Where will the money from oil go next?
As the commodities markets ebb, the money flowing out of the oil “bubble” is the most notable. What was a long climb to $147 per barrel has since ended with large drops all the way back to $118. Now that oil is losing its steam, the money that was feeding the monster will come back [...]
Have a short retirement time frame? Blue chips might not be the answer
Photo Credit: Greek Shares
The traditional retirement think-tank would say that bluechips should make up your short term retirement holdings. Investing your cash in a blue chip stock for a few years is like placing your money in a money market account; the dividends bring the returns, and the capital gains are the bread winners. But [...]
Why opt for small caps in falling markets?
The trading circle’s rumor mill passes around the concept that small caps perform better than large caps during market declines. This is backed by plenty of historical data, as small caps have performed far better in bear and stagnating markets over the past 70 years. But why do small caps do so well, and why [...]
Are your retirement accounts FDIC insured?
Photo Credit: LA Times
As more banking institutions become insolvent, it is important to know which accounts are insured against bank failure – and which ones are not. In fact, the “name” of your account may determine whether or not it is insured. Money market accounts or money market funds: one of those two accounts is [...]
Exchange traded funds in the stock market
Photo Source: State Street Global Advisors
Exchange traded funds were highly uncommon, even just a few years ago. Today, you can buy any kind of ETF, including international funds, gold funds, oil funds, Dow funds, double Dow funds, and many more options. If there’s an investment, chances are you can buy it through an ETF.
Exchange traded [...]
How to Find Top Paying Dividend Stocks
Did you know 97% of the stock market returns between 1871-2003 came from reinvested dividends?
Dividend paying stocks carry a unique feature that non-dividend stocks lack: the ability to reinvest earnings without doing anything (aka DRIP plans). Your reinvested dividends continue to buy shares whether you trade or not. Most online brokers give investors the [...]
How Stock Market Volatility Effects Investment Returns
In my last article, I explained why volatility does not measure risk. It’s an assertion by none other than Warren Buffet himself. I hope the historical data I used convincingly illustrated the point.
If volatility doesn’t measure risk, then what can we learn from it?
Let’s look at this simple example. [...]
Modern trading making earnings multiples obsolete
Price to earnings multiples were once the basis of investment decisions. The analysis was simple: the return divided by the stock price should properly valuate a certain company. But with many companies all over the map in both PE and PEG ratios, investors are looking for other guidelines for evaluating an investment. Technical trading has [...]
Earthquake stuns Chinese market – but creates new value
US investors fearing the worst from a recent earthquake made their worries apparent. The Chinese ADR index, which tracks Chinese stocks listed on American exchanges, dropped to its lowest level in two weeks on fears that the earthquake stricken areas are likely to suffer economically as well. While the short term implications are that there [...]
