The Dow Theory
The Dow theory has been around for almost 100 years, yet even in today’s volatile and technology-driven markets, the basic components of Dow theory still remain valid. Developed by Charles Dow, refined by William Hamilton and articulated by Robert Rhea, the Dow theory addresses not only technical analysis and price action, but also [...]
The Effects of a Stock Split
The company I work for and invest a small amount in through the Employee Stock Purchase Plan has recently announced that they would be executing a 2-for-1 stock split. A stock split is simply the dividing of a company’s existing stock into multiple shares. A stock split is usually a good indicator that a [...]
Can I rollover my 401k while still employed?
In recent conversations, the question has come up as to whether you call rollover your 401k to a traditional IRA while still employed at the sponsoring employer. There seems to be some confusion about this and rumors of new laws that allow it.
The short answer to the question is, no. By law, you [...]
What active investors really do and what it costs them
A couple inherited $20,000 in 1985. The husband and his wife decided that they would put their windfall into mutual funds. They decided that they would split the money and each put $10,000 in their own account. They both selected the same stock mutual fund and put their money in on the first business day [...]
Fundamental Indexing vs. Traditional Indexing
Today, one of the biggest idea battles in investments is between fundamental indexing and traditional indexing.
The idea behind fundamentally weighted indexes is to weight stocks in an index by some “fundamental” measure of value. The notion originated with Pasadena, Calif., money manager Robert Arnott and it has since been taken up by others, notably [...]
What are Hedge Funds?
The sums racked in by hedge-fund managers dwarf even the incomes of top corporate CEOs and Wall Street bankers. The average among them earned nearly $1.5 million a day, every day, for the entire year, or over $1,000 every minute. The top three pulled in over $1 billion each. Meanwhile, wages for the majority continue [...]
Do you understand the risks of stock ownership?
Aka: We’re in the money!
http://www.youtube.com/watch?v=D4FXrIPTZOk
What are REITs?
A real estate investment trust (REIT) is a real estate company that offers common shares to the public. In this way, a REIT stock is similar to any other stock that represents ownership in an operating business. But a REIT has two unique features: its primary business is managing groups of income-producing properties and it [...]
Special Invitation to the The Millionaire Conference
This week I received a “special invitation” in the mail to attend “The Millionaire Conference”. I was personally invited as a VIP guest to be trained by 5 of the wealthiest self-made multi-millionaires in America. I received two complimentary VIP tickets with a “$149 value”.
Currency Trading
Although the foreign exchange (also known as “forex” or “FX”) is the largest financial market in the world, it is relatively unfamiliar terrain to retail traders. However the big slide in the U.S. dollar since early in 2002 has opened the eyes of many investors to the global currency markets. Until the popularization of internet [...]
