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Subject:  Re: Hey guys: curious questions from reading MD Date:  5/15/2009  7:47 PM
Author:  JAFO31 Number:  65706 of 98899

jamiegumm: "Hey all. I just finished reading the Gardners' new book, quite a revelation for a neophyte like me. But, by all means, pick it up sometime. What I admire in their writing is that it's not ideological and dry, like most finance books. But, of course, a few questions emerged for this rather dim bulb. Oh, by the way, did anyone win a hat by finding a typo in there? I thought maybe spelling Treasuries was a misprint somewhere but I forget where? Isn't the proper spelling in finance gibberish Treasurys? I m thinking there must be some Easter egg in there."

Welcome. I have not read the book.

"But, from p. 211, "You can't sell stocks in your 401(k) to buy bonds in your Roth IRA or that might be considered a distribution." Can someone elaborate on what they mean exactly? I thought that, barring any wash rule violation, you re free to trade in retirement accounts with impunity?"

Sounds like gibberish to me; or some major ontext is missing. You are mostly correct as to your understanding. There are some federal limits with respective to permitted investments.

"Also, perhaps a dumber question, what is the math formula for figuring percentage variation they site a few times. (I ll append their example with Buffalo Wild Wings.)

52-week high 44.19
52-week low 18.25

variation 58.7%"

I mean how do you come up with that percentage? Yes my mom was a math teacher but my siblings were all the bright stars.

(High Value - Low Value)/High Value

(44.19 - 18.25)/44.19 = 25.94/44.19 = 58.7%

Math formula explanation only without comment as to whether that number means much of anything.

Why not use (High Value - Low Value)/Low Value, and calculate 142.1%?

'By the way, is TD Ameritrade OK for a non-active trader or is that geared more toward active ones?"

I have no idea. Seems like it would be ok.

Regards, JAFO
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