Top 10 Investment Tips

Top 10 Investment TipsThe nascent investors in this world of investment are always in search of useful saving tips. Being an amateur in the investment field, this article can act as the right vehicle that would help you to pave the right path with investment guidelines. As the proverb goes “to have money is good, to have control of money is still better” and in order to have better control over the money…

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ADRs as a Dividend Investment

ADRs as a Dividend InvestmentFor those of you unfamiliar with the term ADRs, it stands for American depositary receipt. An ADR is a stock that trades in the United States but represents a specified number of shares in a foreign corporation. ADRs are bought and sold on American markets just like regular stocks, and are issued in the U.S. by a bank or brokerage company. For dividend investors looking for diversification, ADRs can offer…

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Stock Selection For The Individual Investor

Stock Selection For The Individual InvestorThe latest stock market turmoil, in the fourth quarter of 2008 when stocks declined significantly, has left retail investors with a larger challenge than ever before. Many feel let down by their advisors, mutual funds, and the financial industry structure that is supposed to help them. Is it possible for an individual managing his or her own money to make their own stock selection decisions, when they likely don’t have…

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Using Put Options to Protect Your Portfolio

Using Put Options to Protect Your PortfolioAs options are a fairly sophisticated method of investing/speculating, I rarely write about them as I’m a big believer in sticking with the basics.  However, with the expectation of some sort of market correction between now and October 2010, I’ve had thoughts on ways to hedge a portfolio to reduce the potential for loss. One way to protect a portfolio is to purchase insurance in the form of put options. …

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Successful Motivation of Investors

Successful Motivation of InvestorsSuccess is often difficult to determine and many use a measurement based solely on absolute returns although all investors seek positive returns in abundant forms.  It’s no mystery that the behaviour of investors follows similar cycles seen over and over in both boom and bust segments of market ups and downs and investors for the most part attempt to avoid these cycles only to find themselves frequently falling into a market mentality and accepting…

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The Kondratieff Wave: Tracking The Past Or Predicting The Future?

The Kondratieff Wave: Tracking The Past Or Predicting The Future?In 1926, Nikolai Kondratieff (also spelled Kondratiev or Kondratyev) published a study called Long Waves in Economic Life for the Agricultural Academy and Business Research Institute in Russia. Kondratieff noted that capitalist economies have long waves of boom and bust, that he described similar to the seasons in a year.  However, for presenting his work to Stalin showing that capitalism will always return, he was imprisoned and then eventually executed. …

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Timing The Stock Market

Timing The Stock MarketAs I’ve articulated before, I’m not a big fan of timing the stock market, and everything I’ve read about the efficient market hypothesis (that stocks are rationally priced at all times based on the sum of everyone’s understanding of the market) makes sense. That being said, there also seems to be a great case against selling when markets fall, or buying when markets are very bullish (going up fast). Following…

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Dividend Increase is Not a Reason to Buy a Stock

Dividend Increase is Not a Reason to Buy a StockThere are many common misconceptions about dividend investing. For example, all dividend paying stocks are stable companies. Or, a dividend from a stock will more than offset any losses you receive in share price over the long term. However, there is one that I find most persistent in both new and experienced dividend investors. It is often viewed as a reason to buy a stock, yet it should never be…

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A Time to Sell?

A Time to Sell?Recently in the comments section of a post from July 2008, titled 30% today vs. 50% tomorrow, a reader John asks the following question, “I noticed some of my mutual funds are showing a 70% return from one year ago (market low). Do you agree it’s a good time to sell some now and wait for a dip in the major indexes before getting back in? I’m of course talking about…

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Financial Bubble Still Here with Yet More to Unravel?

Financial Bubble Still Here with Yet More to Unravel?Is there such a thing as a secular financial bubble? Has the financial sector become bloated out of proportion to the economy over the last few decades and is there be a contraction in store, abrupt or prolonged, back to a smaller financial sector? Was the crisis of 2008 merely the start? I’m not sure of the answer but a couple of data points have stuck in my mind recently:…

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