http://www.allstarfinancial.com/ Source of Financial Services related articles. Tue, 29 June 2010 http://www.allstarfinancial.com/bobs_blog.htm The recent correction of 10-15% in major stock market indexes was ignited by concerns over sovereign debt markets in Europe, but it is also a reflection of moderating growth rate in our economy.The rapid rebound from our recession lows is over, and we expect moderating economic and earnings growth in the months ahead. We view the possibility of a "double-dip" recession as unlikely, and Fed Chairman Ben Bernanke as well as most economists share this view. However, there are plenty of "perma-bears" and "gold bugs" on the airwaves that would like you to believe otherwise. We suggest turning them off and enjoying the summer! http://www.allstarfinancial.com/bobs_blog.htm Mon, 24 May 2010 http://www.allstarfinancial.com/bobs_blog_2010-05-24.htm Last week the S&P 500 lost over 4% and is now down 12% from its April high. The sell-off has been focused on troubles in Europe, particularly in Greece, and Spain, as well as some of the structural and demographic challenges that the Euro Zone is facing. http://www.allstarfinancial.com/bobs_blog_2010-05-24.htm Wed, 12 May 2010 http://www.allstarfinancial.com/bobs_blog_2010-05-12.htm Last week was a hectic week in the stock market. On Thursday we witnessed a rollercoaster as stocks started strong, fell as fears increased that the sovereign debt crisis in Greece might spread to other areas of Europe. Shortly thereafter we saw the Dow fall almost 10% in just a fraction of an hour, and then just as quickly recover by 7%. It briefly felt like the market environment of October 2008 all over again. But this is not a repeat of 2008, and both the economy and the markets have vastly improved since then. Bond and credit markets are functioning again, corporations are once again showing healthy profits, and the Fed appears committed to keeping interest rates low until both the housing and jobs markets heal. We are seeing tentative signs of both! http://www.allstarfinancial.com/bobs_blog_2010-05-12.htm Mon, 19 Apr 2010 http://www.allstarfinancial.com/bobs_blog_2010-04-19.htm With the first week of earnings season complete, we are encouraged by the good reports. We expect this current trend to continue as earnings and revenue growth are up. We also like the fact that $51 billion of cash came off the sidelines this past week as investor optimism about the recovery is growing. http://www.allstarfinancial.com/bobs_blog_2010-04-19.htm Mon, 1 Mar 2010 http://www.allstarfinancial.com/bobs_blog_2010-03-1.htm We often see the debate in the financial press between those who tout the benefits of low-cost index investing versus those who favor actively managed mutual funds. Those who endorse a passive indexing approach often criticize the generally poor long-term results of active mutual fund managers. Those who favor active management usually tout their better performance, usually over a selected time horizon that favors their performance track record. http://www.allstarfinancial.com/bobs_blog_2010-03-1.htm Tue, 16 Feb 2010 http://www.allstarfinancial.com/bobs_blog_2010-02-16.htm As we predicted in the 4th Quarter 2009 newsletter, the market was due for a correction. With that in mind, we have an extra 18-25% in a cash and bond position for all of our portfolios. This allows us to buy bargains and that is what we did on Thursday (2-11-2010) of last week. We put 2-3% of your assets back to work with the Brazilian ETF (BRF). http://www.allstarfinancial.com/bobs_blog_2010-02-16.htm Mon, 1 Feb 2010 http://www.allstarfinancial.com/bobs_blog_2010-02-1.htm As we are in the midst of tax filing season, we would like to take this opportunity to remind you that part of the Wealth Management we provide for our clients includes tax preparation services. Many of our clients are taking advantage this very convenient, value-added service. Tax preparation is a significant part of the “SAFER GROWTH” mentality at All Star Financial. If you (or someone you know) are interested in using our tax services, please call us at 952-896-3820 and ask to speak with our on-staff Tax Advisor, Kris A. Collins, CPA, CFP® to discuss the next step. http://www.allstarfinancial.com/bobs_blog_2010-02-1.htm Fri, 15 Jan 2010 