volatility

Economies develop and move forward under almost any conditions. Mankind can adapt, survive and even make a living in the totalitarian economies of Chavez and Castro to the laissez-faire, free market economies of Canada and Hong Kong. In a manner of speaking, free market is alive and well wherever people live. Sometimes it is a [...]

When it comes to long term investing, I believe that you should focus more on dividend yields and cash flow versus speculation and share price appreciation. While this might mean avoiding sexy names like Apple (AAPL) and Amazon (AMZN), there is nothing unsexy about constant cash flow with regards to your assets.

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Dividend Income [...]

Investment advisers and the investment industry has continuously stressed the importance of diversification and asset allocation, however investors have often ignored this, as they were too busy chasing high returns. Since the market meltdown over a year ago investors have learned a hard lesson that asset allocation is vital to an investment portfolio. In this [...]

One of the great gifts associated with the 2008-2009 events was an opportunity to get some free credits in the school of life. School tuition can be expensive so I am always thankful when life decides to offer me some valuable lesson for free. Personally, I loved the fact that I got to experience the [...]

With the recent stock market crash, many people are understandably wary about investing. Concerns about the volatility of the stock market, and the prospect of losses during downturn, have convinced many that stock investing is not for them. However, “safer” investments like cash and bonds may not provide the needed returns for your portfolio to [...]

During the huge bull, too many of us got too caught up in considering the implications of the first important reality. If stocks offer better returns, then investing in stocks gets you to retirement faster. That really is so and that really is important. But to make investing choices that will work for the long [...]

There are two rules often cited by investors that sound similar but that in fact make very different claims. In this article, I’ll describe the differences between the two rules — the Multiply-by-25 Rule and the 4-Percent Rule.
The Multiply-by-25 Rule
The purpose of The Multiply-by-25 Rule is to tell an investor how much he needs to [...]

Inverse ETFs are a class of ETFs that rises in value when their underlying asset falls. For example, the ProShares Short QQQ ETF (whose underlying asset is the NASDAQ) will rise, if the NASDAQ falls. So, if you expect companies in the NASDAQ to perform poorly, you could buy the ProShares Short QQQ. Recently, Inverse [...]

Treasury Inflation-Protected Securities (TIPS) is a type of Treasury securities that provides protection against inflation and real return.  I don’t know if TIPS is the best bond to buy or not, but I am beginning to think that it is after reading articles and books by Larry Swedroe over the years.  At the very least, [...]

The DOW is down at 8,000 level from its peak at 14,000 level.  The daily ups and downs is so extreme that the index can move over 100 points in just a few minutes.  This can make any investor — new or experienced — nervous and doubtful.

Should I get out of the stock market?
Should I [...]