Tag Archives: Zigg

Pontification by Zigg, our own lonesome dove

For those who are unfamiliar with Zigg, our contrarian friend who shows up at times of extremes, here is a recent conversation with a few of his thoughts.  Zigg is of course our mythical friend who has no barriers of speaking and thus always tries to speak his mind candidly.

Zigg told me he has great concerns about Mr. Bernanke and his money printing as he might want to save the printing presses for a REALLY rainy day. Here are a few of Ziggs thoughts:

  1. The bigger the hole we dig the harder it is to escape (think debt)
  2. Interest rate vigilantes are watching the US and too much debt may have the exact opposite effect as desired, rising rates rather than firmly lower
  3. Less is more as even too much of a good thing will cause you to lose  reality

Maybe the real reason for Zigg’s less than recent positive view was near the conclusion of our most recent visit, Zigg let it slip that his son had recently graduated college. All through college Zigg had been sending him a nice amount of money on a monthly basis to keep his bills low and overhead down. Apparently Zigg’s son thought this monthly amount was just fine for him as he had grown to expect it, and after graduation directed his old dad to just send the monthly money to his son’s new island.  Upon confrontation by Zigg, his son stated it was a troubling economic times and he just thought it better to not change a thing (more QE please.) I did not pry any further into their personal affairs.

Ziggs Son

We hope you enjoy Zigging while other Zagg and have patience with our parity.

Thanks for reading us this week and have a great weekend!

JK

214-706-4300

http://www.jkfinancialinc.com

8222 Douglas Ave Suite 590

Dallas, TX 75225

Reminder Today Friday 9-7-12 Office Off Line at 3 PM…..Zigg is coming to town!

Just as a second reminder, the office will officially go off-line at 3pm today as the remodeling crews begin their work. Our expectation is to be back up within 24 hours, however, taking EVERYTHING electronic out of the office leaves us without email and most likely without our fancy new phone system (we are not 100% on the phones as of yet, so we will have a surprise at 3pm either way.) Interestingly with a 4 and 7-year-old at home, disruption is the name of the game, as nothing is ever in the same place when I arrive home. The office is a different story, with everything always in the same place, UNLESS you are preparing for a remodel. Disruption is our middle name at the moment, and only a slight inconvenience, but definitely not comforting for the moment.

Ahhh and our old friend Zigg is headed back to town for a visit. For those newbies, Zigg is our candid mythical friend who gives us great insights for thinking on his own, away from the crowd, maybe even a contrarian at times. Zigg is named for Zigging when others Zagg and has kept us on the straight and narrow frequently. I look forward to visiting with him over the weekend and bringing you many of his thoughts, but for now will leave you with our latest conversation as he said “This market is very two-sided emotionally, kinda like your worst enemy driving off the cliff, only to find out he was in your brand new car!”

Have a Great Friday and a Super Weekend!

JK

214-706-4300

http://www.jkfinancialinc.com

8222 Douglas Ave # 590

Dallas, TX 75225

The boring Capital Market Week that was…..Exciting Office updating week ahead!

Wow, it has been a long time since capital markets have taken such a long nap. We are not wanting to look a gift horse in the mouth, but as stated earlier in the week, we noted that the trading volumes have seen near decade off-holiday lows. News has been unable to change the index levels much, good or bad. Many must be on holiday with Zigg as his island has run low of supplies lately, due to overcrowding!

We expect much of the same next week in the capital markets which is great as we will have our own internal volatility. Late next week the carpet comes up, the pictures down, and new paint finds its way to the walls of our offices at 8222 Douglas. We also have new phones being switched (ported is the actual term) and with little scheduling ability control, we will most certainly awaken sometime in the next two weeks to new phones ringing, hopefully working perfectly.  Our expectations are cautious at best!

Thanks again for reading our work this week and we will see you in the saddle next week!

JK

214-706-4300

http://www.jkfinancialinc.com

8222 Douglas Ave # 590

Dallas, TX 75225

Zigg Drops by with a Mcteer Question and a Few Grounding Thoughts

Zigg, making a pilgrimage from his very crowded small island, on his way to the store for supplies as many of his new fair weather friends are cramping his style and eating his food, stopped by last night to see the family and say hello. He had heard about the McTeer event and added a nice question of his own, which we will certainly ask Mr. McTeer.

