It's funny! I'm listening to a person on CNBC that's a market strategist for Blackrock. They're not recommending holding much in cash. Gee, I wonder why? Oh that's right...they don't hardly make any money if you're holding large sums of cash. And , if you hold a lot of cash (since it's not invested), they fear that you'll take the money out. You see, there are two main goals of asset managers: 1) Assets in. 2) Retain those assets. With those goals in mind, they have no incentive to encourage you into a large cash position. However, what's in their best interests is not always what's in your best interests. It's another reason why I'm glad I get to do what I do here because I don't have to hold any interests ahead of my subscriber's interests. I love this model.

Comments (25)
No. 1-11
Scott
Scott

Thanks again Sean for designing The Logical Investor. I share your convictions about today's market.

Thankful
Thankful

This is my same observation over and over from financial commentators and those that go on the airwaves. I thank God for your Sean, as you opened my eyes to that simple truth: Financial media says what has happened. Not will happen. They allow allow far too many people out there like that Blackrock rep or others who are there to bilk people out of their hard earned money. We are lucky to have this community to counteract fear and greed.

joecpa
joecpa

We love this model as well Sean! Put your money with a Blackrock money manager or for that matter with any of the big firms' money manager and you'll see it managed until it's all gone.

taino
taino

I love this model too!!

philip_from_cal
philip_from_cal

It seems to me you are acting like a fiduciary. Thank you, Sean!

Bekka
Bekka

We appreciate what you do for us!

wjm7605
wjm7605

I closed my "Intelligent" Portfolio account because even in the most conservative model they only hold tiny percentage of cash while the rest is invested in ETFs that provide expense ratios to that company. And that is one of the most conservative brokerages in the US.

FusionDude
FusionDude

3 years ago, I had ING (Voya) managing my 401(k). However heeding Sean's warnings of the coming crash, I wanted to move to cash. The best they could do in their management strategy was to put me in the most conservative profile, which still had a large exposure to the market. Fortunately, I was able to move 70% of my 401(k) to a self-directed brokerage account. When they moved it, it went to ... cash!

I've been investing in Sean's picks ever since. It's felt slow, since the cash has taken time to deploy, but what kind of returns did I get (all annualized)? QCOM 69%, TOT 21%, TUR 25%, CEO 43%, FL 301%, RIG 50%, EWZ 81%, CIEN 41%, LB 50%. And no actual losses.

I think I'll hang around for a while :)

SPOTTY12
SPOTTY12

That was excellent advice. I think you are the best. I follow your e-mails and learn every day something I did not know. Sean, I am a in and out trader. Try to be out of all stocks at end of day. I already gave you 197 and in your game I have already made 720 dollars. I wait for your next move.

Sean Hyman
Sean Hyman

Editor

Would you be willing to let me share that testimony on a site I’m building for all of us, and would you be willing to provide just your first name and initial of your last name to use?