Honey EC: It's no surprise that Brinker was gone today. He has worked THREE weeks in a row now. He always takes off (at least) one week per month. The February 10th Moneytalk show was old calls spliced together and old monologues. That fact was never revealed on that show or mentioned on later shows.
Lynn Jimenez is a business reporter for KGO 810, which is San Francisco's most powerful radio station. KGO dropped Moneytalk a couple of years ago, but the show was picked up by KSFO 560, KGO's much less powerful sister station.
Jimenez is a great business reporter and gave a great business report in the opening monologue of Moneytalk. She quoted CNN, CBS Marketwatch and other news sources.
A long time Brinker listener sent these comments during the program today:
ras here: Early in the show, kind of embarrassing that Lynn didn't know if Bernanke was pumping $85 million or $85 billion into the economy. Not the most sophisticated explanation of the process either. Yikes!Ras is right! Vincent in NY asked: "I think the Fed is buying something like a trillion dollars a year in bonds. Is that correct?" Lynn Jimenez answered: "I think it's 85, what is it, million or billion, a month."
Honey EC: The following is the only call that I think you might find entertaining. I promise you that I rewound the tape several times as I transcribed it because I wanted to be sure that I got every word right. It's an accurate transcription of exactly what Jimenez said to Chris from Arizona.
Chris in Arizona, who said he was a Marketimer subscriber and had been listening to Bob Brinker since about1999, told Jimenez that he had taken $400,000 out of the stock market last December. He now wants to know the best way to reinvest it back in.
Jimenez replied: "You should be dollar-cost-averaging in. You should not invest a lump sum. I think weekly, maybe a little bit more like a lump sum investment than dollar-cost-averaging, but a lot of it depends upon the market. I mean, if you have the time to monitor it and can be opportunistic about it, that might work. But usually, dollar-cost-averaging would suggest at least a month, to a couple of months. But again if you can monitor the market. What are you going to invest in? Are you going to invest in index funds? Are you going to invest in individual stocks?
Chris answered: "Yes, ma'am. I follow pretty much Bob Brinker's portfolio one. I'm a newsletter (Marketimer) subscriber. So I just follow that."
Jimenez continued: "Okay, alright, dollar-cost-averaging is great. I think every week might be a little aggressive. However as I said, you know, if you do monitor the market closely and you can be opportunistic so you have a significant pullback for a day or two, well that's great. But then exercise discipline, you know. I think we still have maybe as much as 20% more to run up here. Don't forget, you know, we haven't felt the effects of sequestration in the budget battle yet. But we will later this year and in 2014. Nevertheless, the housing market, which is a multiplier, which means that it multiplies its impact, is only at the beginning of the recovering and that is huge. It's going to be very important. I do think you're on the right track. Do dollar-cost-average."
Honey EC: I've noticed that Jimenez sometimes talks so fast that it's not easy to catch exactly what she is saying. I think that answer shows the depth of her lack of expertise.
On the other hand, it also shows that she never reads Marketimer or even listens to Brinker's Moneytalk. The fact is, Brinker STOPPED advising subscribers to dollar-cost-average last October! October 2012 was the last month that Bob Brinker's Marketimer recommended dollar-cost-averaging for "new" money. (Of course, all of his Marketimer model portfolios are still fully invested.)
One of Lynn Jimenez' guests was Ed Whitacre: American Turnaround: Reinventing AT&T and GM and the Way We Do Business in the USA
* Whitacre made the claim that GM had repaid all of the money that the government gave them. I question that. I think that the GM stock that we taxpayers were given as collateral is still underwater.
Jimenez' third-hour guest was Vince Malta, a San Francisco realtor:
* Malta said that in some areas, like San Francisco and Arizona, the real estate market is becoming over-heated again, and is now a seller's market with multiple offers -- and offers for more than the asking price.Jeffchristie's Moneytalk Final Exam Question:
One of Lynn's guests today was real estate expert Vince Malta. While discussing how to get top dollar for your property Lynn suggested:
A) Remodel your kitchen.
B) Stage the property.
C) Put lipstick on a pig.
D) Advertise on the internet.
ANSWER
San Francisco, Ca. KSFO 560: 1-4pm (KSFO archives Moneytalk Free on Demand for seven days after broadcast. You can download and listen on the go.)
