Monthly Archives: June 2014

social finance and impact investing news

Social Finance and Impact Investing News

The world of social finance and impact investing continues to gain traction. That’s why in previous blog posts we’ve written about green investing ideas and investing in responsible companies. So what is social finance?

Social finance is an umbrella term, incorporating a range of approaches that incorporate varying degrees of environmental and social considerations into investing decisions.

“Responsible investments” and “socially responsible investments” (or “SRIs”) are very important to publicly traded securities market, and involve screening companies for Environmental, Social and Governance (ESG) factors. A lot of major banks and mutual fund companies now offer SRIs for individual and retail investors.  Another type of social finance are impact investments.

Impact investments are usually made in privately held companies that offer a market-based solution to a social or environmental issue. Impact investments seek to deliver measurable social impact and financial return. As you can imagine, this is a pretty innovative aspect of investing.

So when I saw these new resources on social finance and impact investing, I wanted to share them with you.


It seems evident from the 2014 World Wealth Report that I’m not the only one interested in socially responsible investing and social finance. In fact, the aforementioned wealth report goes on to state that…

“92% of high net worth individuals feel that investing their time, money or expertise to make a positive social impact is important to them, with 61% describing it as very or extremely important. Globally, high net worth individuals are looking to play a great role in supporting their social impact objectives.”

Pretty impressive, right? It’s nice to see investors becoming more responsible about conscious capitalism.  So when I saw these new social finance research papers I wanted to make sure to share them with readers of

New Social Finance Research in 2014:

RBC (NYSE:RY, TSE:RY) is a reputable thought-leader in the world of social finance. And so it should come as no surprise that they’re dedicated to publishing innovative new research on the field of social finance.

Their Community and Sustainability group has done a wonderful job compiling Social Finance Research, that provides valuable insight for anyone interested in the space. And they’ve just released a new white paper that shares great context and insight into the evolving world of social finance and impact investing.

The paper is called “Financing Social Good – A Primer on Impact Investing in Canada.” This research takes an in-depth look at the intriguing business revolution being catalyzed by social and environmental problems. Learn how market-based solutions are changing the way investors think about returns and capital allocation in the face of complex social and environmental problem.

As you can see, this resource goes a long way to helping bring individual and institutional investors up to speed on what’s happening in the world of social finance and impact investing. It’s important stuff. And I encourage you to bookmark the RBC social finance resource page as they are always updating it with new information.

And By The Way: If you want to stay up to date with a contemporary approach to intelligent investing, I encourage you to download my eBook below. You can get your copy free to see how I’ve improved my approach to stock market decision making to make capital gains more consistent. You’ll also get free tips and tools each week with my favorite stock market tips and tools.

The Warren Buffett Way Book Review

Warren buffett way book review

Read this book review to see if The Warren Buffett Way is the right investing book for you…

The Warren Buffett Way, by Robert G. Hagstrom, is a New York Times best seller with over 1 Million copies sold. And in this book review, I’ll tell you why it’s such a great investing book.

And you better listen up…

Because to be honest, The Warren Buffett Way drastically exceeded my expectations. Seriously! I thought I was in for a drab overview of Buffett’s investment style and life.

But instead:

I was pleasantly surprised to find The Warren Buffett Way offered much more insightful advice for value investing disciples trying to apply the Oracle of Omaha’s wisdom.


In this book review, I’ll explain why I liked The Warren Buffett Way as much as I did. Thus, by the time you’re done reading this book review, you should have a good idea as to whether or not The Warren Buffett Way is the right investing book for you.

And since I just finished reading The Warren Buffett Way this morning, the lessons and ideas are still fresh in my mind. Now let’s get down to business…

What To Expect From The Warren Buffett Way:

I was a bit hesitant to read The Warren Buffett Way because I’ve already read so much about Buffett. I’ve read all of the Berkshire Hathaway Annual Shareholder Letters. I’ve read The Snowball. And I’ve read Lowenstein’s excellent biography, Buffett: The Making of an American Capitalist.

But I’m glad I decided to give it a shot.

