Investment Writing

December 2011 on the Investment Writing blog

2012-01-03T19:59:00.000-05:00

Here are the links to posts you missed on the new Investment Writing blog:

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November 2011 on the Investment Writing blog

2011-12-01T05:56:00.001-05:00

Here are the links to posts you missed on the new Investment Writing blog:

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October on the Investment Writing blog

2011-11-08T08:29:00.000-05:00

Here are the links to posts you missed last month on the new Investment Writing blog:

A BrightTALK Channel

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New on the Investment Writing blog during September

2011-10-03T20:36:00.000-04:00

Here are the links to posts you missed on the new Investment Writing blog:

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August on the Investment Writing blog

2011-09-05T06:25:00.000-04:00

Here are the links to posts you missed on the new Investment Writing blog:

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June 2011 on the Investment Writing blog

2011-07-07T08:21:00.000-04:00

Here are the links to posts you missed on the new Investment Writing blog:

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May 2011 on the Investment Writing blog

2011-06-02T08:05:00.001-04:00

Here are the links to posts you missed during May on the new Investment Writing blog:

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Investment Writing posts for April 2011

2011-05-13T12:58:00.000-04:00

Here are the links to articles on the new Investment Writing blog during April 2011

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NEW on the Investment Writing blog

2011-03-31T15:07:00.000-04:00

Here are the links to articles you've missed in the last 30 days:

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February on the new Investment Writing blog

2011-03-01T09:54:00.000-05:00

Come join me on my new Investment Writing blog! It's part of my website.

Here are the links to articles you've missed in the last 30 days:

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What you’re missing, if you haven’t visited my new Investment Writing blog

2011-02-15T09:15:00.000-05:00

If you're not visiting my Investment Writing blog in its new location, you've missed the following posts over the last month:

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December posts on Investment Writing blog

2011-01-02T19:13:00.000-05:00

If you’re not visiting my InvestmentWriting blog in its new location, you’ve missed the following posts over the last month:

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November on the Investment Writing blog

2010-12-05T15:35:00.000-05:00

If you’re not visiting my Investment Writing blog in its new location, you missed the following posts in November:

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On the Investment Writing blog during October

2010-11-04T17:23:00.000-04:00

Here's what I covered on my InvestmentWriting blog during the previous month:

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October updates to the Investment Writing blog

2010-10-02T11:41:00.000-04:00

If you’re not visiting my InvestmentWriting blog in its new location, you’ve missed the following posts over the last month:

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New posts on my NEW Investment Writing blog

2010-09-07T11:53:00.000-04:00

If you’re not visiting my InvestmentWriting blog in its new location, you’ve missed the following posts over the last month:

Also, you still have time to sign up for "How to Write Blog Posts People Will Read: A 5-Week Teleclass for Financial Advisors" starting Sept. 23.
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What you're missing, if you haven't visited my new Investment Writing blog

2010-08-18T15:57:00.000-04:00

Come join me on my new Investment Writing blog! It's part of my website.

Here are links to articles you've missed since the beginning of July:

InvestmentWriting blog is moving ...

2010-07-05T11:30:00.000-04:00

Please keep reading my Investment Writing blog at its new location on my website: http://investmentwriting.com/blog/

If you have topics you'd like me to cover on the blog, I'm always interested in your ideas. You can note them below in a comment.

Thank you for reading!

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Stop! Get a better title, or forget winning readers

2010-06-29T07:29:00.001-04:00

Would YOU eagerly read an article with the following title?

Gulf Oil Spill

Impact on State and Local Government

Analysis of original title and introductory paragraph

Thousands of articles about BP's oil spill are fighting for your attention. "Not another oil spill story!" is probably the reaction of many readers who scan this title. The big problem: The title doesn't say why you should read it.

Let's look at the first paragraph to find a reason that you can highlight in a new title.

The Gulf Oil Spill will certainly have long-term repercussions for the fishing and tourism industries as well as the overall environment in the impact areas of the Gulf region. It is early in the disaster to fully evaluate the long-term effect on the states most at risk of contamination: Louisiana, Mississippi, Florida and Alabama. We do not anticipate immediate negative credit implications at the state level for those in question, but feel concerns are more likely to materialize at the local level at this time. We are continuously monitoring developments in the Gulf and considering our credit exposure in these areas.

Aha! Now I get it. Look at the phrases above that I bolded. Readers of this wealth management firm's newsletter should realize that the firm is looking out for the safety of their municipal bond portfolios. Too bad the title didn't tell them that.

The introductory paragraph doesn't help either. It starts with generic information that doesn't relate directly to investments. Even worse, it buries the most important information in the paragraph's second half.

Also, if readers aren't fixed income geeks, they may not realize that "negative credit implications" translates into "possible bond downgrades that could trim the value of your municipal bond portfolio."

Please stop here. Before you read any more, jot down a new title and first sentence for this article.

Looking for a better title

Here are some alternative titles.

Will Your Municipal Bond Portfolio Spill Like BP's Well?
No Need to Worry...Yet About the Oil Spill's Impact on Your Bond Portfolio
Assessing the Oil Spill's Impact on Muni Bonds: The Three Most Important Factors

Which do you like best? Feel free to share your title ideas.

Related posts

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"Where Are We Heading? The Future of Investment Management in Boston"

2010-06-28T07:24:00.014-04:00

Photo by Penguin Policy

The future of investment management in Boston was the focus of a panel presentation to the Boston Security Analysts Society's annual meeting on June 24. The view that Boston is being left behind made the greatest impact on me, but I'll report some of the opinions of all four speakers.

Reamer: Emphasis on actively managed equities hurts Boston
The investment world is shifting toward aggressive hedge funds and passive quantitative funds, said Norton Reamer, vice-chairman and founder, Asset Management Finance LLC. There's also currently an emphasis on fixed income. This is because the public has been discouraged by the stock market returns of the past two years. They want defensive, safe investments. On a related note, large pension funds are moving more toward indexing.

These trends don't favor Boston, the home of the original mutual fund, because local firms emphasize actively managed mutual funds. At least these trends don't bode well in the immediate future.

For Boston to prosper, it must attract assets from around the world, said Reamer. However, he sees the action shifting to New York, London, and even Philadelphia and California. Boston has only one of the 10 largest hedge funds and three of the 30 largest. While Boston has a history of venture capital, venture capital is less important than private equity, which is concentrated elsewhere, said Reamer.

One of Reamer's comments held a glimmer of hope. Universities--along with arbitrage groups, traders, and others--are the source of the new ideas that are changing the investment world. Boston has some great universities. Perhaps the universities can fuel the region's resurgence as an investment center. I'm happy to note that the Boston Security Analysts Society's program committee has a subcommittee devoting to inviting speakers from academia.

Putnam: Four trends will create many losers, few winners
Investment management is a craft, said Don Putnam, managing partner of Grail Partners, who moderated the panel. He emphasized the need to avoid losing sight of the craft before he described the four trends that he believes are changing the industry.

As a result of these trends, there will be many losers and few winners, said Putnam. The winners will be global firms as well as small cadres of capable people. The big challenge for money management will be to connect these two groups.

Trend 1: The long, complicated supply chain is reordering. For example, people are seeing the problems with "the slices taken off for people who deliver golf balls." I assume Putnam was referring to wholesalers and the broader issue of 12b-1 fees and the like, though he said that he was not making a case for fee-only advisors. Changes are coming as a result of regulatory pressures, client demands, and "better mousetraps," such as ETFs and active ETFs. Putnam said he's sceptical about growth opportunities for the mutual fund industry.

Trend 2: The relevance of specialization is declining. Why? Because the efficient frontier--and the need to diversify into many slices of the market--has been challenged. "It has been proven to be nonsense for the client," said Putnam. Clients' "true utility equation" can be delivered more efficiently with quantitative solutions, he added.

Trend 3: The arithmetic of the investment business is changing with the rising importance of asset allocation. As the utility of money management has declined, fees have risen, said Putnam. This can't last. While clients have bought the "myth of comfort and control," the past three years have increased client dissatisfaction.

Trend 4: Technology is increasing in importance. Technology should be woven into every aspect of money management, said Putnam. Technology's influence on money management has barely begun.

Manning: Structure your firm to have an edge over your competition
You must deliver great results to keep assets, said Robert J. Manning, who spoke as CEO of MFS Investment Management, but is scheduled to become the firm's chairman on July 1. This means you must structure your firm to have an edge over your competition. Manning discussed three key elements of MFS' structure.

1. Follow a long-term investment philosophy. The world is preoccupied with short-term investment returns. However, MFS believes that you need a culture of long-term investing backed by an appropriate compensation structure. When MFS conducts performance reviews, it only considers periods of three years or longer.

2. Create a global footprint. If your people are only in Boston, you can't be a winner, said Manning. For example, if you don't have staff in Europe, you can't respond quickly enough when credit default swaps widen in Europe. As part of the global footprint discussion, Manning emphasized the need to integrate the firm's fixed income and equity teams.

3. Analysts are more important than portfolio managers. The old model is broken, said Manning. The most important employees are career analysts who have expertise in specific sectors. MFS has eight global sector heads. These are the people who, if they "see a storm coming" get the entire firm out before it hits.

The increased importance of analysts has been driven partly by the fact that clients want to buy "specialized sleeves of alpha." This is reflected in analysts' compensation. At MFS, analysts earn more than portfolio managers.

We sell the global research platform, not the portfolio manager, said Manning. The portfolio manager simply assembles the alpha streams from the analysts the way that clients want.

Hughes: Confident in Boston's future
Larry Hughes, CEO of BNY Mellon Wealth Management, said that Boston's talent and innovation makes his firm feel confident about Boston's future.

Still, the next decade will pose challenges for wealth managers in terms of how to protect clients against continued market volatility and how to capture the related opportunities. Hughes suggested three areas for focus.

1. Investment innovation--The "set it and forget it" ways of the past won't work any more, said Hughes. It's important to capture trends that develop--and disappear--in months, or perhaps even just weeks.

2. Seamless and dynamic planning--Wealth managers must "plan across silos," considering all aspects of clients' lives, including taxes, estate planning, health care, and more.

3. Better manager-client engagement--It's important to speak in your clients' terms. Clients don't talk about the efficient frontier, standard deviation, or r-squared, said Hughes. So neither should wealth managers. Instead, wealth managers should present issues in straightforward terms, such as "helping you maintain your lifestyle."

Related posts:
* Investment management career advice from industry pros
* "Have mutual fund fees gone up or down?"
* GMO's Jeremy Grantham on "The Ethical Hole in Finance" at #CFA2010
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Investment management career advice from industry veterans

2010-06-27T18:10:00.001-04:00


Photo by Clay Haskell

Investment industry veterans' somewhat gloomy outlook for Boston's asset management firms prompted me to ask, what should the people in this room do to promote their careers?

I asked this question during the Q&A session following "Where Are We Heading? The Future of Investment Management in Boston," a June 24 panel presentation to the Boston Security Analysts Society's annual meeting. You'll find the panelists' suggestions below.

Keep learning, said Donald H. Putnam, managing partner, Grail Partners LLC. As the role of technology accelerates, you can't achieve the same outcomes as in the past using old skills. The great investors spend more time on their own skills as they get older, he added.

Take new challenges and learn new things, said Norton Reamer, vice-chairman and founder, Asset Management Finance LLC.

Be passionate about what you do, said Larry Hughes, CEO of BNY Mellon Wealth Management. If you don't feel passionate, then find something else to do.

Focus on your trade, said Robert Manning, CEO. MFS Investment Management. If you're good at what you do, you'll find a job despite the industry trends.

(Added 6/29) For more information on the panelists' presentations, read "Where Are We Heading? The Future of Investment Management in Boston."

Related posts:
* "You" can help your job hunting "thank you"
* Useful LinkedIn Groups for investment and wealth management job hunters
* Recruiter Ted Chaloner on job interviews that get results
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Financial blogging lessons from The Poetry Home Repair Manual: Tips for more compelling posts

2010-06-22T07:21:00.001-04:00

"The titles and the first few lines of your poem represent the hand you extend in friendship toward your reader. They’re the first exposure he or she has, and you want to make a good impression."
-- Ted Kooser, The Poetry Home Repair Manual: Practical Advice for Beginning Poets

This Ted Kooser quote applies to financial blog posts as well as to poems. Financial posts and poetry aren’t often mentioned in the same sentence. However, both forms of writing will win or lose readers on the basis of first impressions. So, I’d like to share tips for financial bloggers based on the “First Impressions” chapter of Kooser’s book.

1. Use your title to set your readers’ expectations. Give up bland titles, such as "401(k) plans" in favor of titles that give your audience a reason to read. For example, my title for this post identifies my target audience – financial bloggers – and the benefit I believe they’ll receive – more compelling posts. "Titles are very important tools for delivering information and setting expectations," as Kooser says. Instead of "401(k) plans," consider something like "Three ways you can get more out of your 401(k) plan."

2. Don’t lead with boring information. Put your background information somewhere other than your opening lines. Too often, as Kooser says, bloggers – like poets – start with “information that really is not essential but is there because it was a part of the event that triggered the poem. It’s the background story, and it may not be necessary for us to know it to appreciate the poem.”

3. Deliver on your promise. For example, if your title and first paragraph promise 401(k) tips, don’t switch midstream to discussing online checking accounts.

