Planning makes better investing
When residents of Main St are deciding how to begin the investing process, as we discussed previously, the first step is assessment. There are some important things that any potential investor needs to ask themselves first: Making a Plan The market moves up and down, and that volatility is what scares investors. Investing is not about buying…
Sunk Cost and Investing
Following up on the idea of sunk cost that we previously discussed, let’s discuss sunk costs (so to speak) in investing. The thought behind a sunk cost is to eliminate emotions in decision making. Just because you have spent money to start something (as the theory goes), doesn’t mean you need to follow that investment…
Is Main St. Becoming a Glass House?
No, not in the way that you are thinking. I’m talking about transparency, and like it or not, it’s coming. Transparency is a unique animal—we all clamor for it, no doubt about that. We want our governments to explain where every tax dollars are going, we want Wall St. to tell us all their secrets,…
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Who is this Fed? And why is he always messing with my money?
In my last post we took a look at an interesting set of relationships that ultimately led to financial crisis. Each party (investors, homeowners, lenders, etc.) shares some portion of the blame. The system ultimately proved to be on an unstable foundation that crumbled when it came under duress. Where Do we Look For Help!?…
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?
