Carnival of Investing on Martin Luther King Day

Welcome to The Carnival of Investing of January 15, 2007, the day that we commemorate Dr. Martin Luther King, Jr. Before I begin the representation of the Carnival, I’d like to cite the following from Dr. King’s speech on August 28, 1963:

I say to you today, my friends, so even though we face the difficulties of today and tomorrow, I still have a dream. It is a dream deeply rooted in the American dream.

I have a dream that one day this nation will rise up and live out the true meaning of its creed: “We hold these truths to be self-evident: that all men are created equal.”

I have a dream that one day on the red hills of Georgia the sons of former slaves and the sons of former slave owners will be able to sit down together at the table of brotherhood.

I have a dream that one day even the state of Mississippi, a state sweltering with the heat of injustice, sweltering with the heat of oppression, will be transformed into an oasis of freedom and justice.

I have a dream that my four little children will one day live in a nation where they will not be judged by the color of their skin but by the content of their character.

I have a dream today.

I have a dream that one day, down in Alabama, with its vicious racists, with its governor having his lips dripping with the words of interposition and nullification; one day right there in Alabama, little black boys and black girls will be able to join hands with little white boys and white girls as sisters and brothers.

I have a dream today.

I have a dream that one day every valley shall be exalted, every hill and mountain shall be made low, the rough places will be made plain, and the crooked places will be made straight, and the glory of the Lord shall be revealed, and all flesh shall see it together.

This is our hope.

Now let the Carnival begin!

Investment strategy

Don’t put your eggs in one basket! That’s the advice Queercent gives to new investors. “One basket” doesn’t mean only one stock. One industry is also “one basket.” A well diversified portfolio is key for successful investment. Just like people in the real estate business know location, location, location, we investors should always keep diversification, diversification, diversification in our minds because it’s our friend, says William Wallets at A Financial Revolution. He also shows what a diversified portfolio should contain.

ETFs, or exchange traded funds, are hot and 2006 has seen record ETF issuances. Should you or shouldn’t you invest in ETFs? Wise Bread lays out the pros and cons of investing in ETFs. Read the post and see if they are the right investment vehicle for you. Separately, Tom at ETFtrends offers his insights on how the ETF world will shape up in 2007, a must read whether you are already an ETF fan or just about to start.

Target or lifecycle funds are ideal for people who trust the fund managers to pick the right mix at the right time for them. If, however, you have the time and energy, you may as well achieve the same result by doing the balancing yourself. Trent at The Simple Dollar offers his approach to create his own target fund.

Building Wealth One BRIC at a time, yes. But that BRIC isn’t the one used to build the Great Wall. What is it exactly? Michael tells you the story of investing in B(razil)  R(ussia) I(ndia) C(hina) and how the BRIC can help you build your wealth.

The Dogs of the Dow theory had some good times in the last decade before everybody jumped on the bandwagon and killed it. Now since the theory is much less favorable, maybe it’s time to revisit it. Jim at Blueprint for Financial Prosperity did just that and found the theory is quite easy to implement.

Investing in stocks or playing FOREX games? Moneymonk compares these two as he mulls whether to step into FOREX trading. The conclusion he draws can serve as a reference for you as well if you are considering the same move.

Got to love the dividends! But you know they can work out even better for you if the distributions are reinvested. The problem is not every brokerage firm offers this option. If you do have this problem, Tag at Everyday Money will tell you an alternative to make dividends work for you is called dividend reinvestment plan (DRIP).

Do you believe there’s a correlation between following the trend and losing money in the stock market? If you have a second thought on the way you invest, be sure to check out what Praveen has found out.

Money and life

Many of us probably won’t even consider the idea of seeking professional assistance after involving in minor incidents such as getting a speeding ticket or being overcharged for a repair work. But there may be a cost-efficient way to handle these cases that you are not aware of. Money Walks show us how using a pre-paid legal service can actually save money, an interesting idea should be further explored.