4. Write in a consistent style. If you drew in your blog readers with a warm, conversational style, you’ll lose them when you switch to a cold, institutional style. As Kooser says, "If a poem begins with three lines of strict iambic pentameter, a reader will be disconcerted if that forceful rhythm is abandoned in the fourth line."

5. Be aware of your "voice." Kooser describes "voice" or "presence" as "the person we not only hear, but intuit to be behind the words." For example, I think my voice is friendly, conversational, and reflects a genuine desire to help financial advisors communicate better with their clients. Voice is communicated by your writing style as well as your content.

Try applying one--or all--of these tips in your next financial blog post!

Related posts
* Start with a good lead, or lose your reader
* Financial writers, lead with your message, not your source

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Guest post: "Making Research Readable"

2010-06-20T15:51:00.000-04:00

Investment research analysts can learn to write better. In his guest post, Joe Polidoro gives directors of research his advice on how to make this happen.

I'm delighted to have met another advocate of good investment writing thanks to Twitter, where Joe tweets as @joepolidoro.

Making Research Readable

By Joe Polidoro

Is it worthwhile, or even possible, to improve the quality of your research analysts’ writing? Yes and yes, and I’ll tell you how. First, the business case.

It seems reasonable that good writing—clear, engaging, memorable—should be more effective than sub-par writing at reaching your audience. But let’s see the numbers.

One of the best proofs I’ve come across is courtesy of Dame Marjorie Scardino, CEO of Pearson PLC and former CEO of the Economist Group (hat tip: Vicki Cobb and I.N.K.)

Scardino located a study in which three groups—linguists, writing professors, and journalists –were asked to improve passages taken from a history textbook. Students were then asked to read the original passages and the rewrites and immediately record as much as they could remember.

Recall of the journalists’ rewrites beat recall of the other groups’ rewrites and of the original text by a whopping 40%. Good writing matters.

And I think average writers, including research analysts, can measurably improve their writing—with the right help.

First, look for a writer
In your quest for a writing coach, avoid anyone who doesn’t make a living—and a decent one—by writing. As Stephen King said, anyone who is paid to write knows how to write effectively. Professional writers “get the story told memorably … and quickly,” says Scardino. Those who make their living doing other things, including the teaching of writing, usually can’t.

Hire a writer/coach
A writing pro isn’t necessarily a good writing teacher, however. Aside from references, here’s how to tell. Effective teaching is less about charisma, more about preparation, perseverance, and a passion for the work. So ask questions: What are you going to teach my analysts? What are your goals? What’s your plan? How will you deal with indifference or egomania?

Your writer/coach should be quick with confidence-inspiring answers. Look for someone who emphasizes telling a story (yes, even in a research report), clarity, and effective editing. Steer clear of those who get deep into grammar and theory. Good writer/coaches use real examples and show how it’s done.

Follow through with your swing
No writer/coach worth hiring will promise to improve your analysts’ writing in one session. A golfer won’t significantly improve her game with a 3-hour lesson. If she’s serious, she’ll take a series of lessons over the season. And writing well is harder than golfing well.

It doesn’t have to be extensive—even three 45-minute sessions over four to eight weeks with your most problematic analysts will work. But set aside budget for this. It’ll show you’re serious. And it will make whoever you hire that much more effective.

Joe Polidoro spent over a year improving the equity research reports at Bear Stearns, where he worked with past and future research stars including Lee Seidler, Lincoln Anderson, Larry Kudlow, Joe Buckley, Jami Rubin, and Steve Binder. Joe now co-heads Triplestop LLC, a marketing agency specializing in asset management and related industries.

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Six lessons from the CFA Institute’s conference tweets

2010-06-15T08:30:00.000-04:00

You can learn some lessons for how to tweet a conference from the CFA Institute. It has done things right as it timed its Twitter debut to coincide with its annual conference. But there’s still room for improvement.

Lesson 1: Deploy a team. The CFA Institute mobilized a team of 14 people to report on its three-day conference. One person will burn out if she or he tries to cover every session. Plus, it’s impossible for one person to cover concurrent sessions.

Lesson 2: Use a hashtag. The hashtag #CFA2010 allowed people to find conference tweets by both official and unofficial sources.

Lesson 3: Complement your tweets with blog posts. You can’t say much of substance in a line of 140 characters or less. You’ll engage your conference attendees more deeply when some of your tweets lead them to blog posts. Tweets may be the sizzle that leads some reader to the steak. Read the CFA Institute's 2010 conference blog.

Lesson 4: Decide on a strategy for engaging with fellow Twitter users. The CFA Institute included non-staff #CFA2010 tweets in the Twitter feed. It might also have engaged with other people tweeting about the conference.

I may have overlooked something, but I didn’t see any CFA Institute Twitter users getting into conversations on Twitter. On the other hand, there aren’t many CFA charterholders on--or even knowledgeable about--Twitter. “You can tweet, although I don’t know what that means,” joked John Rogers, the CFA Institute’s President and CEO, to widespread laughter when he introduced the conference’s Monday morning sessions.

Lesson 5: Monitor the back channel. This isn’t an issue for the CFA Institute yet, but it’s becoming more of an issue, as reflected in the publication of The Back Channel: How Audiences Are Using Twitter and Social Media and Changing Presentations Forever by Cliff Atkinson. The CFA Institute kept its eyes on the back channel by featuring #CFA2010 tweets on its conference blog and on screens at the conference.

Lesson 6: Go multimedia. Some folks like to take in their information in written form. Others prefer audio and video. The CFA Institute did a great job of getting its headline speakers interviewed on camera by reporters and tweeting the interviews as they became available online. It has also gradually fed the interviews onto its blog.

Congratulations CFA Institute on a conference well-tweeted!

Related posts:
* My blog posts related to #CFA2010
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Pull your white papers into the year 2010

2010-06-10T08:00:00.000-04:00

Investment and wealth managers, you can get a lot more mileage out of your white papers today.

How's that?

Don't forget about the content once it's up on your website. Reuse it using social media.

Recycle as blog posts
White paper content can be recycled into blog posts. In some cases, you can pluck a few paragraphs and drop them into your blog "as is." However, most of the time, you'll need to frame and re-write the content. I've been doing this recently for a white paper client.

Another possibility: Send your white paper to a blogger whom you respect. Offer to answer questions about your topic on the other person's blog. Check out "How to guest-blog on personal finance or investments," if you'd like to explore this option

Tweet it--and don't forget LinkedIn
It's a no-brainer to tweet the availability of your white paper. Smart marketers go beyond this. They tweet intriguing excerpts, keeping them short enough to be retweetable. Pithy quotes are popular on Twitter.

Remember, tweets are also great fodder for LinkedIn updates. While you're over at LinkedIn, you may also want to raise a question in a Group related to your white paper topic.

Go multimedia
Different members of your audience prefer to take in content in different ways. So, also consider turning your white papers into podcasts, videos, or interactive webinars.

Related posts

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Quick email tips for financial advisors and clients in my guest post

2010-06-09T09:15:00.000-04:00

You can snare some quick tips for advisor-client email communications in my guest post for the KBK Wealth Connection blog.

The tips boil down to

Get to your point quickly
Keep it short
Organize clearly

Visit Kathleen's blog for more details.
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Susan Weiner, CFA, writes and edits articles, white papers, blogs, investment commentary, web pages, and other communications for leading investment and wealth management firms. She has presented “How to Write Emails and Letters Your Clients Will Read” to great reviews by financial advisors.

BNY Mellon: I liked your "truth ad" until you used that word

2010-06-07T08:23:00.001-04:00

BNY Mellon Wealth Management has a catchy new print ad asking "Can you handle the truth?"

I love the simplicity of "Can you handle the truth?"

You can view one version of the ad on BNY Mellon's website. However, I first saw this family of ads in the print version of The Wall Street Journal.

Print vs. online ad
The Wall Street Journal version uses the same big "truth" box, but it is mostly better than the online version.

It's better in the sense that much of its text is simpler and more direct than in the online version. I imagine that individuals seeking financial advice would find it very appealing. Let's compare the two versions.

Print version

The truth is most investors' portfolios did not handle the past years' market volatility well. A more alarming truth is that most plans have not been changed to mitigate future risks or capture opportunities.

We have helped many investors with an honest assessment of their current portfolio and plan. May we help you?

The first sentence is disarmingly honest. At least in my eyes.

The language charmed me until I got to "mitigate." If you're a regular reader of this blog, you know I don't like "big words" and "mitigate" is one of my pet peeves. Why couldn't the writers substitute "ease," "cut," "reduce," or even "manage" for "mitigate," depending on what they meant? I suspect that a lawyer or compliance person pushed for "mitigate."

Online version
The first line of the online ad's text--which you can read in the indented section below--is much stiffer and institutional. It doesn't sound like something a human being would say in conversation. I've italicized the words I don't like in this ad's text below.

The rest of the text is better. I like the second sentence. However, in the fourth sentence, "complimentary analysis" suffers when compared with the "honest assessment" of the first ad. Also, "please contact us" isn't as appealing as "May we help you?"

Fundamental changes in the financial landscape have rendered many investment plans null and void.

Your plan may be one of them.

Let us help you learn the truth about whether your portfolio is positioned for the years to come.

To get started with a complimentary analysis of your investment plan, please contact us.

Related posts
* Timely, creative financial ad from Northwestern Mutual
* No more fancy-pants prose, please
* Financial writers clinic: Getting rid of "mitigate"
* Can you make a case for "mitigate"?

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Guest post: "Talking to clients about social investing"

2010-06-04T14:00:00.001-04:00

Socially responsible investing can make for a difficult conversation between investment managers and their clients. But it doesn't have to be that way if you follow the tips provided by my friend Annie Logue, the author of Socially Responsible Investing for Dummies.

Talking to clients about social investing
By Ann C. Logue

Often, an individual client will walk into an office with a list of industries and companies that he or she does not want to own. Some clients have well-thought out objections or religious obligations that set the tone, but others have a vague idea of the goodness or badness of an industry without any real reasoning behind it.

How do you deal with such a customer?

Social criteria can be legitimate investment constraints, so one tactic is to approach it as a constraint. Get the client to identify the real issues, ideally in writing. Are they religious? Well, you can’t argue with religion! If they are more vague, then use some good questioning to get them onto paper, or ask the client to do some research. Some good sources are CSR Wire and Triple Pundit.

The real conversation is about what your client would rather invest in. Social investing doesn’t have to have lesser performance than traditional investing; the KLD Social Select 400 Index has minimal tracking error to the S&P 500 and, right now, outperforms it slightly. The secret is making sure that the companies you do invest in have a similar risk and return profile. If your client wants to sell BP, then you’d better find a company with similar characteristics. Replace BP with a speculative green tech company, and you're changing the portfolio’s nature. Replace it with a large multinational food company with responsible business practices, paying a high dividend, and subject to commodity price fluctuations, and you’re getting closer to the portfolio contribution of BP without the oil exposure.

Keep holding the conversation, too. BP had a great reputation for its social responsibility right up until April of 2010. Social investing is still investing, and you still take on company risk. Just as there is no perfect job and no perfect boyfriend, there is no perfect investment. Remind your client of the long-term goals. Many clients prefer to separate their investing from their philanthropy, figuring that the more money they make, the more money they can donate and the more time they have to volunteer.

Finally, turn your clients into activists. Talk to them about proxies. They can vote their proxies and have an influence on companies even if they do not change their ownership positions. That gives the client power without disrupting an investment position.

Social investing doesn’t have to underperform, and it doesn’t have to be a wedge between you and your client. You can use a client’s interest as an opportunity to educate them and to show how you can add value to their portfolio.
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My May blog posts by category: Blogging, economy/investments/wealth management, marketing, social media, writing

2010-06-03T13:38:00.000-04:00

Did you notice that I went wild in May, posting every day as part of the Word Count Blogathon? For your convenience, I'm listing my May posts by category.

Blogging

Economy, investments, and wealth management

Marketing

Social media

Writing

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Six tips for slogging through blogging: Lessons from the Blogathon

2010-06-02T11:56:00.001-04:00

“How can I force myself to blog regularly?”

The investment and wealth managers in my blogging teleclass often ask this question. I grappled with this challenge during the Word Count Blogathon, for which I committed to post daily. So now’s a good time for me to share tips with you.

Tip 1: “Set it and forget it.” Most blogging platforms allow you to schedule blog posts in advance. This potentially lets you put your blog on auto-pilot when you’re busy. During the Blogathon I learned how to take automation one step further. I set HootSuite to tweet my blog posts without human intervention. Read about "How to Add an RSS Feed" using HootSuite.

Tip 2: Blog when the spirit moves you, whether or not your schedule requires you to post. It’s much easier for me to blog when I’m in the mood. On a good day I can push out three or more blog posts. To help me write regardless of location, I always carry a spiral-bound notebook or pad of paper. It’s worthwhile jotting down blog ideas, not only full-fledged posts. It’s much easier to blog when you don’t face a blank PC screen or piece of paper.

Tip 3: Write posts that are “evergreen” or tied to a future event, so you’ll have material to post when you’re too busy to write. “Evergreen” articles aren’t time-sensitive. Like a pine tree, they don’t lose their attractiveness with the changing of the seasons.