That’s because…

The Warren Buffett Way isn’t about Buffett, as much as it’s focused on understanding how Buffett makes investing decisions (and how you can copy him). I was pleasantly surprised to find that The Warren Buffett Way cuts right to the chase.

The Warren Buffett Way introduces and explains important investing concepts that have shaped Buffett’s outlooks, like the Margin of Safety idea, and the allegory of Mr. Market.

Beyond the ideas, The Warren Buffett Way identifies other investors like Benjamin Graham, Phil Fisher and Charlie Munger, and shows you how they shaped and influenced Buffett’s investing methods.

Finally, all of this information is nicely wrapped up in a summary of Buffett’s 12 investing tenets. These 12 questions are a great jumping off point to evaluate your own investing ideas and stock picks like Buffett might. This thought-framework is especially helpful for readers looking to apply the lessons found in this investment book.

Having read so much about Buffett, none of these ideas or topics on their own were new to me. But the book was a valuable refresher on these important schools of thought. And the added clarification about Buffett thought about these ideas was more eye-opening than I had imagined it would be.

And I haven’t even told you about my favorite part of The Warren Buffett Way yet…

What I Liked Best about The Warren Buffett Way:

The Warren Buffett Way really dispelled with all of the fluff and mythology around Warren Buffett. Instead, it got right down to the business of value investing, and how Buffett applied it.


I think the best part of The Warren Buffett Way is how the author looks back on some of Buffett’s most prominent investments, and compares them to the 12 value investing tenets Buffett lives by. It’s neat to see how the ideas stack up compared to these criteria. Additionally, the investment examples span a course of 30-40 years, so it’s neat to see how Buffett’s investment selection criteria truly do stand the test of time.

Additionally, there is a section of the book on portfolio management that provided a lot more insight into how Buffett thinks about position sizing and risk management. I hadn’t seen these topics discussed from a Buffett perspective in this much depth before, so I also really liked this aspect of the book.

My only “complaint” about The Warren Buffett Way is that some of the chapters were quite long (like the one with the 9 investment examples). This is hardly a real criticism. But it’s the biggest drawback of the book I could think of. So anyway, by now you must be wondering…

Is the The Warren Buffett Way the best investing book for you?

The Warren Buffett Way – The Final Word:

The Warren Buffett Way is a fantastic summary of the way Warren Buffett makes investment decision. While Buffett didn’t provide input on the book himself, he did review the book and apparently didn’t spot any major red flags. So whether you are new to value investing, or a dedicated student of Buffett, I recommend you buy The Warren Buffett Way on Amazon today.

The Warren Buffett Way is an easy and fast read that provides a concise synopsis of Warren Buffett’s investment decision-making methodology. With that in mind, can you really afford not to read The Warren Buffett Way?

If you’re still curious to learn more about The Warren Buffett Way, I encourage you to watch the video book review below….

The Warren Buffett Way – Video Book Review:

Stock and Option Trading Products and Services

stock and option trading products

Can you ring the cash register with these stock and option trading products and services?

There are thousands of stock and option trading products and services available online.  So I’ve done my best to compile the most popular and most effective stock and option trading products and services for your review.

For the sake of disclosure, you should know I personally haven’t used all these products and in some cases these are affiliate links. I’ve organized the services so that you can easily browse them based on your trading style and investment preferences.

There are plenty of trading products, services and systems available so there is bound to be one for you! And By The Way: Email jeff[at] if you want your product included on this list of stock and option trading products.

Now here are some of the best option trading products and services available on the market today…

Option Trading Products and Services

Penny Stock Trading Products and Services

Stock Investing Products and Services

ForEx Trading Products and Services

In addition to the stock and option trading products and services above, I also encourage you to browse our investing book reviews. You’re sure to find a plethora of information to help you make smarter investing and trading decisions in the stock market.

stock options investing signals

Stock Option Investing Signals

Stock Option Investing Signals are a great tool to help you juice your portfolio returns. By fine-tuning your investing signals you can make stock options a constructive contributor to your net worth. Sound good?

