What Happened to the Euro Deal Euphoria?

By 2 Cents on November 2nd, 2011 | Category: Investing | 4 comments
sigmund-freud

Illusions commend themselves to us because they save us pain and allow us to enjoy pleasure instead. We must therefore accept it without complaint when they sometimes collide with a bit of reality against which they are dashed to pieces.

~ Sigmund Freud

November started out much the same as October. Global markets plunged. By October 4th, however, most indices had bottomed and proceeded to embark on a historic month-long rally in anticipation of some kind of tangible action to quell the Eurozone debt crisis. As of October 30th, Toronto’s TSX was up about 7.7% on the month while the S&P 500 was up a whopping 13.5%. Those gains moderated somewhat to 5.5% and just shy of 11% respectively because of the Halloween dip.

So what caused the October bounce and subsequent fall from grace? Perhaps there were just enough rumours of a Eurozone debt solution throughout October [...]

Read on and enjoy … What Happened to the Euro Deal Euphoria?

Category: Investing | Tags: , , , |

Too Much Principal and Not Enough Principle

By 2 Cents on September 26th, 2011 | Category: Economics | 4 comments
principal vs principle

Wisdom is knowing what to do next; virtue is doing it.

~David Star Jordan

It’s funny how rather complex issues can sometimes become a little more clear by accident. One of the spelling riddles I sometimes come across when I’m writing is the difference between principal and principle. Unlike other words like favourite and favorite, this is not simply a matter of unique international spelling conventions. Principal and principle actually have completely different meanings.

Principal vs. Principle: What’s the Difference?

According to my trusty dictionary, principal can refer to:

a school administrator something or someone of first rank or importance capital bearing interest

Principle, on the other hand, is:

a fundamental truth, or doctrine on which others are based rules of conduct or ethical behaviour Who Cares?

I’m sure some of you can already see where I’m going with this. It’s not about spelling [...]

Read on and enjoy … Too Much Principal and Not Enough Principle

Category: Economics | Tags: , , , , |

5 Investing Challenges for the Next Decade

By 2 Cents on May 20th, 2010 | Category: Investing | 12 comments

Pleasure can be supported by an illusion; but happiness rests on truth.

~ Sébastien-Roch Nicolas de Chamfort

Update: This post was included in the Money Hackers Carnival #117 posted at Engineer Your Finances. Thanks!

Monday’s post dealt with some of the ways in which today’s market climate is Not Business as Usual. I’d like to expand on that today with a bit more detail on some of the issues I mentioned. Many of the 5 challenges I’m going to address are double-edged swords. They can be productive market forces, but also have the potential to create enormous problems for our financial system.

5 Double-Edged Swords for Investors

Each of these factors is, in some way, interrelated with the others. Each one has been with us for quite some time and may persist much longer. Each [...]

Read on and enjoy … 5 Investing Challenges for the Next Decade

Category: Investing | Tags: , , , , |