I have often said in the past that if you can understand interest rates, then you can understand just about anything going on in the economy with regard to a macro-scale. In today’s world, this couldn’t be more true. Let’s take a look. Mr. Smith wants to buy a house. He has $250,000 for aContinue reading “Interest Rates: Hot Housing and All-Time High Stock Market”
Tag Archives: dividends
Why I Love Dividends
A well run company with a fair valued stock price that pays a dividend is a beautiful thing. One reason I love dividends is that regardless of the stock price, you will receive the same dividend payment. For example, let’s say you invested $10,000 in JP Morgan (JPM) at a stock price of $100.00. YouContinue reading “Why I Love Dividends”
Stock Market Drops Are Opportunities
Many investors would cringe if they woke up one morning to find that the S&P500 was down 3-4%. On several occasions during the 2008-2009 bear market, the S&P500 was down more than 5%. These kinds of down days were almost considered normal at the time in fact. However, if you have a long time-horizon andContinue reading “Stock Market Drops Are Opportunities”
The Tipping Point in Wealth Creation
Many people have touted the $850,000 mark in investment assets as the great tipping point in wealth creation. I wholeheartedly believe that the $100,000 mark in investments is the true tipping point. I believe this because $100,000 is the point for a lot of people in which their investment income becomes significant and may outpaceContinue reading “The Tipping Point in Wealth Creation”
Inflation, Interest Rates, and Dividends
Most people believe it is impossibly hard to understand how interest rates and dividends affect the value of the share price of a stock, but if you can understand opportunity cost then you can understand these concepts. Understanding these concepts will not only make you a better investor, but they will also allow you toContinue reading “Inflation, Interest Rates, and Dividends”
Selling Your Time for Money
The mainstream view of providing an income for yourself and your family is that you need to get a job and go to work every day. We are supposed to go to college to get an education in order to obtain a great job after we graduate. Once we get that job we need toContinue reading “Selling Your Time for Money”
Cash Generating Assets
One of the best ways to become wealthy is to spend your money on streams of profit. Another way of saying this is to collect cash generating assets. These can be anything that generate cash. They can be a franchised fast-food restaurant, ownership in a stock that pays a dividend, or royalties from a bookContinue reading “Cash Generating Assets”
Dollar Cost Averaging
When most people are ready to start investing, they have no idea how to actually deploy their capital into stocks. The most frequent questions I get asked are should I wait for the market to pullback or should I just jump in now? How and when you invest in the stock market can make aContinue reading “Dollar Cost Averaging”
The Investor Mindset
If you want to invest in the stock market you have to go in with the correct mindset. You have to be committed for the long run and you have to be confident in your investments. If your investment drops 10-20% you cannot panic and sell. That is one of the biggest mistakes that beginnerContinue reading “The Investor Mindset”
Money and Medicine for Millenials 