Does Your Investment Depend upon the Current Market Conditions?
Is the market which you are looking at investing into on a roll? Are you betting on this continuing? Might that be your undoing? Today, we’ll continue looking at methods of due diligence. It is human nature to see big gains being made in a market and feel left out of all the money making. […]
Foreign Bonds & Emerging Market Bonds
Foreign Bonds or Emerging Market Bonds, which is better? The United States is obviously not the only country which issues bonds. You can buy foreign bonds issued by other industrial power governments as well as foreign corporations. As mentioned previously, you have currency risk when you go outside the US Dollar with your investments, but […]
Do You Have Control over the Return for your Investment?
Which of the characteristics which will generate the return on your investment do you control? Is the investment active or passive? What happens is the investment spins out of control? Do you have any ability to right the ship? Or could the investment destroy the capital you’ve invested while you sit helplessly by watching it […]
Types of Bonds
What types of bonds can you invest in and how are they different? As we’ve been alluding, there are many types of bonds, including: municipal, US government, foreign government, corporate, mortgage-backed or asset-backed securities, and agency bonds. Preferred Stocks are also very similar to bonds and in fact are much more similar to what we’re […]
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 […]
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 […]
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 […]