I scheduled a bunch of evergreens to run between May 16 and May 31, when I was distracted by attending the CFA Institute’s annual conference and going on vacation out West.

Blog posts tied to events such as the April 15 tax deadline or the August-September “back to school” season aren’t evergreen. But they can be written and scheduled long before a timely date for posting.

Tip 4: Keep it short. Short blog posts are okay. Just pick one point and explain it. This is how I dealt with Jeremy Grantham’s wide-ranging presentation to the FA Institute’s annual conference. Having trouble writing economically about your topic? Slice it narrower.

Tip 5: React to online articles or blog posts. Notice when you have strong feelings upon reading something. Your passion makes it easier for you to jot down a quick blog post that links to the original article. Links spare you the need to describe the other author’s position in detail. However, it’s kind to your reader to briefly summarize what sparked your blog post.

Tip 6: Hire someone to type your blog posts if you dictate or write your drafts on paper. I drafted this post on a plane to Las Vegas. Later I scanned it for my virtual assistant to type. Or follow the suggestion that Bill Winterberg of the FPPad blog gives in the comments below.
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My Boston-area networking suggestions

2010-05-31T05:00:00.000-04:00

Social media are great, but sometimes I want to meet my business colleagues, prospects, and referral sources in person.

In this post, I share some names of networking organizations in greater Boston. Perhaps you'll find an organization that works for you. Even if you're not in Boston, some of these organizations have a national presence.

My anchor organizations are the Boston Security Analysts Society (BSAS), the local chapter of the CFA Institute, and the Women's Business Network (WBN). I'm a volunteer for the BSAS. I try to attend at least one program monthly to keep on top of investment management issues and to meet new people. I belong to WBN out in Wellesley to get myself out of my office to chat with other small business owners.

Here are some other organizations I've enjoyed on multiple occasions. They're a mix of financial, communications, and business groups.

Boston Women in Finance-- I've enjoyed presenting to their members on writing techniques.
Downtown Women's Club
International Association of Business Communicators-Boston chapter
Public Relations Society of America-Boston chapter

There are many more worthy organizations in greater Boston. One that intrigues me is the Boston Economic Club. If only I had more time...

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The two most important words are...

2010-05-30T05:00:00.000-04:00

Copyblogger Brian Clark's lessons in "The two most important words in blogging" apply equally to any form of marketing communication. Pay attention because using these words will make your communications more persuasive.

See if you can guess the two words before you surf to Copyblogger's site. If you have attended any of my presentations on writing, you should know one of the two answers.
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How to write subheads that command attention

2010-05-29T19:28:00.001-04:00

Copyblogger Brian Clark accurately notes in "How to write exquisite subheads" that subheads can turn scanners into readers.

I especially like his advice that a subhead should "express a clear and complete benefit."
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Executive's lesson for your communications with clients and prospects

2010-05-28T08:36:00.000-04:00

Financial advisors who want to communicate effectively will follow the example set by Bill Carter in "The Scoreboard Can't Tell You Everything." Carter's lesson boils down to this: Put yourself in the mind of the person with whom you're communicating.

Here's what Carter, partner and co-found of Fuse, said in his interview with Adam Bryant of The New York Times:

In terms of communication, I think that I do my best to try to step away from my own belief system and my own priorities, which are the priorities of a 41-year-old man who’s married and has a young daughter. Instead, I try to evaluate decisions based on what the 25- to-32-year-olds in our office are trying to get out of their career, what they want in a workplace.

Your articles and conversations will be more persuasive when you phrase them in terms of what your clients, prospects, and referral sources care about.

For example, say "Your interests come first because we don't accept payments from product providers" instead of "We are a fee-only financial advisor."

Do you apply this rule to your communications? Please share your examples.

Related posts
* Focus on features, not benefits, in your marketing
* Encourage good communication or lose your multi-generational clients

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"Have mutual fund fees gone up or down?"

2010-05-27T09:48:00.004-04:00

Investment expenses have been on my mind this month, as you know, if you've read "Morgan Creek Capital's Yusko on investing," "Morgan Creek Capital's Yusko riles up Tweeters with comments on investment fees" or you follow me on Twitter.

This prompted me to revisit my article, "Have mutual fund fees gone up or down? Are they fair or unfair? It depends on whom you ask."

Many of the points raised in this 2006 article still apply.

For most advisors, it’s a no-brainer to pick the fund with lower expenses, assuming the fund’s style, market capitalization and other major factors are equal.
Controversies swirl around several topics related to fees, including their fairness, their correlation with higher fund returns, whether they’re rising or falling, and whether fund firms are responding adequately to advisor demands.
Some financial advisors say both critics and boosters of mutual funds may be missing the point by focusing on disclosed expense ratios.
One thing seems clear: Advisors will continue to gravitate toward low-cost funds that also meet their other investment criteria.

One change since my 2006 article: The Investment Company Institute's research no longer shows that overall mutual fund expenses are dropping. The headline for its latest study says, "Mutual Fund Expense Ratios Ticked Up in 2009, While Total Fees and Expenses Remained Steady." Morningstar Advisor put a more negative spin on fees in "Mutual Fund Expense Ratios See Biggest Spike Since 2000."

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Tip for how to connect with your workshop attendees

2010-05-26T08:44:00.002-04:00

Advisors, you can deepen your connection with folks who attend your investment or financial planning workshops using a technique I observed at the Financial Planning Association of Massachusetts annual conference on May 7.

Consultant Shari Harley, whom I wrote about in "How to improve your financial planning client relationships," handed out postcards to her audience. There's nothing unusual about that. But what she said next grabbed my attention.

Harley asked us to write on the postcard (shown in the photo above) at least one thing that we learned from her presentation that we'd like to apply. Then she promised to mail the postcards to us in one month, if we dropped them off on our way out of the auditorium.

I like Harley's postcard idea because

Her question spurs the audience to think about what was most valuable in her presentation.
She gains valuable feedback when participants hand in their cards.
She reminds potential clients of her existence--with their permission--when they receive their cards one month later.
If audience members haven't acted on their goals by the time they receive the cards, they may say, "I need a consultant to help me act on this."

This postcard technique should work nicely as follow-up to any sort of financial seminar or workshop.
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Financial bloggers' posts may violate copyright law

2010-05-25T18:11:00.000-04:00

Copyright law isn't on the curriculum of most business schools or for CFP or CFA candidates. So it's not surprising that I've seen well-meaning financial advisors unintentionally violate copyright law in their blogs.

What NOT to do
You cannot copy someone's entire newspaper article or blog post word-for-word, then make it okay by giving credit to the author. This won't suffice. Not even if you link back to the original article. You are violating copyright law.

When in doubt, paraphrase
U.S. law allows you to quote part of a written work under the doctrine of fair use, which you can read about on the federal copyright website.

Fair use is a murky concept. "There are no legal rules permitting the use of a specific number of words, a certain number of musical notes, or percentage of a work," as it says in the federal government's FAQ on on "How much of someone else's work can I use without getting permission?"

As the Copyright Office says:

If you use a copyrighted work without authorization, the owner may be entitled to bring an infringement action against you. There are circumstances under the fair use doctrine where a quote or a sample may be used without permission. However, in cases of doubt, the Copyright Office recommends that permission be obtained.

Your safest course is to simply paraphrase or summarize the article that interests you, while also citing the source. It's courteous to provide a link to the article, if it's available online.

Using quotes very selectively will keep you safe, while protecting other authors' copyright.
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Start with a good lead, or lose your reader

2010-05-24T17:00:00.000-04:00

"...the lead is the doorway into every text. Its job, never a minor one, is to draw the reader over the threshold," says Francis Flaherty in The Elements of Story, p. 201.

The lead, also spelled lede, is the first sentence or paragraph of your blog post or article. Write a weak lead and you may lose your audience at the very beginning of your piece.

When you write your lead, Flaherty suggests you ask "What lead will prompt in the reader the most irresistible questions, questions powerful enough to propel him through that doorway and into the story?" p. 202.

When you write an investment or wealth management blog post, the most powerful leads often pose a problem faced by your readers and dangle the possibility of a solution. Have you written a powerful lead of this type? Please post a link to your blog post, so we can see how you've mastered the lead.
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Check out my website at www.InvestmentWriting.com or sign up for my free monthly e-newsletter.
Copyright 2010 by Susan B. Weiner All rights reserved

Using CFP in your Twitter name--Read the CFP Board's position

2010-05-23T11:55:00.000-04:00

Using a term such as CFP in your Twitter name makes sense as a marketing strategy for financial advisors. It immediately identifies you as a credentialed professional. However, it also means you're violating the CFP Board's rules.

Twitter alerted me to this issue. When I dug into the CFP Board's Guide to Use of the CFP Certification Marks, I discovered that point 1.7 says "CFP certificants may not own or use an email address or internet domain name that includes the CFP mark." (Sorry CFP Board, I don't know how to make the (R) mark appear in a Blogger blog).

Here are some examples from the CFP Board of proper and improper use of their mark.

A Twitter name isn't an email or a URL. But Twitter does make the name into a URL following the format http://twitter.com/TWITERNAME.

I contacted @CFPBoard to ask if a Twitter name using CFP would violate its rules. Here's the reply:

It sounds as if the CFP Board is open to your feedback about using CFP in Twitter names. So shoot SLaBonte an email, if you'd like to be heard.
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Poll: Which should investors fear more? Which #CFA2010 speakers were right?

2010-05-22T08:00:00.002-04:00

CFA Institute Annual Conference speakers raised many concerns about the future during the conference, which ran from May 16 to May 19 in Boston. But they didn't always agree with one another. Their mixed opinions inspired this month's poll.

Which do you fear more?
* Inflation or deflation?
* Continued fiscal stimulus or spending cuts to focus on deficit reduction?

Please answer the poll in the right-hand column of this blog. I'll report on the results in the July issue of my e-newsletter.

For a sampling of the mixed opinions, see
* Memo from Van Hoisington: Inflation Won't Be a Problem for Some Time to Come on the CFA Institute's conference blog
* Why Niall Ferguson's Forbidden FT Headline is the Key to Understanding Sovereign Risk on the CFA Institute's conference blog
* Harvard Professor Kenneth Rogoff Offers a Historical Perspective on Financial Crises on the CFA Institute's conference blog
* R Koo, "Lessons from Japan: Fighting a Balance Sheet Recession"
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Plain English can bring your financial topic to life

2010-05-21T07:21:00.001-04:00

Must an article about how to prevent another Flash Crash be difficult to understand?

Not if you use plain English, as Floyd Norris did in "Time for Regulators to Impose Order in the Markets," his May 14 column in The New York Times.

Here's Norris' first sentence:
"If your machine makes a mistake that the dumbest human would never make, then maybe you don’t have a very good machine."

Even a child can understand Norris' lead sentence. Norris created an image in my mind that made it easier for me to follow the rest of his column about the changes he believes are needed for the New York Stock Exchange.

The next time you write an investment or financial article, try to use plain language to introduce your topic. Your readers will thank you.

Related posts
* Financial writers clinic: Lessons from Floyd Norris of The New York Times
* Vary your paragraph length like New York Times columnist Floyd Norris
* Financial writers clinic: Rhythm can help you

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The compliance-constrained advisor's guide to LinkedIn, Part II: Status updates

2010-05-20T11:00:00.001-04:00

Your LinkedIn status updates are powerful reminders of your existence to clients, prospects, and referral sources. You can use them in ways that even compliance officers can love.

My top three suggestions are to use materials that are already compliance-approved, share your professional interests, and share your professional interests.

1. Use compliance-approved materials

Every firm has materials that are approved for use with the general public. It could be your quarterly investment commentary, a newsletter, or even a brochure. Take advantage of this information by writing about it in your status update line.

You can say something as bland as "Check out our 2nd quarter market commentary at http://..." or spice it up by asking a provocative question and following the question with a link. Check with your compliance officer to learn how much you can say without raising his or her anxiety.

2. Share your professional interests

You can mention professional meetings that you're attending or topics that you're reading about.

Let's say you're trying to attract clients with complex estate planning needs. Your prospects will probably feel reassured to learn that you're reading journal articles and attending panels on these topics. Your update about an upcoming event may lead to your referral source setting an appointment to meet you there.

You can also share company news, such as the hiring of a new relationship manager or the debut of a new product.

3. Share your personal interests

People like to do business with people whom they like. Share your volunteer interests, hobbies, or even something that makes you smile. It'll help people to develop a connection with you.

Compliance note: For more on the compliance aspects of social media, check out Bill Winterberg's excellent article in the Journal of Financial Planning, accessible to non-members only during the month of May. Chad Bockius' "LinkedIn Compliance Self-Assessment" focuses on compliance for registered reps. Both articles point to the importance of monitoring and archiving social media activity.

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R Koo, "Lessons from Japan: Fighting a Balance Sheet Recession" at #CFA2010

2010-05-19T06:00:00.002-04:00

Lessons from Japan? What lessons can we learn from Japan? They did everything wrong, didn't they?

The questions above are the reactions that Richard Koo, chief economist of the Nomura Research Institute and author of The Holy Grail of Macroeconomics: Lessons from Japan's Great Recession often gets when he presents on "Lessons from Japan: Fighting a Balance Sheet Recession," as he did on May 18 at the CFA Institute's annual conference.

