Sunday, February 10, 2013

February 10, 2013, Bob Brinker's Moneytalk, Summary, Excerpts, Discussion and Commentary

February 10, 2013....Bob Brinker's Moneytalk was not a live broadcast today. The whole three-hour show was made up of spliced together old re-run calls and canned monologues.  

Why does Brinker allow his re-runs to air without letting the audience know that the program is not live and not to call.

Jeffchristie's Moneytalk Final Exam Question:
Today's final exam question is a repeat.  Unlike Bob Brinker I am announcing it in advance. 
The most frequent caller to Moneytalk is: 
A) Lynda Belinda from Yorbalinda
B) Andy from Redwood city
C) Donna Donna the Prima Donna
D) Tony from Brooklyn
Answer
Moneytalk on Demand is free for seven days after broadcast here: San Francisco, Ca. KSFO 560: 1-4pm  You can download and listen on the go.


Please see my article just below this one for a discussion on Brinker's current market forecasts.

37 comments:

birdbrain said...

This from the man who playfully suggests that the NFL has gradually pushed back the kickoff time for its biggest game so it wouldn't compete with Moneytalk, then the last two years has bailed on his show during the final hour on Super Bowl Sunday to watch football.

Lack of respect for his audience? Yes

Does Mr B think his listeners won't notice taped calls? Yes

"Moneytalk is brought to you by Memorex. Is it live, or is it Memorex."

Honeybee said...

Birdbrain,

I agree with both answers to your questions.

He has no respect for the audience. They are geese that lay golden eggs in Littleton, Colorado -- nothing more.

And of course he thinks that the vast majority of the audience will never realize that it was taped calls.

Did you by chance listen to the program today? I did because I have to be sure what I post on this blog is 100% accurate to the best of my ability.

Guess Brinker didn't care whether or not the Star Spangled was lip synced at the Super Bowl. :)

It's about showing respect and being honest, especially for someone who calls himself "America's most trusted financial advisor."

Anonymous said...

I listened, not because I have no life, but because I took a nap during the first 45 min and when I tuned in it seemed like a normal show. My bad, as the kids say.

Gotta watch those spliced together shows however, he was advising a woman on buying munis late in the third hour. They're pretty much a wasteland now, aren't they?

Kudos to HB for her early detection.

Wanted to mention something: Bob has frequently referred to his reading list. I recently read a book that is one of the first one's shown on his website. A Random Walk Down Wall Street, by Burton Malkiel. Great book it belongs on the list, no question.

Malkiel makes no secret of his disdain for market timing. I wonder how many other books recommended by BB also make this call?

By the way, Andy may be the most frequent flier, but I think "Joe" from the Bay Area and other NoCal locations is gaining on him.

Three hints for anyone who wants to "get through:" Use the name "Linda" or "Sue." "Linda Linda, from Yorba Linda," or "Hello, Sue, How Do You Do." Should work for women.

Or, say you're calling from Lodi.

-- Frankj

Honeybee said...

FrankJ,

Your suggested names to get on Moneytalk are hilarious. Maybe Jeffchristie might want to use them for a Final Exam Question. :)

However, I'm not getting what you mean about Lodi...Could you give me a little clue?

Anonymous said...

Would you prefer the two ding-dong liberal chicks he has had as fill-ins in the past? I'll take a rebroadcast anyway over the Taco Ballerina and the Affirmative Action Banker.

tfb

Bartee said...

that broadcast drove me mad,,, it was cut off early from kion radio and I tried other stations and the same,,, what is wrong with brinker that his subscribers know he is not working even one day a week,,,sounds like he wants to retire,,,, gasp,,,

Anonymous said...

"I recently read a book that is one of the first one's shown on his website. A Random Walk Down Wall Street, by Burton Malkiel. Great book it belongs on the list, no question."

I read that one too. Malkiel not only says market timing is a fools' game but so is stock picking. If you can pick stocks you are just lucky and your luck will run out. He may be right, remember Bill Miller who beat the market for so many years before he got flushed down the toilet?

