How to Profit Investing in Water

By Ken Faulkenberry

The past two years prove that passive equity index investing is risky to an investor’s portfolio. An investor needs to employ an active asset allocation strategy that is flexible enough to avoid overvalued assets and invest more aggressively when assets are undervalued. One of the benefits of an active strategy is the ability to look for investments with strategic advantages, and include them within a properly diversified portfolio.

Return on investment is driven by supply and demand. If demand outstrips supply; the return on that product or service will have to be higher than average to attract investors into investing and meeting that need. Therefore, everything being equal, investing where demand is high and growing will yield higher than average rates of return on investment.  Industries or companies that meet these criteria have a long term strategic advantage.

The lack of pure water is one of the greatest challenges in the world today. While there is no shortage of water, there is a serious shortage of clean, potable water. In the developing nations, 80% of all diseases are a result of unsafe water. Contaminated water kills more people worldwide than any single disease, including AIDS or cancer.

World population growth is only a small part of the growing demand for water.  As nations become more developed they consume more goods and services, particularly agricultural products.  Two-thirds of all water consumed goes to irrigate crops. As nations like China and India increase their standard of living, water consumption can rise two or three times the population growth.

Water has some unique properties. Water is not a commodity, but a necessity. For example, unlike oil or most commodities, water cannot be replaced by another product.  There is no substitute for water. No technological innovation can replace water. Demand is not affected by changing tastes, interest rates, recession, inflation, or deflation.

In order to meet the need for water in this century trillions of dollars of investment capital are going to be required.  This means a higher than average rate of return will be required to attract investment capital to companies that focus on technology and services that purify, filter, transport, store, and bottle water.

Unfortunately, there are not a lot of good choices for individual investors to invest in water today.  Water is too small a percentage of revenues and profits to make a difference in the large companies like General Electric (GE) that are investing in water.  There are many smaller and more risky opportunities, but to be prudent, diversification would require investors to buy a portfolio of these stocks. The advantages of Exchange Traded Funds (ETFs) are extraordinary because they are a basket of stocks that trade like a single stock.  ETF’s provide investors an inexpensive way to diversify small portions of a portfolio in targeted sectors.

ETF PowerShares Water Resources (PHO) enables an investor to own approximately 30 different stocks that focus on the provision of potable water. PHO gives an investor who wants to invest in water instant diversification and the ability to increase or decrease that position efficiently because it trades just like a stock.

Like all investment opportunities, investments in water should be a small part of a well diversified asset allocated portfolio. Both over-diversification and under-diversification are major reasons for poor investment portfolio performance.  Much thought, planning and research should be put into how each investment fits into a portfolio.

Investors who want useful research, sound conservative asset allocation advice, and wise investment strategies should consider the online investment newsletter from ArborInvestmentPlanner.com.  The Arbor Asset Allocation Model Portfolio (AAAMP), along with trade alerts, updates, reminders, and special reports gives the individual investor all the powerful tools needed to manage their own portfolio.

More information available at: www.ArborInvestmentPlanner.com

Houston Recording Artist Interviewed by ABC’s 20/20 Regarding the 2003 Quadruple Murders of Clear Lake Teenagers

Jennifer Grassman Recognized by 20/20 for her 2003 Crime Stoppers Benefit Concerts

Houston, TX – September 18, 2009 – At the request of the parents of Rachael Koloroutis, a victim of a quadruple homicide in a Clear Lake, Texas, suburban home on July 18, 2003, Houston-based recording artist Jennifer Grassman spoke with ABC’s 20/20 regarding the six year old murder case. In addition to Grassman’s high school friend, Rachael, 18, three others victims, Tiffany Rowell, 18, Adelbert Sanchez, 21, and Marcus Precella, 19, were also found bludgeoned and shot on that fateful afternoon.

“I remember my Mom calling me up at work,” said Grassman, now 24. “She said, ‘Honey, I’ve got some horrible news. Rachael’s dead. She’s been murdered.’ At first I couldn’t process the idea that she was talking about Rachael Koloroutis. I got numb all over. It was a feeling of profound shock, disbelief, and horror.”