http://www.allstarfinancial.com/bobs_blog_1-15-2010.htm Last year, as the sock market was recovering from the financial collapse, the stock market was rocked by one of the largest investment scams of all time. Bernard Madoff, a former chairman of NASDAQ, was convicted of stealing billions from investors through his New York based investment firm. Both the retail public and supposedly sophisticated institutional investors were caught up in the losses, which totaled as much as $50 billion over two decades. Closer to home, the Twin Cities area learned of a multi-billion dollar Ponzi scheme that was run by Tom Petters and his operations, with similar disastrous results. http://www.allstarfinancial.com/bobs_blog_1-15-2010.htm Sun, 20 Dec 2009 http://www.allstarfinancial.com/bobs_blog_2009-12-20.htm Gold is often touted as an investment by ads on the television or radio, usually by companies that do little else but sell gold! Gold and other precious metals do have some value as a store of investment value and inflation hedge. But the value of gold as a long-term investment in your portfolio is marginal at best. Ibbotson Associates recently noted that the average annual return of gold since 1980 was 2.6%, while the average annual return on stocks was 11.2%-even after last year's disaster. http://www.allstarfinancial.com/bobs_blog_2009-12-20.htm Tue, 3 Nov 2009 http://www.allstarfinancial.com/bobs_blog_2009_11_3.htm Recently the Charles Schwab Corporation received a Wells notice from the Securities and Exchange Commission (SEC) relating to the Schwab Yield Plus Bond Fund and another bond fund under its fund company management. A Wells notice signifies it is the SEC's intent to recommend civil enforcement action for possible violations of securities laws at these mutual funds. Charles Schwab has the opportunity to respond to the notice and has said it believes enforcement is unwarranted. http://www.allstarfinancial.com/bobs_blog_2009_11_3.htm Mon, 19 Oct 2009 http://www.allstarfinancial.com/bobs_blog_2009_10_19.htm It is time that we recognize that Churchill and Eisenhower (and even Mike Tyson) were right. We place way too much weight in plans; in fact, most plans are little more than guesses. This applies to business plans and financial plans alike. The problem is that when you are making plans, someone has to be the assumer (sounds like some evil villain). And the assumer has to make some really important assumptions, forecasts or guesses – which will always be wrong. You just don’t have the information you need before the fact. This is true when you start a restaurant, a business, or when you are planning the rest of your financial life. http://www.allstarfinancial.com/bobs_blog_2009_10_19.htm Mon, 5 Oct 2009 http://www.allstarfinancial.com/bobs_blog_2009-10-5.htm Paul McCulley, a managing director at PIMCO, coined the economic slogan "New Normal". This term signifies a "changing of the guard" for sonsumers and businesses alike. From 1982 to 2007, the U.S. economy grew at an impressive 6-7% annual clip. This growth was aided by declining and low interest rates. low inflation, financial leverage, and loose government regulation. Consumers also spent beyond their means which produced a negative savings rate that in turn fueled an unsustainable consumption rate. This needed to stop! Many of the investment vehicles that were engineered over this time frame took advantage of the "Old Normal" environment. These are the same financial instruments that were prominent in creating the recent housing and credit bubbles that brought the global markets to a halt roughly one year ago. http://www.allstarfinancial.com/bobs_blog_2009-10-5.htm Tue, 15 Sep 2009 http://www.allstarfinancial.com/bobs_blog_2009-9-15.htm A year ago today, on September 15, 2008, Lehman Brothers, one of the largest and oldest investment banks in the U.S. filed for bankruptcy, and set off a financial collapse that was felt across the globe. It seems like a long-time ago, but it was only one year, but what a year it was! Lets review, shall we? http://www.allstarfinancial.com/bobs_blog_2009-9-15.htm Tue, 1 Sep 2009 http://www.allstarfinancial.com/bobs_blog_2009-9-1.htm The market rally since March has been a nice bounce off the lows from last year’s credit crisis and market crash. Even though economic data shows that both the U.S. and global