Now I’m no OptionsAddict. But I’ve learned a thing or two about trading options over the years. And in the blog post below I’ll share the best stock option investing signals I’ve seen. Plus…

At the end of this article, I’ll also share a little more information about how you can apply these option trading tactics and signals depending on your investing or trading time frame. Now let’s get down to business.

Unusual Stock Option Investing Signals:

The neat thing about stock option trading, is that the stakes are high. Options are highly leveraged and while they can expire worthless, they can also explode to the upside. That’s why…

Paying attention to unusual option activity can be of benefit to stock market (and option) investors and traders. That’s because you know there are smart traders making big bets. And monitoring unusual option activity in the leading stocks can help you get on the right side of this important signal.

My favorite place to keep an eye on unusual stock option investing signals are the CBOE and Schaeffer Research. These two sources give you up to date information about abnormalities in the options market that serve as a great signal.

Now, if you want to go beyond the unusual option activity, you can also look at unusual volume. Volume is an important indicator that can add a lot of context to the moves in the underlying stock. So looking at unusual volume activity can also be an actionable signal.

One of the best ways to get unusual volume activity is from the  unusual volumescreener at Finviz. The great thing about Finviz is that you can easily pare this signal up with your favorite technical and fundamental screeners. If you’re looking for ideas, check out these Finviz stock screening videos to get inspired.

Now just one more note about applying these stock option investing signals…

Applying Stock Option Investing Signals:

The one thing to keep in mind, is that option signals are very time sensitive. Depending on the timeline and the strike price of your options the signals will influence the price of the option to a varying degree. If you regularly trade options, this won’t come as a surprise.

On the other hand, if you’re a longer term investor looking to buy common stock, you can use option signals as an indicator of a shorter-term move. When these stock option investing signals start to line up with your fundamental investment analysis you can really start to knock your stock picks out of the park. Sound good?

And By The Way: Stock option investing signals are only a small part of intelligent portfolio management. If you want to learn more about improving your approach to the stock market you might enjoy my eBook below. It’s totally free. And you’ll also get the best tips and tools each week to help you make smarter stock market decision making.

what does stock market investing provide

What Does Stock Market Investing Provide?

What Does Stock Market Investing Provide? It’s a good question. And since we spend so much time here thinking about stock investing, it makes sense to spend some time reflecting on what investing actually provides you.


In this short blog post we’ll look at what stock market investing provides, for individual and retail investors. The truth is, stock market investing provides more than most people can imagine. But for some reason or another it’s not something most of learn in school.

The sad truth is:

Money is an important part of life. And while a lot of people will say it’s taboo to discuss, if you want to get ahead you need to be comfortable with your capital. So let’s look at what stock market investing can do for you…

Here’s What Stock Market Investing Provides:

I’ve thought long and hard about what stock market investing provides. So below is a list of ideas that you’d be wise to keep in mind if you’re thinking about investing your money in the stock market.

Income: Investing in the stock market allows you to buy mutual funds, index funds and even common stock that all generate income. Dividend yielding companies are a great way to grow your passive revenue. And by accumulating a portfolio of income generating companies you can watch your net worth snowball over time. Dividend reinvestment accounts make it easy for investors of all shapes and sizes to grow their income generating investments over time.

Capital Appreciation: Investing in the stock market doesn’t just provide income. It also has the potential for capital appreciation. That’s because when you buy common stocks in a publicly traded company you have a chance the stocks will go up. Of course, they can also go down too. But long term investors can count on a couple percent of capital appreciation each year. When combined with dividend income this can really do a lot to grow your net worth.

Liquid Assets: Unlike buying a house, investing in the stock market is an easy way to get liquid assets. With discount brokerages and direct investing options, you can buy and sell stocks yourself, for a very limited commission. Instead of paying thousands of dollars to your real estate agent and waiting a few months to sell your house, you can get in and out of your stock portfolio incredibly easily. This liquidity that the stock market provides is another great reason to invest in your best stock picks.

Global Exposure: Investing in the stock market is an easy way to get exposure to other economies around the world. If you want to diversify beyond where you live, the stock market can provide you with ample investment opportunities to whichever country you like. There’s no other easy way to get this global exposure provided by the market.

