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| Shoreline Wealth & Investment Management |
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Newsletter
May 2004 |
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What if Warren Buffet (often quoted in these newsletters out of respect) is right? He has been saying there are few opportunities in the stock market, one reason why his company Berkshire Hathaway is holding over $36 billion in cash rather than allocating those funds to the stock market or buying businesses in their entirety. He has also suggested that the tax cuts were poorly conceived and promoted with "his class" as the overwhelming winner in their implementation. He believes deficits matter and will have a negative impact upon our economy and currency, one reason he has a $12 billion bet against the U.S. dollar. I don't know if the "Oracle of Omaha" has cheered you up with his prognostications but he has me more than a little depressed.
There are several strategies for dealing with negative as well as positive outlooks, mainly by hedging bets (and not through hedge funds) by allocating assets across a broad spectrum of investments. In terms of stocks, some stocks benefit from trade deficits, a declining dollar and rising inflation while others are hurt by those same scenarios (see article below). If inflation is really back and rates are on the rise, "inflation-protected" bonds are a way to reduce the risk of "fixed income" only alternative with which most investors are familiar. Real estate continues to defy gravity and cash (money market funds, passbook accounts, CDs ...) are paying almost nothing. Still, by properly diversifying, you can reduce risk and outperform the "averages." Read the "Bottomline" section at the right to see some real results.
| Selecting an Advisor |
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 Warren Buffet, the most successful investor of the 20th century learned his craft from Benjamin Graham, author of several books including the legendary "Intelligent Investor." This has been recently updated by Jason Zweig who includes 16 key questions to ask your advisor and 11 an advisor might ask...
Read on... » |
| Understanding Stock Market Investing |
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 Stocks are one form of business ownership. Although most investors are owners of this investment category directly or through mutual funds, not everyone understands how they work (other than seeming to go down immediately after you buy them) or the "classes" of stock ownership.
Full Story » |
| Gifting: Disinheriting Uncle Sam - Part 4 |
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 In 2003, the annual gift exclusion limit was increased. There are many strategies for gifting, one of the many effective ways to transfer wealth before the government gets to share in the estate you have created.
Learn More » |
| Looking for a Speaker for Your Event? |
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 Shoreline Wealth & Investment Management has given presentations to Fortune 500 companies as well as many local groups and organizations. If you are looking for a professional presentation on topics ranging from investments to estate taxes to business or tax law, please contact us
Click here for more details » | |
| The Bottom Line |
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| This is where we provide the performance of our conservative, moderate and aggressive portfolios and compare these to the S&P 500 and NASDAQ Indexes. While they are an important consideration, performance is only a portion of the evaluation investors should consider when evaluating investment management. Other considerations include the risk taken to generate the returns, the quality of the service, the reasonableness of the fees and, more important now than ever, the integrity of the investment manager.
Find out more.... |
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email: cbloom@cfiemail.com
voice: 805.886.3624
web: http://www.swimllc.com/
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