Home | Newest Editions | Most Popular Issues | Free Newsletters | Forums

Custom Search
Publication: Investor's Notebook
YES, YOU CAN HAVE TOO MUCH OF A GOOD THING

Subscribe FREE to Investor's Notebook by clicking here.



 
       Investor's Insight - Friday, January 20, 2006           
          "A Digest of Investment Opinion From the 
             World's Leading Financial Advisers"

************************************************************ 

Comment The Post Below...


YES, YOU CAN HAVE TOO MUCH OF A GOOD THING
by Scott Burns

Q: My wife and I have about $320,000 of investments. About 
a third of that amount is invested in two royalty investment 
trusts. One is oil-based, and the other is in natural gas. 
Even after the recent dunking the energy market has taken, 
we are still 20 percent above water on these.

Obviously, we are completely unbalanced in the portfolio, 
but we are addicted to the dividends. I took early retire-
ment at 55. I am now 62 and my wife is 55. The negative I 
have heard from my adviser is we are "heavy into a 
depleting resource."

At our age, I think we will have left this world before 
anyone should worry about the "depleting resource." What 
do you think? -- D.M., Seattle

------------------------------------------------------------

What You Don't Know About The Birth Control Patch Could Kill You

The commercials tout the millions of women who have tried
Ortho Evra, but they don't tell you about the serious health
risks; now thousands have been seriously injured. Ortho Evra
has been shown to cause blood clots, strokes, even heart
attacks. It appears that at least 12 women have died as a
result of using the drug. If you have used Ortho Evra you
need to receive our free Ortho Evra newsletter. If you act
now in addition to getting all the latest information about
Ortho Evra, you will also receive a free case evaluation
from a pre-qualified attorney.

You need to get informed, stay informed, and protect your
legal rights. Fill out this 60 sec survey right now and start
improving your health. Visit:

protect your legal rights

------------------------------------------------------------

A: Actually, you and your wife have a combined life expect-
ancy of 32.9 years, meaning that one of you is likely to 
live that long. So you're not exactly "here today, gone 
tomorrow." In rap star lifetimes, your joint expectancy is 
forever. So you should be concerned about energy depletion 
over the period. 

Fortunately, the news isn't all bad: Higher energy prices, 
within limits, work to increase the amount of recoverable 
energy in a field because it will pay to invest the addi-
tional money to extract more energy.

Another way to rationalize your position is that your 
energy investment is a bond substitute of sorts.

Even so, you've got a very big commitment to energy and 
should reduce it.

Q: It appears to me the Federal Reserve is controlling 
inflation by controlling interest rates. If this is true, 
could a rogue Fed actually induce hyperinflation or de-
flation? -- H.C., Dallas

A: While the Fed is seen as our inflation fighter, it's 
no longer clear whether Federal Reserve actions have much 
effect on inflation as we usually see it. Recent interest 
rate increases may have an effect on asset inflation 
(think houses), but it appears to have little influence on 
the cost of inexpensive foreign goods, which are a source 
of deflation. It also seems to have little influence on 
domestic services, which are a source of inflation.

Our central bank, like all central banks, has the power 
to increase or decrease the supply of money. But I doubt 
we'll ever see a "rogue Fed."

What some fear is a reserve bank that helps the federal 
government finance perpetual deficits by monetizing more 
and more debt. It's notable that Richard Fisher, presi
-dent of the Dallas Federal Reserve Bank, has repeatedly 
stated in speeches that it is important that the Fed NOT 
monetize federal debt.

------------------------------------------------------------

*** We Just Came Here To Do The Super Bowl Shuffle ***

Here it is...the 20th Anniversary edition of the Chicago 
Bears Super Bowl Shuffle. This is a must have for any 
sports fan, whether you're a Bears fan or not. This DVD 
will remind you of one of the best defenses in football
history. And still to this day we haven't seen a defense 
as strong since the 1985 Chicago Bears. For a limited time 
this DVD is available for just $9.99. Order by visiting:

Chicago Bears Super Bowl Shuffle DVD

------------------------------------------------------------

Q: My wife and I are having an ongoing discussion about 
the benefits of using a credit card every time we buy 
something. We have been advised that the "free" mileage 
and other related benefits far outweigh the cost of the 
card. I say that it is a bit of a scam. My wife says I'm 
a bit on the wrong side. What do you say? -- R.I., San 
Antonio

A: If you think of airline miles as a form of currency, 
the currency has been losing its value rapidly. Using 
the currency has become more difficult, and the number 
of miles needed to get a "free" flight has in-
creased. 

For most people, the value obtained by using a credit 
card is completely offset by interest payments on out-
standing balances and purchases that would not have been 
made if it had been necessary to pay cash, write a check 
or use a debit card.

If you have trouble paying your monthly charges, have a 
lot of consumer debt, or fall short on your savings goals, 
you should reduce or limit the use of credit cards. If 
you pay no interest on credit card debt, have little other 
debt and are meeting your savings goals, your credit card 
is "convenience cash," and you should collect travel rewards.

(Investor's Insight reflects the opinions of experts. It does 
not recommend any specific investments, and no endorsement is 
implied or should be inferred. For more information, contact 
the individual firms cited).

COPYRIGHT 2005 UNIVERSAL PRESS SYNDICATE

-----------------------------------------------------------

          GopherCentral's Question of the Week

Do you think that Iran poses an imminent threat against 
the United States?

     Please take a moment to share your opinion, visit:

Question of the Week

************************************************************

Want some Fun and Amusements sent to your email F-R-E-E?  
Visit:
More Fun & Newsletters
____________________________________________________________
END OF INVESTOR'S INSIGHT
Copyright 2006 by PENN LLC. All rights reserved.
Go ahead and forward this, in its entirety, to others.

E-Mail this issue
Subscribe FREE to Investor's Notebook by clicking here.

The Investor's Notebook Forum
Is Vanguard the way to go?
gifting
Which Investment
View this Forum | Post a topic to this forum






Money - Everyone Has A Price

Watch Video Clip

Home | Newest Editions | Most Popular Issues | Free Newsletters