Determined to bring comfort to the bereaved family and help the Houston Police Department apprehend the culprits, Grassman organized several memorial concerts to raise money for Rachael’s Crime Stoppers Reward Fund. With Grassman’s help, the Koloroutis family and Houston Crime Stoppers raised $100,000 for the reward fund, which at the time, was the largest reward in Crime Stoppers history.

After four torturous years of minimal leads and no answers, friends and family of the deceased were finally given some closure, when Christopher Snider and Christine Paolilla were charged with capital murder. Snider committed suicide before he was captured. Paolilla was apprehended and sentenced to life in prison on Monday, October 18, 2008 in the court room of Judge Mark Kent Ellis.

“I remember sitting in court not ten feet away from Christine Paolilla,” stated Grassman, “and wondering how someone who looked so small and miserable could have committed such a maliciously violent act. There can be no complete closure for anyone who knew Rachael, because nothing can fill the void that she left behind. Our only peace is in knowing that she is in Heaven, and God will avenge her death.”

The episode of 20/20 featuring the Koloroutis case and Grassman’s interview is set to air on September 25, 2009, at 10/9 CT on ABC. An online memorial for Rachael Koloroutis will be posted on the front page of www.JenniferGrassman.com, along with a download of the song which Grassman wrote for Rachael, entitled White Roses. 100% of proceeds will be donated to Crime Stoppers in memory of Koloroutis.

“I wanted to immortalize Rachael,” said Grassman. “She never got to attend college, get married, have kids, or do all the great things she dreamed of doing. I want everyone to know that Rachael is not just a statistic. Any parent would have been proud to have a girl like Rachael as a daughter, and she should still be with us today.”

About Jennifer Grassman

Jennifer Grassman is a vocalist, pianist, composer and recording artist.  Grassman’s music effortlessly fuses diverse elements of classical, Celtic, gothic and rock styles into a beautiful, moving genre all her own.  She resides in Houston, Texas with her husband and two cats. To learn more, please visit www.JenniferGrassman.com or www.rainnoverhouston.org.

About 20/20

ABC’s second longest running prime-time series, 20/20 is a newsmagazine that mixes investigative pieces with human-interest and celebrity features. Hosted by John Stossel and Elizabeth Vargas, 20/20 airs in Houston every Friday at 9:00 PM on KTRK, ABC Channel 13, after SuperNanny.

Hedging: A Dirty Word or a Useful Strategy?

by Ken Faulkenberry

Hedging has become somewhat of a dirty word lately.  People correlate it with Hedge Funds and “betting against America”.  In reality, hedging, like many things (i.e. alcohol), can be abused or used incorrectly and cause harm, but when hedging is used correctly it can be a useful tool or a prudent necessity.  A homeowner will usually hedge the chance of a fire destroying his home by purchasing fire insurance.  Hedges can also improve the safety and reduce risk in an investment portfolio.  Hedging is a portfolio diversification strategy to reduce risk by owning something that is correlated inversely to other assets in the investment portfolio.

Owning precious metals investments, including gold and silver mining stocks, are a hedge. The primary purpose of owning these investments is because they do well during times of rising inflation or economic and political turmoil.  These are the times other asset classes like stocks, bonds or real estate may not do well.  Therefore it is prudent to hedge a portfolio by owning some investments related to precious metals. During periods of economic stability most portfolio managers recommend a target of 3-7% of a portfolio in precious metals related investments, but that percentage could be much higher at certain times. It is important to constantly monitor economic and political risks to achieve the optimum asset allocation in precious metals.

A recent popular vehicle for investing, Exchange Traded Funds (ETFs), provides an instrument that moves inversely, or the opposite direction of a stock market index.  Some of these inverse ETFs even move 2 or 3 times as much as the underlying index.  The need for frequent rebalancing makes inverse ETFs dangerous for anyone who doesn’t understand how they work or does not pay close attention to the need for frequent rebalancing. In other words, inverse ETFs require an active asset allocation strategy.

