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Understanding Investing

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Threats of Interest Rate Risk in Stock Investments

Historically, rising interest rates have had an adverse effect on stock prices and investments. Because the United States country is top-heavy in debt, rising interest rates are an obvious risk that threatens [more…]

Introduction to Market Risk in Stock Investments

When they talk about investing in stocks, people talk about the market and how it goes up or down, making it sound like a monolithic entity instead of what it really is — a group of millions of individuals [more…]

An Introduction to Inflation Risk in Stock Investments

Inflation can be a risk that stock investors have to deal with. Inflation is the artificial expansion of the quantity of money so that too much money is used in exchange for goods and services. To consumers [more…]

An Introduction to Political and Governmental Risk in Stock Investments

Government rules and regulations are important considerations when making investment decisions. If companies were fish, politics and government policies [more…]

An Introduction to Personal Risks in Stock Investments

Frequently, the risk involved with investing in the stock market isn’t directly related to the investment; rather, the risk is associated with the investor’s circumstances. [more…]

An Introduction to Emotional Risks in Stock Investments

What does emotional risk have to do with stock investments? Emotions are important risk considerations because investors are human beings. Logic and discipline are critical factors in investment success [more…]

An Introduction to Volatility in Stock Investments

How often have you heard a financial guy analyzing stock investments on TV say, “Well it looks like a volatile day as the markets plunge 700 points. . . .”? Volatility has garnered a bad reputation because [more…]

Minimize Risk in Stock Investments through Knowledge, Practice, and Preparation

Now, before you go crazy thinking that stock investing carries so much risk that you may as well not get out of bed, take a breath. Minimizing your risk in stock investing is easier than you think. Although [more…]

Introduction to Price-to-Earnings Ratios for Stock Investors

The price-to-earnings (P/E) ratio is very important in analyzing a potential stock investment because it’s one of the most widely regarded barometers of a company’s value, and it’s usually reported along [more…]

Introduction to the Price to Sales Ratio for Stock Investors

The price to sales ratio (PSR) is a company’s stock price divided by its sales. Because the sales number is rarely expressed as a per-share figure, it’s easier to divide a company’s total market value [more…]

The Stock Market's at a Record High. Here's What You Should Do.

On Tuesday, March 5, the Dow Jones industrial average, one of the most popular measures of how the stock market is doing, closed at an all-time high. Then it kept going up on Wednesday. And on Thursday [more…]

Deciding What Kind of Investor You Are

Investors come in many forms. In very general terms, there are the low-risk, very cautious investors and then there are the higher risk and more adventurous investors. See which category you fall into [more…]

Realising the Risks Involved in Investing

Unfortunately, many investors look at risk in a very simplistic way. A typical query about risk may start with an investor asking, ‘How much capital may I lose if I invest in an asset?’ But risk involves [more…]

Ensuring Long-Term Investment Success: Keeping Costs Low

In addition to running focused trades and using well-thought-through strategies, the key to long-term investment success is keeping costs to the absolute minimum. Here are some of the costs to keep in [more…]

Understanding the Life of an Economic Bubble

Economists (or perhaps ‘bubblanalysts’) such as Hyman Minsky and Charles Kindleberger have identified five stages of an economic bubble. Take a look and see how you can identify and utilise these stages [more…]

Balancing Risk and Age: Lifecycle Investing

Your age impacts heavily on the type of investments you need to be making. Over your lifetime as an investor, your appetite for risk (and return) evolves. As your tolerance of risk changes, so too does [more…]

Managing Your Investment Portfolio For Dummies Cheat Sheet (UK Edition)

The most important thing to you as an investor is your portfolio - the range of assets held within your stock-broking or investing account. Learn how to diversify your portfolio and reduce your risk by [more…]


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