That’s the new cool thing to do today, proclaim the death of the individual stock investor. Both articles cite the same data and come to the same conclusion: The average investor has had it and is throwing in the towel after years of poor returns.

But I ain’t buying what they are selling!
These articles are fun reads that attracted tons of attention. But both are also misleading to the point of possibly being entirely wrong, thanks to a clever journalism tactic of citing one breezy fact followed by layers of emotion-laced anecdotal personal stories to solidify the arguments.

The foundation of both articles is mutual-fund flow data from the Investment Company Institute (ICI), which shows investors recently pulling money out of stock market mutual funds, while demand for bonds explodes. Thus, they conclude, stock investors are abandoning ship.

But all this data shows is that investors are fleeing stock mutual funds. Neither article attempts to address the truism that mutual funds have lost sway over the years as other low-cost investment vehicles, particularly ETFs, have taken their place.

Coincidentally, ICI also tracks ETF assets. And guess what? From February 2009 to June 2010, during which time investors pulled $9 billion out of stock market mutual funds, stock market ETF assets increased by more than $250 billion. Some of this reflects capital appreciation and not new money flows. But even during periods when the market went nowhere — October 2009 through June 2010 — stock market mutual funds outflows of $4 billion were dwarfed by stock market ETF assets increasing by $51 billion.

There’s a good chance, therefore, that plenty of the money fleeing stock market mutual funds and terrorizing the media is simply moving into stock market ETFs. This isn’t surprising: Many ETFs achieve everything a mutual fund can for a fraction of the cost. Who wouldn’t want to exchange a mutual fund charging 1.5% for an identical ETF that charges nearly nothing? Outflows from stock mutual funds might not signal the death of the stock investor as much as they do the death of the mutual fund.

But that poses another question: If stock assets haven’t been whittled away, then where is the torrent of cash flowing into bonds coming from? The answer might again be found in ICI’s data, which shows investors have pulled over $1 trillion out of money market funds since early 2009. Hungry for yield in a zero-interest rate environment, that’s not surprising either.

Ready for the next round
Individual investors’ confidence in the stock market has surely been trampled senseless, but assuming their demise seems overstated. Consider E*TRADE Financial’s year-over-year quarterly results: Number of brokerage accounts? Up. Total assets? Up. Margin debt? Way up. Hardly what you’d expect from a dying crowd.

At the same time, it’s well documented that bonds are currently encircled by insatiable, almost psychotic, demand, while the appetite and valuation outlook for stocks is relatively muted.

What this all shows, I think, are individual stock investors who have not given up on stocks, but are hanging on while expecting much less out of them. Any way you spin it, that’s a positive development. It shows rationality making a comeback; it shows bubbles being burst; and, most importantly, it has made stock picking about as lucrative as it’s been in years.

I’m not sure why anyone with more than a short time horizon would prefer Treasury debt to any of these companies. More than that, I’m confident there are plenty of individual investors (like you!) ready and able to exploit these opportunities.

Your death, in other words, has been grossly exaggerated.

Analyst keep an eye on the discretionary companies, which are companies that make products consumers don’t actually need (not the toilet paper company lol). This can be everything from the hot new brand flooding the highschools to the odd stuff like like a company that makes cell phone covers.

Never hurts to keep an eye on the silly stuff because you never know when you will find the stock to make back all you lost during the recession.

Some to keep an eye on (that you have heard of) Carnival Cruiselines (Ticker: CCL), Dress Barn (Ticker: DBRN), and Home Depot (HD). I also, and will always like Harley Davidson Motorcycles (Ticker; HOG).

I guarantee, except in rare cases, that raising a dog the right way will decrease feelings of loneliness, being unwanted, useless and the self-absorbed daze that often takes over. I’m not advocating a puppy over Prozac. However, when you have a dog cuddling up against you and trying to lick your face, it’s a lot harder to be down.

I know people who are over-the-top about pets – I’m not one of them. However, as a practicing psychotherapist, I realize the therapeutic value of having an animal.