Free Money Finance had an interesting discussion on whether you will be better off if you buy a term life insurance and invest the difference that you would otherwise pay for a more expensive policy which has the investment option. What’s your take on this issue? It’s not too late to join the discussion.

Apparently, buy high and sell low isn’t the only way to lose money in the stock market. TJP at Investor Trip says he found another nine ways to shrink your wallet (if that’s what you really want to do), guaranteed!

The Digerati Life shows us some statistics on what our net worth should be given the age and income level. Why it matters? Because it can give us a sense of where we are now and how far we still need to go.

Burningchrome at SmartCoolRich looks at emergency fund from another angle and explains why money equals power, the power that can put you in a better position when the unexpected happens.

And “Your own intentions, your own thoughts, your own decisions and the choices you’ve made, they all cause your current reality to become manifest.” This is a quote from  Scott Lee’s How the Poor Get Rich.

What to buy

The housing market may have cooled down a little bit, but real estate investment trust (REIT) remains hot. Dividend Money takes a look at REIT and offers a long list of REIT stocks that pay hefty dividends. If you are looking to build a well diversified portfolio, you may find real estate desires a place as ExtremePerspective argues why you should invest in real estate.

Frugal looked at USO and tells you why you shouldn’t buy this stock unless you want to be buried alive (I know I don’t want that). From his analysis, you may reach exactly the same conclusion.

Read this post before you jump into the biotech industry! BioHealth Investor demonstrates that thirty years of history isn’t something you can ignore. Before you buy, know what you are buying.

Market Poetry gives us a dozen reasons (yes, there are twelve) why GOOG isn’t a keeper, in a fun way.

For the golden years

How many of you have left your old 401(k) account with your previous employer when you changed job? If you think the only way to deal with those money is to leave where they were, then you are wrong. Ben at Money Smart Life will tell you there are other alternatives. But whatever you do, you have to follow the rules.

Though the calendar year of 2007 began 15 days ago, the deadline for making your 2006 IRA contribution won’t arrive three months later. Henry at Binary Dollar reminds us there are still plenty of time to max out 2006 IRA contribution. The only drawback is that you won’t enjoy the tax benefit, if there’s any, till you fill your 2007 tax return.

And don’t forget to re-examine your investment portfolio every year! Jim at My Retirement Blog urges us to keep this as part of the retirement resolution.

Technologies that change our life

The Consumer Electronic Show in Las Vegas last week didn’t just bring us iPhone which Steve Job claimed to be the “ultimate digital device” that will change the way we communicate and entertain, Steve at Debt Free also sees the financial impact of indows Vista.

The markets start trading at 9:30 am in the morning, but you won’t see any price change of your holdings until 9:50 am if you use free quote from, for example, Yahoo! Finance. That may soon change as Google is testing the idea of free real-time quote. That sounds convenient. But The Money Tortoise tells us why we couldn’t care less about the delay.

For everything else

Priya linked bankruptcy and churches.

Bryan has an update on Million Dollar Savings Club.

Valih presents the first step to start to work from home.

Harrison has a place with video tutorials to help you get into the FOREX field.

Jacqueline reveals a bit of history of gold depository and its role in modern day trading.

Steven makes the case why big companies like Walmart have to turn to use commercials to restore their public images.

Paul at ExtremePerspective shares with us his experience in commodity future trading, and called it “one of my life’s expensive lessons.”

Finally, do forget to participate the next edition of The Carnival of Investing at Journey to Financial Freedom. Submit your story now!

*Photo from Richard P. Weiss and MSN Encarta.

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9 Responses to “Carnival of Investing on Martin Luther King Day”

  1. Tag |  Jan 15, 2007 at 2:05 pm

    Thanks for hosting. Nice job with the layout.


  2. Jonathan |  Jan 16, 2007 at 1:48 am

    Thanks for hosting, and for your effort in making it an easy-to-read Carnival.