Inflation Protection: While this might be a little-bit debated, stock market investing generally provides better inflation protection than buying bonds or leaving your money in cash. Since stocks are priced in dollars, they’ll tend to adjust for inflation. Additionally if you invest in food and energy companies, the cost of inflation can generally be passed on to the customer so you are provided with further inflation protection.

As you can see, there are myriad benefits provided by stock market investing. And as you might have guessed, this little blog post is only scratching at the surface. I’m sure if you put your head to it you could think of even more benefits stock market investing provides. No matter your age or income, stock market investing is an important part of your wealth management strategy.

And by The Way: If you want to learn more about improving your approach to the stock market, I encourage you to download your free copy of my eBook below. You’ll learn how I developed a common sense approach to the stock market. You’ll also get free tips and tools each week to help you make more money in the markets.

stock market chatter

Where To Find Stock Market Chatter

Do you ever wonder where to find stock market chatter? Especially if you’re an individual investor, staying on top of stock market chatter can be difficult. So where do you turn?


In this blog post, I’ll share some of the best places I go to get stock market chatter. All of these information sources are easy to access, and provide a diverse range of perspectives that you can tap into to improve your edge in the market. So…

Whether you’re a short-term day trader or a long term investor, there’s bound to be at least one or two options in the list below that you’ll be able to get meaningful stock market chatter from.

Places to Find Stock Market Chatter:

Here’s a list of some of the best places to go online to get stock market chatter…

Twitter is an excellent source of stock market chatter. While it can be a bit noisy at times, the sheer number of traders and investors on Twitter makes it a great place to find stock market chatter. You can create custom lists of traders and investors you respect, or you can use the search function to find specific stocks that are being mentioned. And since everything happens in real time it’s an incredibly way to stay hooked into the stock market news cycle. Here’s a list of the best stock traders on Twitter in 2014.

Stocktwits is like a more refined version of Twitter stock market chatter. It tends to be dominated by shorter-term traders. But there are also some longer term investors that share their stock picks and ideas on Stocktwits. Finally, Stocktwits has some other neat tools like their social heat maps and lists of recommended traders. It’s a great place

Yahoo Finance Message Boards are kind of like the original Stocktwits. These message boards are some of the most popular stock market forums. Just keep in mind that there is no accountability, lots of spam and a tendency for people to be short-term and reactionary. That said, every now and then you can really glean a little bit of insight or a new piece of information you might not have considered. Just be sure to hold your nose while you wade through all the shit.

Another great place to find stock market chatter is from one of the many Premium Stock Market Products and Services that are available online. Once again, no matter if you’re looking for a short term trading system or a more in-depth analytical tool to help you find investment ideas.

Along the same lines, Investing Newsletters are a great way to get curated stock market chatter. By following your preferred stock market spirit guide you can get a balanced perspective that you trust. In a world where everyone seems to have a strong opinion about the stock market, having access to the thought process of a bonafide authority can really make a difference in helping you maintain your stock investing edge.

As you can see, there are lots of places to get up to speed and stay in the know when it comes to stock market chatter. So be sure to keep sampling lots of information sources. That’s the best way to find the stock market chatter that works for you and jives effectively with your personal investment style.

A Word of Warning About Stock Market Chatter:

When it comes to stock market chatter, there’s a lot you can do to get yourself ahead of the curve. But there’s a warning about stock market chatter that’s worth repeating. So just remember…

Always take stock market chatter with a grain of salt! It’s easy to get wrapped up in somebody else’s opinion. But remember that not everyone might have as much integrity as you.

You need to use stock market chatter as a starting point for further research. When you incorporate stock market chatter as one idea-generating or fact-checking aspect of your investing decisions you are well positioned to make the most of this market gossip.

And By The Way: If you’re looking for more insight on how to improve your approach to finding great investment ideas and stock picks, I encourage you to download my free e-book below. You’ll see how I merged multiple investing style to find one that worked for me. Plus you’ll get free tips and tools each week to help you improve your stock market decision-making.

