It is true that stocks have a higher expected rate of return over long periods. It is not true for each period. Stocks will sometimes do better and sometimes worse than bonds. The fluctuation is risk. If bonds are steady … Continue reading
Predicting future stock prices is theoretically impossible. The market is essentially efficient, meaning that all publicly available information is almost instantly reflected in the stock price. Anything you read or study about the company can not be used to predict. … Continue reading
In this post “what is a stock?” I am going to define what a stock is and I’ll explain how its price moves. What is a stock? Think of the company as an apple. A share of stock is simply … Continue reading
June 1, 2014 Investment Newsletter for the end of May, 2014 I have said to all of you and to anyone else who will listen that it is impossible to time the market. But what does timing the market mean? … Continue reading
January 6, 2014 Investment Newsletter for the end of December, 2013 I wish to refresh the basics. It never hurts to remember the core issues. I also have several new clients. A share of stock is an ownership right in … Continue reading
Technical trading is a method to extract as much commission from you as possible. Often, brokers will use terms like the “stock is above its 30 day average”, “head and shoulders”, etc. Technical trading claims to be able to predict … Continue reading