Investing
Watch and Wait
Every day on my way to work I would walk down West 55th street . And every day I would see the same homeless man sitting on narrow steps wedged between a diner and a dry-cleaning store. He was there when I walked home in the evening. Watching the world and the people go by.…
Read MoreEmerging Markets
As you become more familiar with different sectors of the market to invest in, you will come across the Emerging Market sector. When I studied Economics in college emerging markets were known as “underdeveloped countries” then “developing countries” and now “emerging” and “frontier.” I wonder if any of the emerging countries I studied emerged into…
Read MoreThe Currency Exchange
If I asked you what a nickel is worth you would say “five cents”. A quarter, you would say, is worth twenty-five cents. If I asked what you could buy with a nickel or a quarter today, the answer is not as easy. A quarter buys me 15 minutes in a parking meter, but I…
Read MoreMunicipal Bonds
There is a very famous movie about municipal bonds. The movie is Chinatown. Set in 1938 and starring Jack Nicholson, Faye Dunaway, and John Huston it is a psychological thriller and murder mystery about the Los Angeles Department of Water and Power. How did Los Angeles get its water? In the municipal bond world, the…
Read MoreInvesting Made Easy
Let’s start with the good news. The good news is that investing has become easier. Much easier. It is easier because Exchange Traded Funds are now the primary investment choice for brokers, advisers, and online investment platforms. Without realizing it, the financial adviser industry is teaching you how to invest on your own at the…
Read MoreHow Do I Choose a Sector of the Market to Invest In?
What is a sector? Sectors are categories like energy and healthcare. Or Utilities and Real Estate. The equity markets use eleven distinct sectors. The Global Industry Classification Standard also known as GICS is the primary financial industry standard for defining sector classifications. Sectors are used to help diversify your portfolio. Ideally you should have every…
Read MoreDiversification
The word “diversification” comes up often in finance. Diversify your portfolio. Diversify your risk. Diversify your asset classes. I am focusing on diversification in this investing article to show you what a diversification strategy is and how to implement it. Sometimes a diversification strategy can sound perfectly reasonable when it isn’t. Having simple “rule of…
Read MoreBonds Part Two
Painted Ladies – The Wildlife Trusts Butterflies and Interest Rates Driving home last week, I thought I was in the “Day of the Locust“ movie. The swarms of locusts turned out to be painted lady butterflies. They are small butterflies. They fly amazingly fast. There were millions of them (not an exaggeration) migrating north from…
Read MoreGood Bye 2008
Are you thinking my title is a big typo? That I meant to say Good Bye 2018? It isn’t a typo, I do mean 2008. Why are we saying Good Bye to 2008 ? Not because it was one of the worst years for stock market returns. Not because of the housing crisis. Not because…
Read MorePassive Investment Management versus Active Investment Management
I love a good debate. In the investment world there is an ongoing debate over active management versus passive management. Is it a debate worth debating? The debate refers to a style of investment management. The gist of the debate is whether an active manager can outperform a passive manager over time. Outperformance means the…
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