When Genius Failed Book Review

When Genius Failed Book Review

Read this book review to learn if When Genius Failed is for you…

When Genius Failed by Roger Lowenstein is the story of the rise and fall of Long Term Capital Management.

This is the second book I’ve read by famed financial author, Roger Lowenstein. (The first one was Buffett). And you’ll be happy to learn that When Genius Failed didn’t disappoint.


In this book review, you’ll learn exactly what When Genius Failed is all about. I’ll also be sure to share my favorite parts of the book and why I think Lowenstein is such a capable financial journalist. Now, let’s start this book review of When Genius Failed in earnest…

Summary of When Genius Failed:

When Genius Failed is the story of Long Term Capital Management (LTCM). And if you aren’t familiar with LTCM, then that’s even more reason to read this book. In short, LTCM was like the Titanic of hedge funds.

When Genius Failed starts our by profiling the main characters in the LTCM saga, like John Meriwether, a Solomon Brother’s bond trader who recruited the biggest names in arbitrage and academic finance to join his hedge fund.

The first half of the book proceeds along the same vein. When Genius Failed aptly describes the prolific gains that LTCM accomplished. It shows how Meriwether and his crew were able to manage 50% returns and earn billions of dollars for themselves and investors.

Halfway through the book, it seems like LTCM is destined to take over the world of finance. But just like the unsinkable Titanic, Lowenstein identifies potential danger lurking on the horizon. And that’s what the second half of the book is all about.

When Genius Failed goes from demonstrating the impressive rise of LTCM to showing how it all very quickly unravels.  And the second half of the book is where things really get interesting. While the rise of LTCM is dizzying, the comedown is even more shocking.

When Genius Failed gives an apt, entertaining and insightful look at how LTCM came crashing down. The book also very clearly identifies the risks it presented to the major Wall Street banks and even the financial system at large. Put simply…

The story of When Genius Failed is both shocking and captivating. The behind-the-scenes deal making that happens to save the markets (and those major institutions that blindly investing in LTCM) is almost like a prequel to the bank bailout of 2008.

And that leads me to my next point…

The Best Part of When Genius Failed

My favorite part of When Genius Failed is that Lowenstein does an incredibly effective job helping you learn from the lessons of LCTM. The story of LCTM is so interesting that it would have been a good book if all it did was recap the rise and fall of this prolific hedge fund. But Lowenstein goes a bit further.,

In the world of financial journalism, there are relatively few writers who are able to dig deeper into the complex story arcs, and extract the important lessons that you as an individual investor can apply. In the case of LCTM and When Genius Failed, there is no shortage of these lessons.

When Genius Failed is filled with reminders (both subtle and more pointed) about what happens when investors put their head in the sand and blindly embrace ideology.  It’s a stark warning to investors and financiers everywhere, that reality doesn’t always make sense, and yet you can never fully escape it.

I think When Genius Failed was consistent with Buffett, where I think Lowenstein went above and beyond to help you go beyond the entertaining story and learn the lessons embedded in the narrative.

It’s exactly this focus on helping investors learn from the successes and losses of others that makes Lowenstein’s books that much more worthwhile. But it also exposes an unfortunate reality.

The Sad Thing About When Genius Failed:

When Genius Failed is an excellent book about an important part of recent financial history. And while Lowenstein does such a great job recounting the moral hazard, the excess and the euphoria of market makers that it’s sad his warnings have not been heeded by more people.

In a world where the Federal Reserve is proceeding with unprecedented quantitative easing, with interest rate at all time lows and individuals with less truth than ever in our financial institutions, it’s a shame the lessons in When Genius Failed were not heeded by more people.

When Genius Failed highlights the common underlying instincts, behaviours and risks that are built into our modern financial system. So it’s sad that, with such an accurate and telling template, our society hasn’t been able to avoid further financial crises. This is especially true in the updated version of When Genius Fails, that contains an Afterword written after the financial crisis of 2008.

Either way…

When Genius Failed is a great read and an illuminating roadmap for anyone looking to learn from the mistakes of history. So let’s wrap up this book review.

When Genius Failed – The Final Word:

When Genius Failed is an excellent book about an important part of contemporary financial history. It highlights a road map that has become all too familiar in the world of modern finance. For that reason, the learning opportunities are immense, and the story itself is highly entertaining.