Koo made the case that the U.S. should continue fiscal stimulus until deleveraging by the private sector is complete. If we fail to do so, we risk a double-dip recession once people become complacent about economic recovery, he said. Meanwhile, the deleveraging is necessary because of "the bursting of a debt-financed asset price bubble that leaves many private-sector balance sheet liabilities than assets."

The U.S. recession is a lot more like Japan's than most people realize. Koo's first graph showed a striking similarity between the path of U.S. housing prices, 1992-2010, and Japanese housing prices, 1977-1995.

Japan's recession management has been more successful than you might think. This is especially true in the sense that Japan's gross domestic product (GDP) grew during the recession despite massive loss of wealth and private sector deleveraging, Koo said.

Japan could have done even better if the government had consistently supplied fiscal stimulus until private sector deleveraging ended, Koo said. He estimated that Japan might have suffered only seven to eight years, instead of 15 years, if it hadn't tried to "pull the plug" on fiscal stimulus.

The U.S. has a tough task in front of it. Maintaining fiscal stimulus for an entire period is almost impossible during a peacetime democracy, said Koo.

Here's a startling pronouncement: The U.S. has overtaken Japan in savings. This is the result of the recession, said Koo. This jump in the savings rate means that the U.S. could internally finance its fiscal stimulus.

Interest rates will stay low, said Koo, because nobody is borrowing or lending. We have to get corporations to borrow money before we can even contemplate reducing the budget deficit, said Koo.

Some people think that the U.S. will be different from Japan because it cut interest rates more aggressively. But Koo countered that monetary policy doesn't have much impact in this kind of recession because you can't spur borrowing.

MAY 19 UPDATE: Here's link to Bloomberg.com interview with Richard Koo on the topic of his #CFA2010 presentation.

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Can you help with my Facebook dilemma?

2010-05-19T05:00:00.000-04:00

Dilemma: I feel as if I need to change my Facebook (FB) strategy. I currently use it to hang out with family, friends, and fellow writers.

I'm sitting on two FB friend requests from people who feel like friends, but they are also in my business.

Another source of pressure: I need to become a "fan" of client/referral source Facebook Fan Pages, so I can learn more about them. Once I do this, I will face more FB friend requests from people who are not family, friends, or writers.

Which of the following four options should I pick?

1. Continue to accept friend requests only from people in my target categories.

PRO: This preserves my relative privacy, though I should keep in mind that boundaries may still be breached.

CON: Others may feel offended. Plus, I miss opportunities to deepen relationships with them.

2. Set up a second FB profile for Susan Weiner, CFA, which I'll use for business relationships.

PRO: There's less risk of inappropriate information reaching my business contacts.

CON: It becomes one more social media profile to maintain. Content will overlap with my non-business profile.

3. Set up a FB Fan Page for InvestmentWriting.com and try to direct business connections there, while keeping my FB page "personal."

PRO: A fan page is more flexible than a profile for my business.

CON: Fan page doesn't solve the problem of having a profile that I can use to "fan" business contacts' fan pages.

4. Accept friend requests from everyone, but control who can see what.

PRO: This option involves the least extra work.

CON: I'm bound to slip up on categorizing my updates, thus letting clients in on my squirrelmania, etc. Family or friends may make edgy comments on some of my posts.

What do YOU suggest? It would be great to get comments from you.

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Copyright 2010 by Susan B. Weiner All rights reserved

If you enjoy my #CFA2010 tweets...

2010-05-18T14:00:00.001-04:00

...you may also enjoy my free monthly e-newsletter with practical tips for your client communications. You'll also find at least one investment or wealth management article.

I often report on presentations to the Boston Security Analysts Society, so you know you'll see topics of interest to CFA charterholders.

Topics in the May 2010 issue included

Watch out for inflation, says veteran value investor, Jean-Marie Eveillard
Treasurys vs. Treasuries--Which is the right spelling?
How to guest-blog on personal finance or investing
Poll: How do you sign your business emails?
Last month's reader poll about ghostbloggers
Morgan Creek Capital's Yusko on investing

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GMO's Jeremy Grantham on "The Ethical Hole In Finance" at #CFA2010

2010-05-18T05:00:00.003-04:00

I think the financial industry has lost its way and become a rogue industry. It's out of control.

These are the comments with which Jeremy Grantham, co-founder and chief strategist of GMO opened "The Ethical Hole in Finance" part of his presentation to the CFA Institute's annual conference on May 17.

Grantham criticized the decline of ethics in investment banking since the golden years of the 1960s. Back then head of investment banks would never have permitted today's unethical practices. "They would have shot you," said Grantham.

"The ethical standard today is 'Don't go to jail if you can possibly help it,' " said Grantham.

Grantham said the shift from partnerships to public companies has accelerated the decline in investment banks' ethics. It would help to return to partnerships, but that isn't going to happen, he said. A more practical step is to require investment banks to spin off their hedge funds.

Grantham suggested that investment management firms should shift their business to more ethical companies. However, he admitted, GMO has not made this change. Grantham said that if you take business away from the firm that does business one-quarter point cheaper, that's not in the short-term interests of your clients, even though it's in their long-term interests. There's a "creative tension" between these two forces," he said.

Follow the CFA Institute's annual conference
You can learn about presentations at the CFA Institute's annual conference as they occur. Read the CFA Institute's conference blog or follow the conference using the #CFA 2010 hashtag on Twitter.

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Dan Ariely says disclosure may hurt investors: Report from his #CFA2010 talk -- #CFA2010

2010-05-17T06:36:00.000-04:00

Most investment professionals, including CFA charterholders, figure that more disclosure about financial advisors' conflicts of interest will help investors.

Not so, said Dan Ariely, author of Predictably Irrational, to the CFA Institute's annual conference on May 16. In fact, disclosure may not improve investors' decisions.

Two countervailing forces apply when a financial advisor reveals conflicts of interest, said Ariely.

Let's assume the financial advisor tells a client that he'll receive a higher payment if the client chooses Fund A over Fund B.

On the one hand, the client will tend to discount the advisor's opinion because of the potential bias, said Ariely. On the other hand, the advisor will feel freer to push Fund A because he has revealed his conflict. Ariely believes that this second force will overwhelm the client's discounting of the advisor's opinion. As a result, investors end up no better off despite disclosures.

You can watch Ariely present
Some of Ariely's past presentations have been captured on video. You can view Ariely on YouTube.

Follow the CFA Institute's annual conference
You can learn about presentations at the CFA Institute's annual conference as they occur. Read the CFA Institute's conference blog or follow the conference using the #CFA 2010 hashtag on Twitter.
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Guest post: "Correct Grammar Errors in Your Writing Quickly and Easily "

2010-05-16T10:00:00.000-04:00

Adults often struggle to improve their writing skills. That's why I've become a fan of the teaching techniques of @LindaAragoni. In this article, Linda shares a technique for cutting the number of grammar errors in your written communications.

Correct Grammar Errors in Your Writing Quickly and Easily

By Linda Aragoni

Do you have trouble correcting your writing for grammar errors?

I know I do.

I suspect you do, too.

Here is a simple way to make correcting your writing easy.

First, keep a list of the grammar errors you make regularly. Most people make a few errors repeatedly. An error you make once in five years is no big deal, but a grammar error you make once every five sentences is an error you need to eliminate.

Your teachers probably have told you about your habitual errors for years. Errors like sentence fragments, comma splices, and run-together sentences top the list. Subject-verb agreement errors and problems with pronoun-antecedent agreement are not far behind. Chances are you know how to correct those grammar errors if you see them.

To make sure you see grammar errors so you can correct them, read your completed paper looking for just your most frequent error. If your most common error is writing sentence fragments, scrutinize each group of words between terminal punctuation marks to see if it is a true sentence. Do not worry about anything else when you look for fragments. If you see any other kind of error, highlight it to fix later.

After you finish reviewing your paper for your most common mistake, go through it looking for your second most common error.

Keep doing that one-error-at-a time correction until you have examined your paper for each of your habitual errors.

When you correct for a single error at a time, take a break between errors. Do not try to cram the editing into the hour before a paper is due. If you do your editing in 5-10 minute sessions spread over a day or more, you will do a better job and experience much less stress.

Although this single-minded correction strategy sounds as if it would be terribly time-consuming, it can be done quite quickly. And it pays off quickly, too. If you can eliminate from your writing three errors you make habitually, your writing will show a big improvement immediately.

Linda Aragoni's one-mistake-at-a-time strategy grew out of teaching grammar study skills to first-year college students using their error-riddled papers as practice exercises. Her e-book Grammar Abusers Anonymous teaches mature high school and adult students how to master grammar without paying tuition. Copyright 2010 Linda G. Aragoni.
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Top four email mistakes to avoid when you've got a referral

2010-05-15T07:12:00.001-04:00

You've probably used a referral to ask a stranger for an informational interview or a chance to talk about your business. If you make your initial contact by email, please avoid the following common mistakes:

Burying the name of your mutual acquaintance in the body of your email
Not making it clear immediately what you're seeking
Not identifying yourself clearly and succinctly
Putting the burden on the other party to follow up

Let's flip these mistakes to get a list of best practices.

1. Highlight the name of your referrer

When I've got a referral, I often put the referrer's name into my subject line. For example, "Allan Loomis referred me" or "Allan Loomis suggested I talk with you." The familiarity of that person's name raises the odds that the recipient will open your message.

2. Quickly tell your reader what you're seeking

3. Identify yourself briefly

People are busy. They don't want to read a long email to figure out what you want from them. Open with a line such as "Allan Loomis suggested I contact you for a brief informational interview about how you manage your investment research needs." Then, and only then, should you give a brief self-introduction.

4. Take the initiative to suggest some times when you and your reader can connect. Nothing stops you from writing "I look forward to hearing from you." But don't expect your recipient to follow up. The burden is on you because you're the person requesting the favor. I increasingly find myself writing "I will call you next week to follow up."

Pay attention to these tips and you'll increase your odds of success whether you're marketing yourself or your company.

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Hear Roger Ibbotson on asset allocation for free on May 27, thanks to CFA Institute

2010-05-14T09:10:00.000-04:00

Roger Ibbotson will speak about "The Importance of Asset Allocation" in a live audio webcast on May 27 at 1:00 p.m. EDT. You can register on the CFA Institute's website.

This event is free, even to non-members of the CFA Institute.

If you read "Roger Ibbotson attacks asset allocation 'folklore,' " you know I think Ibbotson is worth hearing.
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Morgan Creek Capital's Yusko riles up Tweeters with comments on investment fees

2010-05-13T05:00:00.000-04:00

Mark Yusko, CEO and chief investment officer of Morgan Creek Capital, got off easy when he spoke to the annual meeting of the Financial Planning Association of Massachusetts (FPAMA) last week. Nobody at the FPAMA questioned Yusko's opinions about investment management fees. But plenty of my Twitter followers took issue with Yusko. Still, nobody's saying that one should always choose the cheapest fund.

What Yusko said
Yusko seemed to suggest that fees rise along with the investment manager's ability to deliver performance.

He made the following statements:

"If you pay low fees, you have your money managed by the worst people"
"In what business does the best person not charge more?"
"The idea that you want to minimize costs makes no sense."
People say they know that indexing beats hedge funds, but for a 20-year period, S&P 500 returned 6.5% vs. 13.2% for hedge funds.

Disagreement
@BillWinterberg was the first to weigh in on my tweets of Yusko's comments.

@MariposaCap agreed with Bill.

@NathanGehring raised another issue, saying "By charging higher fees the manager may feel a need to take additional risk to justify the fee." He also questioned Yusko's hedge fund returns.

Paul Puckett (@investiphobia) emailed me saying, "Disagree, over the long term the opposite is generally true. Expenses are one factor, not the only factor when choosing managers."

One lonely defender, but some room for higher fees
Only one person tweeted in Yusko's defense.

Still, as Paul Puckett noted, nobody suggests that expenses suggests that expenses should be the only consideration when you're choosing a manager. In fact, this theme came up later in the day at the FPAMA conference.

Fees matter, said Karen Dolan, Morningstar's director of fund analysis, in "Beyond Stars: Using Fund Analysis to Improve the Investor Experience." As her slide stated, "Advisors have responded by moving assets to cheaper funds, but there's more we can do to close the gap."

Stewardship and portfolio analysis are also keys to choosing good funds, said Dolan. The fund families on her list of "Top Wealth Creators" over the past decade--American Funds, Vanguard, Fidelity Investments, Franklin Templeton, and PIMCO Funds--have all been good stewards, she said.

The great debate about what really matters in fund selection is likely to continue.

Related posts
* Morgan Creek Capital's Yusko on investing
* "Using Trading Costs to Identify Better Mutual Funds" in Advisor Perspectives (2007)

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Timely, creative financial ad from Northwestern Mutual

2010-05-12T05:00:00.001-04:00

Somebody was on the ball in Northwestern Mutual's marketing department or ad agency.

I like their new ad, which I spotted in yesterday's Wall Street Journal. You can view the complete ad on Northwestern's website.

I like this ad because it
* Plays off a timely topic as well as people's emotions
* Is written in a conversational tone, without any 10 dollar words or extensive compliance disclosures

Nice job!
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How to improve your financial planning client relationships

2010-05-11T05:00:00.002-04:00

You can improve your relationships with financial planning clients by encouraging them to communicate honestly with you from the very beginning.

