A Word of Advice to Financial Authorities « plumbreport.com – Chip Plumb

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Article Review:

January, 2011

A Word of Advice to Financial Authorities

I reference Bill Bonner frequently in these pages and it’s not nearly enough. He is the founder of Agora Inc. and the driving force behind one of my favorite websites, The Daily Reckoning. I admire his ideas, writing style and the life I imagine he lives. Since, he too spends much of his time in Paris, perhaps one day our paths will cross. In A Word of Advice to Financial Authorities, Bonner lays out one piece of advice taken directly from the annals of financial history and today’s newspapers.

When you have more debt than you can pay, it is always best to own up…default…hang your head…say you’re sorry…promise not to do it again…

…and go about your business. And do it as soon as possible.

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Tags: debt, economy, financial crisis
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Plumb's Guide to Investing

Over the years, many people have asked me for investment advice. This section is my answer to the question, “Chip, what are you doing with your portfolio?” It details the portfolio I use to implement my investment strategy— the Plumb Performance Portfolio©

Plumb Performance Portfolio

Further details and return history about the Plumb Performance Portfolio.

Questions & Answers

May, 2011
Q: Can you comment on building positions within the PPP?
June, 2010
Q: How does the gold/silver ratio impact your allocation?
April, 2010
Q: How important is it to adjust my allocations monthly?
January, 2010
Q: What about individual TIPS vs. a TIPS fund?
November, 2009
Q: Do you see REITs as totally miserable?

“...an investor who proposes to ignore near-term market fluctuations needs great resources for safety and must not operate on so large a scale, if at all, with borrowed money. Finally, it is the long-term investor, he who promotes the public interest, who will in practice come in for the most criticism, wherever investment funds are managed by committee or boards or banks. For it is the essence of his behavior that he should be eccentric, unconventional and rash in the eyes of average opinion. If he is successful, that will only confirm the general belief in his rashness, and if in the short run he is unsuccessful, which is very likely, he will not receive much mercy. Worldly wisdom teaches that it is better for reputation to fail conventionally than to succeed unconventionally.”

– Lord John Maynard Keynes

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©2009 PlumbReport.com

The opinions as to portfolio allocation and specific investment vehicles contained herein are solely the opinions of the author and are not intended to be specific recommendations which would be suitable for every investor. The suitability of any specific investment or recommendation is dependent upon many subjective factors and characteristics of the individual investor including, but not limited to, particular investment objectives, risk tolerance, investment horizon or timeline, net worth, overall portfolio allocation and income needs. Specific investments may be suitable for some investors and yet unsuitable for others due to different needs and objectives. All readers should carefully consider their individual objectives and needs and should consult with their investment and financial advisor as to the suitability of any particular investment. The author specifically disclaims any liability or responsibility for any losses, which may result from any investment or allocation referenced herein.