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: investing
Opportunity Cost of New TV
Today one of my good friends and I were watching a sporting event on my TV at my apartment. I have a 32” flat screen TV that by my standards is pretty large. However, my living room has a lot of space, so it dwarfs the dimensions of the TV and makes it look small. Continue reading “Opportunity Cost of New TV”
Optimism and Pessimism in the Stock Market
From time to time my friends will ask me about my investments in the stock market when they see headlines about the market. For example I once had a friend ask me how I felt about stocks losing 2% for the week due to fiscal cliff worries. If you have read even a few ofContinue reading “Optimism and Pessimism in the Stock Market”
The Cash Secured Put
We recently took a look at the covered call strategy and how it can be used to not only generate monthly income but also sell out of stock positions if your shares get called away. If your shares get called away there is still a way to collect your monthly options premiums and get backContinue reading “The Cash Secured Put”
The Covered Call
The covered call strategy is a great strategy for many investors of both beginner and expert skill level. In most scenarios investors can make money in sideways, falling, and rising markets. I personally have used the covered call strategy countless times to take advantage of market fluctuations. I have talked previously about covered calls whenContinue reading “The Covered Call”
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”
How Inflation Affects Debt
We have talked about the effects of inflation on the value of the dollar before. Now how does this translate to our everyday lives? One key thing to understand about inflation is how it affects debts that you may owe or that someone owes to you. Understanding the basics will not only help you understandContinue reading “How Inflation Affects Debt”
Tap Dancing to Work
Carol Loomis published a book on Warren Buffett covering the years 1966-2012 of his life. The book is called Tap Dancing to Work. The first time I read this title I thought that it was just some clever marketing title to grab attention, but once I found out the meaning of the title it meantContinue reading “Tap Dancing to Work”
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”
Never Ending Surplus
How can one tell when they have enough money to retire? This is a question that is highly personal and varies from individual to individual. There is no magic number even though society would have you believe that 65 is that magic number. It could very well be 45 years old, 75 years old, orContinue reading “Never Ending Surplus”