Nonstarter

Honeybee said...

Bartee,

To give Brinker the benefit of the doubt, there is one theory he was not able to broadcast because of the horrendous storms that have hit the east coast.

Anyone think this is possible?

Honeybee said...

TFB asked: "Would you prefer the two ding-dong liberal chicks he has had as fill-ins in the past? I'll take a rebroadcast anyway over the Taco Ballerina and the Affirmative Action Banker."

You do have a way with words. LOL!

Actually, it is easier on my blood pressure to listen to re-runs of Brinker than either one of those women.

My complaint is that the station does not announce that it is "Best of Brinker" -- please don't call.

I think it is very likely that Brinker has requested that they not do that.

Anonymous said...

The Lodi reference comes from comments BB has made to callers from Lodi, CA. There was a Creedence Clearwater Revival song with the lyric in it, "...stuck outside of Lodi ..."

Just like his phrase, "struggle for the legal tender" which is a lyric in a Jackson Browne song.

Nonstarter, you're right, on Malkiel and the stock picking, but after warnings to the reader, he proceeds to tell people how to do it and what to look for.

Honeybee said...

Nonstarter,

So you don't believe in "picking" anything -- especially the direction of the market.

Okay, that pretty much leaves only the option of buy-and-hold index funds.

Brinker's halfway there with you. He bought in March 2003 and has been holding ever since.

And the lion's share of his equity portfolios is in index funds.

Anonymous said...

"Okay, that pretty much leaves only the option of buy-and-hold index funds."

Yep, and that beats about 90% of the so called experts including the Harvard University endowment fund with all it's so called investment experts.

Nonstarter

Tex said...

As did Anonymous, I tuned in late and heard only segments of the show so didn't know it was a rebroadcast. Bob's criticism of "numismatic coins" did catch my attention, though. Does anyone want to hazard an opinion as to whether he would place coins that can be used as legal tender, e.g., American "Silver Eagle" dollars (1 oz. silver per coin) in that class? Perhaps not, since the markup on those (and some other coins) is not always outrageous, as Bob characterized the markup on "numismatic coins." Nevertheless, I get the impression from his comments on yesterday's show and at other times that he sees no reason for anyone to have physical possession of precious metals in any form (other than jewlery). I know very little about the precious metals "fad" and, like Bob, am skeptical about the wisdom of holding large amounts of it. Still, I guess that I don't dismiss out of hand the notion of individuals holding small amounts.

Anonymous said...

"And the lion's share of his equity portfolios is in index funds."

I think early on Brinker was claiming he didn't want to just match the market, he wanted to beat it.

When he found his mutual fund picks were NOT beating the market he quietly shifted to index investing.

NS

Anonymous said...

"Does anyone want to hazard an opinion as to whether he would place coins that can be used as legal tender, e.g., American "Silver Eagle" dollars (1 oz. silver per coin) in that class?"

I don't think anybody uses American Silver Eagles as legal tender do they?

Why would anybody give up an ounce of silver for a buck?

I don't think Brinker has an quarell with bullion type coins such as the Silver Eagle or the Kruggerrand for example.

EGAble

Tex said...

EGAble,
Many thanks for clarifying my question. I was trying to distinguish between types of coins but, being a novice, obviously didn't pick my words carefully. To adapt an old saying, "Be sure brain is in gear before putting keyboard in motion."

Honeybee said...

Tex,

I don't have time to search for it right now, but let me confirm that Bob Brinker has said he does not consider American Eagles, etc., in the same category of numismatic coins.

They usually sell for just a small percentage more than the actual price of the metal.

Tex said...

Honeybee,
Thanks for the enlightenment (as well as all the work you do on this site).

Anonymous said...

Honeybee brought up several issues:

My complaint is that the station does not announce that it is Best of Brinker -- please dont call.

Are you referring to the uplink station or the downlink stations?