That’s why I recommend you buy When Genius Failed on Amazon today. It’s a fun book that is easy to read and one who’s lessons will stay with you for years to come. If you’re still unsure, I encourage you to watch the video book review below to learn more about When Genius Failed.

When Genius Failed – Video Book Review:

long term charts of US NAtional Debt to GDP Image

Long Term Charts of US National Debt to GDP

The Long Term Charts of US National Debt to GDP provide eye-opening perspective on our fiscal trajectory. And with so much talk or record debt in the media, it makes sense to try and put some of this in perspective.

Keep in mind all the charts below are hosted on other websites. You can click on the charts to click through to the other sites and see the original images of long term charts of US National Debt to GDP.

You should know these aren’t my charts, I’ve just compiled them here for your convenience, so you’ll want to do your due diligence (although I’ve tried to find reputable data sources). Now without further ado…

Here’s a list of long term charts of US National Debt to GDP.

Long Term Charts of US National Debt to GDP:

The following graphs and images show US National debt overtime. In most cases they are sources of total public debt to GDP. Not all of the long term charts below have 2014 data. But even without the most recent numbers you can clearly see a trend that is at least a little worrisome.

But don’t take my word for it. See for yourself…

US National Debt to GDP – 1800-2011:

US National Debt to GDP Long Term Chart

Long term view of US Debt to GDP.

 US National Debt to GDP – Actual and Projected:

US National Debt to GDP 2014 and Beyond

The possible outcomes for debt to GDP aren’t looking good…


And here’s a nice little table of historical US Debt/GDP ratio from Wikipedia.

Finally, you probably know the US stock markets are at all time highs. But at this point, would it surprise you to know that it might just be debt-fueled?

US Margin Debt 1990-2014:

US Stock Market Margin Debt Long Term Chart

Are stock market highs fueled by record margin debt? If so, is that sustainable?

National Debt to GDP is starting to get to scary levels. But what does that really mean? Well, let’s dig a little bit deeper…

Comparing US National Debt to GDP to Other Countries:

While the charts of long term US National Debt to GDP look scary, it makes sense to put these numbers in context. In order to do this, I think it makes sense to look at the relative percentages of US National Debt to GDP ratio relative to some other countries.

Here’s a nice chart of debt to GDP from the Australian government that shows most major global economies. It’s only a snapshot, but the numbers are current.

US and Global Government Debt to GDP 2014:

G20 Countries Debt to GDP

Australia (in orange) stacks up quite well against the other countries in terms of national debt compared to GDP

So things aren’t so bad. But remember the recent trend. Just because America isn’t #1 in Debt to GDP ratio, doesn’t mean things aren’t getting worse. So let me share something else with you.

The whole reason I started looking for long term charts of US National Debt to GDP is because one of my favorite market prognosticators, Scott Bleier, tweeted the following…

So if Japan is the country to look at, what do we need to know?

Well, good question. Come take a look.

Japan Long Term Charts of National Debt to GDP:

The Long Term Chart of Japanese National Debt to GDP is rather revealing. So if Japan is where we’re going, let’s get some context on what that looks like. Before showing you the long term charts of national GDP to debt, take a look this chart of the Japanese Stock Market Index:

Nikkei Stock Average, Nikkei 225 Long Term Chart:

Long Term Chart of Nikkei Index Japan

This long term chart of the Nikkei shows that despite over 20 years of correction, the market has not recovered the prior highs.

Pretty scary right? If we’re Japan, will our stock market look like that at some point? And if so, what point?

Well, the following long term chart of Japanese National Debt to GDP is pretty revealing. Take a gander.

Japanese vs US Debt to GDP:

Japanese Debt to GDP vs. the USA

Japanese Debt to GDP vs. the USA. Note how quickly Japanese debt grew once things started to get worse. And if you extended this chart, you would see that things are starting to get worse.

