Financial Kudos Blog

'Bear Market Rally' or history repeating itself?

CNBC was kind enough to remind us this morning that 100% of their interviewed guests called the recent rally a 'Bear Market Rally', tantamount to a tease or a so called 'sucker's rally'.  Well, April was the single best month for the markets since 1938. Warren Buffet has said that the September Pearl Harbor comparisons are now over.  He went on to say that we continue to fight the war- I would agree, as I am sure war torn investors would agree as well.  By the way Becky Quick from CNBC - great sound bite!

Many market participants think that its always different this time.  Recessions typically last 16 month the history books show. If the current recession, which officially kicked off in December 2007, is any indication, this one is certainly deeper but nevertheless history has been repeated once again.

Long term trends to assess markets are far more important than today's latest gibberish, rant or rave. Although, I would agree that current trends and issues seem to change the look and feel of the root cause for the event and the clean up. The Internet, or rather the speed of the information flow has certainly helped set the pace for a turnaround.

The purpose of this blog is not to call the end bad times but rather to remind investors that the markets have a rhythm (or as my first grader would happily tell me 'it's a pattern Dad') and to think about the big picture and not only 'investorjoe' on Twitter saying he just sold XYZ at a slight profit.  Do we really care about that trade, specially after the fact?

We want you! Beta users to receive free membership!

About a month ago we posted a blog which discussed the fact that we are looking for investors (not just any investors but talented investors) to participate and contribute to the new Financial Kudos website.  We anticipate our launch for beta users to take place in mid-may.  Would you like to join us? 

Following is our post from March 18, 2009.  Please send us your email information (or at least subscribe to this blog) so that we can offer you a spot in our beta group.  Our initial beta users will receive free membership for 3 years!

"Over the last few weeks our team has been actively searching for the talented investors on the Internet.  Not just the “traders” who pat each other on the back or give a short tweet about their latest trade, but investors who truly provide insight.   For sure, smart talent exists but where are you on the Internet and more importantly how can you monetize your insight and get rewarded for your efforts?

We seek to find folks who have decided that it is time to bring together a group of really smart and insightful traders and investors who wish to get paid for their efforts.   If you fit the mold, send us a note and become and early adopter for the next wave in investment information and research.  The subject should say:  It’s about time for me to get paid for my efforts! Send the email to info@financialkudos.com and please include your name, phone number and a sentence or two about how you feel about the current offerings on the Internet for investors.

We look forward to speaking with all of you and hope you join us on the ride towards the next wave!"

Is President Obama on to something?

Although the effects of the recession are not complete, Goldman's numbers and those of Wells Fargo might suggest that the worst is over.  A few weeks back during a prime time update on the economy, President Obama suggested that technology and communications could broadcast information quicker when things get bad and when they start to improve.  Interesting concept that could possibly create a swifter reaction to the upside for the markets which is inconsistent with history.  Perhaps it is another sign that a faster news cycle and faster communications channels can lead to a faster economic reversal.  

It's great to have a Blackberry toting President.  I think it gives him insight that his predecessors did not have. Now we just need him to shift to a secure iPhone.  Let's hold up our glasses to a V shaped recession and recovery!  Cheers.

The Great Thaw?

Is it spring or is the economy beginning to thaw out?

The markets are up 20% off the bottom which generally suggests a 'bull market'.  We are not quite ready to say that everything is fixed.  Far form it.  But history tells us that the markets are generally a leading indicator suggesting that things are beginning to feel better.  The economy may very well be on the way to getting better.

At the very least it is the right time to shift gears and look around for opportunities to capitalize on a post recession economy. We believe questions abound about what the next great wave of prosperity might include.  We are pretty confident that a network of smart investors should be able to offer insight and figure it out.  It's not just about performance, it's about why a portfolio will perform better so we can learn from the markets and garner the Grey haired experience without getting the Grey hair. Join us in creating a network to get ahead of the curve and discuss concepts, ideas and opportunities, not just 'buy this because I did and I have a gold star next to my name'.

The Definition of Financial Independance

We came across the following blog post:  Financial Independence: The Final Stage of Money Management and were intrigued by a quote included from the James Stowers book Yes, You Can...Achieve Financial Independence.  

Stowers writes, "No person is free, in an economic sense, who does not have adequate investment income entirely unrelated to work." The blog post goes on to say "In other words, Financial Independence means that you earn enough from non-work income to fund your current lifestyle."

We like the concept and equate it to all of the social networks, blogs and financial investments information websites that are out there, in that investors are trying to earn enough so they can enjoy their day job and perhaps not have to work so hard.  If nothing else, perhaps financial independence can permit you to quit the job you hate and start working on something you enjoy.  How great would that be?

Well to begin with you need some solid advise.  You need information you can count on to be accurate and actionable.  Look for Financial Kudos to provide the platform to assist you.

Now, let's look at things from another perspective.  If you have actionable ideas and want to help others achieve financial independence we would like to recruit you.  This is not pro-bono work, rather it is an opportunity to participate in what you are good at, what you enjoy, and get paid at the same time.  We suggest you give a little and get paid! 

For more information send us an email to info@financialkudos.com.

CNBC gets the Twitter Buzz

Yesterday was Twitter day on CNBC.  Twitter CEO Evan Williams was on the network a few times during the day and the on-air talent has been plugigng their connection to their Twitter account. In fact we read that Twitter was mentioned 24 times on CNBC yesterday.  It seems amazing that the buzz has grown so significantly over the last few months on Twitter. It has grown even faster than the increase in unemployment.  Does everyone really have so much time during the work day to send mindless text messages to the abyss of Twitter?

Once again we draw you to the question of how we can remain focused on our work and responsibilities while finding the time (and need) to sift through all of the information at our fingertips.  All of us at Financial Kudos really enjoy the Twitter tools and many other tools, but our issues are targeted at maintaining our focus while utilizing these tools in a productive manner.  We think that in the investment community harnessing all of this information in a productive and profitable way is truly the killer app. 

In the meantime, and until Financial Kudos makes its debut, enjoy the Twitter buzz and the CNBC crew making the Twitter family a group of celebrities.

Bull Market? Bear Market Rally? Does anybody know?

Have you checked out all of the information out there over the last 24 hours?  Mind boggling really. There are opinions that range the spectrum from the absurd to the practical.  Who should I believe?  Who should I follow?  Is there a batting average I can point to?  Is their some statistic that let's me know who the good from the bad information so I can make well informed trades?

The truth is that the Internet is amazing, but it's now time to filter out the babies from the bath water. Financial Kudos will set the standard for well intentioned and more importantly good, strong opinions from smart investors.