September 2008 - The Parklander Magazine

More documents

Recommendations

Info

FINANCIAL INFO Composing Your Financial Symphony By John Abrams My son, Matthew has just completed his first year at the Frost School of Music at the University of Miami. One of his objectives is to develop his craft of music composition. He has enlightened me with the sounds of Bach, Beethoven, Brahms, Roger Sessions, and John Cage. Any composer of serious music will tell you that creating a symphonic work is a delicate balance of sounds, melodies, dissonance and harmonies. Each instrument creates unique sounds, vibrations and timbres and when heard alone, may not create the effect intended by the composer. For instance, a flute may not have the colorful sounds, but when introduced with the sounds of oboes, French horns, and clarinets, you have the beginning of a masterful composition. Hence, the true art of creating a masterpiece is combining melodies, counterpoint and harmonies which results in intended blended sounds. In this respect, composers and investors share some similarities. Successful investing typically combines a number of different investments of various durations simultaneously in order to create a portfolio that is “in tune” with the investor’s goals and objectives. It’s no coincidence that such a technique is the foundation for one of the most basic financial investment principles- asset allocation. Asset allocation is the process of attempting to decrease financial risk by investing monies in different asset classes. The major asset classes that investors are familiar with include stocks, bonds, and cash; however, there are dozens of other asset classes, i.e., real estate, currencies, commodities, derivatives, etc., that can make up an entire masterful well- diversified portfolio. Mutual funds often represent a combination of asset classes, but they may consist of just one asset category, such as a gold fund. At that point an exchange traded fund (ETF) may be a better “instrument” because of liquidity, lower management costs and individual ownership. Overall, asset allocation may help reduce investment risk or “beta” while achieving potentially higher returns. That’s because different categories of investments react differently to specific changes in the economy, interest rates and geopolitical landscape. Now, in 2008, stock values are plummeting within the major indexes, however bond values are also decreasing, especially those with shorter durations. This is due mostly to the Fed Chairman, Ben Bernanke, lowering the Fed Funds rate to 2.00 % which inversely raises the prices of those bonds. Does this necessarily lower the prices of stocks on Wall Street Not necessarily. As we saw the Fed lower the rates, we saw the stock market go up in prices. So, opposing correlations between asset classes typically reflect the supply and demand in those markets. For example: when the demand in bonds increase it’s usually because the interest rates are raised higher, and the money usually shifts out of the stock markets into bonds, because higher rates translate into higher costs for corporations and banks. The problem with trying to create an asset allocation today is that the stock market is now a bear market (20% down from its high on 10/08/2007), and the bond yields are going up because of inflationary pressures. If you allocate into bonds, you will lose value as the bond yields move up, an inverse relationship. If you move into stocks, you will lose value as the Fed can’t lower rates any more to help spur more growth.This is the scenario of a recession that most economists will recognize probably later this year. If this recession becomes global, then it will become more protracted. So how do you asset allocate your portfolio There are many asset classes to move into other than stocks, bonds, or cash. We’ll cover those asset classes next month when we compose our greatest composition that is music to our portfolios. 132 SEPTEMBER 2008 John Abrams is an Investment Specialist, and a Financial Services Representative for Cypress Financial Group, an office of MetLife.