economy are gradually recovering, we are beginning to trim some of our positions that have performed the strongest during this rally. We believe the market will take a step back at which time we will gradually add back positions that will benefit from the slow but eventual economic recovery. Here is a rundown of what to expect. http://www.allstarfinancial.com/bobs_blog_2009-9-1.htm Wed, 12 Aug 2009 http://www.allstarfinancial.com/bobs_blog_2009-8-12.htm As we head through summer it appears the recession's grip on the economy is beginning to loosen. Manufacturing and service sector activity has rebounded, bond and credit markets have improved and are functioning again, and leading economic indicators are pointing to a recovery in the months ahead. Last week we saw a surprise dip in the unemployment rate, just one of many signs that businesses are starting to hire again. http://www.allstarfinancial.com/bobs_blog_2009-8-12.htm Mon, 3 Aug 2009 http://www.allstarfinancial.com/bobs_blog_2009-8-3.htm What a month! The Dow gained 725 points or 7.28% and the broader Russell 3000 index was up 7.78% for the month. We are breaking through very important psychological barriers that have not been breached since October and November of 2008! http://www.allstarfinancial.com/bobs_blog_2009-8-3.htm Thu, 16 Jul 2009 http://www.allstarfinancial.com/bobs_blog_2009-7-16.htm The following is a summary of the most important tax developments that have occurred in the past three months that may affect you, your family, your investments, and your livelihood. Please call us for more information about any of these developments and what steps you should implement to take advantage of favorable developments and to minimize the impact of those that are unfavorable. http://www.allstarfinancial.com/bobs_blog_2009-7-16.htm Tue, 7 Jul 2009 http://www.allstarfinancial.com/bobs_blog_2009-7-7.htm We hope everyone enjoyed the 4th of July and got an opportunity to enjoy plenty of fireworks, barbecue, parades and baseball with your families. Independence Day represents all that is great about the United States as we celebrate the anniversary of our independence from Great Britain. We have come a long way since our days as a fledgling colony nation. We have explored the continent, gone through a civil war, help win both World Wars, and have become the most powerful industrial nation on earth. http://www.allstarfinancial.com/bobs_blog_2009-7-7.htm Tue, 23 Jun 2009 http://www.allstarfinancial.com/bobs_blog_2009-6-23.htm With 100% of second quarter earnings released more than a month ago, the question posed to me numerous times is what is driving the market up and down? This is a great question and in this case, I believe it is two-fold, cash and headlines. http://www.allstarfinancial.com/bobs_blog_2009-6-23.htm Tue, 16 Jun 2009 http://www.allstarfinancial.com/bobs_blog_2009-06-16.htm Consumer expectations for inflation have risen in June, causing some investors and policymakers to begin worrying about inflation again. Inflation expectations have risen to 3.1%, the highest level since last fall. We continue to think these inflation concerns are premature while we remain in the "Great Recession". Most of the recent increase in prices has been due to rising gasoline and energy prices, which have risen sharply in recent months but still 50% below their price levels last year. Once more, demand for energy has fallen slightly in the U.S. and developed nations, and new energy saving technologies could continue this trend. http://www.allstarfinancial.com/bobs_blog_2009-06-16.htm Tue, 9 Jun 2009 http://www.allstarfinancial.com/bobs_blog_2009-06-09.htm As I look back at the past four months of blog's, there is a recurring theme that is intermixed in our comments, "The foundation is forming but not yet complete!"This week brings more uncertainties with a splash or two of good news, or should I say, not as bad of news.With layoffs continuing, but slowing down, and corporate earnings still declining, but not as significantly, we get that sense of going nowhere fast.My thoughts are - better sideways than down! http://www.allstarfinancial.com/bobs_blog_2009-06-09.htm Tue, 2 Jun 2009 http://www.allstarfinancial.com/bobs_blog_2009-06-02.htm This week brought the long anticipated bankruptcy filing of General Motors. This century