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Feb 13, 2010 3:08 pm
I don't have ten years behind me in this business, or $40MM to work with in my book. But I know this much about fear; it operates best in a vacuum.   My clients like one story from me ... how is my income proceeding? At least once a quarter, they get to hear from me ... MKC just increased it's dividend. T increased it's dividend. We can swap out bond A for bond B, get more interest and a shorter term. MDU beat expectations. MMM increased their dividends for the XXth straight year. Since January of 2009, the S&P is up 14.7%, and you are up 18.6%. Hey, that CD is coming due, and I can increase your income.   Clients need an unrelenting string of positive news. You have it in your power to give them that news - and you needn't wrap that news up with a request for more money.   Try telling them something good for once. Brian Williams sure as sh*t won't.
Feb 13, 2010 3:12 pm

ah, DSIP

Feb 13, 2010 9:15 pm

If you dont think the biggest shoe in the history of mankind is about to fall, then you are a FOOL

Feb 14, 2010 12:24 am

Jonesness, I’m curious, exactly what point in time (give me a specific date), did you decide that the biggest shoe in the history of mankind was about to fall.  And because you can tell the future, let me know when this proverbial shoe will fall.

  With this type of prognosis, I am also curious what you are recommending your clients buy, and how you are getting new clients to invest with you with such a doom and gloom forcast.   Finally, since I am a FOOL, and rotated aggressively into more stocks for clients in the end of 2008 and early 2009, should I rotate everything into cash now because I'm sure there is 1.  Zimbabwe inflation coming, 2.  another great depression looming, 3.  gold is the only thing that you can hold onto that will be worth anything, 4.  make sure to go to the liquor store to pick up little shot bottles so I can trade for goods later, 5.  buy a gasoline storage container because MAD MAXX lawlessness will soon be the norm, 6.  can't trust anyone because it is a giant conspiracy to create a one world government, 7.  Dow will go to less than 600, 8.  Buy ammunition for trade, 9.  Tell clients to dig a whole to put all their old silver coins in it with a treasure map hidden behind a painting, and 10.  Make sure my home is self sufficient with solar energy for when the grid fails.
Feb 14, 2010 12:33 am
Jonesness:

If you dont think the biggest shoe in the history of mankind is about to fall, then you are a FOOL

  Why are you in the investment business with such a view?   With such an end-of-times view of the world it would seem a very unsatisfying career to tend to investments. Alll of which will no doubt turn out to be worthless.    
Feb 14, 2010 1:37 am

One of Shania’s quotes from a client was “I’ll be back”.  Reminded me of one of my dumbass clients who, last year, took all of his $30k out (IRA’s & all at age 42) and said “THE DOW IS GOING TO 3500, AND I WILL THEN GET BACK INTO THE MARKET.”

I said "Really? you're getting out at 8500, but when things get even worse, THEN you'll get back in?" He's a tool, too. Was glad to see him go. Always wanted run his retirement scenario every time he dropped off his biannual $200 IRA contribution. He had $30k with me (age 42) and his goal was, I'm not kidding, to get to $10 million. Sure, that's an admirable goal, but not really realistic for a 42 y/o tool making $50k a year while depositing $500/year into his IRA. I asked him to focus on, say, a million first. "NO WAY MAN, 10 MILLION. I'M NOT STOPPING TILL I'M THERE." Oh, except if the market drops. Dumbass.  
Feb 14, 2010 1:38 am

Oh, and Jonesness, I have a sh!tload of “Y2K meltdown” books I’d like to offer you. They’re reasonably priced.

Feb 14, 2010 1:49 am

Fear…I know of quite a few clients who “want high returns with NO RISK.” Sound familiar? I have the advantage of working for Wells Fargo & Company, so I get to see both the bank side, and the advisor side when it comes to “FEAR” with clients. It’s funny to me how people flop back-and-forth from “all-in” to “no-way.”

It amazes me, how so many are SO uneducated about retirement, finances and budgeting. It’s like ‘Renters’ client who wanted a $10M portfolio and only had $30K at the age of 42. Probably, he wanted everything with a >6% yield, and extremely liquid with NO risk. Most clients are TOOLS.

Feb 15, 2010 11:56 pm
   I have had a very lucurative run in this business for the past decade and a half.   The writing was on the wall for me about 3 years ago.   I have sold off my book.  And I now hold a series 3.   Bond/equities dislocation and sovereign debt defaults coming soon.  Do NOT be a fool.