So if the US is Japan (just 15-20 years down the road), does that mean we’re in trouble too? Well…

Obviously I can’t say one way or another. But I think this is the money shot of long term charts for US National Debt/GDP

US National Debt to GDP 2014:

Long Term Chart of US National Debt to GDP 2000-2014

US National Debt to GDP 2000-2014. What happens next?

It’s the most recent and accurate chart I could find. And it’s also quite telling. It looks like US National Debt to GDP is at a key turning point. If it can continue to roll-over, maybe the stimulus and much-debated recovery will have worked. But if this is a temporary pause before an even steeper ascent higher, I think it’s safe to say the Japan thesis is real.

So thanks for reading and I hope you enjoyed these long term charts. But now I want to ask you, what do you think will happen with the US National Debt to GDP?

And By The Way: If you want to start improving your knowledge of the stock market so you can protect your portfolio in times of financial panic, you may want to download my ebook below. It’s totally free and will show you how I developed a hybrid fundamental and technical trading system to improve my stock market returns. You’ll also get updates each week with the best tips and tools to help you be more consistent in your trading and investing.

The Safe Investor Book Review

safe investor book review

Read this book review to learn if The Safe Investor is right for you…

The Safe Investor, by Timothy F. McCarthy is about “How to Make Your Money Grow in a Volatile Global Economy.”

And you might not know it, but:

Tim McCarthy, author of The Safe Investor, was President and COO of Charles Schwab and Nikko Asset Management. So you know he is qualified to provide valuable global perspective and relevant current ideas to help you grow your nest egg over the decades to come. So…

In this book review of The Safe Investor, I’ll give you a recap of the book; including, what I liked most, and how you can get the most of out reading The Safe Investor.

And just one more thing before we get started…

I should also disclose that someone on Tim McCarthy’s staff contacted me to see if I would be interested in reviewing the book. They sent me a free copy, but the thoughts and opinions below are entirely my own.

Now let’s get down to business and review The Safe Investor…

Why The Safe Investor is a Great Read:

The Safe Investor is an excellent book to bring you up to speed with all of your investing options. If you’re looking to consistently build your net worth in a responsible way, but you’re not sure where to start, The Safe Investor is the perfect book for you.

The Safe Investor does not assume much in the way of prior knowledge. It’s easy to understand and quick to read, even if you don’t have a working knowledge of financial services. I think the author’s global extensive experience in the financial industry has made him an adept communicator at all things finance and investing related. Make sense?

Anyway, beyond being interesting and straightforward, The Safe Investor is memorable. That’s because a lot of the lessons that are shared throughout the book rely on anecdotes and personal experiences. I find this approach helps you apply the investing wisdom contained in the book. It also makes the information more relatable to your current life so you can see how you might apply these lessons.

But The Safe Investor doesn’t stop there…

After sharing the most important concepts for financial literacy and lifelong independence, McCarthy also provides actionable steps, resources and tools you can use to apply his anecdotal advice and experiential concepts.


McCarthy gives detailed roadmaps and asset allocation plans based on your age, income and long term goals. It even gets into the specifics of what you should look for in your investment advisors (yes, plural) including what questions to ask and the mechanical steps you can take to safely transfer your money to a new advisor, broker or fund.

This type of actionable information is what a lot of finance books are missing. And McCarthy’s focus on actionable implementation make the ideas in The Safe Investor all that more valuable.

But that’s not all… you see…

Since The Safe Investor was just published in 2014, all of the ideas, explanations and examples are incredibly current. For people evaluating different mutual funds, bonds, and stocks this contemporary outlook is incredibly helpful. Sometimes it feels like books written before the financial crisis of 2008 are a little bit out of context. But The Safe Investor provides up to date insight that makes the book even more valuable.


If you want to learn more about the specific content and ideas in the book, (as well as supporting material for readers) you can visit

So while The Safe Investor does a lot of things right, there’s one aspect of the book that stands head and shoulders above most other personal finance and best practice investing books.

The Safe Investor is a Globally-Oriented Investing Book:

I’ve read a lot of investment books over the years. But to date, The Safe Investor is the best one in terms of illustrating the value and importance of investing in global opportunities.