The statistics are convincing. People suffering from heart problems, hypertension, strokes, different types of dementia and certainly psychological illness, can measurably benefit from being able to touch a dog, cat and other two- and four-legged boarders. What is it that makes this work for so many folks?

First, let’s talk about touch. While it may be preferable and more practical to exchange touching with a spouse or other family member, the effects of touching a loving animal can be a major positive.

If you’ve ever seen the chemistry between a nursing home patient and a dog or cat that nuzzles up and cuddles with him or her, the response is often immediate and positive.

Having a pet may also cause you to feel needed. In fact, it makes many of us feel really good – being unconditionally loved and appreciated.

Dogs need exercise and so do people, in order to feel good and be physically healthier. Dogs need socialization. So do most of us, if we’re going to feel whole and non-neurotic.

Like all relationships, owning a pet comes with responsibilities. It can be time-consuming and occasionally hard work. As a dog owner, I’m aware that in tough financial times, caring for even a healthy pet can be expensive, with just vet and food bills alone.

Keeping pets can also be restrictive – what to do when you want to travel for extended periods of time. Both cost and care can become issues.

Although some dogs seem to display affection even when they’re mistreated, a mutually affectionate, caring relationship is the way to go. With proper training, (they are not humans) which takes practice and knowledge, the pet and owner do better together.

Let me also mention the value of humor that comes with having “Fido.” If you’ve ever been to a dog park and watched their social play in small canine groups, you understand the smile it creates as it makes your day brighter.

From my point of view, the major problem with emotional and physical disorders is the resulting inability to function normally. I’m not saying that dogs can tell when you’re lazy or crazy, but rather that they help normalize many of us.

They often provide a connection with caring and positive thinking, which, in turn, makes us feel better. Incidentally, trained dogs have been used in therapy with young children with great success.

Bob Howat is a licensed marriage and family therapist who lives and practices in Fernandina Beach.

While Americans face an unrelenting battle of lost jobs, reduced wages, and eroded retirement saving many, are returning to schools. Americans of all ages are hitting the books to be educated, re-educated or purse graduate degrees in the hope of better positioning themselves in the job market. Finding a job, even with exceptional experience, has become a bloodsport almost resembling Gladiators in the coliseum.

The problem is, with everyone returning to school to become “better positioned” they join the masses and become the new educated group of specialized people who still can not find a job.

The key to success is simple, gain experience, education and diversify your skills as professional – avoid the pitfalls of being a one hit wonder.

Technology has provided great advancement, yet it has made our lives so full of information yet we get overloaded. We should take this technological opportunity and use it to our advantage. This idea hit me months back while using my iPhone to watch and listen to an accounting presentation for one of my MBA courses while in route to the beach. Even now I write this from my iPhone in an empty waiting room at my local auto center. I’m using this App-ortunity to share how technology has for me, and can for you, change your life.

Whether you need to work but also need to take you dog to he vet, or the long subway/train commute to work acts as your “email break” prior to starting your day. The possibilities for improved function and life freedom via technology is near endless.

Some of you must be thinking I am paid by Apple for all the promotion I do regarding their stock and my love for the iPhone. The truth is, this company and product ROCK!

Here are some examples of how I worked efficiently with my iPhone:

- Wrote a graduate level paper in the car on a roadtrip.
- Reviewed exam material while walking to class.
- Work on financials for a clients business plan while at a friends house pre-gaming*. (*note: this may cause drunk f(x) in Excel….LOL)
- Check emails and reply while walking the dog
- The list goes on and on…

Warning! This does not mean work all the time; it means work smart so you can be efficient in your work life and benefit in your home life.

An example would be an artist by heart and a teacher by trade who retires and dives into his passion to full-force. He soon finds his hobby has developed into a Baby-Business or micro-business that brings in some money yet never feels like work.

Not to condone tax evasion but many of these baby-businesses can avoid the incorporation mess and “business” feel by simply being paid by check or cash without all the headaches.