For investors who employ an active asset allocation strategy, the inverse ETF can be a useful tool by allowing an investor to take the market risk partially or wholly out of one’s stock portfolio.  For example, let’s say you own $100,000 of 20 great companies with solid balance sheets and high dividends, but believed strongly the stock market is going to decrease in value. You may not want to sell your stocks so you buy $50,000 of an ETF that moves two times the inverse of the market.  You now have removed all the market risk from your portfolio of stocks.  If the market moves lower, as you believed, you will make money on the ETF to make up for losses in your stocks.  Of course, if you are wrong and the market moves higher, you will lose money on the ETF that will offset the gains in your stocks. The purpose is to continue receiving the dividends and not incur the taxes and commissions selling and buying your 20 stocks.

Hedging is an important and useful diversification strategy to reduce investment risk and improve long term portfolio performance.  It is also a strategy that requires careful application, monitoring, and frequent rebalancing.  Properly used, hedging can reduce investment risk.

About Arbor Investment Planner

The Arbor Investment Planner provides the Arbor Asset Allocation Model Portfolio (AAAMP) which uses hedges to reduce portfolio risk.  Investors use the AAAMP as a guide but stay in control of their assets, and make their own investment decisions.  The AAAMP uses precious metals investments and inverse index ETF’s to maintain asset allocations at levels believed to be optimum for the current investment environment.  Rebalancing is taken into consideration in Trade Alerts sent to subscribers. The AAAMP is updated with every trade or major market move in order to stay disciplined and focused on our asset allocation.  More Information is available at: www.ArborInvestmentPlanner.com.

DIVERSIFICATION The Critical Element of Portfolio Management

By Ken Faulkenberry

Diversification is the single most important element of investment planning. Diversification is a portfolio strategy that reduces risk by combining different investments that are not correlated.  The volatility (risk) of the portfolio is reduced because not all asset groups, industries, or stocks move together.  The goal of diversification is to reduce risk.

Lack of diversification and over diversification are two common mistakes made by investors.  Lack of diversification (putting all your eggs in one basket) is the most dangerous and ruinous mistake possible.  Over diversification can result in a portfolio performing like the market. Many investors have experienced the bad results of over diversification during the current decade.  Most institutional vehicles (i.e. diversified mutual funds, pension funds, etc.) are over diversified and simultaneously lack an asset allocation needed for success in today’s challenging environment.

Proper Diversification can reduce many kinds of risk including company specific risk, poor fund management risk, industry risk, and market risk!

Company specific risk is risk that is specific… [ read more at http://blog.arborinvestmentplanner.com ]

More information available at: www.ArborInvestmentPlanner.com.

Runaas Resources Wins Business of the Year Award

Houston Area PR Agency Honored by the Spring-Klein Chamber of Commerce

July 25, 2009 – SPRING, TX – Runaas Resources LLC announced today that the independent public relations agency received the Spring-Klein Chamber of Commerce’s (SKCC) Toni Award for 2009 Business of the Year.

Candace Runaas (c) accepts the SKCC Toni Award for Business of the Year 2009 from Toni Richard and Assad Shorrosh.

“I am so surprised and honored to receive this…,” said Candace Runaas, president of Runaas Resources, whose company focuses primarily on representing women-owned businesses. She has earned a reputation for her active support of the local business community and her altruistic involvement with non-profit organizations and anti-abuse causes.

The SKCC Toni Award recognizes area businesses that contribute to the economic growth of the Spring-Klein area through active support of the Chamber and its member businesses.

Namesake of the award, Toni Richard, chamber president and co-founder, and Assad Shorrosh, executive board member, presented the award to a tearful Runaas, during the chamber’s 2^nd Annual Christmas in July Gala on Friday, July 24, 2009.

The annual fundraiser also serves as a celebration of the one year anniversary of the young chamber.  The first Christmas in July Gala was held only two months after the chamber’s inaugural luncheon in May 2008.  This year’s event featured Commissioner Jerry Eversole as the guest of honor.

“No one could have deserved this award more,” stated Jennifer Grassman, a Runaas Resources client. “I enjoy working with Runaas Resources because they are a creative, strategic and effective PR agency. Candace has such a big heart. She is a fierce advocate for small business owners and community causes. She puts her heart and soul into everything she does and I am honored to say that I work with her.”

About Runaas Resources LLC

Established in 2005, Runaas Resources LLC is a virtual public relations agency located in Spring, Texas.   Candace Runaas, company president, receives much recognition for her innovative PR methods and her involvement in the community.  For more information, please contact Candace Runaas at info@www.runaasresources.com or visit www.runaasresources.com.

