Emotional Investors
Humans are emotional. That statement is true if you look at the top movies for the weekend (50/50, for example) and it’s true if you watch how investors work. Investors are prone to mistakes based on emotional factors, so let’s take a look at a few: “I like this company” Liking a company doesn’t mean…
Down Goes the Market!
The stock market has dropped faster than a prize fighter that just took one on the jaw. It’s been a rough couple of weeks. In large part, debt, as we have been discussing, has been to blame. Let’s take a look at some of the recent news items: S&P Downgrades the US Credit Rating: The…
Learning the Trade of Trading
Invest Time in Investing As was discussed in the previous post, the best way to save more is not always to spend less, but to effectively use your skills and time. Something that any resident of Main St. can learn to do is invest. We discussed a few ways to invest (in gas, for example),…
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Is Sunk Cost a Sunk Theory?
I read an article recently, or more aptly, tens of articles recently, about how in today’s market regardless of if you are the CEO or the Janitor that you need to be adding incremental value. As an aside, interestingly enough, apparently 99% of authors are excused from the adding value requirement, because none of the…
All Hedged In
Having talked about correlation and what can happen when prices go up, what are we to do? Simply watch a tank of gas eat away at our savings or profits like this article? Drive a moped? Ask the woman to drive on a date? Here’s a better idea: Hedge. Hedging is what all the big…
The Dow and S&P 500
When residents of Main St look for news on how the economy is performed that day they often only find reports of how the “Dow” or the S&P 500 performed that day. So what is the Dow? Ditto for the S&P 500? What is the Dow, and Why Do I care? The Dow, is the…
Personal Finance for Main St
When residents of Main St look for news on how the economy is performed that day, it's often reported in terms of how the "Dow" or the S&P 500 performed that day. So what is the Dow? Ditto for the S&P 500?
