Once you are armed with the basic knowledge and data, you’ll be in a much better place to make decisions. You’ll know if something is eating up too much of your money and time, and you’ll see if your investing strategy is still in line with your goals.
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A BOND is a loan to a corporation, municipality, or government. When you buy a bond you are making a loan to the bond issuer. In exchange for the loan, you receive an interest payment. The amount of interest you receive is directly related to amount of risk you are taking.
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I’m in the midst of teaching a Corporate Finance class for MBA students at a local university. Some of the concepts, although rather complicated, have important real world applicability. One of those uber-important concepts is, NET PRESENT VALUE (NPV). It is a method to put a dollar amount on future cash payments. It’s great if you win the lottery and want to determine whether to choose the lump sum payment or monthly option. Or what if you or your folks want to determine the present value of their monthly social security or annuity checks.
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Buy and hold versus valuation informed indexing. Get a peak into a novel take on the traditional indexing approach. What do you think?
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In investing, large gains and large losses go with the territory. Rarely do you know which investments will outperform and which ones will underperform.
So, don’t judge your investing performance too frequently, either the good or the bad performers.
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My earliest teacher of investment principles was my dad. He drilled this FUNDAMENTAL BOND PREMISE into me. It served me well in the beginning and still governs my investing today.
The price of a bond moves in the opposite direction of interest rates.
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This is my first time checking out your site (very interesting). I am so confused on what to believe or even how to evaluate my portfolio. With the international stuff going on, BP oil spill, government legislation, mid-term election quickly approaching. I don’t know what to do. Should I strap in, hold tight and hang on for the wild ride or change my strategy?
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El Carino and I are within ten to fifteen years of retirement. Although I don’t know whether we want to retire at that time, I’m certain we would like the OPTION TO RETIRE. I am presently focused on captial preservation and modest growth.
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Everyone knows that keeping up with in an individual stock can be a part time job. Investing in individual stocks requires that you monitor the performance of your investment on a consistent base. You have to read quarterly reports, listen to conference calls, and stay abreast of any material changes in your stock investment. That’s a lot of work!
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For those of you in your 20′s and 30′s, you have been fortunate to live in a time with relatively low inflation. This low inflation is unlikely to continue and the consequences for high inflation are great! Before I continue, let me state that NO ONE CAN PREDICT THE FUTURE!

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