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…
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…
Oil and Water…
Anyone that’s picked up a copy of the Wall St Journal, or visited Google Finance, has probably noticed that oil is all over the place when it comes to finance. Residents of Main St are familiar with oil being a big part of finance, but usually in how the cost of gas is affecting the…
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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?