old American company was the leading automaker in the world for over 75 years, and was a long time symbol of American manufacturing and marketing prowess. "What's good for General Motors is good for the country" was the saying from the 1950's, and for a long time it seemed true. But times change and sometimes success can make a company, or an individual resistant to change. http://www.allstarfinancial.com/bobs_blog_2009-06-02.htm Tue, 26 May 2009 http://www.allstarfinancial.com/bobs_blog_2009-05-26.htm The stock market has had an impressive spring rally, responding to signs of an economy on the mend. Market volatility levels have returned to normal, or at least levels that have not been seen since back in September, before the Lehman Brothers bankruptcy. It has been a wild ride since then hasn't it? Stocks declined 42% from the Lehman bankruptcy to November 2oth, rallied 21% at year-end, only to decline another 28% to start the year. Since March 9th, the stock market has recovered another 35%, but is still 28% below where it was last September, and 35% below where it sat one year ago. http://www.allstarfinancial.com/bobs_blog_2009-05-26.htm Mon, 18 May 2009 http://www.allstarfinancial.com/bobs_blog_2009-05-18.htm The high levels of recent government spending and resulting huge budget deficits have stirred the inflation hawks in recent months. The "talking head" investment advice on television has been touting inflation protection in the form of traditional inflation protecting investments such as TIPS bonds, Gold, Commodities, and even Real Estate Investment Trusts (REITs). Inflation, as always, remains a long-term risk for investors, but we do not expect its return anytime soon. http://www.allstarfinancial.com/bobs_blog_2009-05-18.htm Tue, 12 May 2009 http://www.allstarfinancial.com/bobs_blog_2009-05-12.htm Every year the founders of the search company Google write an annual founders letter to shareholders. Though it has not been around as long as Warren Buffet's popular annual letter to Berkshire Hathaway shareholders, it is a good read for investors, reflecting the thinking of one of America's premier technology companies. When they wrote this past letter at year-end, the economy and the stock market were in steep decline. But Google founder Sergey Brin took a positive note, writing, "Nonetheless, I am optimistic about the future, because I believe scarcity breeds clarity: it focuses minds, forcing people to think creatively and rise to the challenge."He noted that the "dot-com" bust of 2000-2002 forced Google and other technology companies to make tough decisions that made them stronger as a result. http://www.allstarfinancial.com/bobs_blog_2009-05-12.htm Tue, 05 May 2009 http://www.allstarfinancial.com/bobs_blog_2009-05-05.htm Long-term investment goals can often be thrown into chaos by life's challenges. The collapse of housing prices, a crashing stock market, job loss, a divorce, or a hot stock tip that didn't pan out, these all can create obstacles to achieving long-term investment goals. You can probably think of other obstacles specific to your situation. Overcoming and minimizing the impact of these events can be key to achieving long-term investment plan success. http://www.allstarfinancial.com/bobs_blog_2009-05-05.htm Tue, 28 Apr 2009 http://www.allstarfinancial.com/bobs_blog_2009-04-28.htm Every quarter the stock market plays the "expectations game". Stock analysts (there a lot fewer these days) make estimates for corporate earnings and the company managers try to deliver earnings results that beat the analyst's "expectations". If company earnings are better than "expected" the stock will go up, if they are worse, the stock usually falls. What does that mean for your long-term investment strategy or goals? Nothing, zip, zero, and zilch. http://www.allstarfinancial.com/bobs_blog_2009-04-28.htm Tue, 21 Apr 2009 http://www.allstarfinancial.com/bobs_blog_2009-04-21.htm Before things can get better they have to stop getting worse. We have talked about some of the very early signs that the economy is starting to turn.We have also seen bond and credit markets improving from last fall. But as corporations have begun to report 1st quarter earnings, these reports will be mixed at best. This week a full quarter of the S&P 500 companies report earnings, so