The Rant: Alpha Teach Yourself Investing in 24 Hours: An Analysis (part 21)

Mission Statement

Saturday, November 11, 2017

Alpha Teach Yourself Investing in 24 Hours: An Analysis (part 21)

Mutual Funds (part F)

Charles Lamson

Specialized Funds

The process of classifying mutual funds is a fuzzy one at best. Ultimately, it is not really important how you classify a fund as long as you know what the fund is about and whether it is suitable for you.

I have included some specialized funds here and others in the next post. Attach no significance to this placement. Some people in the industry prefer to stick with defining mutual funds strictly by their investment objectives, and that is probably the best strategy in the long run.

The funds I have included here are specialized in their investments, which by definition means they are specialized in their objectives. Bear with me as we push through this and it will all fall into place near the end.

PROCEED WITH CAUTION

Do not worry about specialized funds until you have a firm grip on regular funds. However, many investors find a place in their portfolio for some specialized funds.

The specialized funds we will discuss here include REITs and international funds.

Real Estate Investment Trusts

Real estate investment trusts (REITs) are specialized investment units that invest in income-producing real estate, such as shopping centers, apartments, and so on. The management takes a fee for doing all the legwork of finding the properties and managing them.

JUST A MINUTE

Real estate mutual funds have not done well. Real estate often performs better during periods of higher inflation.

REITs are very much like closed-end funds. Like their closed-end cousins, REITs trade like securities and are bought through a broker. This gives them the liquidity so desperately lacking in straight real estate investments. However, be aware that some REITs are "thinly" traded, meaning there are not many buyers and sellers, so dumping your investment may not be a quick and easy proposition.

A good alternative is to put your money in a mutual fund that invests in REITs. If this seems like you are getting further away from the investment, you are right, but it does give you better liquidity if that is important. REIT mutual funds often specialize in certain types of property, like hospitals, or shopping centers, which allow you to target industries or market segments that are growing.

International Funds

International funds open the door to worldwide investing. Overseas markets are some of the most rapidly growing in the world. Developing countries are expanding their economies, and there are good opportunities to participate in the growth. However, here more than ever, you need the expertise of professional fund managers to guide investments through foreign waters.

PROCEED WITH CAUTION

International funds give you the opportunity to participate in the growth of foreign economies with someone else worrying about currency conversion and other details.

These funds come in several varieties; some spread investments all over the world and are known as global funds or overseas funds. Others may focus on a single region, like Latin America, and are known as regional funds. Country funds focus their investments in specific countries, such as Mexico.

Many investment advisers suggest you have a portion of your portfolio in overseas investments. While this may be a sound idea, it is one of the last investments you should make after you have all of your other investment goals covered with safer investments.

Overseas investments carry some particular risks---and the opportunity for some spectacular rewards. You should keep in mind that as goofy as our political system can be, it is stable and predictable. Unfortunately, we have had presidents assassinated, but when it happens it does not cause the government to fall. The same cannot be said of all countries around the world.

*SOURCE: ALPHA TEACH YOURSELF INVESTING IN 34 HOURS, 2000, KEN LITTLE, PGS. 149-151*

END

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The kingdom of God is among you

Luke 17:20-25 Asked by the Pharisees when the kingdom of God was to come, Jesus gave them this answer, ‘The coming of the kingdom of God does not admit of observation and there will be no one to say, “Look here! Look there!” For, you must know, the kingdom of God is among you.’ He said to the disciples, ‘A time will come when you will long to see one of the days of the Son of Man and will not see it. They will say to you, “Look there!” or, “Look here!” Make no move; do not set off in pursuit; for as the lightning flashing from one part of heaven lights up the other, so will be the Son of Man when his day comes. But first he must suffer grievously and be rejected by this generation.’

Live Adoration from Tyburn Convent

Adoration, also known as Eucharistic Adoration, is a Catholic prayer in front of the Blessed Sacrament. It is a sign of devotion and worship to Jesus Christ, who is believed to be present in the consecrated host. During adoration, Catholics pray to Jesus Christ before the Eucharist at their local parish. The Eucharist is typically kept in a tabernacle at the parish church, and may be presented in front of a closed tabernacle or in front of the exposed host in a monstrance. A monstrance is a vessel used in Roman Catholic, Anglican, High Church Lutheran, and Old Catholic churches. It is a stand made of precious metal that holds the Blessed Sacrament during adoration. The word "monstrance" comes from Latin and means "to show".

Love

1 Corinthians 13:4-7: Love is always patient and kind; it is never jealous; love is never boastful or conceited; it is never rude or selfish; it does not take offence, and is not resentful. Love takes no pleasure in other people’s sins but delights in the truth; it is always ready to excuse, to trust, to hope, and to endure whatever comes. 1 Corinthians 13:8-9,13: Love does not come to an end. But if there are gifts of prophecy, the time will come when they must fail; or the gift of languages, it will not continue for ever; and knowledge – for this, too, the time will come when it must fail. For our knowledge is imperfect and our prophesying is imperfect. In short, there are three things that last: faith, hope and love; and the greatest of these is love. Colossians 3:14-15: Over all these clothes, to keep them together and complete them, put on love. And may the peace of Christ reign in your hearts, because it is for this that you were called together as parts of one body. Always be thankful.