This is the main lesson I took away from Shari Harley's presentation on "How to Say Anything to Anyone: Paving the Way to Powerful Working Relationships" to the annual conference of the Financial Planning Association of Massachusetts.

Ask for honesty
Harley suggested that audience members achieve this by saying, "I want a great relationship with you. If I do anything that violates your expectations, frustrates you or causes you challenges, please tell me. I promise I will say thank you."

Assuming that your client says "yes" to your request, then you can add, "I hope I can do the same with you." This sets the stage for two-way communication. If it works, you'll never be surprised again by a client defection.

I asked Harley what she'd recommend saying after "thank you" when a client gives negative feedback. Don't say anything other than "thank you" right away, she suggested, because you'll feel defensive. Go away and think things over. You can follow up later.

Follow up with questions
Don't stop with your initial agreement to be honest with each other. Follow up with questions that help you to understand your client better, said Harley.

Here are some of her suggested questions:
1. Who was the best service provider you ever worked with?
2. What made him/her the best service provider?
3. What are your pet peeves?
4. Do you prefer email or voicemail?
5. What do you wish I would start, stop and continue doing?

I can see how these questions would benefit me as a service provider and a client. It's time to rev up my courage and start asking more questions.

I believe Harley's approach could benefit you in your professional and personal life.

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10 blogs I can't live without--Writer's edition

2010-05-10T05:41:00.002-04:00

You'll learn the names of some useful resources for writers in this post. But first I must tell you why writing this blog post was so hard for me.

Blogs? What blogs?
"10 blogs I can't live without" is a topic that participants in the WordCount Blogathon are supposed to post about on May 10. When I read the topic I thought "Blogs? What blogs?" I simply don't consume blogs as blogs. I'm more likely to catch my favorite bloggers on Twitter.

On the other hand, some of my readers probably don't think of me as a blogger because they visit my blog through my monthly e-newsletter or my LinkedIn status updates. They might respond to the WordCount Blogathon assignment by saying, "I don't read any blogs."

People consume their online information in different ways. This assignment reminded me that it's important to make information available to readers in the format they prefer.

Online resources for writers

Here are some of my favorite online resources for writers. They're not all blogs. Nor have I limited my list to 10.

B2B example
If I were stranded on a desert island with such slow Internet connection speed that I could only read one e-newsletter or blog, I'd choose Michael Katz's E-Newsletter on E-Newsletters. It has a charming style that sets a good example for business-to-business writers communicating.

Attracting readers to your blog
Some blogs do a great job of showing how to write copy that captivates readers. When I began blogging I regularly read Brian Clark's Copyblogger and Darren Rowse's ProBlogger. More recently, I've found some good ideas on Nicholas Cardot's SiteSketch. They're worth reading, although I enjoyed them more when their creators wrote more of the content.

Grammar, punctuation, usage
When I've got a grammar, punctuation or word usage questions, sometimes I'll just Google it. But I often don't trust the answers I find. This is when I mosey on over to Grammar Girl Mignon Fogarty's Quick & Dirty Tips for Better Writing or the Purdue Online Writing Lab. By the way, remember how I mentioned delivering content the way that readers like to receive it? Fogarty has been podcasting her blog posts for awhile. She's also on Twitter and Facebook. Plus she has published in old-fashioned print book format.

Onlinestylebooks lets you search 42 style books at once. It's a relatively new site, so I haven't used it much.

For occasional tips, I follow APStylebook on Twitter. They're the folks who officially changed the spelling from "Web site" to "website" earlier this year. As you may have noticed, I was ahead of them in using "website," but I still respect them as a style setter.

Some other tweeps with useful style tips include EditorMark, Copyediting, and LawWriting. There are many more worth following. You'll find them if you're a Twitter devotee.

Inspiration
Jon Winokur's Twitter feed, AdviceToWriters, is great for inspiration. I like his book, also called Advice to Writers.

Humor
For word geek humor--yes, there is such a thing--follow FakeAPStylebook on Twitter.

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Small-cap investing opportunities according to Artio's Dedio

2010-05-09T14:51:00.000-04:00

"Opportunities in Smallcap Investing" was the title of the presentation that Samuel Dedio, head of US equities for Artio Global Management, delivered to the 2010 annual conference of the Financial Planning Association of Massachusetts. The growth of options trading was his most interesting theme, in my opinion. By the way, if you don't recognize the name Artio Global Management, it was formerly Julius Baer.

Where the opportunities lie
Dedio identified opportunities in financials sector, including regional banks, online brokerage companies, and insurance. He figures that "industry consolidation and stimulus spending may potentially benefit this area."

Industrials and materials stocks will benefit from emerging markets' demand. For example, Dedio likes silver, where supply is not keeping up with demand. Compared with gold, silver has many more industrial applications, yet it trades at a discount to gold.

In healthcare, Dedio likes companies that can help implement cost savings. This means companies in diagnostics, medical technology, pharmaceuticals, and home healthcare providers.

The survivors of the 2009 shakeout in retailers will benefit in 2010. "We expect margins (and earnings) to recover more rapidly than in prior cycles," wrote Dedio in the consumer discretionary section of his handout.

Finally, in technology, Dedio focused on the undervalued importance of semiconductors.

Options: Why online brokerage may thrive
Dedio particularly likes online brokerage companies with exposure to options trading as a play on demographics and rising interest in making money through options.

"The younger generation eats it up," said Dedio, referring to options trading. This is apparently tied to younger investors growing up with computers and to educational efforts by companies such as Think or Swim.

"Don't 85% of options expire worthless?" asked an audience member. That's exactly what makes options a great business, according to Dedio. Investors have to buy more options on an ongoing basis.

Dedio displayed a graph showing that total monthly equity option trading volume has more than doubled since the year 2000. Monthly trading volume, which was under 100 million until January 2004, has been 200 million--and sometimes exceeded 350 million--during the period January 2008 to September 2009.

Dedio's one concern about options trading is pricing pressure. However, cost cutters are at a disadvantage in the options arena, where education remains critical. Education requires more robust margins than cost cutters manage.
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Morgan Creek Capital's Yusko on investing

2010-05-08T14:18:00.002-04:00

"Alternative Thinking About Investments" was the topic addressed by Mark Yusko, CEO and chief investment officer, Morgan Creek Capital Management, when he spoke at the annual conference of the Financial Planning Association of Massachusetts on May 7. Yusko's wide-ranging talk was provocative and entertaining, with some great one-liners that became tweets that I quote below.

Alternatives deserve more attention

Yusko thinks investors should put more into alternative strategies. A small allocation simply cannot have a big enough impact.

This is a lesson that target date fund (TDF) managers should consider, suggested Ryan Alfred, co-founder and president of BrightScope, in response to my tweet. As he explained,

Going back to Yusko, he also suggested that your clients should have at least one-third of their assets in illiquid investments because such investments "win" after recessions. He's assuming that your clients have plenty of money that they plan to pass on to others in their wills. Yusko didn't specify which illiquid assets he was talking about.

Provocative
Yusko isn't fond of mainstream media. "Cancel your subscriptions to The Wall Street Journal and The New York Times. It's all wrong, it's all biased." He used the example of the war between Russia and Georgia to make his case, mentioning that Morgan Creek pays someone to read Russian newspapers for them.

Yusko also spoke in favor of high fees. He seemed to suggest that fees rise along with the investment manager's ability to deliver performance.

Humorous Yusko
In closing, here is some Yusko humor.

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Spice up your blog with free or low-cost photos

2010-05-07T05:00:00.026-04:00

A photo can make the difference between whether someone reads--or skips--your financial blog post.

Here are some free or low-cost sources for photos you can use in your blog and elsewhere.

stock.xchg -- I've used this source without any problems
Flickr's Creative Commons licensed content
morgueFile
RGBStock.com

Make sure you carefully read--and abide by--the licensing agreements for each photo. Photos on the same website may have different requirements.

I learned about some of these sources from @LawWriting and @ErikSherman. Thanks, Marilyn and Erik!
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How I've benefited from Twitter

2010-05-06T05:00:00.001-04:00

"Has being active in social media helped you grow your business?"

This question from a wealth manager set me thinking. Most of my new business still comes through old-fashioned referrals from people whom I've met face-to-face. But that's changing thanks to social media, especially Twitter. There's no doubt that my Twitter has helped my business. I see three main benefits.

#1 Bigger network of experts
When I've got a problem to solve, I can now call on a much bigger network of experts for help. This has been especially helpful with my technology challenges, where @RussThornton, @BillWinterberg, @RussellDunkin, @Blano, and @KristenLuke have been particularly helpful. This is just a sampling of my expert sources. There are many, many other experts on Twitter whom I've learned from.

#2 Bigger pool of prospective clients
Twitter has expanded my newsletter circulation, which is an important source of new clients. For example, most of my teleclass students have been newsletter subscribers for awhile. I've consistently gained more new subscribers post-Twitter than pre-Twitter.

One of my favorite clients found me through Twitter, got to know me better through my newsletter, and then became a client.

# 3 Convenient way to network and socialize
Twitter keeps me from feeling isolated as a solo entrepreneur. It also suits my style. I can hop off a work project for 10 minutes, read and chat with some folks, and then settle back to work. I don't need to spend an hour schlepping into Boston on the commuter rail and then an hour coming back.

Feeling happier from brief spurts of socializing help me to focus better when I'm doing actual work.

There are other benefits, too. But these three are enough to keep me tweeting.
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Roger Ibbotson attacks asset allocation "folklore"

2010-05-05T06:50:00.000-04:00

"The time has come for folklore to be replaced with reality" says Roger Ibbotson in "The Importance of Asset Allocation" in CFA Institute's Financial Analysts Journal (March/April).

Folklore means "the idea that asset allocation policy explains more than 90 percent of performance," which is a misinterpretation of the classic 1986 article, "Determinants of Portfolio Performance" by Gary Brinson, Randolph Hood, and Gilbert Beebower, says Ibbotson.

"Asset allocation is very important, but nowhere near the 90 percent of the variation in return is caused by the specific asset allocation mix," writes Ibbotson. Rather, active management plays a role equal to that of asset allocation, as shown by "The Equal Importance of Asset Allocation and Active Management," an article co-authored by Ibbotson with James Xiong, Thomas Idzorek, and Peng Chen in the same issue of the Financial Analysts Journal.

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Financial advisor poll: How do you sign your business emails?

2010-05-04T05:30:00.005-04:00

Email communications with clients, prospects, and referral sources are an essential part of your private wealth management or investment business. Handle them well, and you deepen your relationships. In How to Instantly Connect with Anyone, author Leil Lowndes suggests an email closing technique that may boost your effectiveness.

Even something as small as your email signature sends a message to your clients, prospects, and referral sources. You set a different tone when you end with "Sincerely, Jane Advisor, CFP, CFA, Senior Vice President" instead of "See you soon, Jane."

Lowndes suggests that you forego traditional closings in favor of ending your email with your recipient's name. For example, "Thanks so much for your help, Samantha" when Samantha is the person you're emailing.

According to Lowndes' approach, you can get away with just your first name or initials--or even nothing at all--after such a line. "Hearing their own name unexpectedly as the last word of your message makes them feel an instant connection with you," she says.

I like Lowndes' idea. But only in moderation. If you close every email like this, the technique will lose its impact.

The rest of the time, you've got an array of more traditional closings to choose from. You need to strike the right balance between formality and warmth. This may mean using different signatures for different clients, depending on your relationship with them. Signatures may also vary by occasion.

Please answer the poll in the right-hand column of this blog about which of the following closings you use most often.

Best wishes
Bye
Cheers
Have a great day/weekend
Kind regards
Sincerely
Sincerely yours
Thank you
Warmly
Yours truly
--None of the above

I'll report on the results in my June e-newsletter.

By the way, in these days of blogging transparency, I'm disclosing that I got Lowndes' book for free. I won it in a Twitter contest when I was the first to reply to a tweet by the publisher.

Related posts

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Your customers, your inspiration

2010-05-03T05:00:00.003-04:00

"Customer comments can contain pure gold. Many of my most in-demand services came about from a suggestion made by someone who wanted to do business with me."

---Marcia Yudkin's Marketing Minute

What suggestions have your clients made to you? Have they suggested new services? Different ways to deliver your services? Listen to what they say. You may discover a new way to build your business.

Marcia's tip has worked for me. An out-of-state client asked if I delivered writing workshops virtually, rather than in person. Her question eventually spawned my first teleclass.
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Whoa, insurance = spam?

2010-05-02T05:00:00.003-04:00

Insurance can get your email tagged as spam. I never would have guessed.

I saw the following message after I ran one of my e-newsletters through a spam checker.

It looks like there are some words in this email that might send your email to a Spam folder. To make sure your email is delivered successfully, we recommend going back to change or remove the following words: insurance.

Perhaps this happened because there are too many spammer pushing shady insurance schemes.

Fortunately one iffy word isn't enough to keep your email out of most in-boxes. Look at your overall spam rating before you panic. If it's low, like the typical rating on my e-newsletters, you should be okay.

The "open" and "bounce" rates for my e-newsletter mentioning "insurance" were no worse than usual. However, "insurance" was the newsletter's only element tagged as potential spam.