For those not familiar with Zigg, he is our mythical friend who is a contrarian. He Ziggs when others Zagg, usually taking an uncomfortable position at any given time. His thoughts are always helpful in keeping things in perspective.

In addition to the McTeer question he shared the following thoughts:

  • This is an Election Year, see (Research Paper) for history
  • Tax cliff may come in the form of possible new taxes
  • Little Brother Country Issues i.e. EU
  • A years worth of market returns already

Zigg was not being negative as he never takes a harsh stance, however he did warn of becoming too optimistic and letting our guards down.

Thanks Zigg, we have missed you and glad you dropped in. It’s funny to see him move from the only positive person, to being a bit more conservative in his views, once again almost alone in voice.

Have a Great Day and a Super Weekend!

JK

214-706-4300

www.jkfinancialinc.com

Zigg is Back with a Friday Question: “A Market/House on Rock or Sand?”

Zigg, in his usual contrarian way, stepped from his island, which is full of fair weather fans and mentioned an old fable for thoughts on the current market.

According to Zigg, a possible way to paraphrase certain markets is similar to the fabled wolf and pig story.

A Capital Market/House on firm footing:

  • Strong Earnings
  • Heavy Trading Volumes
  • Early in the Economic Cycle
  • Stable Interest Rate Policy 

A Capital Market/House on Less firm footing, according to Zigg:

  • Weak Trading Volume
  • Decreasing Earnings Growth
  • Mid to Late Economic Cycle
  • Political and Geographic uncertainty

While we agree with Zigg in certain areas, unlike our fabled friends, capital markets can transplant their foundations very easily, however it is still worth staying on guard and watching for strong winds, just in case.

Have a Great Day!

JK

214-706-4300

www.jkfinancialinc.com

Zigg Drops By, Reminding Us to Stay “On Guard”… A Few Funny Quotes from Break

Zigg dropped by from his extended sabbatical to remind us of staying disciplined. 

In the vein of the worst mistakes are made at the most profitable moments, we recall the importance of staying “On Guard” and not letting our defenses down.

As markets trudge higher and mostly ignore any negative data, it is critical to rebalance to the correct allocation. At this time that will most likely mean selling portions of equity positions (sell high) and re-deploy to other areas that have not participated in the move (buy low.)  It feels so much easier to do just the opposite, buy high, but history shows that does not do much for our pocket books.

Favorite quotes from our New Mexico trip, which we returned from yesterday evening. “We can’t be back in Texas, there are no tall buildings” Pierce, “How much farther?” One hour into a MUCH longer drive, Sophia.

Glad to go and knock the rust off, but also glad to be back.

Have a Great Day and a Super Weekend!

JK

PS The drive offered great progress on a sports themed Newsletter.

PSS We are working on something exciting and new, a timely private event for you, clients, business friends, and readers, details not yet complete, but looking good!

214-706-4300

www.jkfinancialinc.com

Are Those Rose Colored Glasses You Are Wearing? Zigg Makes an Appearance

You guessed it, Zigg is back, and this time with a different message. For those new to Zigg, he has a residence on small island near the shore of a large group of fair weather friends, called Zagger’s, who often represent the majority voice at any given moment.

Last fall, when everyone was Zagging in the negative direction, Zigg spoke calmly and confidently to us on Friday’s, pointing out the positive events of the week, and letting us know that things are not always as negative as they seem.

This week Zigg has a different message for us. Possibly Zigg’s message is due to his Zagging friends taking residence on his island, telling him the sky is bright, and it will never cloud again. 

Zigging while others are Zagging this week means pointing out a few items:

  • Consensus moods (Zagger’s) often lead to clumsy investing, do not let your guard down, just as we bought when markets were down, we sell when they are up in order to keep your portfolio driving speed (allocations) appropriate.
  • It is very highly likely, capital markets will not match their January return of 4% throughout the year, leaving us with a 48% return for the year.
  • Shhhh……. While we hate to say it, the EU still has a few problems.
  • It is an election year!

While always positive, and never one to stick his head in the sand, Zigg did want to pull the umbrella from a few of his Zagger friend’s drinks (and maybe send a couple home.)  Zigg also understands, be careful what you ask for!

Have a Great Weekend!