I think it is very likely that Brinker has requested that they not do that.

That is the purview of uplink and/or downlink TC (Technical Control). Brinker has no influence over that.

Honeybee said...

There is a lot of negative talk about junk bonds lately.

I noticed that Bob Brinker's son is tweeting his little heart out with negativity about them. I think it's likely that he sold his holding in his "fixed-income" newsletter, as well as in Marketimer.

(I have no way of knowing for sure since he refuses to sell a subscription to me.)

Bob Brinker has said on the air that he writes all of Marketimer, but I don't believe him. I think the "other" Bob Brinker has a role in it -- just my opinion.

Bob Brinker sold all Marketimer junk bond holdings in October, but I have been buying. That doesn't mean I might not sell, but not today. :)

Here is an article that could be interpreted as negative but sure shows how great things have been and may continue to be:

Junk Bonds Still Live in the Best of Both Worlds

Honeybee said...

Anonymous... You speak with great authority. Now tell us what are your qualifications that would give us a reason to believe you.

I'd like an answer today, or I might delete what you wrote.

Pig said...

I have no way of knowing for sure since he refuses to sell a subscription to me.

OMG, how rude.

I would cancel my subscriptions to both rags in support of you, if I had either one.

I find flipping a coin is so much more accurate that those rags, and I get to keep the coin too.

Honeybee said...

Mr Pig,

I know it would be quite a sacrifice on my part, but anything for the wonderful people who read this blog. :)

Anonymous said...

Tex (all), the reality is any coinage or bullion will be tested at sales time and you will incur the cost to do so.

Regards,

tfb

Anonymous said...

"Tex (all), the reality is any coinage or bullion will be tested at sales time and you will incur the cost to do so." tfb

I have been buying and selling Kruggerands for years and never once had one "tested". The buy/sell price is readily quoted throughout the day and that's the price you pay/get.

If you are paying your dealer/broker to test your bullion coins, I would get another guy.

EGAble

Kirk Lindstrom's Investment Letter Service said...

Beware when you buy gold coins that they are not pure gold.

There is a good, short discussion at What is the Purity of American Gold Eagle coins?

and I like this article:

5 tips to shine in investing in gold coins

"Paying more than 5 percent premiums for gold bullion coins doesn't make sense, Mladjenovic says. "Aim for the lowest price," he says. And, avoid buying gold on eBay because you can get caught in a bidding war."

Anonymous said...

Stick with North American coins. The Canadian Maple Leaf and American Eagle gold bullion coins are the easiest to buy and sell. Outside the U.S., the 24-karat "Maple Leaf rules; inside, the 22-karat Eagle. "And the Eagle's gold content and purity is guaranteed by the U.S. Mint,"Mladjenovic says."

Eagle

Read more: http://www.bankrate.com/finance/investing/tips-investing-gold-coins.aspx#ixzz2KiHgTAKD
Follow us: @Bankrate on Twitter | Bankrate on Facebook

Anonymous said...

HB: My guess on the reaired show: yes: weather. I'm guessing his NY-based (?) crew would've had trouble staffing/getting to work, so they ran that "canned" version. I seem to recall something similar recently, around the time of a big snowstorm and/or hurricane hitting NYC?...

Tex said...

Many thanks for the comments and links, re: gold and silver coins. I've just read over a prospectus about SPDR shares and one from Monex. Also, there's a local, reputable dealer who sells directly "over the counter" to customers. However, for now, the direction of gold and silver prices (especially the former) makes it look like a good time to wait before buying, although I'd likely buy gradually anyway.

Honeybee said...

Tex,

This morning, I am looking at possibly taking a new position in AGQ, the leveraged silver ETF.

I haven't decided yet...

Anonymous said...

You asked: "Why does Brinker allow his re-runs to air without letting the audience know...?"

(rasputin, wildly waving his hand in the air saying, "Me, me. Teacher, pick me.")

