MMM-112: Full of Meat

Answering all questions via iPhone. Prediction #8 comes true. Beating the market explained graphically. Emails and calls. Please prove market timing works. Lots more meat…
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The Mad Money Machine is proud to be sponsored by Index Funds Advisors at ifa.com.
Topics in this week’s show include:

• An email from Paul in San Antonio is what it is all about for me.
• Got a question? If I had an iPhone (well… the new 3G one at least) I could answer that for you. I’m cutting expenses in hopes of saving for iPhone service.
• Prediction #8 came true. I review the new ETFs of ETFs from PowerShares.
• Why have an advisor when you could do it yourself and save paying their fee? Because:

• An advisor can evaluate and re-evaluate your risk capacity and make sure you are invested properly.
• An advisor can perform tax-loss harvesting.
• An advisor can make cash flow decisions when you put more money in the account and take money out of the account.
• IFA has sophisticated reporting of your performance which takes into account cash flow.
• IFA is a safe haven for regulatory compliance; they are looking out for YOUR best financial interest not trying to maximize some sales commission.

Tool this week is this graphic, Figure 8-18 from IFA.com. If you understand this, you are way ahead of the game:

The take-away of this graphic is that small-cap and value stocks have a higher expected return than the total market. You want your portfolio to be above and to the right of the dashed diagonal line.

• Tax revenues will be 19.5% of GDP no matter what the rate is, so why not make the rate low and the tax laws simple?
• David from Fast Money Machine says I should look at trends and Fibonnaci lines and know when to sell. I say, show me proof.
• Dominik wants to know if he should trust new index funds in Germany. I recommend going with iShares or Vanguard.
• Take our your cellphone and look at the number 4. Then dial 206-734-4763 and leave me a message.
• Going to be near Irvine CA on June 3rd? Definitely don’t miss IFA’s Lunch and Learn seminar. Please tell them I sent you. Please call or write me and tell me how it went for you.
• Why am I not a customer of IFA? Regulatory compliance. I’m taking one for the team.

Music from music.podshow.com:
ALTA PLAZA - XRAY DOGS
Radio Caroline - Jonny Dongel
9.5 Beats - Infallible
Sexual Tension - Infallible
Runaway Train - Under Feather

Email me: feedback at Mad Money Machine dot com, or comment, or Call me on the Mad Money Machine voicemail line at 206-734-4763


Download this Podcast (Duration: 33:14, Format: *.MP3)

In the Mad Money Machine Podcase. Paul Douglas Boyer takes on Wall Street with complete laziness and reviews the Mad Money recommendations of Jim Cramer. Plus: Money-making idea segments like Guru Roulette, Tools in the Crib, and Portfolio Smackdown.