As you remember, September stunk big time. October, however, was wonderful. It was up by more than September was bad. Be careful when looking at these short-term swings. They really do not mean anything. The stock market has fluctuated a … Continue reading
June was a terrible month. Risk is real and you saw it this month. The important part is keeping a long-term view. Recoveries also happen. The US economy has suffered a lot of turmoil recently. As a result, many people … Continue reading
The market was fairly flat in March. Up a bit. Quarter was down a bit. The other day Daniel got a Facebook advertisement for investing in limited partnerships in farmland. The advertisement claimed superior rates of returns. Daniel doesn’t know … Continue reading
This newsletter is a very exciting one. It marks an end of month, end of year, and end of decade. The results of all 3 markers are overwhelmingly positive. The month is up 2.22%. The year is up 21.28%. The … Continue reading
Definition Arbitrage is taking advantage of price differences between identical assets in multiple markets. Those multiple markets could be different in identity or different temporally. Example 1 You are at a garage sale and you see a lamp that costs … Continue reading
Introduction In an earlier post, I defined what future value and what present value is. In this post, I’m going to go through some of the mathematics of how you can calculate those values. How to Calculate Future Value The … Continue reading
Introduction There are 2 main ways (on the investor end) that people make money with stocks and I decided to list them out for you below. Those ways are via appreciation/depreciation or by dividends. Appreciation/Depreciation Whether it’s directly or indirectly (though … Continue reading
What is Present Value/Future Value? With any asset, it will get more or less valuable over time (due to appreciation/depreciation and/or cash flow). Present Value is the value of that asset today. If you put 1000 dollars into an investment … Continue reading
In Short Compensating Differentials are a fancy way of saying that people are not willing to do horrible jobs unless they are paid more. Wages vs. Comfort If we take 2 jobs that require equal skill, on average the total … Continue reading
In Short A bubble is when the price of an asset rises far above any measure of its intrinsic value. People think prices will go up forever and buy (paying any price) because they think it will be able to … Continue reading