Checkout this website for more useful information: http://www.microbusinessnewsbriefs.com/

Dear parents other old people,

Facebook is an amazing social tool utilized by students and younger adults to communicate and stay up to date on what their peers are doing throughout the day. Though we added you as friends on Facebook you need to understand there is a social network etiquette that needs to be followed. Please use the following list as a Guide to Better Facebook Etiquette.

FACEBOOK – PARENTAL GUIDELINES:

1.  If a message is urgent, CALL ME! Facebook is not intended as an online 911.

2.  If a message is private, personal or otherwise not intended for the world to see email me or send a private message. Facebook Walls are, sadly, the same as the bathroom wall – put your marker away.

3.  Comments on photos, status updates and others replies are intended for me or between us. Leave parental remarks out of your messages please.

4.  Many of our Facebook friends are just friends we know through someone else or over the years and do not talk to daily. Just because they are my “friend” does not mean you need to add them as your friend.

5.  Avoid using names unless you are completely sure. This is a new age of dating and relationships saying “Hope you and Sarah had a great weekend.” It’s not ok when I was out of town with Megan.

Note: We can delete you, block you, or add you to the “Black List” which will limit your ability to share in our wonderful Facebook experience. Please comply with the above guidelines.

Thank you

The concern on the street is banks and lenders holding this money too close to the chest or lending to their own subsidiaries instead of lending to the Mom-&-Pop business that are needed to create local jobs and boost the economy. Read more on the by USA Today at http://tinyurl.com/y9ys8w2

Too many couples face the problem, sooner or later, who is in charge of whos money? Whether one person spends more, or someone is better at financial management than the other there is always a problem over money concerns. A friend of mine got married and immediatly had to put everything he had into a joint account with his wife. This was forced on him by his family and by hers. On one hand I understand the seriousness of marriage and how it is the joining of two people both spritually and legally. On the other hand it is not 1832 anymore and people get divorced more then they stay together.

Personal safety is a must in todays worlds of on again and off again relationships and marriages. Making sure your future and family are cared for is not selfish, it’s smart. Keeping a safety net of funds in another bank or investment is not bad and you can even have it automatically turned over to your spouse in the chance you die or become unable to care for yourself. The truth is, in marriage, family and business you are only as strong as the weakest link. Couples can hid from the truth or focus their abilities on strengths.

Divided-Diversification is a term I coined meaning – diversified joint funds in a seperate location and management. If you take a married couple divide there assets equally or not and then diversify the investments in accordance with their natural investment styles you have a strong chance capital preservation. If the wife is a financial analyst and knows the ins and outs of the stock and bond markets and the husband is a real estate agent split the investment responsiblity accordingly.

Using a around number, $1,000,000 (common joint value of investable capital – 401k, stock accounts, etc) here is an example of how this can be achieved.

The wife being an educated financial analyst might be better positioned to manage $600k through stocks, bonds, and cash accounts. The husband being a real estate agent should know the local market and thus is better suited to make investments on behalf of the family in tangible assets such as rental property, land and a second home up to the remaining $400k.

Investing is not as complex as people make it out to be. Remember, I said Investing not day trading or picking stocks because those are different beast all together. Investing is the means in which a person or group (investment club, orgainization, etc. ) purchases assets which produce security and growth over time.

Over a long investment horizon all financial advisor suggest someone be invested in equities more heavily than other assets. The point financial advisor do not understand is equity mean ownership in something, not just stocks on an exchange. Stocks are liquid most of the time making them quick in and quick out but there are other investments to be had as an equity asset.

Here is a list of some equity assets:

• Real property (land, real estate, water rights, etc.)
• ownership in private companies (sounds like you need a million dollars for this type of investment doesn’t it? Well you don’t have to have lots of money. You can invest as a business lender to a friend or local business wanting to expand by offering cash for ownership rights – ex: $10,000 for 5% ownership and profit.)
• Foreign property – though this is identical to the above you can avoid paying hefty property tax, etc. by owning land or a home in another country.
• Invest in your company. If you own something you rent, or do consulting, etc. you can create a company and write off expenses associated with that company***. (*** be sure to consult an attorney or CPA for specific advice)