The SKCC 2nd Annual Christmas in July Gala Receives Strong Support from Area Representatives and Local Businesses

Commissioner Eversole encourages businesses during the 2009 SKCC Christmas in July Gala. (Credit: Ava Ray)

Commissioner Jerry Eversole Speaks to Banquet Guests; Local PR agency wins SKCC Toni Award for Business of the Year

July 26, 2009 – SPRING, TX – The Spring-Klein Chamber of Commerce (SKCC) celebrated their 2^nd Annual Christmas in July Gala on Friday, July 24, 2009.   Harris County Precinct 4 Commissioner Jerry Eversole spoke as the special guest during the banquet.

“The unique challenge for this chamber is that the area you represent cannot easily be mapped out,” said Commissioner Eversole at the event.  He was referring to the fact that Spring and Klein are unincorporated and extra-territorial jurisdictions of Houston.  “But the businesses of this area need to support this chamber in order for it to continue to grow.”

His comments were spoken with the Commissioner’s candid and outspoken sense of humor to an audience that included a table hosted by Senator Dan Patrick.   Court Koenning, chief of staff for Senator Patrick, and his wife, Dawn, were also at the event.

Event auctioneer, Mark Moore TAL #15019, purchased and donated a Texas Flag donated by Representative Debbie Riddle to be flown over the state capital and a VIP Capitol Tour for the live auction in honor of the day of their choosing.

“We are so appreciative of all the support that we have received from our representatives and the community,” said Toni Richard, president and co-founder of the SKCC.  “The membership continues to grow at a steady pace and our mission to connect the community to create a thriving economy in Spring is really making an impact.”

“We thank all of the businesses that supported us through donations to our auction,” added Elle Carnes, chair of the Christmas in July Committee. “We also give special thanks to the generous sponsors who made this event possible.”  Sponsors of the event included Shorco Inc., Century 21 – Robert Harris, Houston WAHMS (Work-at-Home Moms) and the Tomball-Spring Times.

The event also featured the first annual SKCC Toni Awards ceremony.   Candace Runaas, president of Runaas Resources, tearfully accepted the honor for her company as the 2009 Business of the Year.  The award recognizes businesses that make outstanding service contributions to the chamber and its member businesses.

“I was chamber president of the Humble Chamber of Commerce for 18 years,” shared Eversole, “and I enjoyed ever minute of it.  This chamber can be a very successful one as long as the area businesses and members are willing to support the work that they are doing.”

Commissioner Eversole is currently serving his fifth four-year term as commissioner of Precinct 4, the largest Harris County precinct, encompassing 587.1 square miles with over 904,000 residents.  Spring Texas is located in Harris County Precinct 4.

ABOUT THE SPRING KLEIN CHAMBER OF COMMERCE: Founded in May 2008, the Spring Klein Chamber of Commerce (SKCC) is the business and community support organization dedicated to being the primary resource for area economic development, business expansion and overall quality of life in Spring-Klein. For more information, visit www.springkleinchamber.org or call 281-257-4431.

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Obamanomics – How Policy Affects Investment Management

OBAMANOMICS

How Policy Affects Investment Management

By Ken Faulkenberry

The American people voted for change in 2008, not realizing they were going to get more of the same policies of the previous administration.  More government spending, more and greater deficits, more government bailouts and ownership of previously private businesses, more regulation, and more government interference are being continued on a much grander scale than many imagined.  The scale of which Obama policies are being proposed will have a profound affect on investment planning and portfolio management.

The health care industry accounts for about 1/6 of our economy.  It is clear the government will have a significantly increased role in picking the winners and losers of both care givers and care consumers.  Rationing of care is a fact of any health care system.  With the technology we have today it is physically and economically impossible to provide everyone with every drug, procedure, surgery, etc., available.  While health care reforms are needed, rationing decisions are more efficiently handled by patients and the free market than by government bureaucrats. Long waits and poor care in countries with a large government role in health care demonstrates our reform is headed in the direction of shortages and greater market inefficiencies.

