Category - Investing

1
Increased Volatility
2
Are you an owner or a lender?
3
Recession? Depression? What’s the Difference?
4
Lessons Learned in 2008
5
Are We Entering a Recession, You Need to Act Now!

Increased Volatility

030 - Volatility Index
Unfortunately, most individuals who have assets to invest are hesitant during this market pullback and many individuals who see this market lull as a buying opportunity don’t have funds to invest. This is a common scenario during periods of increased market volatility, and often stretches out the duration of stagnant equity markets.

How volatile is this investment environment? As measured by the S&P 500, the market moved more than 3 percent in either direction during a single day only once between 2004 and 2007. By comparison, the market moved at least 3 percent in one day 40 times in 2008, …

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Are you an owner or a lender?

Last year, one of my clients asked me this question. He was well-educated, but had simply never had an occasion to learn how investments work. It struck me at that moment that if he didn’t know, then plenty of other people probably don’t, so I decided to prepare a short introduction to the topic.

Simple questions don’t always have simple answers, and a complete answer to this question would not be simple. But here is a simple description of the basic difference between stocks and bonds:

If you own a stock, you are one of the owners of the business

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Recession? Depression? What’s the Difference?

Recession vs. DepressionIt’s now agreed that our nation is in a recession. With increasing frequency, recent media discussions about the economy have turned to the question of whether it will turn into a depression. What’s the difference?

You’ve probably heard the old joke that answers this question: a recession is when your neighbor loses his job; a depression is when you lose your job.

The definition of conditions that constitute a recession is sometimes debated; as economist Jeff Frankels (who is a member of the committee that officially proclaims US recessions) admits, it can be hard to get all the data to

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Lessons Learned in 2008

Finally, it’s over! The worst year of stock market performance since the Great Depression ended last Thursday with the S&P 500 down 37%. In 2008, there was no place to hide in the financial markets, right? Wrong. An analysis of the following chart presents yet another argument for the value of diversification in an investment portfolio:


The return on government bonds is not a misprint: 22.59%. An investor with a well-diversified portfolio and an appropriate asset allocation mix of stocks and bonds felt a vastly reduced sting from market declines as compared to a pure stock investor in 2008. This
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Are We Entering a Recession, You Need to Act Now!

009 - Recession Act Now CartoonWe’re facing unprecedented times in our economy. The government is in the midst of a $700 billion bailout. The stock market has plummeted and we are in the middle of a housing market meltdown. Unemployment is increasing as well as gas prices (depending on the day). Now that the elections are over the media says we are entering a recession. If you’ve been following the news you already know we’re facing difficult economic conditions and it may seem as if the end is near.

Daily I’m asked about the economy and at least weekly I receive a media inquiry asking …

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