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Setting myself a challenge: A May Blogathon

2010-05-01T08:24:00.001-04:00

Am I crazy?

I've signed up for the 2010 WordCount Blogathon in which bloggers commit to post every day during the month of May. Yes, that means at least 31 blog posts during the month of May.

I typically post 11 to 15 times a month. So I've got to double or triple my output. Yikes!

One of my survival techniques is to look at unfinished drafts. I've got 80+. Some of them must be worth finishing.

Please let me know if there are topics you'd like me to address this month. A little outside inspiration would help.

Meanwhile, here's the list of my fellow Blogathoners

Rebecca I. Allen – 356 No More, A journey from couch to fit

Anjuli – bhulbhulaiyan, A complicated entanglement of zigzag pathways

Joan Lambert Bailey – PopcornHomestead, Gardening, place and my life in Tokyo

Karen Bannan – Natural as Possible Mom, Because natural isn’t always possible — or easy

t.a. barnhart – Left Coast Foodie, Damn, that’s good: a foodie blog by someone who knows what he’s doing

June Bell – Enough is enough! Advice and support

Athena l. Borozon – The Desert Rat Dialogues

Jane Boursaw* – Film Gecko, Cool movie news and reviews

Alisa Bowman – Project Happily Ever After, Marriage advice from a recovering divorce daydreamer

Carson Brackney – Carson Brackney, Consultant, Copywriter, Content Provider, Factotum

Sheena Brockington – Greenhouse Advertising, Cultivating ideas for small businesses

Danielle Buffardi – Horrible Sanity, Going into the mind of a mother and freelancer

Beverly Burmeier – Going on Adventures, Travel stories from near and far

Danielle Carter – Live and Love Life VA, Helping you do more of what you love, and less of what you don’t!

Fiona Chan – Candy Prison, A typical teenager

Bernard Chung – Green Tea World, It’s more than just a cup of green tea here

Caroline Clemmons – A Writer’s Life, Writing tips, interviews and miscellaneous ramblings

Shelley Clunie - ShelCluzo’s Blog, Healthy, wealthy and wise at 62

Christianne Cook – A Day in My Mind, The world through my eyes

Sue Dickman – Life Divided, Food, garden, books . . . and India

Jackie Dishner – Bike with Jackie, Using my special brand of BIKE to teach you how to turn obstacles into opportunities

Tracy Doerr – Tracy Doerr, A chronicle of ideas and things that inspire me

Ron S. Doyle* – Blog Salad, All the blog that’s fit to eat

Dana DuGan – Chick with a View, It’s good to live on the edge. The view is better

Dan Eldridge – Labor Party, A Young Pioneers Media blog for Creative and Alternative Entrepreneurs

Heather Faesy – Blame it on the Full Moon, My kids, writing and reading

R. Jill Fink – My Opera, Musings about writing, food, weight loss and other hilarious things

Jennifer Fink – Blogging Bout Boys, All about boys — raising them, educating them, learning with them

Damaris Fish – Damaris Fish on Genealogy, Researching my family history and helping others with theirs

Dylan Fogle – Discordianzen, The map is not the territory

Katie Foote – Littlefoote’s Lab, A chronicle of what the unemployed girl in NoPo is up to

AndreaGenevieve – Andrea Genevieve, Where social medium, technology and higher education meet

Alexandra Grabbe – Chezsven’s Blog, Life as a green innkeeper on Outer Cape Cod

Elyse Grau – My Garden to Table, Growing what you eat, eating what you grow

Wendy Korn Heppt – Budget Style on a Shoestring, Budget savvy fashion, beauty and related news and ideas

Katie Hinderer – Write Beyond the Cubicle, A freelance writer’s thoughts on the industry

Amanda Hirsch – Tastee Pudding, In the search for creative life, the proof is in the Pudding

Lisa Jaffe Hubbell – Eat, Read and Be Harried, Making it through life one book at a time

Nancy Mann Jackson – Growing Food and Kids, Gardening, harvesting, cooking and preserving with kids in tow

Robert Janelle – Without an Apostrophe, Ottawa freelance tech journalist

Elizabeth King Humphrey – The Write Elizabeth, Writing. Creativity. Play. Life.

Walter L. Johnson II – Georgia News Beat, An inside look at what’s happening in the state of Georgia

B.J. Keeton – Professor Beej, Pop culture commentary with an academic slant

Amy Kocur – AmyLizK, Maryland/ DC Metro area arts and analysis

Courtney Koschel – Finding My Muse: A New Writer’s Journey,

Sara Lancaster – No.2PenBlog, Resource for my clients and others interested in marketing communications

Bill Lascher – Lascher at Large, A contemplative, pondered and unrushed thought banquet.

Mary Dixon Lebeau – In the Boom Boom Room, Remember staying out until the street lights came on?

Pooja Lohana – Brown-eyed Mystic, On writing and more!

Sarah E. Ludwig – Parenting by Trial and Error, The learning curve in raising kids

Jenny Lynes – Welcome to the Good Life, A student environmentalist exploring responsible, cheap, and fun living

Harry Marks – Curious Rat, Chewing at the tech industry’s wires…nom nom nom…

Joanne Mason – English Idioms, What they mean, how we use them, where they came from

Kim McNeill – Kim’s Play Place, An active parent trying to make sure my kids are educated

Teresa Mears – MiamiOntheCheap, Discounts, deals and free events in Miami

Rose Medlock – RFM, Rose Flores Medlock

Heather Minton – Stumbling into Grace, The adventure of following God and figuring it out in Portland

Kathy Murray – Out and Employed, News, career advice and job resources for ex-offenders

Alexis Neely – Life, Business and the Pursuit of Truth, A blog about the intersection

Charles Newbery – Pine Tree Paradise, The life of a work-at-home writer and father of three

Eric Novinson – Costing a Green Future, A green business blog

Tracy O’Connor – I Hate My Message Board, Humor, crankiness, a museum of snack foods and the odd motivational piece

Andrea Parker – Autism Fundraising Guide, For parents of children with autism

Lilac Penafiel – What Have You Learned Today, Life lessons learned everyday…

Tara Phillips – Two Hands and a Road Map

Jennie Phipps – WalletPop, AOL’s personal finance blog

Ed Pilolla – Ed Pilolla, What the f*** is love?

Sue Poremba – I Breathe, Therefore I Write

Kate Reilly – Polka Dot Suitcase, Family fun through creative living

Meredith Resnick – The Writer’s [Inner] Journey, Bestselling authors, professional creatives and emerging voices in quirky dialogue about how they write and why it works

Vanessa Richardson – Way Out West Texas, City girl from California moves to Way Out West Texas, what will happen?

Rebecca Robinson – Rebecca Robinson, Updates on freelance projects, reflections on journalism innovation in Portland and beyond, and brainstorms from the wee hours

Carey Rossi – Thank You Everything, Appreciate the little things

Natasha Rogue – The Writing Blues, Little tips on how I find motivation to get past the difficulties of writing life and the road to publication

Andrea M. Rotondo – Luxury Cruise Bible, Your source for unbiased luxury cruise reviews

Melissa Sais – Digital Mom, Raising kids in a digital world

Lisa Samalonis – Single Parent Savings

Sami – Stonerpreneur, Stoner antics as they relate to my business and personal growth

Dina Santorelli – Making Baby Grand, And I thought giving birth to real babies was hard…

Lacey Savage – Tips and WIPS, Talking about writing fiction

Lilian Schaer – Food and Farming Canada, A blog about the farming side of food

Matthew Smith – Smidgen PC, Big news about tiny PCs

Michelle Smith – Law Office of Michelle R. Smith, Because it’s your life, your family and your choice

Stephanie Suesan Smith – Stephanie Suesan Smith PhD, Information Central

Claire Splan – Alameda Garden, Gardening issues in the San Francisco Bay Area and beyond

Margarita Tartakovsky – Self-ish, {Sorta} Sage Advice on Being a Better You

Thinkingtoohard – Thinking too hard, This is where I empty my head

Blake Thompson – Black Thompson daht Net, “I’m just saying…”

Jodi Torpey – Western Gardeners, Your online guide to gardening in the West

Paul Tullis – Grim Tidings- True/Slant, My rants about politics & policy

Brandi-Ann Uyemura – Brandi-Ann Uyemura, Rather be freelancing: tips for the beginning writer

Beth VanHoose – Writing in Sand, My adventures in freelance writing, and other stuff

Rachel Vidoni – East Coast Musings, A humorous look at kids, family and life

Jen Walker – My Morning Chocolate, Writing, experiments, culture and adventure in food

Katie Jett Walls – One per Week, 52 posts on things that matter to me

Sarah Webb – Webb of Science, Connecting science and life

Rebecca Weber – Newstilt SAfrica

Susan Weiner – Investment Writing, For investment and wealth managers who want to communicate more effectively with clients and prospects

Rashida Williams – Really Rashida, Urban lit author blogging about my life and times

Jennifer Willis – Jennifer Willis, Thoughts on religion, sustainability, media and culture

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The next session of "How to Write Blog Posts People Will Read: A Five-Week Teleclass for Financial Advisors" will start in September. For more information, sign up to receive "Information on upcoming classes, workshops, and other events" as well as my free monthly newsletter. Copyright 2010 by Susan B. Weiner All rights reserved

Marketing via U.S. mail still pays

2010-04-27T05:00:00.000-04:00

"Don't give up on mail," wrote marketing consultant Libby Dubick in "Four marketing resolutions for 2010." I agree that investment and wealth management firms should continue to use the U.S. mail.

Letters and brochures ranked high when Dubick conducted an informal survey of how senior marketing executives would like to be introduced to a wealth manager. They came in second only to personal referrals.

If you write a sales letter, remember these tips

Emphasize your prospect's WIIFM--What's In It For Me--rather than talking about your firm
Keep it short--People have short attention spans.
Don't send it and forget it--Follow up with the individual.

No more fancy-pants prose, please

2010-04-20T05:00:00.001-04:00

"The writer who indulges in fancy-pants prose sometimes has too large an ego, and sometimes one that's too small," says Francis Flaherty, author of The Elements of Story.

Fancy-pants prose--in other words, highfalutin, multisyllabic words--rarely serve writers well. Instead, as Flaherty suggests, they're evidence that the author is trying to impress his or her audience.

In the investment and wealth management world, this shows up in the use of words such as "mitigate" when "reduce" or "cut" would serve the purpose.

Can you think of fancy-pants words you'd like to eliminate from our industry's publications? Please leave a comment.

____________________
Susan B. Weiner, CFA
Check out my website at www.InvestmentWriting.com or sign up for my free monthly e-newsletter.
Copyright 2010 by Susan B. Weiner All rights reserved

Treasurys vs. Treasuries -- Which is the right spelling?

2010-04-19T11:45:00.000-04:00

What's the right way to spell the plural of Treasury, as in U.S. Treasury bond?

Should it be "Treasurys," following the rule that the members of the Murphy family become Murphys? Or should it follow the normal rules of creating plurals for words that end in the letter y?

I panicked when I saw "Treasurys" in The Wall Street Journal. Eek! Have I been spelling the word wrong for 20-odd years?

However, I quickly discovered that opinions are split. When I Googled the terms, there were 2.2 million results for Treasuries vs. only 1.5 million for Treasurys.

The evidence for Treasuries
Here's the rule that would typically apply. "...if a word ends in a -y that isn't preceded by a vowel, the plural is formed by omitting the -y and substituting -ies...," according to Garner's Modern American Usage. Garner makes an exception for proper names ending in y. He agrees that Murphy becomes Murphys.

Does Treasury qualify as a proper name? Proper names are usually personal names--such as Murphy--or geographic names--such as Washington, D.C. Following this reasoning, Treasuries makes sense.

My friend, financial editor Harriett Magee, found that sources including the Barron's Dictionary of Finance and Investment Terms agreed with Treasuries. Plus, her spell-checker flagged Treasurys as a mistake.

If you prefer Treasurys...
You've got some high-powered company if you stick with Treasurys. When The Wall Street Journal spells it that way, that legitimizes it in my eyes.

If you can't bear not knowing what's 100% correct, then use the workaround that Harriett Magee suggests. Refer to Treasury bonds, Treasury notes, and so on. It's bit wordy, but correct.

Follow this advice, no matter what you decide
It's important to use your words consistently in your corporate communications. Pick one spelling and stick with it.

Consider creating a corporate style guide that lists preferred spellings. It's a lot easier to have an authoritative source for your company than to try to keep the rules in your head.

My thanks go to David Glen, senior vice president at Boston Private Bank, for raising this question.
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Copyright 2010 by Susan B. Weiner All rights reserved

How to guest- blog on personal finance or investments, Part II: Blogs that accept guest posts from financial advisors

2010-04-18T20:02:00.002-04:00

Guest posts can launch investment and wealth managers into the blogosphere. This follow-up to "How to guest-blog on personal finance or investments, Part I," gives you names of blogs to target for guest posts.

Investment blogs that accept guest posts
The granddaddy of investing blogs is Seeking Alpha, which publishes its submission guidelines. To be considered you must "Write about a stock, sector, ETF or theme that is actionable for U.S.-based investors."

Advisor Perspectives isn't a blog. But it publishes blog-like--and much longer--commentaries from registered investment advisors on "the market, the economy, or investment strategy," according to its submission guidelines. Disclosure: I occasionally have the pleasure of writing for Advisor Perspectives, although I write for them as a reporter rather than as a commentator.