Both political parties have played a large role in handing out trillions of dollars in corporate welfare, rewarding those who have failed. Worse yet, the government has taken ownership (i.e. AIG, General Motors) of companies and now compete against companies that have survived on their own.  Part of the efficiency of free enterprise is the weak die off during lean times allowing the efficient to innovate and compete in the future. It will be harder for surviving companies (i.e. Ford) to innovate and invest in the future because the government bailed out and now owns GM.

Many of the billions in the “stimulus” plan are being used to retard the natural cleansing of the system that is required to get back on solid ground.

Housing is another important segment of our economy.  Homeowners whose homes are worth less than they owe and are unable to meet current mortgage payments are being offered government backed mortgages at 125% of appraised value. Taking money from taxpayers to help those who have made purchases beyond their means does economic harm. These actions keep home prices artificially high and prevent potential homeowners who are capable of purchasing at lower prices from becoming homeowners.

Health care, corporate welfare, and housing are only a sample of the tidal wave of government involvement in our economy. Anytime the government gets overly involved in free markets, moral hazard and inefficiencies are created that cause the economy to operate at less than optimal growth rates. When government picks the winners and losers; there is a pattern of rewarding those who make poor choices and making those who have made good choices pay.  The government overreach is at such a grand scale it will affect our daily lives and our investments. The United States will have to become accustomed to much slower economic growth and lower corporate earnings for the foreseeable future.

The increased role of government means Obamanomics is having a profound affect on investment management. With slower economic growth and the government picking winners and losers; asset allocation and individual stock selection will play a greater role in investment returns.  While diversification is always crucial, choosing asset allocations that correspond with economic reality is equally important in this investment environment.  Investors can no longer afford to park money in equity index funds as they did successfully in the 80’s and 90’s. Broad index investing versus proper asset allocation and researching individual stocks with strategic advantages will be the difference between poor investment returns and achieving investment goals.

Investors who want to manage their own investments, but lack the knowledge and/or time for proper asset allocation and research of individual investments, need to obtain portfolio management advice from a trusted source. The Arbor Investment Planner provides the Arbor Asset Allocation Model Portfolio (AAAMP), Trade Alerts, Updates, and Special Reports to provide investors everything needed to manage their portfolio. The AAAMP uses Stocks and ETFs to provide a conservative diversified portfolio for long term growth.

More Information available at: www.ArborInvestmentPlanner.com.

Texas-based Investment Planner Launches Unique Investment Blog

ArborInvestmentPlanner.com launched a free Investment Blog with portfolio management articles, blogroll, and personal finance and political websites pertinent to investor’s financial health

Houston, TX – June 30, 2009 (PRWeb) – ArborInvestmentPlanner.com launched a new Investment Blog aimed at independent investors who want to manage their own portfolio. The new blog includes investment portfolio management articles, blogroll, investment and political web sites.

Owner, Ken Faulkenberry states “we have put together the best Conservative, Libertarian, and Christian based blogs and web sites at one location”. He also admitted “We hope while investors are exploring they note the outstanding long and short term performance of the Arbor Asset Allocation Model Portfolio (AAAMP).”

ArborInvestmentPlanner.com is a stock and ETF online portfolio management service which provides a real-time model portfolio, trade alerts, updates, and special reports to subscribers. The new blog is a free service and accessible to everyone.  New Blog: www.ArborInvestmentPlanner.wordpress.com

Local Track Team Ready for Area 13 Amateur Athletic Union Junior Olympics District Qualifier

Texas Stallions Youth Track Club

The Texas Stallions Youth Track Club score fourteen top six finishes at final meet before district!

Spring, TX, June 8, 2009. – In the last meet before the Area 13 Amateur Athletic Union (AAU) Junior Olympics (JO) District Qualifier, the Texas Stallions demonstrated readiness by bringing home 3 gold, 2 bronze, 3 fourth, 5 fifth, and 1 sixth place finishes. A youth Track and Field Club based in Spring Texas, the Texas Stallions are dedicated to the development of youth track and field athletes in the North Houston area. Lead by head coach Paul Durisseau, fifteen Texas Stallions participated in the AAU sanctioned Flying Dragons Track Meet on Saturday June 6, 2009 at Klein Memorial Stadium in a variety of track and field events for youth 5 – 18 years old.

