Tuesday, November 10, 2009

Finding the right broker

Over the past 12 years, I must have had 10 brokers through A.G.Edwards. Of the 10 brokers, I could trust at least three and then they left the company. After my last broker left the company, I moved my account to another company. What I like about the broker now, she shares the same sentiment as Graham and Zweig belief that it is hard to predict what the future brings. Additionally, she is also honest with me about the risks. According to my broker when I was asking questions about REI’s and TIP’S, her reply was Real Estate Investment trusts certainly did well when the real estate market was booming, and they also pulled back quite a bit when the market fell. In almost any growth, allocation model there is a component that has real estate. You do not own any specific mutual funds geared towards real estate investment trusts but inside the mutual funds, you will have some exposure. TIPS are great way to play inflation. If you think Inflation is going up then TIPS are a very good idea. Both are good investments if bought at the right time, but like everything else each one will have its day in the sunshine.

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