Interest Rates: Hot Housing and All-Time High Stock Market

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”

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”

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”

Shorting Stocks

Nearly everyone knows the mantra of buy low and sell high.  This is a great way to make money when asset prices are rising.  Many mistakenly believe that this is the only way to make money.  On the contrary, you will find there are countless ways to make money in the world, and there isContinue reading “Shorting Stocks”

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”