www.ParklandTwins.com Maria Mulligan (954) 290-8881 Michele Nicholson (954) 290-6808 Email: Parklandtwins@aol.com Buying or Selling Call Us Today Your Pet Friendly Realtors The Time to Buy is Now! Let’s Get it SOLD There is no need to shop around. We represent multiple AM best A rated carriers. One call does it all. Call the experts at Bill Daly Insurance today to ensure your Home & Autos are properly protected. Call for your FREE no obligation quote In Business in South Florida for over 30 years. The hiring of a lawyer is an important decision that should not be based solely upon advertisements. Before you decide, ask us to send you free written information about our qualifications and experience. the PARKLANDER 133
Page 1 and 2:
THE FAMILY FRIENDLY MAGAZINE SINCE
Page 3:
HERON ESTATES OCEANSIDE CONTEMPORAR
Page 7 and 8:
Direct: 561-289-9294 www.GraceNoeth
Page 10 and 11:
EDITOR’S NOTE Remembering 9-11 an
Page 12 and 13:
Dedicated Dental Dr George Gounakis
Page 14:
IN REMEMBRANCE This article was wri
Page 17 and 18:
FOX RIDGE ESTATES 5642 SF • 5BR/5
Page 19 and 20:
In closing, a word about flip-flopp
Page 22 and 23:
COMMUNITY NEWScontinued from page 1
Page 24:
Hairweaving by Rhoda is the oldest
Page 27 and 28:
Professional Nail Care for Ladies a
Page 29 and 30:
the PARKLANDER 27
Page 32:
HOME DESIGN M E E T C E C I L H AY
Page 35 and 36:
Locate items in the ceiling such as
Page 38 and 39:
HOME THEATER ENTERTAINMENT SYSTEMS
Page 40:
HOME DESIGN V By Saerina Tauritz V
Page 43 and 44:
Candlelight, combined with a down-l
Page 45 and 46:
Any Repair with Ad ▲ FREE Estimat
Page 47 and 48:
20%-30% off Team & Group Discounts
Page 49 and 50:
MID: People always say that they wa
Page 51 and 52:
For All Your Plumbing Needs • Res
Page 53 and 54:
TILE AND MARBLE RESTORATION Our Pro
Page 56 and 57:
COMMUNITY SERVICE Lend a Helping Ha
Page 58 and 59:
What does a 96 year-old-Countess ha
Page 60:
ARTS&ENTERTAINMENT Fills Neighborho
Page 63 and 64:
Highlighted as a centerpiece of thi
Page 66 and 67:
ARTS&ENTERTAINMENT By Bill Johnson
Page 68:
ARTS&ENTERTAINMENT DAN DADDONA cont
Page 71 and 72:
the PARKLANDER 69
Page 73 and 74:
Tennessee Williams became a regular
Page 75 and 76:
By Jack Bloomfield “What Can I Do
Page 77 and 78:
Vitamins • Supplements Health Foo
Page 79 and 80:
BRING BACK YOUR ROSH HASHANAH MEMOR
Page 81 and 82:
NOW OPEN! Chef/Owner Mario and his
Page 83 and 84: ROUND CHALLA Submitted by Sarah Bis
Page 85 and 86: Love to Bake Apple Pie $5.00 OFF BO
Page 87 and 88: aked to perfection. Next, we thorou
Page 89 and 90: Hibachi Lunch $ from with soup 9.95
Page 92: Parkland Library Events for Septemb
Page 95 and 96: 7700 NW 84 Avenue • Parkland, FL
Page 97 and 98: Stoneman Douglas High School By Ama
Page 99 and 100: Parkland’s Second Annual Child Sa
Page 101 and 102: SCHOOL SAFETY Back to Basics By Bro
Page 103 and 104: IMMIGRATION ATTORNEYS BOARDING, TRA
Page 105 and 106: flowers, Yarrows help to attract be
Page 107 and 108: If you’ve ever gone through a hur
Page 109 and 110: Rescuing “STARBUCKS BAGELSWITH”
Page 111 and 112: Parkland Chamber of Commerce The Pa
Page 113 and 114: Carol Johnson continued from page 1
Page 115: LOOK YOUNGER, SMARTLIPO FRAXEL SKIN
Page 119 and 120: 2825 N. University Dr. #410 Coral S
Page 122 and 123: Attention Women - There is a Better
Page 124 and 125: “I work with people NOT just clin
Page 126 and 127: Eagle Eyecare Designer Frames & Sun
Page 128 and 129: Need A Rabbi Rabbi Richard Polirer
Page 130 and 131: BUSINESS INFORMATION Keys to Starti
Page 132 and 133: SENIOR CONCERNS My House or Yours B
Page 136 and 137: LOCAL MARKETPLACE “Finest Materia
Page 138 and 139: Open 24 hours a day, 7 days a week.
show all

September 2008 - The Parklander Magazine

You also want an ePaper? Increase the reach of your titles

Delete template?

Save as template?