The show opened with Chuck's Stupid Investment Of The Week. This week we look at the leaders of the pack from the first half of the year, betting that they will fall short and become Stupid Investments of the Week going forward. They are the Bread and butter fund (babfx) and forester value (fvalx),
Here's what "You Should Know" with:
Kurt Schacht of the CFA Centre for Financial Market Integrity who said his organization issued its global code of conduct for pension funds, standards which it is hoping many agencies will adopt in order to avoid some of the accounting problems that current market issues – like the credit crisis – could create when they hit home. He also discussed fair-value pricing issues – which have the same potential for impact – and credit-rating reform.
who says that consumers need to reconsider their actions in building a nestegg, and look at index funds as the core holdings in a retirement plan. Solin also urged consumers to be more pro-active in talking to their employers about getting a better plan, and said he does not see the ETF revolution spreading into the 401(k) realm with any kind of widespread acceptance.
Finally, we played Hold It or Fold It with:
Bob Auer, manager of the Auer Growth fund (AUERX), says that market conditions are helping to turn some stocks into bargains, but warned that not every beat-down makes a stock cheap. In a radio interview, Auer noted, for example, that General Motors is now at a 33-year-low, and is down in market cap to where it could be considered a mid-cap stock, but said it’s hard to justify buying the stock now; he suggested that analytical evidence points to the company being worth buying again in 2010, if that.