Personal finance blogs that accept guest posts

Wise Bread, which reports receiving one million page views monthly, provides its writers' guidelines on its "Guest Writer Showcase." Thanks to Aaron Pinkston of Clarifinancial for bringing this site to my attention.

Jeff Rose of Good Financial Cents likes Wise Bread, too. He also shared the names of some additional blogs where he has been a guest, including
* Get Rich Slowly
* Consumerism Commentary
* Cash Money Life
* Moolanomy
* Bargaineering

Other blogs worth targeting
Your business niche may also have blogs that will accept your posts and help you educate your target audience.

Through my work with fiduciary advisors, I've become familiar with the fi360 blog. @Fiduciary360 told me that guest posts may be possible. However, "I should say that we'd want exclusive content from a guest blogger. We'd rather just link if it's on their blog as well."

Another potential target: your local newspaper's blog. Its reach may be small, but it could yield some great prospects close to your office.

What else?
Have I missed any great tips for guesting between this post and my earlier post on this topic? Please chime in. I'd like to learn from you.
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You're running out of time to sign up for the next session of "How to Write Blog Posts People Will Read: A Five-Week Teleclass for Financial Advisors," starting April 22. Receive my free monthly newsletter.
Copyright 2010 by Susan B. Weiner All rights reserved

How to guest-blog on personal finance or investments, Part I: Your approach

2010-04-16T16:33:00.002-04:00

Some financial advisors wonder if they can crank out a steady flow of compelling blog posts week after week. Before you make the commitment, consider testing your abilities by writing for other people's personal finance or investment blogs.

Some blogs publish their submission guidelines, so you know exactly how to apply to be a guest blogger. Others don't. But there's a simple process you can follow to propose a guest role.

Step 1. Study the blog to figure out its audience and topical focus.

Step 2. Come up with a topic. Your description of your topic should identify the main point you're trying to make and why readers will care about it. In "How to Write Blog Posts People Will Read: A 5-Week Teleclass for Financial Advisors," you'll get help developing a strong topic.

Step 3. Email the blogger to suggest a guest post. A strong proposal will include the following:
a. Your understanding of the host blogger's audience and focus
b. Your topic and why it will appeal to the blog's audience
c. A brief bio to establish your credibility
d. Your contact information

It isn't necessary to send your completed blog post right away. In fact, I think it's better not to send it unless requested by the blog's owner submission guidelines.

A proposal lets the blog owner give you suggestions about how to adapt your idea to their needs. If you enroll in "How to Write Blog Posts People Will Read: A 5-Week Teleclass for Financial Advisors," you'll get my personalized feedback on your draft inquiry for guest blogging.

Financial advisors, you will get names of blogs that accept investment and personal finance guest posts in Part II of "How to guest-blog on personal finance or investments."

Related posts

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The next session of "How to Write Blog Posts People Will Read: A Five-Week Teleclass for Financial Advisors" starts April 22. Sign up to receive my free monthly newsletter.
Copyright 2010 by Susan B. Weiner All rights reserved.

Watch out for inflation, says veteran value manager Jean-Marie Eveillard

2010-04-13T18:08:00.000-04:00

Value investing was the focus of the presentation by Jean-Marie Eveillard, senior adviser and board trustee to the First Eagle Funds and senior vice president of First Eagle Investment Management, LLC, to the Boston Security Analysts Society (BSAS) on April 13. Eveillard also opined on the world economic outlook.

Three economic scenarios
Eveillard thinks there are three potential directions for the U.S. from here.
1. A typical post-WWII expansion-- In this scenario, the authorities lever up the system again, so we get a three- to five-year expansion, Eveillard said. This would mean that we are still in a post-World War II environment. Eveillard is concerned about the short-term, even speculative orientation of investors in an environment in which equity mutual funds average 100% annual turnover.
2. Japanese-style stagflation--As the private sector continues to deleverage, the U.S. might fall into stagflation similar to that experienced in Japan for the past 20 years. This would happen if lenders don't want to lend and borrowers don't want to borrow, despite the government's efforts to combat their resistance. Eveillard considers this unlikely because, unlike the Japanese, Americans are not resigned to economic stagnation. We'll act.
3. Negative, unintended consequences including inflation--Eveillard is concerned about the unprecedented scale of the U.S. government's intervention. This includes a gigantic budget deficit, zero interest rates, and the ballooning of the federal balance sheet.

The third scenario is most likely, said Eveillard, who spoke about the lessons of the Austrian school of economists. The main lesson: If you're stupid enough to get into a really bad credit boom, you'll have a bad credit bust. However, the Austrians also say not to do a short-term patch after a bust because you'll compromise the medium-term and long-term recovery. This seems to be one of the roots of Eveillard's fear of the third scenario.

But Eveillard's inflation fears haven't made him give up on stocks. People make the mistake of thinking that inflation is all bad for stocks, he said. He believes in owning the stocks of companies that are able to raise prices as their costs rise. For example, that's something that newspapers were able to do back in the 1970s.

Eveillard did not comment on specific stocks that he favors now. "If I knew what my five best ideas were, that's all I would own," he quipped.

Benjamin Graham and The Intelligent Investor
Eveillard spent most of his time with the BSAS talking about the history of value investing. For him, the two big names are Benjamin Graham, author of The Intelligent Investor, and well-known investor Warren Buffett.

Graham's emphasis on the role of humility, caution, and order in investing make sense to Eveillard. He illustrated Graham's approach to investing as finding a business with an intrinsic value of $50 per share, buying it at $30-$35 per share, and starting to sell it at $40. This is what Warren Buffett called the cigar butt--one puff and it's over, said Eveillard.

Although Eveillard conceded that Graham's approach to investing is static and balance sheet-oriented, it still offers opportunities. There are "Ben Graham-type stocks" in Japan, especially among small caps, he said. Because "net cash is greater than market cash...you get the business for less than nothing," he said.

Warren Buffett added qualitative to quantitative
Benjamin Graham was "all about numbers." Even today, value investors all start with companies' publicly available financial information, and then move on only if they're satisfied with the public numbers, said Eveillard.

Warren Buffett added qualitative analysis on top of Graham's quantitative analysis, said Eveillard. For example, Buffett likes companies that have a "moat," a sustainable competitive advantage.

Comparing Graham and Buffett, Eveillard said that the Graham approach is much less time-consuming, though potentially less rewarding, than the Buffett approach. The First Eagle Funds started out in Graham style, then switched to Buffett's style after adding the analysts that enabled them to do the necessary research, said Eveillard.

The case for value investing
Eveillard gave two reasons for pursuing value investing. First, it makes sense. Second, it works over time. He doesn't buy the argument that value investing works only in the U.S. In fact, First Eagle has never opened offices overseas because it doesn't want to be influenced by how the locals think. Still, he noted, "There are few genuine value investors in the U.S., but even fewer outside the U.S."

Why so few value investors? For starters, it's hard work. "Sell-side research is seldom useful" because of its six- to 12-month time horizon, said Eveillard. When your time horizon is five years, it makes a big difference in how you look at a business. That's why First Eagle's 11 analysts are "the true heart of our operation," he said.

The psychological hurdle to value investing is even higher than the research hurdle. It's not easy sticking with value investing's long-term time horizon. That's especially true when it means your investment performance may lag its benchmark in the short-term. First Eagle lost seven out of 10 investors during the period when its performance lagged from Fall 1997 to Spring 2000, said Eveillard.

To be a value investor, "there has to be a willingness on the part of the investor to take the short-term pain." In addition, you have to be willing to move away from the herd when it's nearing the cliff, said Eveillard, citing Warren Buffett. Value investing takes a temperament that many lack.

If you'd like to learn more about Eveillard's views, he's scheduled to appear on Bloomberg TV on Wed., April 14 April 14 at 5 p.m. EST, according to the First Eagle Funds website.
____________________
The next session of "How to Write Blog Posts People Will Read: A Five-Week Teleclass for Financial Advisors" starts April 22. Sign up to receive my free monthly newsletter.Copyright 2010 by Susan B. Weiner All rights reserved

Teleclass FAQ--Answers to common questions about "How to Write Blog Posts People Will Read"

2010-04-12T21:22:00.001-04:00

Are you a financial advisor with questions about whether my teleclass on "How to Write Blog Posts People Will Read: A 5-Week Teleclass for Financial Advisors" will work for you?

You'll find answers to common questions below. Do you have questions I haven't answered below? Leave them as a comment or call me at 617-969-4509.

Q. What if I can't attend all of the scheduled class meetings? Is there a way to catch up on the content?

A. It's no problem if you miss a class.

You can download an audio recording within 24 hours after the class. It's easy to catch up with a mp3 file that you can listen to on your computer or your mp3 player.

You can save all the audio files to give yourself a refresher course months or even years after your formal training ends.

Q. What if I don't see myself as a "financial advisor"? Can I still take your class?

A. I use the term "financial advisor" as shorthand for my target audience, which includes employees of investment, wealth management, and financial planning firms.

Q. Why is the class limited to 12 students?

A. You'll learn more when you get the personal attention that comes with a small class. You'll have plenty of opportunities to ask questions during our telephone call. Plus, you'll get written feedback on your homework assignments.

Q. How are classes taught?

A. You dial a teleconference number to participate in your weekly teleclass. Prior to the class, you'll download a handout so you can follow along and take notes during class. You'll also receive weekly homework assignments, which you'll post to a private website, so you can get feedback on them.

____________________
The next session of "How to Write Blog Posts People Will Read: A Five-Week Teleclass for Financial Advisors" starts on April 22. Sign up to receive my free monthly newsletter.
Copyright 2010 by Susan B. Weiner All rights reserved

What students say about "How to Write Blog Posts People Will Read: A 5-Week Teleclass for Financial Advisors"

2010-04-09T15:08:00.003-04:00

The investment and wealth managers who've taken my writing class, "How to Write Blog Posts People Will Read: A 5-Week Teleclass for Financial Advisors," have enjoyed it.

Here's a sampling of what my students have said on their evaluation forms and in phone calls with me.

* What was valuable for me was the structure. The handouts, the thesis statement, the rules.

* Your class delivered exactly what it promised.

* The best part for me was having my work edited and critiqued by a professional.

* Susan is onto something unique. There's no one else doing exactly what she does.

* The class is great! I'm really getting a huge amount of value -- there really is a process to writing.

* Any advisor who's serious about blogging should take this class.

* Susan's coaching is a classic case of "under-promise, over-deliver." I highly recommend her as a writing coach or teacher. Her coaching has improved the quality of writing in my blog posts. My writing skills were very rusty when we started. Susan's practical, insightful suggestions--along with her Blog Post Preparation Worksheet--have been an incredibly valuable resource.

* I have Susan's checklist out on my desk to help me review my blog posts.

* You really helped me with how to organize my thoughts before writing.

* I liked how you gave us outside-the-box ideas.

* You really helped me by saying that not everyone can immediately write everything down right

* I would sign up for another class with you. Have you thought about offering a class about writing emails?

I'd like to thank the great students who made teaching this class such a pleasure!

This post was updated on April 25.

____________________
The next session of "How to Write Blog Posts People Will Read: A Five-Week Teleclass for Financial Advisors" starts April 22. Sign up to receive my free monthly newsletter.
Copyright 2010 by Susan B. Weiner All rights reserved

Last day to register at EARLY BIRD rate for "How to Write Blog Posts People Will Read"

2010-04-06T14:11:00.001-04:00

This is your last chance to register for my next teleclass at the Early Bird rate of only $300 for my e-newsletter subscribers and clients. The next session of "How to Write Blog Posts People Will Read" starts on April 22, 1:00 -2:00 p.m. Eastern Time and runs for five consecutive weeks through Thursday, May 22. You'll find all of the details on the registration site.

The teleclass price rises to $450 at 12 midnight (Eastern) on Wed., April 7. Of course, $450 is still a significant discount from the full price of $600 for non-subscribers.

You will learn how to

Generate and refine ideas for blog posts that
will engage your readers

Organize your thoughts before you write, so you
can write more quickly and effectively

Edit your writing, so it's reader-friendly and
appealing

Here's what advisors say about Susan as a teacher of blog post writing:

"The class is great! I'm really getting a huge amount of value -- there really is a process to writing."

"Loving the blog writing class I am taking with @susanweiner #FF"

"Susan's coaching is a classic case of 'under-promise, over-deliver.' I highly recommend her as a writing coach or teacher. Her coaching has improved the quality of writing in my blog posts. My writing skills were very rusty when we started. Susan's practical, insightful suggestions--along with her Blog Post Preparation Worksheet--have been an incredibly valuable resource."

This teleclass won't be offered again until the fall. Do you really want to wait?

Which blogging platform should I use?

2010-04-06T05:00:00.002-04:00

If you're not yet blogging, you're probably wondering which blogging platform to use.

WordPress seems the most popular. If I were starting my blog today, I'd probably go with WordPress rather than Blogger. I'm no expert on blogging platforms, so you'll find below some opinions from folks who know more than me.

