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April 20, 2011

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Mike Brady
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Michael Brady, President
Generosity Wealth Management
1818 16th Street
Boulder, CO  80302

P 303.747.6455
F 858.947.3807
www.generositywealth.com  
Registered Representative of and securities offered through Cambridge Investment Research, Inc.  Member FINRA/SIPC
Investment Advisor Representative of and Advisory Services offered through Generosity Wealth Management, LLC., a Colorado Registered Investment Advisory firm 
Generosity Wealth Management, LLC and Cambridge Investment Research, lnc. are not affiliated companies 

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The Dow Jones Industrial Average is an unmanaged, price-weighted index of 30 large capitalization stocks with dividends reinvested.

 

The Standard & Poor's 500 Index ("S&P 500") is an unmanaged, market capitalization weighted index of 500 widely held stocks, with

dividends reinvested, and is often used as a proxy for the stock market. 

 

The Nasdaq Composite is an unmanaged, market capitalization weighted index of stocks listed on the Nasdaq Stock Exchange, and are reported as price return without reinvestment of dividends.

 

Indexes are often used as a proxy for the stock market and cannot be invested in directly.


Greetings!
  

A puzzle that was so hard the first time around is simple in hindsight.

 

This is known as Hindsight Bias.

 

This week I talk about the psychological phenomenon of Hindsight Bias and investors' over reliance on Performance Numbers.

 

Click on link below

 
Hindsight Bias and Performance - Video  
Time to Buy Municipals?
Muni Bonds

I've been negative on the finances of state and local governments for some time, and continue to believe it will get worse before it gets better.

This article takes a contrarian view, particularly on the debt, which I want to present to you.

He argues there are "diamonds in the rough",
which is almost always true. 

I'm still quite negative on municipals in general, but it's good to see the other point of view.



Understanding Risk Management           
 Risk Management    

John Paulson, a smart, rich, and successful hedge fund manager, has some pretty good words about "Risk" in a paper he recently published.

Put simply, you have to understand what the Risk is before you come up with bumper sticker phases like "if you watch the downside the upside takes care of itself".

Interesting article.....

 

Understanding Risk Management - Link 


10 Tips for Charitable Giving During Retirement

Charity


Just because you're retired, doesn't mean you can't be charitable if that's one of your goals.

But, to get the most out of your giving, I have some tips for you.

Here are 10 tips





I'm in East Africa right now

While you're reading this newsletter, I'm in East Africa working with 2 charities--BeadforLife and Bearing Witness Rwanda.  Both are great organizations and I look forward to sharing more with you upon my return.

As all my clients know, even when I'm out of town I watch things closely and (with modern technology) am available in short order.  If you leave a message or an email, I'm back with you before you know it.

I love Africa, the African people, and the good work we're doing here.  Africa is improving and I'm proud to be associated with groups that are making a difference.

Happy Easter to you all.  I return on April 23rd.
     

  

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I'm here to help!....

I'd love to talk more with you about the above topics or anyway I can help you grow and preserve your money while providing for yourself, your family, and community.

Mike