Neither columnist nor personal acumen substitute for high-volume money manager

Dear Mr. Berko: I'm 56 and a recently retired doctor who moved to Jonesboro, Ark., to be near my daughter. Last month, I sent you a letter telling you that I have $1,920,000 in cash in my IRA that I want to invest in the market today. I sent you a computer list of 61 issues that I wanted your thoughts and projections on. I also asked you to recommend other stocks that you think I should own as well as municipal bonds. You said, and I quote, "It would be best if you would find a knowledgeable, wise, and experienced money manager to guide you. Certainly there are qualified professionals in Jonesboro." Frankly, I resent your attempt to wiggle out of answering my stock questions. While I don't have formal training in the market, I think my medical background, intelligence and common sense are sufficient enough to manage my money without paying a money manager a fee for his advice. It says in the paper that you will answer reader's questions, and I think you should be a man of your word. SS, Jonesboro Dear SS: I don't mind answering questions about two or three stocks, but asking me to comment on 61 issues and then recommend others really takes the cupcake. And because I think you may have some serious psychosocial disorders to which you are oblivious, I will not be unkind in my response. Not too long ago, newspaper headlines reported that "2011 may be the worst year for real estate," and several days later: "Home sales zoomed 3 percent." A month ago, the media exclaimed that "U.S. exports to Europe remain strong..." and a few days later: "Europe could be headed for a recession." Recently, the media shouted, "Yahoo profits increased 18 percent year over year," and then, way down in the article, it reported, "Lower advertising demand decreased revenues by 5 percent." In another article, the media boomed, "Unemployment declined from 9.2 percent to 9.1 percent." Several days later, the same source told us that record numbers were collecting unemployment benefits. The administration proudly announced the first quarter GDP growth was 1.8 percent and two months later revised it downward to 0.4 percent. On an unusual day last May, the Dow had a trading range of 1,800 points. And now, weekly trading ranges of 1,000 points are common. In late 2008, when Bank of America was $35, it absorbed Nations Bank and bought Countrywide Mortgage and Merrill Lynch. Today, Bank of America sits at $6 a share and is down 29 points while company assets increased over $50 billion and non-interest income nearly doubled. Standard & Poor's gives Triple-A ratings to billions of subprime mortgages, and a year later, they collapse. There are 25 million people unemployed; millions of homeowners are in foreclosure; the deficit is running away; the Middle East is flaming; the economies of Greece, Italy, Portugal, Belgium, Ireland and Spain are melting; and the Dow is up over 300 points as I write this. Interest rates are at an all-time low, and the Fed has released $2.3 trillion dollars into the economy. The housing market is near collapse, the congressional approval rating is 13 percent, and many observers believe we may end up in a double-dip recession. But corporate profits are up nicely this year. Well, Doc, if you can do it yourself, I wish you good fortune. And while I will answer your questions about a few stocks once in a while, I don't have time to give you my opinion on 61 issues. There's much more to building a portfolio than picking stocks, but I suppose you know that. If you want projections and consensus on those issues spend a few dollars on Morningstar, Value Line, Standard & Poor's, etc. Meanwhile, send me a note every once in a while letting me know how very well you're doing. ---------- Please address your financial questions to Malcolm Berko, P.O. Box 8303, Largo, FL 33775 or e-mail him at mjberko@yahoo.com. Visit Creators Syndicate website at www.creators.com. © 2011 Creators Syndicate Inc. Published: Mon, Oct 10, 2011