Is R-I-S-K Really a Four-Letter Word?
Posted on May 11, 2012 | Investing
It is to some—and it is certainly something that most people try to avoid. But in the investment world, risk is impossible to avoid. In fact, risk and long-term rewards are generally related.
Low-risk investments—high-quality bond funds and other fixed-income alternatives—produce more annual income and are more stable, but have no real growth potential.
Earnings Estimates and Their Impact on Stock Prices
Posted on May 10, 2012 | Investing
How often have you seen a stock’s price fall after the company announced increased earnings?
In these instances, actual earnings did not turn out as the market expected.
In fact, expectations play a key role in determining if a stock’s price “gains” or “loses” when actual earnings are reported.
REITs–Real Estate Investment Trusts
Posted on May 9, 2012 | Investing
A real estate investment trust (REIT) is a corporation or trust that purchases and manages income property and/or mortgage loans. REITs were created by the U.S. Congress in 1960, with the intention of making large-scale, income-producing real estate accessible to small investors.
REITs are similar to traditional stocks in that the securities are traded on major exchanges. However, unlike a company that manufactures, markets or distributes goods or services to customers, a REIT owns and operates income-producing real estate, such as apartments, shopping centers, offices, hotels and warehouses.
401(k) Plan Pluses and Minuses: How Does It Add Up?
Posted on May 8, 2012 | Investing
Retirement is a long way down the road for many employees-an event that is barely visible on the distant financial horizon. For these individuals, retirement plans may not seem particularly important.
However, the decision over whether you should contribute to a 401(k) plan can have a big impact on your long-term financial future.
Getting Started: Developing an Investing Plan From Ground Level
Posted on April 29, 2012 | Investing
“Start investing early” is perhaps the most common advice given to the younger generation. The benefits of starting a plan at an early age, allowing time to help savings and investment results accumulate, are fairly obvious.
Fund Investors’ Biggest Mistakes
Posted on April 11, 2012 | Investing
Learn the four biggest mistakes fund investors make, and how you can avoid them.
The Dividend Puzzle: The Relationship Between Payout Rates and Growth
Posted on March 26, 2012 | Investing
In this article, I present additional data that is more up-to-date and of potential interest to individual investors. The emphasis is on dividend yield—the annual dividend divided by the stock price.
Posted on March 21, 2012 | Investing
Financial and investment terminology defined in simple, easy-to-understand language.
How to Decipher What the Market Is Saying
Posted on February 22, 2012 | Investing
Daily price and volume activity offer clues about where the major indexes are headed.
Quantitative Strategies for Selecting Stocks
Posted on February 14, 2012 | Investing
The results of more than 1,200 backtests found seven basic favorable factors from four quantitative strategies for beating the market.