By 2 Cents on April 8th, 2010 | Category: Life Balance | If you’re in a bad situation, don’t worry. It’ll change. If you’re in a good situation, don’t worry. It’ll change.
~ John A. Simone Sr.
Update: This post is featured in the Carnival of Personal Finance #252 at The Wisdom Journal. Thank you!
I’ve written before that I’ve learned quite a bit about investing and economics over the past few years. That’s true, and I still have a lot more to learn. But one of the things that has really struck me as a former financial neophyte is how much financial markets have in common with life.
I used to think the market was a venue for making money run by people who cared a little too much about material gains. Time and my Green Eggs and Ham “try it” philosophy taught me that I was wrong.
The truth is, [...]
Read on and enjoy … 6 Life Lessons from the Stock Market
By 2 Cents on April 6th, 2010 | Category: Economics | We live in a world in which politics has replaced philosophy.
~ Martin L. Gross, A Call for Revolution, 1993
Update: This article was featured in the Carnival of Financial Planning #137 posted at The Skilled Investor. Thank you!
What’s the difference between politics and philosophy? It seems to me that philosophy is about searching for the truth. Politics is more about proving that your version of the truth is better than the other side’s. I’m going to start an informal series today in which I will periodically write about our current economic system. We call it capitalism.
Before you start yawning and surf on to another web page, read a bit more. I intend to write from the perspective of a layperson, mom, wife, and citizen. That makes sense, since I fit into all 4 categories. There’s no danger [...]
Read on and enjoy … Capitalism’s 3 Children
By 2 Cents on March 29th, 2010 | Category: Planning | Who can hope to be safe? who sufficiently cautious? Guard himself as he may, every moment’s an ambush.
~ Horace
Update: Thanks to the Mighty Bargain Hunter for including this article in the Carnival of Personal Finance: Unanswered Questions Edition.
You’re at a fork in the road. Which way do you go? We face decisions every moment of the day. Some are more important than others. Should I invest in stocks? How much of my money should I invest? Where will interest rates be this time next year? Where will they be in 5, 10, or 20 years? Should I buy or sell? Should I allow my child to do X? Should I stay or should I go? (Cue The Clashtune.)
Unless you are clairvoyant, there’s no way to know for sure whether your decision will be the right one. [...]
Read on and enjoy … Risk vs. Reward: The Ultimate Calculation
By 2 Cents on March 18th, 2010 | Category: Investing | Progress always involves risks. You can’t steal second base and keep your foot on first.
~ Frederick B. Wilcox
Update: This post is included in the Carnival of Personal Finance #249 posted at Amateur Asset Allocator. Thanks!
Regular readers know they’re not going to get a yes or no answer to the title question. If you’re new here, I will give you this one-word answer: maybe. The truth is, I don’t think anyone is qualified to answer that question but you. But I’m guessing you’re reading this to actually get a little information, so I’ll try to outline my take on the pros and cons here.
Much of what I write here and in comments on other sites often sounds a very cautious tone on equities (stocks). I’m afraid I may come off as someone who generally doesn’t like stocks or markets. [...]
Read on and enjoy … Should You Invest in Stocks?
By 2 Cents on February 5th, 2010 | Category: Economics | Credit buying is much like being drunk. The buzz happens immediately and gives you a lift . . . The hangover comes the day after.
~ Joyce Brothers
Update: This post is featured in the Money Hackers Carnival #103 at Need Money Tips.
Yesterday’s post outlined in detail the debt overhang that I believe will lead to a big debt hangover. The mechanics of how this might play out will have a major effect on where interest rates will head. Why should you care?
Well, if you have any kind of debt it will affect the interest rate you pay to service that debt. If you invest in bonds, it will affect the price of those bonds or those of the ETF or mutual fund that holds them. If a true debt spiral occurs, a market panic could [...]
Read on and enjoy … Where Are Interest Rates Going?
By 2 Cents on February 4th, 2010 | Category: Economics | The national budget must be balanced. The public debt must be reduced; the arrogance of the authorities must be moderated and controlled. Payments to foreign governments must be reduced if the nation doesn’t want to go bankrupt. People must again learn to work instead of living on public assistance.
~ Cicero, 55 B.C.
DANGER: Submerged Obstacles
It’s hard to believe the above quote is from 55 B.C.. It seems like it could just as easily apply to the last couple of years, or even today. In my 2010 What Ifs post I identified debt (sovereign, consumer, and corporate) as my biggest economic concern. Where do we stand just one month into this young year?
Well, debt has indeed become a common theme, and not just in the financial pages where you would expect to find it. It’s gradually turning up more in [...]
Read on and enjoy … 10 Reasons to Be Cautious Right Now
By 2 Cents on January 29th, 2010 | Category: Book Reviews | People on commission cannot be trusted.
~ David Trahair, Enough Bull, p. 121
This book came out in August of 2009. By that time, the market tailspin had finally subsided and many investors have since felt comfortable diving back into the investment pool. David Trahair would probably advise against that.
This book was billed as “the one book your bank really does not want you to read”. When you understand Mr. Trahair’s position, you can see why. Many of the ideas he proposes in this book would be considered sacrilegious in many circles, including some parts of the personal finance blogosphere, and of course, the financial services industry.
My first impression was that Mr. Trahair’s views were a little too extreme and that the book probably wouldn’t even have been published if it weren’t for the panic instigated by the financial crisis of 2008-2009. The thing is, [...]
Read on and enjoy … Book Review: Enough Bull
By 2 Cents on January 26th, 2010 | Category: Retirement | The road leading to a goal does not separate you from the destination; it is essentially a part of it.
~ Charles DeLint
Yesterday we began a series on RRSP Basics with a primer on what an RRSP is and who should use them. Today, we’re going to look at where you can get them, what you can put in them, and how to decide what you should put in them. There are a few types of RRSPs that you can get:
Basic: These are usually provided through an advisor affiliated with a mutual fund dealer or bank who offers advice on where to invest your money. Self-Directed: These [...]
Read on and enjoy … RRSPs: What Should You Put in Them?
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