…a stock, evaluate their prospects, make some estimates and assumptions and come up with an intrinsic value. The efficient market folks say that their intrinsic value estimates, on average, are…
…higher than cash and stocks are about four times more volatile than bonds, making stocks 21 times more volatile than cash. As always, risk and return go hand in hand….
…interest rates for the sole purpose of preventing bubbles. She said, ‘monetary policy faces significant limitations as a tool to promote financial stability. … [E]fforts to promote financial stability through…
…them happy – 84 percent of people said saving money makes them happy Interestingly, they also found that earning money contributes to happiness, but essentially plateaus after household income crosses…
…Street Journal reported that the Securities and Exchange Commission (SEC) has joined the Office of the Comptroller of the Currency (OCC), a bank regulator, are investigating the banks sales practices…
…reduction benefits were applicable to more people because the estate tax exemption (the threshold where estate taxes kick in) was $1.5 million. Today, the exemption is $5.34 million and, therefore,…
…as if they were high volatility periods, people will get understandably upset when high volatility period really arrives. It’s like the boy who cries wolf: don’t do it when there’s…
…doesn’t happen, mostly by requiring that banks hold reserves that serve as a cushion against loan losses. As you might imagine, banks don’t want larger reserves because their profitability increases…
…recently that it will continue to go up. Momentum works with individual stocks when compared to other individual stocks (or bonds, or commodities or currencies), but it doesn’t really work…
…is the general decrease in the price of goods and services, which is the opposite of inflation (and is sometimes called negative inflation). It’s a terrible condition because falling prices…
