With that philosophy, the author assists financial planners/advisors, brokerage firms, periodicals, and other investment information syndicates create informative and entertaining articles. For comments and questions, please contact the author at tools2invest@yahoo.com

---

How to Invest Overseas - Intelligently!

In recent months, many advisors have talked a lot about... Read More

25 Ways to Find Companies to Buy

When you start your program to purchase your "ideal" company,... Read More

Why have Investment Plans for the Stock Market

If you do not have an investment plan in the... Read More

Why the Rich Keep Getting Richer

Rich people: fortunate, lucky, selfish, and arrogant? Or highly educated,... Read More

Rules for Simplified Employee Pension Plans better known as a SEP Plans

A SEP is a special type of IRA. Under a... Read More

Maniac Investment

Let's first understand what maniac means. According to Webster a... Read More

Straddle Strategies in Option Trading

The straddle strategy is an option strategy that's based on... Read More

Investing In Sons Business Could Cause A Real Family Feud

Q: My youngest son wants to borrow $5,000 to start... Read More

Who Wants To Be A Millionaire?

I am sure you have probably read about the power... Read More

A Gadfly On A Dinosaurs Butt, Or The Hood-winking Of The American Investor

Have you ever noticed how some words in the English... Read More

Wit and Wisdom on Money, Wall Street and Success - Part #1

I love to collect quotes as they concisely promote a... Read More

Using Divergences to Keep Out of Bad Trades

The American Football season just came to an end with... Read More

Invest To Make Money, Not To Get Rich

The technology boom of the '90s romanticized the "rags-to-riches" ideal... Read More

Learn How to Lose and Risk Management

One of the leading traders on Chicago Mercantile Exchange, because... Read More

In a Time of Need

As I take my leisurely walk with my dog through... Read More

Emotions: A Traders Worst Enemy; Get Rid of Fear and Greed - Youll be Glad You Did

You hear it over and over and over in books,... Read More

Investing: Do You Want To Make Money, Or Would You Rather Fool Around?

It always amazes me how much stock market investors resemble... Read More

The Economy Is Not The Stock Market

Several days ago, the Commerce Department reported that May's factory... Read More

How Eating Bitumen Made Me a Better Stock Trader

Stock market trading is a fascinating activity.There are so many... Read More

Investing Pointers for Neophyte Investors

If you know next to nothing, how do you go... Read More

Making Every Penny Count

More and more workers are leaving their jobs and taking... Read More

A Secret Revealed: Why Most (Day) Traders Fail

The following perspective on (day) trading comes from my many... Read More

Investing for Retirement - Not an All or Nothing Play

In 1519, Hernando Cortes, beached on the shores of unexplored... Read More

Larry, Moe and Curley, Investment Brokers

Larry, Moe and Curley were sitting in their favorite restaurant... Read More

Brain Snappers and Other Wall Street Nonsense

The last time you spoke with your broker did he... Read More

Gold and Silver Maple Leafs Get New Packaging

Gold Maple Leafs and Silver Maple Leafs are receiving packaging... Read More

Investors: Avoid These 5 Common Tax Mistakes

For many investors, and even some tax professionals, sorting through... Read More

The Switzerland of Asia Shines

In many respects, Singapore is the Switzerland of Asia.Begun in... Read More

Annuity Investment Guide

While there is not a lack of information on annuities,... Read More

To Retire Rich, Save and Invest Early

If you want to retire rich, start saving investing early.... Read More

How to Choose the Right Share Class

You'll want to opt for the no-load or institutional share... Read More

Sell Discipline for Investors: Importance and Execution

Investors usually don't have an aversion to buying an asset.... Read More

Day Trading the SP Futures with Initial S/R and the NYSE TICK

For instance, if the market moves up in the first... Read More