In particular…

Not only does The Safe Investor do a great job explaining the benefits of investing in developing and growth markets, but the book also explains the risks in avoiding these markets. You see, while many investors might feel they are avoiding risk by investing only in their home country, The Safe Investor does a clear and compelling job showing why this is 100% wrong.

I wanted to mention this emphasis on global diversification because The Safe Investor does an especially good job describing the opportunities, both in conceptual terms as well as a country by country analysis to show you what you can expect from different international markets. This global focus was something that is missing from a lot of the classic investing books that are still referenced today.

But while I really enjoyed reading The Safe Investor, it’s not a book for everyone. Let me explain…

Who Shouldn’t Read The Safe Investor:

The Safe Investor is a really great book. But as with anything, there are definitely bound to be some audiences that will appreciate the lessons more. In this case…

I think The Safe Investor is best suited for anyone who has a bunch of money and isn’t sure what to do with it. Older and more conservative investors will especially appreciate the lessons contained in The Safe Investor. It’s a great refresher on best practice and the actionable tips make it the perfect fit to help you get you up to speed.

On the other hand, if you’re looking for specific technical analysis tips, trading strategies or stock analysis systems then The Safe Investor isn’t the right book for you. It’s a little bit bigger picture and while I’m sure you could still learn a lot from it, you might want to move onto something a little more narrow in focus. Make sense?

Now let’s finish up this book review.

The Safe Investor – The Final Word:

The Safe Investor is an excellent contemporary discussion about the best practice choices individual investors can make to secure their financial future. It also shows you the mechanical steps you need to take to do this process safely. The book is based on realistic outcomes and shows you how you can grow your nest egg at a reasonable rate of return without taking on too much risk.

This is money management best practice, and certainly worth reviewing if you aren’t already up to speed. For that reason, I encourage you to buy The Safe Investor on Amazon. And if you’re still curious for a little more information then I encourage you to watch the video book review below.

The Safe Investor – Video Book Review:

RSI divergence trading example 2014

RSI Divergence Trading Examples for 2014

RSI Divergence Trading Examples can help show you one of the most important ways stock traders use the Relative Strength Index (RSI) to  make more money and reduce risk when investing and trading in stocks. So…

In this blog post I’ll show you some actionable RSI divergence trading examples that have stood out to me lately. These recent and relatively current stock ideas will show you some real time examples of RSI divergences.

And when you’re done reviewing the charts below you should have a much firmer grasp of how trading RSI divergences works in practice. Sound good?

Charts of RSI Divergence Trading Examples in 2014:

Take a look at the stock charts below to see some real life examples of RSI divergences. These are happening on major liquid stocks and are available for all to see. I pulled these charts from, where anybody can hunt for RSI divergences free. Take a look…

Bed Bath and Beyond (NASDAQ:BBBY) RSI Divergence Example:

BBBY 2014 RSI Divergence Example

BBBY is a mainstream example of RSI divergences in 2014.

Renewable Energy Group Inc (NASDAQ:REGI) RSI Divergence Example:

REGI 2014 RSI Divergence Example

Sometimes RSI Divergences line up with key events. REGI is experiencing an RSI divergence while completing a controversial acquisition.

IamGold Inc (NYSE:IAG) RSI Divergence Example:

IAG 2014 Positive RSI Divergence

IAG might be an example of a longer-term RSI divergence in 2014.

As you can see from the charts above, there are many mainstream stocks on publicly traded exchanges that serve as great examples of RSI divergences you can swing trade. But there’s one more thing about trading RSI divergences that I should point out…

Trading Bearish and Bullish RSI Divergence Examples:

Now even though the examples above are bullish, you should know that RSI divergences can be traded to the upside or the downside too. So…

Just like the above positive RSI divergences show stocks that are potentially bottoming, a negative divergence can also indicate a potential top in either a particular stock, or even a market index like the S&P-500 or Nasdaq. Make sense?

Of course:

Not all RSI divergences resolve correctly. But it’s another useful indicator you can add to your toolkit to help you tilt the odds in your favor. I find it works especially well when volume patterns support the RSI trends. Now let me ask you…

Do you have any RSI divergence trading examples to share?