I’m about to let you in one of the best-kept secrets on Wall Street. The problem is, when I do, it may change the way you view investing going forward. So if you’re one of those “ignorance is bliss” people – do yourself a favor and stop reading now… Because once you understand this secret,…
Details1) Imagine you’ve inherited $100,000. In which portfolio are you more apt to invest the money? A) A portfolio of moderate-risk stocks B) A portfolio of high-risk stocks C) A portfolio of Treasury bills D) A portfolio of municipal bonds 2) Now imagine you’ve inherited $100,000, but you were told that the money was previously…
DetailsState of the Stock Market Analysis for the Week Ending February 14th, 2016 (Fed Gets Green Light on Possible Rate Hike Week 2-14-16) It was a wild week for global financial markets, as oil plunged to a 13-year low, European and U.S. banking stocks melted down, and the major indices dipped below their late-August lows.…
DetailsIf you were to collect the brightest minds in the investing world together in one room and ask them to list the most important aspects to having success in the market – we’d get a plethora of answers… Underwriting, revenues, assets, industry, supply & demand would probably be high on every list. However… If you…
DetailsState of the Stock Market Analysis for the Week Ending February 7th, 2016 (Fed Gets Green Light on Possible Rate Hike Week 2-07-16) Friday’s stock market slide was disappointing for the bullish camp to say the least. The government’s jobs number for January fell short of the expected 180,000, but at 151,000, it still showed that…
DetailsImagine you face the following pair of concurrent decisions. First, examine both sets of choices, then choose the option you prefer from each. 1. Choose A or B. A. A sure gain of $2400 B. a 25% chance to gain $10,000 and a 75% chance to gain nothing. 2. Choose C or D. C. A…
DetailsAs we all know, if you roll a fair, six-sided die, you can choose any number between one and six, and you will clearly have a one-sixth chance of being correct. Now, let’s assume you were told that the last three rolls of the die have produced the number 4. If you were to roll…
DetailsLet’s say, for example, you have no cash and you have to sell a current position in a stock in order to have the $10,000 cash needed for a new purchase. You can sell either of two stocks you hold. Both are currently worth $10,000. Which stock would you sell? A This stock holds a…
DetailsConsider this bet on a coin toss: Heads you win $20, tails you lose $20. Would you take this gamble? 1. Yes 2. No What if you won $100 earlier? Now would you take this gamble? 1. Yes 2. No What about if you had lost $20 earlier, would this gamble look any different to…
DetailsAre you a good driver? Compared to other drivers on the road, are you: A. Above average B. Average C. Below average The way that you respond to this question may tell a lot about your approach to investing. Most investors are overconfident. Psychologists have determined that overconfidence causes investors to overestimate their knowledge, underestimate…
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