The stock market is one of those things everyone talks about and few people really understand. It’s like a ninja, moving in the shadows, cloaking itself in darkness. Knowing how the stock market works is the key to kicking your finances up a level.
“Buy low, sell high.” Simple, right?
There are, of course, other ways to make money investing, such as steadily increasing dividends, interest payments on a bond, or taking income from a real estate investment trust. Compounding, too, is an important idea. Continue reading
If you watch financial cable TV, even casually, his presence is nearly unavoidable. In a world once populated with sleepy, late-evening market recaps led by bespectacled newscasters, CNBC’s Jim Cramer is part shock-jock, part howling floor trader, and all show. Shirt sleeves rolled up, he flaps his arms, shouts “booyah” at callers, sets off nutty sound effects and roams his set like a caged animal. Continue reading
What’s the right number of investments in a portfolio? Perhaps 10, 15? If you buy a typical mutual fund, you probably hold more than a hundred stocks in varying degrees, along with cash and short-term debt. Buy a selection of mutual funds and the complexity mushrooms.
Yet the opposite approach, simplicity, brings it own, often unrecognized risks. Continue reading
Does the stock market seem like Vegas to you? Suspect, possibly rigged? Congratulations, you’re normal.
Being cynical about “great money-making opportunities” is a good survival skill. You won’t win the lottery. Those too-good-to-be-true late-night TV offers are, indeed, to good to be true. That guy on the corner flipping cards is running a scam. Best to keep your hands in your pockets and firmly on your wallet. Continue reading