It is not peace I have come to bring, but a sword

Jesus instructed the Twelve as follows: ‘Do not suppose that I have come to bring peace to the earth: it is not peace I have come to bring, but a sword. For I have come to set a man against his father, a daughter against her mother, a daughter-in-law against her mother-in-law. A man’s enemies will be those of his own household. ‘Anyone who prefers father or mother to me is not worthy of me. Anyone who prefers son or daughter to me is not worthy of me. Anyone who does not take his cross and follow in my footsteps is not worthy of me. Anyone who finds his life will lose it; anyone who loses his life for my sake will find it. ‘Anyone who welcomes you welcomes me; and those who welcome me welcome the one who sent me. ‘Anyone who welcomes a prophet will have a prophet’s reward; and anyone who welcomes a holy man will have a holy man’s reward. ‘If anyone gives so much as a cup of cold water to one of these little ones because he is a disciple, then I tell you solemnly, he will most certainly not lose his reward.’ When Jesus had finished instructing his twelve disciples he moved on from there to teach and preach in their towns.

The beheading of John the Baptist

Matthew 14:1-12 Herod the tetrarch heard about the reputation of Jesus, and said to his court, ‘This is John the Baptist himself; he has risen from the dead, and that is why miraculous powers are at work in him.’ Now it was Herod who had arrested John, chained him up and put him in prison because of Herodias, his brother Philip’s wife. For John had told him, ‘It is against the Law for you to have her.’ He had wanted to kill him but was afraid of the people, who regarded John as a prophet. Then, during the celebrations for Herod’s birthday, the daughter of Herodias danced before the company, and so delighted Herod that he promised on oath to give her anything she asked. Prompted by her mother she said, ‘Give me John the Baptist’s head, here, on a dish.’ The king was distressed but, thinking of the oaths he had sworn and of his guests, he ordered it to be given her, and sent and had John beheaded in the prison. The head was brought in on a dish and given to the girl, who took it to her mother. John’s disciples came and took the body and buried it; then they went off to tell Jesus.

Psalms 9:16

The LORD is known by the judgment which he executeth: the wicked is snared in the work of his own hands. Higgaion. Selah - Question: What does Higgaion and Selah mean? Answer: Both Higgaion and Selah are used numerous times in the Old Testament. They occur together in Psalm 9:16. The meanings of these words are uncertain. We observe Higgaion in such passages as Psalm 9:16; 19:14; 42:3; Lamentations 3:63. In Arabic, the root gives a deep vibrating sound, like the murmering sound of a harp (Psa. 92:3). The International Standard Bible Encyclopedia states that it may be derived from the Greek versions of Psalm 9:16 and takes it to mean an instrumental interlude. It may also mean a soliloquy or meditation such as concerning the judgment of God (Psa. 9:16), the words and work of God (Psa. 19:14), and the loving kindness and faithfulness of God (Psa. 92:2-3). In the Septuagint, Selah is translated as daplasma (meaning a division). It occurs in Habakkuk 3:3, 9, 13 and 71 times in the Psalms. It is used in 39 of our 150 psalms. Of those 39 psalms, 31 they are ones handed over to "the chief Musician." So, pause and meditation may be the predominate idea. In addition, it may mean to lift up (Hebrew, salal) or, in some definitions, a repetition, end of a strophe, or a recurring symphony. In his sermon named "HIGGAION!" about Psalm 9:16, Archibald G. Brown, on August 17, 1873, at the East London Tabernacle said this: "When the psalmist wrote this verse, and reached the words 'The wicked shall be snared in the work of his own hands', he seemed to be overpowered at the terror of the thought, and so put a full stop and wrote in the word 'Higgaion!' As much as to say, 'O my soul, meditate on the tremendous truth my hand has penned, and let all who read the same meditate.' And then after 'Higgaion' he puts 'Selah'. He would have there to be a solemn pause. Oh, I would that there could be just one moment's solemn pause in our meeting tonight. Would that there could be a Selah, a Higgaion! Friends, shall there be? I put it to you. 'The Lord is known by the judgment which he executes; and the wicked shall be snared in the work of his own hands!" Now let us just for a moment meditate on that. Let there be a solemn Higgaion, and let every heart ask itself the question, 'How do I stand in reference to this tremendous truth?' *Answer by Dr. Joseph R. Nally, Jr. (https://thirdmill.org/answers/answer.asp/file/47892)*

The Rant

Mission Statement

Saturday, November 11, 2017

Alpha Teach Yourself Investing in 24 Hours: An Analysis (part 21)

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