expect a few clunkers in the batch. http://www.allstarfinancial.com/bobs_blog_2009-04-21.htm Tue, 14 Apr 2009 http://www.allstarfinancial.com/bobs_blog_2009-04-14.htm Wells Fargo kicked off earnings season last week with a pre‐announcement shocker ‐ a $3 billion profit, double what analysts had forecast. Details on credit quality and trends were lacking and bad loan reserve levels were smaller than expected. Earnings results were driven by mortgage volume, which was up 40% overall, with a 64% increase in mortgage re‐financings. Wells Fargo is the most active bank in the mortgage market so it is benefiting from the lower rates more than other banks. Clearly, both banks and consumers are benefiting from the current low interest rates in mortgage and auto loans, and bank earnings are showing signs of turning the corner. http://www.allstarfinancial.com/bobs_blog_2009-04-14.htm Tue, 07 Apr 2009 http://www.allstarfinancial.com/bobs_blog_2009-04-07.htm The March stock market rally was welcome, long overdue, and helped erase some of the losses experienced in investment portfolios this past year. Stock markets do not usually move in a straight direction for long. The last two quarters have experienced both bull (20% gains) and bear markets (20% declines) within the same quarter!!! We have pointed out how credit markets are improving, some economic indicators are showing signs of turning, and there are still plenty of values for the long-term investor. http://www.allstarfinancial.com/bobs_blog_2009-04-07.htm Mon, 30 Mar 2009 http://www.allstarfinancial.com/bobs_blog_2009-03-30.htm Since the beginning of the year, we talked about how the shape of a recovery in the markets might look. We mentioned that stocks would recover before the economy does, and credit markets may recover before stocks. During this six-month credit crisis Treasury bonds held up well, but AAA corporate bonds lost 15% to 20%. Much of the Treasury and Federal Reserve's activity has been centered around getting credit markets moving again and stabilizing our banking system http://www.allstarfinancial.com/bobs_blog_2009-03-30.htm Tue, 24 Mar 2009 http://www.allstarfinancial.com/bobs_blog_2009-03-24.htm Yesterday the Treasury Department finally released details of their Public-Private Investment Program designed to create a market for the "toxic" assets that have been weighing down our banking system. The stock market liked what it saw, and Bill Gross of PIMCO called it the first win-win-win proposal during this crisis. Taxpayers leverage their dollars with private capital, banks clean up their balance sheets, and there is a good chance of recovery for the taxpayer and even old-fashioned profits for the private investor. http://www.allstarfinancial.com/bobs_blog_2009-03-24.htm Tue, 17 Mar 2009 http://www.allstarfinancial.com/bobs_blog_2009-03-17.htm When you continually hear this quote come out of my mouth, I am sure it gets old and a bit stale. I promise you though, that this is the truth, the whole truth and nothing but the truth! http://www.allstarfinancial.com/bobs_blog_2009-03-17.htm Wed, 11 Mar 2009 http://www.allstarfinancial.com/bobs_blog_2009-03-11.htm Circuit City finally closed its doors on its 600 stores last week, eliminating another 34,000 jobs in the economy. Best Buy is still in business, a little leaner after some layoffs and early retirement buyouts. They will probably emerge from this recession a stronger company, and no doubt with less competition. GM and Chrysler needed bailout loans to stay alive in recent months, while Ford has renegotiated its health fund payments and labor contracts with union - without any government interference or financial support. They will probably emerge as the strongest U.S. auto company when the recession ends. http://www.allstarfinancial.com/bobs_blog_2009-03-11.htm Tue, 03 Mar 2009 http://www.allstarfinancial.com/bobs_blog.htm_2009-03-03.htm The 2008 - 2009 winter in Minnesota has been longer and colder than in recent years. The slowing economy and the downward spiral in the stock markets has probably made it seem even longer and colder for many of us. Melting snow, the first robin spotting, and the fresh green growth of grass and trees are subtle but sure signs that spring is just around the corner. http://www.allstarfinancial.com/bobs_blog.htm_2009-03-03.htm