Blog Entries

Ask Mr. Sensible.

Do you have a question for Mr. Sensible? Perfect! Submit it below and Mr. Sensible will answer it for you right here.

Your Name
E-Mail*
Your questions for Mr. Sensible:

Answers to past questions.

April 27th, 2012 - Dear Mr. Sensible: What do you think of the idea that, in reality, energy is going to be essential in helping get America back to prosperity? Linda K., Sparks, NV

Linda, think of energy and economics as Siamese twins— they are that closely tied together. Take a look at what Philip Verleger, visiting fellow at the Peterson Institute for International Economics, writing in 4/24/2012 Financial Times has to say about the subject:
“Today, few realize that the U.S. stands on the cusp of significant economic gains [...]

April 5th, 2012 - Dear Mr. Sensible, The economic downturn has taken quite a toll on my family’s peace-of-mind, and we just don’t feel secure in our financial decisions anymore. Do you have any suggestions on how we can regain a positive outlook on our overall money situation? Sincerely, Josh M., Reno, NV

Hi Josh,
First things first. You are not alone, my friend. There are a lot of investors out there rethinking a lot of decisions. I think it’s great you’re taking the initiative to ask a few questions about your financial security, especially in times like these. That being said, right now in the year 2012, there [...]

March 13th, 2012 - Dear Mr. Sensible, I’ve noticed you are always recommending that we invest in low cost mutual funds? Why is it that you never mention investing in a fund because of its great track record? Sincerely, Bob from Elko, Nevada

Bob, thank you for your question.
There is plenty of research to show that expense ratios (the operating costs of the fund) are an excellent predictor of a fund’s future performance while past performance isn’t as useful. The one exception being that those funds that have performed poorly in the past typically continue to perform very [...]

February 23rd, 2012 - Dear Mr. Sensible, I’ve recently read quite a bit about passive investing versus aggressive investing through various articles; what are your thoughts on the subject? Sincerely, Jackie V.

Great question, Jackie:
It all depends on who you’re working with. There’s a guy by the name of David Swensen, Chief Investment Officer of Yale University’s $19.4 billion endowment. He said, and I couldn’t say it any better myself, “There are two sensible approaches to investing — either 100 percent active or 100 percent passive. Unless an investor [...]

October 31st, 2011 - The Next Big Thing: It’s Not Alternative Energy, It’s Traditional Energy Through the Miracle of Fracking

 
From the Bloomberg editorial “Energy Revolution Keeps Carbon on Top,” by Nathan Myhrvold, former chief strategist and technology officer at Microsoft and the founder/CEO of Intellectual Ventures:
“A remarkable thing happened in Silicon Valley during the past decade. Venture capitalists and entrepreneurs set their sights on clean energy as the Next Big Thing. They audaciously hoped [...]