petyaczar

Four Banks to Bank on - Barron's

A sage piece of macroeconomic advice I got from my Harvard Finance Professor, oh so long ago before the U.S. government was running the economy and telling corporations whether hey could own jets, or how their people should be paid, who they must hire, or how they should travel.

"when moving into good times = buy equities, become a partner in good bsinesses, and when moving into bad times, buy hi quality investment grade BONDS,, be a creditor to good businesses, but not their partner"

My old Northwestern Finance Professor also had sage financial advice.
He said, "When it comes to finance and investing there are only 8 considerations- everything else is mousenuts"

1)Ilegal/ethical Is it ok? -what would mom & dad say if they found out ?
2)How much will my profit be how much?
3)When will I get my return (capital + profit) how soon?
4)How safe my return and my money? how certain?
5)In what form will I get it (cash,equity,goods,ser... how?
6)Tax considerations what's the govt's take?
7) Does it sound too good to be true? how credible?
does it pass the "smell test?"
8)Do you really understand the deal? can you explain it to mom & dad?

He also said, "Never entrust your funds to an individual, better to rely on organizations, as individuals may come and go - Madoff - but the organization remains in place and responsible - Vanguard,Fidelity etc.

How true these words were. They ring more true today than ever. AND we didn't need computers to understand or figure out these financial and economic axioms.

IMO, on this basis I wouldn't touch the banks with a 10 foot poll or a 5% depreciated dollar,