Technology specialist Bill Winterberg told me via Twitter that he prefers Wordpress "because if you need new functions, there's likely a plugin available. Support and forums are comprehensive, too." Speaking of plugins, Bill told me about Akismet, a spam-blocking plug-in that's available for WordPress, but not Blogger. By the way, as I understand it, a plug-in is software that expands the capabilities of a larger piece of software--but don't quote me on that.

The Tech for Luddites blog, written by my friend Elizabeth Kricfalusi, compares Blogger vs. TypePad vs. WordPress in "Picking a Platform for Your Blog." She also favors WordPress. If you're a non-technical person with computer questions, you may enjoy her blog, with its motto, "Increase Proficiency. Decrease Profanity."

For a blogging platform comparison from another source, check out the "Blogger vs. WordPress Comparison Table 2010."

WordPress was also the choice of the financial advisors who took my recent class on "How to Write Blog Posts People Will Read" (next session starts April 22).

I'd be happy to get comments on this post from those of you who are more knowledgeable about blogging platforms.
____________________
Sign up for "How to Write Blog Posts People Will Read: A Five-Week Teleclass for Financial Advisors" starting April 22 or join the list for my free monthly newsletter.
Copyright 2010 by Susan B. Weiner All rights reserved

Guest post: Five Tips for Delivering Bad News to Clients

2010-04-05T07:49:00.001-04:00

Everyone struggles with delivering bad news to clients--and financial advisors have had to deliver plenty of bad news over the past couple years.

That's why I felt excited when I discovered that Kathleen Burns Kingsbury, the author of this guest post, can help advisors manage difficult communications with clients.

Five Tips for Delivering Bad News to Clients

By Kathleen Burns Kingsbury, LMHC, CPCC

Delivering bad news to your clients is not easy. It often stirs up uncomfortable emotions--for clients and for you. Learning how to deliver troubling news effectively in conversation and in writing newsletters is the key to maintaining good relationships with your clients in good times and bad.

Here are five tips for delivering bad news more successfully:

1. Sandwich the bad news. Use the following analogy to guide you. Think of bad news as the meat in a sandwich that's surrounded by two pieces of bread and some dressing to make it taste better. Start the conversation with thoughts or facts about what is working in the markets, your company or the client’s portfolio. Then share the bad news or the meat of the issue. Last, end the dialogue on a positive note. Clients are human. We all find difficult news more palatable when surrounded by some good delicious information.

2. Be direct. Advisors and wealth managers have a tendency to talk too much when sharing bad news with clients. This is often because being the messenger makes you feel uncomfortable emotions, such as anxiety, fear or worry. Talking more may help you feel better, but it confuses the client. So fight the urge to over-verbalize. Just be direct with the client about what is not going well.

3. Make the client feel his/her reaction is normal. A client will experience feelings after hearing bad news about their financial investments. Don't fight this by trying to convince the client or yourself that there is no reason to feel bad. Instead, take a deep breath and validate that this news is hard to hear and hard to give, so the situation is emotionally difficult. It is surprising how validating a client’s feelings calms them down and strengthens the advisor-client relationship in the long run.

4. Don’t personalize the client’s reaction. Many well-meaning advisors feel overly responsible for the pain caused by the current economy. It is okay, and even advisable, to have your own feelings, about the ups and downs in the market place. Just make sure you are not trying to control what is out of your control and taking on too much responsibility. Practice accepting your feelings and your client’s reactions without judgment. Only take responsibility for what is truly in your control.

5. Get support. The best way to survive the current economy is to get support from your friends, family and colleagues. Your job is challenging. You need a place to talk, vent and share your frustrations with others. Model this for your clients because this is a great lesson for all of us to learn. Sharing difficult news is never easy, but it is a little more tolerable when you are not alone.

Kathleen is founder and CEO of KBK Wealth Connection, a company passionate about helping financial services professionals and their clients master their money mindset through wealth psychology. She recently released a new audio program called Creating Wealth from the Inside Out.
____________________
Sign up for "How to Write Blog Posts People Will Read: A Five-Week Teleclass for Financial Advisors" starting on April 22 or for my free monthly newsletter.
Copyright 2010 by Susan B. Weiner All rights reserved

Poll: Would you hire a ghost blogger for your company?

2010-04-03T18:36:00.001-04:00

Investment and wealth managers have great skills. But writing isn't necessarily one of them. So what's a financial professional to do now that blogging is an important part of marketing?

Some companies hire ghostwriters to write their blog posts for them. Ghostblogging can encompass everything from coming up with the ideas, doing the research, writing, formatting posts, and even responding to comments in the voice of the company. Or it can involve a much bigger contribution from the client whose name goes on the post.

Critics say that hiring a ghostblogger is bad. In "The Ghost Speaks," writer Michael Janofsky quotes communications consultant Shel Holtz, "I'm a huge fan of transparency. My advice to executives is: If you don't take the time to write yourself, find another channel of communication."

What do YOU think? Please answer the poll that will run in the right-hand column of this blog until I replace it with next month's poll. I'll report on the results in my May e-newsletter.
____________________
Sign up for the next session of "How to Write Blog Posts People Will Read: A Five-Week Teleclass for Financial Advisors" starting April 22 or join the mailing list for my free monthly newsletter.
Copyright 2010 by Susan B. Weiner All rights reserved

The power of analogy: U2 and alternative investments

2010-04-02T05:00:00.002-04:00

What could the band U2 and hedge fund-style investing have in common?

This unlikely combination came up in a March 15 presentation to the Boston Security Analysts Society by Robert Kaimowitz, CEO and portfolio manager, Bull Path Capital Management.

Kaimowitz asked the audience, "How many of you think U2 is an alternative band?" No hands went up. The band is mainstream now. Yet it was considered an alternative band when it first emerged.

So-called "alternative investments" will follow a similar path, suggested Kaimowitz. They're new and poorly understood, so they're considered "alternative." That will change as they become accepted. He figures alternatives will become mainstream partly because a long-only fund can't be conservative because it's 100% exposed to the market.

Kaimowitz' comments about U2 and alternative investments demonstrate the power of analogy. They stuck with me long after the details of his fund's performance faded.

If you're trying to convince your clients to adopt alternative investments, consider trying this U2 analogy on them. I'd like to hear if it works for you.
____________________
The next session of "How to Write Blog Posts People Will Read: A Five-Week Teleclass for Financial Advisors" will start in April. For more information, sign up to receive "Information on upcoming classes, workshops, and other events" as well as my free monthly newsletter.
Copyright 2010 by Susan B. Weiner All rights reserved

Harry Markopolos on "next Ponzi scheme"

2010-03-31T05:23:00.002-04:00

"Where do you think the next big Ponzi scheme will occur?" That's what I asked Harry Markopolos, author of No One Would Listen, during the Q&A following his March 30 talk to Boston Security Analysts Society (BSAS).

Markopolos isn't too worried about seeing another big Ponzi scheme soon. He gave two reasons.

Markets are down. That's what triggered the redemptions that brought down Madoff and others.
The SEC is now making Ponzi schemes a high priority.

However, most Ponzi schemers don't register with the SEC, said Markopolos. That helps them to stay hidden from the SEC. Markopolos said the SEC typically finds out about Ponzi schemes through tips. The many poor-quality tips submitted to the SEC make it hard to sort out the good from the bad.

If you'd like to learn more about Markopolos' perspective, check out his book. Many BSAS members lined up after the talk to have him sign their books. He's a hometown favorite and past president of the BSAS.

Related post
* Tweets on talk by Harry Markopolos, Madoff whistleblower

____________________
The next session of "How to Write Blog Posts People Will Read: A Five-Week Teleclass for Financial Advisors" will start in April. If you can't attend this session, sign up to receive "Information on upcoming classes, workshops, and other events" as well as my free monthly newsletter.
Copyright 2010 by Susan B. Weiner All rights reserved

Tweets on talk by Harry Markopolos, Madoff whistleblower

2010-03-30T17:44:00.000-04:00

Here are my tweets on today's talk to the Boston Security Analysts Society by Harry Markopolos, the Madoff whistleblower and author of No One Would Listen.

"This case was a global tragedy" said Markopolos. "It was beyond evil."
Madoff case is only in its 2nd innings, said Markopolos. There'll be more arrests due to cooperating witnesses.
CFA# Code of Ethics is important to Markopolos. "It's about investors and doing the right thing," he said.
CPAs, is this true? CPA code of conduct lacks affirmative duty to report fraud.
Lesson #1 for Madoff victims: 0-25% is proper allocation to hedge funds, said Markopolos
Lesson #2 for Madoff victims: Never put all of your eggs in one basket, said Markopolos
Markopolos book is a good road map for conducting due diligence, said Sam Jones of the CFA Institute's board of governors.

____________________
The next session of "How to Write Blog Posts People Will Read: A Five-Week Teleclass for Financial Advisors" will start in April. For more information, sign up to receive "Information on upcoming classes, workshops, and other events" as well as my free monthly newsletter.
Copyright 2010 by Susan B. Weiner All rights reserved

The compliance-constrained financial advisor's guide to using LinkedIn: Part I

2010-03-30T05:00:00.000-04:00

"I'll connect on LinkedIn if my clients ask me, but I don't see the value of LinkedIn because my compliance officer won't let me do anything."

If this is how you feel about LinkedIn, this article is for you.

Even if you can't post more than your name and company affiliation, you can benefit from LinkedIn in two big ways. First, your listing makes you more easily located in an Internet search. That's the focus of this article. In Part II of this article, I will address more active, yet compliance-friendly, strategies you can apply.

It's easier for clients, prospects, and referral sources to find you

You want clients, prospects, and referral sources to find good information when they Google your name. LinkedIn profiles tend to rank high in such searches.
Just make sure you've made your profile public by clicking on "Edit Public Profile Settings" and checking "Full View" instead of "None."

You can increase the ease with which you're found by creating a custom URL for your LinkedIn profile, so the URL reads http://www.linkedin.com/in/YOURNAME. Simply edit the Public Profile URL at the bottom of the "Edit My Profile" page.

Your LinkedIn profile also offers the advantage of presenting yourself as you'd like to be seen, within the confines of what's permitted by your compliance department.

Another factor to consider: Many LinkedIn users will look for you using the site's search box. If you're not on LinkedIn, it's almost as if you don't exist.

So, hurry and put your profile up on LinkedIn. If you're already on LinkedIn, stay tuned for my article on compliance-friendly ways to use LinkedIn.

Related posts
* My most popular blog posts of 2009
* Guest Post: "How to Use LinkedIn When Your Compliance Department Says No"
* Twitter to the rescue of my colleague with an RFP dilemma
* How to publicize your white paper using LinkedIn
____________________
The next session of "How to Write Blog Posts People Will Read: A Five-Week Teleclass for Financial Advisors" will start in April. For more information, sign up to receive "Information on upcoming classes, workshops, and other events" as well as my free monthly newsletter.
Copyright 2010 by Susan B. Weiner All rights reserved

I'm quoted in "Using Social Media in Your Job Search: Look before you Tweet"

2010-03-27T06:55:00.000-04:00

Usually I'm the interviewer, not the interviewee. So I felt more anxious than usual during the interview for "Using Social Media in Your Job Search: Look before you Tweet." Luckily I was interviewed by a capable reporter. Writer Janet Aschkenasy's article appears on the eFinancial Careers site.

I know and like several of the writers for eFinancial Careers. So I recommend checking out the site if you're job hunting.
____________________
The next session of "How to Write Blog Posts People Will Read: A Five-Week Teleclass for Financial Advisors" will start in April. For more information, sign up to receive "Information on upcoming classes, workshops, and other events" as well as my free monthly newsletter.
Copyright 2010 by Susan B. Weiner All rights reserved

Technical analysis of stocks can boost the power of your fundamental research

2010-03-26T13:53:00.001-04:00

You can use technical analysis in combination with your firm's fundamental equity analysis to help decide when to buy or sell stocks. This is the message I took away from "Applying Technical Analysis to a Fundamental Investment Strategy," a March 23 presentation to the Boston Security Analysts Society by David Keller, who oversees technical analysis as a managing director of research for Fidelity Investments.

Technical analysis is not voodoo science, throwing darts at a board, or even a prediction of the future, said Keller. Rather, it's a way to analyze supply and demand using patterns, he said.

Fundamental research and technical analysis tackle different parts of the decision to trade a stock. Here's how Keller described them.

Fundamental research analyzes the company for the what and why of buy and sell decisions.
Technical analysis analyzes the stock, looking purely at market activity for when and how to buy or sell

These two approaches overlap, in the opinion of Keller and the Fidelity portfolio managers who use his team's research. Technical research helps to identify the best time to execute a fundamental strategy, he said. You can think of technical analysis as a trigger, he said.

When the results of technical analysis diverge from those of fundamental research, portfolio managers should pay attention, according to Keller. He referred to point and figure charts as "a gut check on how I look at individual stocks."

Relative strength indicators are among the most important technical indicators, Keller said. They can be warning signs, he added.

Keller's message was warmly received by members of the audience, most of whom raised their hands when asked if they regularly consulted technical indicators.

Related post
* Fidelity's head of technical research addresses "Where will the stock market go from here?"
____________________
The next session of "How to Write Blog Posts People Will Read: A Five-Week Teleclass for Financial Advisors" will start in April. For more information, sign up to receive "Information on upcoming classes, workshops, and other events" as well as my free monthly newsletter.
Copyright 2010 by Susan B. Weiner All rights reserved