Ten boys and five girls took part in events that were held by age groups: Primary (5-8), Sub-Bantam (9), Bantam (10), Sub-Midget (11), Midget (12), Sub-Youth (13), Youth (14), Intermediate (15-16), and Young Men/Women (17-18). Awards were given for the top-six finishers in each age group. Competing against over 10 other teams, the stallions took home fourteen top-six finishes. The top-six finishers were:

Girls:

Youth:

• LaKayla LaFrance – 100m Hurdles, 3^rd – 17.34

Sub-Youth:

• Brittany Collins – 800m Run, 5^th – 2:47.36

Midget

• LaMika LaFrance – 400m Dash, 5^th – 1:07.37; 800m Run, 5^th – 2:52.74

Primary

• Lavoxkeia Carnes – 100m Dash, 1^st – 15.78; 400m Dash, 1^st – 1:16.06

Boys:

Intermediate:

• Lamont Grow – Long Jump, 3^rd – 19’5”

Sub-Youth:

• Alexander Brooks – 1500m Run, 4^th – 6:05; 800m Run, 6^th – 2:48.34

Midget

• Freddie Moore – Shot Put, 4^th – 36’2.5”; Discus, 4^th – 57’3.75”

Bantam

• Christopher Ward – 1500m Run, 5^th – 6:16; 800m Run, 5^th – 3:02.15

Primary

• Harrison Moore – Long Jump, 1^st – 12’3”

The Texas Stallions Stable consists of Adam White, Ahmad Cummings, Alexander Brooks, Anthony Grant, Audreanecia Hagan, Brittany Collins, Christopher Collins, Christopher Ward, Freddie Moore, Harrison Moore, Hunter Cork, Jarius Chevalier, Jonathan Carnes, Kaleb Bryant, Kaylan Harris, Kendrick Skinner, LaKayla LaFrance, LaMika LaFrance, Lamont Grow, Lavoxkeia Carnes, and Zhanna Brooks.

The Stallions can be seen next Saturday, June 12 -13, 2009 at the Area 13 AAU JO District Qualifier, held by the Sonics Youth Track Club at Klein Memorial Stadium, 16715 Stuebner Airline, Klein, TX 77379 at 8:00 am each day. Qualifying times in the district meet will allow athletes to advance to the Area 13 Regional Championships in July where they will have the opportunity to qualify for the Amateur Athletic Union (AAU) Junior Olympics to be held in Des Moines IA in early August. To learn more about the Texas Stallions youth track club please visit our website at http://www.eteamz.com/txstallionstrack/, call our registrar Erica Skinner at (832)-866-2026, or email txstallions@att.net.

About the Texas Stallions Youth Track Club

The Texas Stallions Youth Track Club is a non-profit 501(c)(3) organization that is sanctioned by the Amateur Athletic Union (AAU) Gulf Association and the USA Track and Field (USATF) Gulf Association youth track programs for boys and girls from ages 6 to 18 years old. Our track club is dedicated to the development of youth track and field athletes in the North Houston area. Our objectives are: to challenge our youth through track and field, and to strive for excellence in every life endeavor; to teach fundamental track and field principles that will equip youth athletes with the skills to compete on a national level; To develop the minds and bodies for future leadership athletic training and discipline; and to develop a spirit of competitiveness that will foster a desire to always strive for excellence. Our website is located at http://www.eteamz.com/txstallionstrack/.

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Photo Caption: Texas Stallions Youth Track Club.

Investment Planner Real-Time Model Portfolio Reaches All-Time High

May 30, 2009 – ArborInvestmentPlanner.com announced today its real-time model portfolio, the Arbor Asset Allocation Model Portfolio (AAAMP) is up +10.3% for the year to date, an all-time high.  This is after a 2.0% loss in the portfolio for 2008 versus a loss of 37% in the S&P500. The AAAMP has a positive return of 7% for the entire bear market beginning in the fall of 2007 to the close of Friday.

The AAAMP is sent to ArborInvestmentPlanner.com subscribers to help investors achieve diversification thru proper asset allocation by following the model. Trade alerts, updates, and reminders then keep subscribers updated and flexible as economic and market conditions require.

For more information visit: www.ArborInvestmentPlanner.com.