JK

214-706-4300

www.jkfinancialinc.com

Favorite Question of the Week from the Field; Zigg Still on Vacation

With our friend Zigg still on his island and his friends intent on staying for a while, we decided to shift gears and discuss our favorite question of the week.  This week’s question derives its origin from several conversations we have had lately with client’s, making it topical for discussion.

Should I only put the amount the company matches in my 401k? and a follow-up question,  Should I put extra, non-pre taxed funds into my plan?

NO and NO !

We recommend you put as much as possible in your company 401k even if there is no match at all. There are various restrictions such as compensation and general government caps which limit contributions, but putting as much PRE-tax funds into your 401k as possible, is our recommendation.

Various plans allow you to continue after-tax contributions to retirement plans, which we are not advocates of doing.  Most plans do not have the ability to provide for specialized allocations which may be more appropriate for investment.  Don’t bypass saving these extra dollars and spend!  Just save these funds in a more self-directed manner. 

In closing, just because Zigg is on vacation, does not mean there are not sharks out there, keeping our guard up for an “Event” is still a good idea, however, economic, consumer, and earnings (more discussions soon) look very good!

Have a Super Day and a Great Weekend!

JK

214-706-4300

www.jkfinancialinc.com

 

Zigg’s Continued Sabbatical, Newsletter Update, a Happy Capital Market, Long Weekend

We let Zigg have another week off as his island is full lately and he has been busy chaperoning the party.  We feel certain his new-found friends will abandon him eventually, leaving him to espouse his views as his Zagger fair weather friends return to land.

The beginning weeks of the new year mark our annual “Preview and Review” of the capital markets, remember we are skeptical of so-called “Professional” forecasts, including our own. Our re-designed Newsletter (thanks to Kathy our editor) is soon to arrive in your mailbox and will also be posted to our website and has a great review of the latest year’s results and our expectations for 2012.  In “What Happens When Investor’s Lost Confidence in Your Government” we review what happens to our hard-earned investment dollars when government bond rates rise, which has not happened in almost three decades. Believe us, just because it has not happened lately, does not mean it will not, or cannot.

A very important part of our job is to continually review, confirm, and educate ourselves on changes and opportunities in the capital markets .  Yesterday I spent over six hours in a rigorous examination of the options markets and new technology which we have been reviewing for almost a year, but will come on-line in full force in the next few weeks.  In a timely, final of four-part series, concerning our Armageddon insurance strategy, we feel even more confident in our early findings and results, see “Investing for the Long Term, While Protecting the Short” also coming up in our newsletter.

In manic like form, the capital markets and their participants are still cheering the Holiday spirits, ignoring negatives, and focusing on the positives. While we have been positive in Zigg fashion for some time, we are confidently aware sentiment can change faster than the lead of a Dallas Cowboys game. That’s ok, we always keep our wits. But do stay tuned!

We hope you have a happy weekend.  Next week, as our Newsletter is completed, we enter earnings season so we will be back to our more frequent posting schedule, as this latest week has been a bit of a catch up time for us.

Thanks for reading and have a great day and super extra long weekend! Domestic capital markets are closed on Monday in honor of Martin Luther King.

JK

214-706-4300

www.jkfinancialinc.com

FFTFF (Feel Free to Forward to a Friend)

Light Week, Newsletter, Travel, and Preview of Special Year of Ziggs!

Given the president set so far this week, it appears light investment and economic news, vacations, and Holiday enjoyment are the themes of the week. This is fine with us as we can use a bit of a break from the 2 am EU happenings.

Our Q 1 2012 (yes, 2012 is here!) Newsletter is coming together and contains our special “Preview and Review” section along with the Final Part of our “Investment Armageddon Protection Series.” We also have a neat set of new websites we have stumbled upon over the last quarter, and an example of what happens when “Investors Lose Faith in Your Financial System.”

My schedule shows me traveling, (for work, but as you probably know I enjoy work, so it’s always fun) the next several days, and as such, out of the office. Often times more clarity is gained during driving times and updates from distant locations, especially with technology allowing for comfortable tethering back to the office.

Coming Friday, a special “5 Positives for the Year” from our Zigg while others  Zagg year ending week.

Enjoy your day and your week !

JK

214-706-4300

www.jkfinancialinc.com