Does Your Investment Offer Immediate Cash Flow?
How do you know if an investment is profitable? The quickest and surest way to know is if it pays you. Preferably often and amply! We’re going to break away from our discussion of bonds to examine why…Cash flow is the truest measure of the success of an investment. Sometimes the best speculations might demand […]
Bonds Are Guaranteed, But Are They Risky?
Bonds, Are they Safe? Bonds are always issued as a guarantee, but there are substantial risks hidden within this guarantee. Credit/default risk is the question of whether or not the company or government will be able to pay you back as they have promised. They must pay you back, but if they don’t have the […]
How Secure is Your Investment Exit Strategy?
Most investors never fully think through the exit strategy for an investment. They get so carried away thinking about how well they will do with an investment that they don’t take the time to carefully think about how they will ensure the final profitable resolution of the deal. We’ll take a break from our discussion […]
What is a Bond?
What is a bond? Everyone has heard of bonds, but do you know what a bond is? Most people have some vague idea, but when pressed, can’t exactly explain what they are or how they work. The bond market is far larger than the stock market and you absolutely must understand it to comprehend the […]
Can Your Investment Be Recovered if it Crashes?
Investments don’t always go the way we hope they will. You will learn to make much wiser choices if you always think from the beginning in what ways you might recover principal if the investment starts to decline. The cartoon we showed last week should make the need for this clear. The alternative is to […]
Quantitative Easing Explained
Sorry for the long delay in posting. My computer went down with a virus and it took me a full week to get it back. We’ll be up and running as usual soon, but I wanted to let you know why I dissapeared. We’ve got another computer in the office, but all my important files […]
Hedge Funds Made Easy
What is a hedge fund? You’ve probably heard of them, but if you’re like most people, you probably don’t know what they are. A Hedge Fund is a managed portfolio much like a mutual fund, but more complex. However, there are some differences. They have more latitude with how they invest the money within the […]
What Kinds of Arbitrage Does Your Business Utilize?
Every great business utilizes arbitrage and leverage. They do it in many different ways, but to have a big impact on the world, these forces must be involved. The classic example is borrowing money at a low cost in order to put it to work at a higher cost. This is in itself is the […]
Investing For Dummies
Investing for Dummies is quite a challenge! But who said investing was easy? Well today, we’ll talk about people who do find it easy. We’ve been discussing asset management in a crazy economy. Let’s talk about the masters of investing so that investing for dummies can be a snap. Most Mutual Funds are a joke.
Does Your Investment Utilize your Human Life Value?
Who you are is your biggest advantage as an investor. Your experience, the things you know, and the abilities that you have give you a unique edge that no other person can touch. These attributes along with others make up your Human Life Value. To ignore this, your greatest asset, when it comes time to […]