Because the material is so generic that he figures people won't know the difference?

or,

He figures that he is all-knowing, all-seeing, so prescient, that anything he says will be timeless?

(rasputin, bowing at the waist - "Noblesse oblige".)

Honeybee said...

Rasputin,

While laughing my head off, let me say you go to the head of the class and get an "A" for being right two times! :)

Steven said...

Brinker's reruns really do show that his remarks are good basic sound information that is useful at any time. It doesn't have to have anything to do with the current market.

He doesn't really talk about the current stock market anymore anyway except to give a few numbers from the financial page. Closing numbers etc.

Jim said...

I didn't really mind listening to the taped program on Sunday. At least it was better than his current fill-ins. (I really miss Bill Flanagan) The calls on Sunday were high quality, no ranting about politics and no "guest" segment.(I'm not really interested unless the guest is John Bogle)

They should announce that it is a "Best of Moneytalk", but if he doesn't mention any news of the past week or talk about the guest segment, then it's easy to know that it's taped.

Pig said...


From what I read here, after 25 years, the live shows are nothing more than boring reruns.

At least the politics are removed.

Who the hell cares about his political views?

Those are as wrong as his market timing.

Honeybee said...

More negativity on High-Yield:

High-yield corporate bond ETFs have been immensely popular but yields have been pushed so low that newcomers may not be getting adequately compensated for the risk of investing in speculative-grade debt.

The recent pullback in high-yield ETFs appears to have shaken out at least some of the “hot” money.

The iShares iBoxx High Yield Corporate Bond Fund (NYSEArca: HYG) and the SPDR Barclays High Yield Bond ETF (NYSEArca: JNK), the two largest funds in the category, have experienced net outflows of $731 million and $514 million, respectively, so far this year, according to IndexUniverse data. The ETFs are paying 30-day SEC yields of about 5%.

The outflows aren’t significantly large when considering how big these ETFs are, and the massive inflows they’ve attracted over the past year from yield-starved investors. [High-Yield Bond ETFs: Rush for the Exits?]

Still, there are worries about how much gas is left in the tank for high-yield bonds after such as strong run. The junk debt ETFs posted total returns well over 10% last year.

“Prices are now near all-time highs and yields near all-time lows,” Schwab analysts wrote in a recent commentary. “We think it will be difficult to continue the strong performance going forward. In fact, we think there are increased risks in the high yield market, and believe investors should be cautious when investing in the asset class.”

Read more: Junk Bond ETFs: Are 5% Yields Worth the Risk?

Honeybee said...

Thanks to R.P. for sending me a link to this article. It looks like High-Yield isn't the only investment with a bear following.

Seeking Alpha only lets you quote a certain number of words from their article, so you may want to read more than I can post here:


Disclosure: I am short SPY. (More...)

"If they insist on trying to time their participation in equities, they should try to be fearful when others are greedy and greedy only when others are fearful." -- Warren Buffet, Chairman's Letter, 2004

CNN Money has an interesting take on attempting to quantify the current fear and greed in the market. It combines highs/lows, bond spreads, put/call ratio, bond vs. stock returns, S&P 500 movement, volume summation, and volatility into a single number from 0 (extreme fear) to 100 (extreme greed). The number is not very interesting itself, reflecting what you probably already know - for example, the market is way up right now.

What is interesting is that periods of extreme greed (index >80) have reliably been followed by market drops for the last three years (the viewable lifetime of the index). In April 2010, the index hovered over 75 for a month, just reaching 80 and in July 2010 SPY was down over 15% from the April high. In October 2010, the index briefly went over 80 followed by a 3% drop in SPY during November. In February-March 2012, the index was over 80 for some time before SPY dropped about 8% in May. In September 2012, the index went over 80 for two weeks, stayed near 80 for two more weeks, and by early November had dropped 7.5% from the September high.

Fear, Greed and Market Tops

If you click on the CNN link in the article, it takes you to the "Fear and Greed Index."