Rebalance And Diversify

The stock market has not been very kind to your investments lately. Your broker knows this so you may have received a call from him suggesting it is time to 'rebalance and diversify' your portfolio.

What does this really mean? He wants you to sell some of your holdings and buy something else. Probably sell stocks and buy bonds "because of market uncertainty". Sounds good, but it really means he needs some commission and you are "it". Yes, I agree it may be time to sell all your stocks and mutual funds and put everything in a money market account until this bear market is over. Your broker doesn't like money market funds because he doesn't make any commission. That may be why he never recommends them.

Rebalance doesn't have any true stock market meaning. It is one of those Wall Street words they use to confuse you. It sounds good, but that's all.

Diversify is another broker and financial planner favorite. Have part of your money in stocks, some in mutual funds, bonds and maybe 5% in a money market so you can take advantage of an initial public offering when a new one comes along. Yeah! Now let's try the true meaning of diversify: put some here, put some there and a little there (and all of this does generate commission, of course) because I really don't know what to do so we will spread it around and hope for the best.

No, I don't hate your broker or financial planner. It is just that I know they have not been trained to protect your capital or how to make money. How do I know that? I used to own a brokerage company and I know how these guys consistently lose their customers and their own money. Yes, they even do it to themselves. That's how dumb they are.

If you have lost money this year in your nice "safe" mutual fund you are not alone. Did you know that 99% of all stock mutual funds have a loss? Scary isn't it. Is there any thing you could have done to have protected your capital from a major loss? Yes there is.

For example, in 1998 you could have bought Janus 20 mutual fund for about $40/share. You and several hundred thousand others did. All of you watched as it went up to $94/share. Wonderful! Uh oh, it is now selling for $35. If you had been told by your broker (and you weren't) that it is a good policy to protect your profits with a mental stop-loss order of about 10% you could have sold out at about $80/share, but you are in for the long haul and you are a conservative investor so you won't sell.

The term conservative investor is an oxymoron. There is no such thing when you have your money on the line. You are a speculator. It happens to be that you are a long-term speculator. And they get just as burned as the day traders. It just takes longer.

Don't fall for the nonsense of rebalancing and diversifying. When one of your holdings starts down more than 10% just sell out. You want to diversify and rebalance into cash until this bear market is over.

Al Thomas' book, "If It Doesn't Go Up, Don't Buy It!" has helped thousands of people make money and keep their profits with his simple 2-step method. Read the first chapter at http://www.mutualfundmagic.com and discover why he's the man that Wall Street does not want you to know.

spring cleaning service Lincolnshire ...

In The News:

Michigan's new prison scoring system claims 30% better violence prediction, but Recidiviz says it doesn't actually use AI to classify inmates.

University of Texas at Arlington researchers reveal how AI analyzes public Instagram posts to craft spear phishing emails that feel personal.

VOLTA-AUTODOXER malware uses AI to analyze stolen data and rank victims by potential value, helping criminals target the most profitable accounts.

Daimler Truck's Oregon demos show how a Freightliner Cascadia's automatic emergency braking responds when dummy cars suddenly cross a moving truck's path.

Facebook ads promising to recover stolen funds are targeting scam victims again, and Meta confirmed removing flagged accounts after investigation.

Tesla Cybertruck production is winding down at Gigafactory Texas to make room for Cybercab robotaxi manufacturing, but key questions remain for owners.

Identity theft can hide in phone accounts, medical records and utility bills long before it shows on a credit report. Eight places to check now.

JR East's towering ZIZAI ZX-3 chainsaw robot tackles dangerous branch-cutting along Japan's Koumi Line while a trained operator controls it remotely.

A massive DHS data leak exposed records of over 41,000 employees, revealing links to undercover ICE operations, Palantir tools and AI platforms.

The Fox News AI Newsletter covers the latest artificial intelligence technology advancements, including the challenges and opportunities AI presents now and for the future.

UCLA's PhoneBot turns old Android phones into the brain of a two-legged humanoid robot that walks, follows people and stands up after falling.

A fake Amazon invoice charging $988.18 for an iPad lists the same customer support phone number three times to steer panicked victims into calling.

A handful of food delivery robots from Uber Eats and other platforms have gotten kicked and knocked over in Philadelphia and Los Angeles.

Data broker opt-out forms may not protect your family. People search sites can still expose your info through a spouse's or parent's profile.

Apple's first touchscreen MacBook Pro starts at $2,899 with a PROLED XDR OLED display, but the non-touch M6 model costs $900 less at $1,999.

Black Friday deals are already drawing scammers who use fake delivery notices and gift card payment requests to steal your personal financial information.

Apple's iPhone Duo reportedly outlasted the Samsung Galaxy Z Fold 8 by over three hours in battery tests, but its weight and repair costs raise concerns.

Florida Polytechnic University's Jetson ONE eVTOL police vehicle named Astro still awaits FAA authorization before officers can fly operational patrols.

OpenAI's new locked chats feature lets you protect ChatGPT conversations with a PIN, Face ID or Touch ID, but there are key privacy limitations.

A phishing email disguised as an Evite fooled a man even after he emailed his friend to verify it, revealing how compromised Gmail accounts aid scams.

Microsoft's AI diagnostic system identified 83% of complex medical cases in a study, more than doubling the 36% accuracy of generalist doctors.

Account takeover threats go beyond stolen passwords as criminals exploit session cookies, SIM swaps and MFA fatigue to bypass your login security.

SpaceX is reportedly pursuing access to 80,000 cell sites to turn Starlink into a major wireless carrier rivaling Verizon, AT&T and T-Mobile.

Tech advocacy groups warn that foreign nationals at AI companies like OpenAI and Google pose a national security threat amid a lack of federal oversight.

Singapore researchers built the world's first touchscreen woven into clothing, surviving 50 machine washes while displaying images and responding to touch.

Rebalance And Diversify

Stocks & Mutual Fund