General Archives
Diversify, Diversify, Diversify
Diversification, even in trading, is very important for risk reduction. Since you aren't going to be correct in every trade you make, diversification is necessary and important as a means to risk reduction and capital preservation. The simple fact is more
The NEW Roth 401k Plan
There's a new retirement plan soon to be available. It's called a Roth 401k. President Bush brought this about in his 2001 tax cuts. This is a combination of two retirement funds - a 401k and a Roth IRA. more
The Securities And Exchange Commission...Friend Or Foe?
For those of us who consider ourselves novices when it comes to "the financial world", it is interesting to understand the impact of the Securities and Exchange Commission (SEC) and its role in the world of investment. The SEC touts as more
Learning The Basics Of Leverage
Making investments is very risky. A person makes an investment in a business or in stocks expecting to multiply the amount that he or she has invested after some time. However, whenever someone makes an investment he or she also has more
Gold: Inflation and Market Indicator
For years, I had a fight with The Wall Street Journal editorial board over its front-page summary of market indexes, which highlights a dozen daily indicators, including stocks, bonds, oil, the dollar, etc. Yet it deliberately omitted the single-most significant more
Buyback Versus Dividend
There are two ways company can give out its profit to shareholders. One is to give out dividends. The other is to buy back its own stocks. Which one is more appropriate? This article will explore the topic further. The more
Investment Advisors 101... Ask These Questions
Investment Advisors (IAs) come in all different intellectual, professional, and alphabetical varieties. They range in educational qualifications from High School dropout to PhD, and can be professional Accountants, Insurance Salesmen, Stock Brokers, Investment Managers, Dentists, Lawyers, TV personalities, and Gourmet Chefs. more
Gold Topping $500 Really Is A Big Deal
As gold topped $500, the news became front-page across the country, and radio and TV financial programs led off talking about the price of gold. Invariably, all noted that gold had reached nearly a two-decade high. Yet it is doubtful any more
Gold Is Golden
Now is the Time to Invest in something Real to Assure a Good Life Tomorrow. Gold is golden. Gold has now surpassed $500. an ounce and still it is one of the worlds greatest bargains. Every day it is becoming more
Understanding Fixed Income Securities: Expectations
I've come to the conclusion that the Stock Market is an easier medium for investors to understand (i.e., to form behavioral expectations about) than the Fixed Income Market. As unlikely as this sounds, experience proves it, irrefutably. Few investors grow to more
Are You Afraid To Start Investing?
"It is not because things are difficult that we do not dare, it is because we do not dare that things are difficult!"Lucius Annaeus Seneca (5 BC - 65 AD) If you're just starting out as an investor, doesn't matter more
Investing, Are You Ready?
Before entering the world of investing, it is important to honestly analyze your present situation. Doing so will allow you to effectively manage your own money in a way which maximizes returns while limiting unwanted risk. Questions to consider include: more
Managing The Income Portfolio
The reason people assume the risks of investing in the first place is the prospect of achieving a higher rate of return than is attainable in a risk free environment...i.e., an FDIC insured bank account. Risk comes in various forms, but more
International Investing Advice: Investing In Foreign Markets
A brief guide to international investing Foreign markets make up close to 50% of all opportunities for investing in stocks and bonds. As the world of business becomes more globalized, investors are seeking new avenues to invest and diversify with, more
Start Investing Early In Your Career
You're young, you just landed a new job and you're going to be getting a decent paycheck. You also have bills to pay and there are also a few items that you've always wanted so now you can finally afford them. more
The World Is Your Playground: A Guide To International Investing
Over the last few years, while US markets were recovering from the bursting of the dot-com bubble, the economies of India and China were booming. Compared to the Dow Jones Industrial Average's dismal loss of 0.6% in 2005, India's BSE index more
Worried About The Inverted Yield Curve?
The yield curve refers to the interest rates on bonds of varying maturity. Normally, we expect the yield on bonds with longer maturities to have a higher yield than those of shorter maturity bonds. Because it is less of a burden more
Reducing Risk And Keeping Your Financial House In Order
Reducing risk to your money and protecting your trading capital must come before making money in the stock market; it must always be put first in your mind when trading. You must learn and become comfortable with this being your first more
Banks Invest Your IRA Money In Home Mortgages-Shouldn't You?
Banks Invest Your IRA Money in Home Mortgages, Shouldn't You ? You can pump high yielding, tax free profits secured by real estate directly into your IRA! I don't care what your banker or stockbroker told you, the IRS more
Net Income Over Cash Flow
Some Financial Analysts argue that using cash flow will provide a more accurate picture in determining the fair value of a common stock. What gives? They reason that investors should follow where the cash is. Cash flow will track the flow more
I Bonds: Treasuries With An Inflationary Kicker
There must be a touch of inflation in the air, since a few clients have been calling with questions regarding I Bonds. With the low inflationary environment of late, there hasn't been a lot of press concerning I Bonds. But since more
Socially Responsible Investing
Socially responsible investing is all the rage these days. By some estimates, more than $2 trillion, or 12% of professional management assets, target socially responsible companies. Shareholders have invested more than $150 billion in socially oriented mutual funds. These are more
Successful Investing - Avoiding Implementation Shortfalls
An issue every investor faces is that of successfully implementing his investment strategy. It's nice to read or hear about great investing strategies but oftentimes, when you try to implement them, they fail to deliver the superior returns. more