August was not a great month. Markets are temperamental. There are many reasons for that. Some of some are rational (differing opinions regarding the value of a company, economic conditions, etc.) and some reasons are very irrational (mania and hysteria). … Continue reading
February has not been a good month on the stock market. The Dow is down over 2800 points. The reason is fear regarding the Coronavirus. Therefore, the Coronavirus will be the topic of this newsletter. While we have already talked … Continue reading
What is Skepticism? Skepticism is when someone doesn’t take an assertion at face value. Adherents demand a higher standard of proof. They don’t deny facts but demand evidence before they accept something as a fact. What is the Application … Continue reading
Quick Definition Over time things gets more expensive. A dollar today can buy less stuff than a dollar 30 years ago, and it can buy more stuff than a dollar 30 years from now. Inflation means the purchasing power of … Continue reading
I wanted to let everyone know that I just uploaded a free e-book. To download a copy of “A Simple Overview of Financial Planning. Book 1: Market Overview”, please click this link or go to the menu on the top … Continue reading
What is a Commodity? A commodity as it is defined in the financial markets is a physical good that is considered the same as all other goods of that same commodity classification. For example: cattle is a commodity. One cow … Continue reading
Definition of Shorting The usual ways of thinking about stocks or commodities is that you buy them at a given price and then you later sell it. Shorting reverses that process. When you short something you borrow the stock or … Continue reading
Overview The market was essentially flat this month. For the quarter, everybody made money. Brexit and the Stock Market The market this month gave me an obvious topic for this newsletter. Fear. Or more specifically stark raving panic. The UK … Continue reading
Short Answer As an investment strategy, day trading is theoretically junk. Random Walk Theory Stock movements for short periods of time are completely random. The drunk staggering left and right from a light pole. There is no pattern. The “random walk theory” has … Continue reading
What is Fundamental Analysis? Fundamental Analysis is a way that people attempt to find how much a company is worth. They then try to buy the stock when the market price is below the actual value of the company. They … Continue reading