Jack And Jill
Jack and Jill went up the hill to fetch a bucket of ?money. Money? They are continuing to fill their bucket with stocks without any consideration to the value of these equities. They are not worried at all as they are buying ?safe? mutual funds.Everyone knows mutual funds are safe. Jack and Jill know they don?t know how to pick good stocks so they leave that to the fund manager. He is an expert.When you look at the long term record of 99% of the mutual funds you will see that expertise has been ...
Get More Bang For Your Buck
A long time reader wrote in asking if you get more bang for the buck buying an out of the money option, or a deep in the money option on a stock that makes a big move. Interestingly the answer isn't perfectly cut and dry. Let's look.If you buy an in the money option, that option will indeed track the movement of the underlying stock more closely than an at the money option. The Delta or measure of value is much higher, so when the stock moves, the option tends to move also.If you buy an out of t...
The FOMC And The Cyclical Bull Market
The cyclical bull market, which began in March 2003 (or October 2002 by some estimates), within the structural bear market, that began in March 2000, was fueled by monetary policy. The FOMC began an easing cycle in January 2001 when it lowered the Fed Funds Rate from 6.50% to 6%. The FOMC continued to lower the Fed Funds Rate, until it reached 1% in June 2003, and kept there for a year. In June 2004, a tightening cycle began. The Fed Funds Rate reached 5.25% in June 2006 (to neutral from accommo...
Find Life Insurance Online ? Term Life Or Whole Life?
With the advent of the modern Internet it has never been easier to find the best life insurance policy to fit your needs. Online you can investigate dozens of different companies and even get free quotes without ever leaving the comfort of your own home or have to talk to a sales person.Even with all of this information available right at your fingertips you still need to use some common sense and have a little bit of knowledge to find the best solution for your unique situations. The informatio...
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