Category Archive: Finance

Aug 26

Are there any safe investments today? 6

Exchange Traded Funds Exchange Traded Funds (ETFs) are traded like equities, but they carry very different risks and rewards to actual shares. They are less risky because they are comprised of a basket of stocks, usually either tracking a popular index like the S & P, 500 or culled from a particular industry sector, like …

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Aug 25

Are there any safe investments today? 5

Individual Equities – Going Short Short term investing is a completely different type of investing than long term investing. All of the qualities a long term investor looks for in a company and its shares may be nothing a short term investor is interested in. Similarly, qualities a short term investor is eying may not …

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Aug 24

Are there any safe investments today? 4

Let’s do some easy math to illustrate the hazards of a long position. At 2.7% (the average of the S & P 500 dividend yields), it will take almost 37 years to ‘break even’, at a zero percent tax rate, if you never sell. You must understand this number (almost 4 decades!) to be the …

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Aug 23

Are there any safe investments today? 3

When selling stocks, you don’t necessarily lose money just because its sale the price is lower than when you bought it. Tax accounting aside, you lose money only when the difference between buy and sell price is more negative than the total you earned in dividend income. If you do not earn dividend income, then …

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Aug 22

Are there any safe investments today? 2

Whether investing in stocks, real estate, oil and gold futures, derivatives, rare collectibles, or US Treasury bonds; at some point, there needs to be a transaction that leads to cash income. Whether that transaction is from ongoing operations and sales (as in a restaurant or Broadway play), or a one-time payoff through property asset liquidation, …

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