That’s right folks. I am now a Doctor [insert applause]. I will be back to posting about our Vanguard and Fidelity 401k accounts as soon as I finish my holiday shopping. Thanks for tuning in.
NASDAQ in Times Square, New York City.
From experience we know that investors may temporarily pull financial prices away from their long term trend level. Over-reactions may occur— so that excessive optimism (euphoria) may drive prices unduly high or excessive pessimism may drive prices unduly low. New theoretical and empirical arguments have been put [...]
TARP - Troubled Asset Relief Program or Taking Advantage of Regular People?
After Bank of America received a $15 billion gift from the TARP package, it promptly turned around and spent $7 billion on purchasing a large interest in China Construction Bank (CCB). Someone remind me again how spending $7 billion of taxpayers’ dollars to [...]
I apologize for my brief hiatus last month. I’ve been working like a madman to finish my PhD by the end of the fall term. Ten days to go! Time to get back to the fun world of finance.
The Beatings Will Continue Until Morale ImprovesThey say investor confidence drives the markets. [...]
Here’s the distribution of how Vanguard and Fidelity fared over the past 12 months. Even though both Vanguard and Fidelity got hammered, it looks like Vanguard prevented the very big gaffes. A lot of the Fidelity losses are due to their energy sector funds.
I’ve got to give Fidelity a lot of credit. They’ve had more [...]
Braudel suggests that in Cairo in the 11th century Islamic and Jewish merchants had already set up every form of trade association and had knowledge of every method of credit and payment, disproving the belief that these were invented later by Italians.
In 12th century France the courratier de change were concerned with managing and regulating [...]
The stock market is one of the most important sources for companies to raise money. This allows businesses to go public, or raise additional capital for expansion. The liquidity that an exchange provides affords investors the ability to quickly and easily sell securities. This is an attractive feature of investing in stocks, compared to other [...]
The financial system in most western countries has undergone a remarkable transformation. One feature of this development is disintermediation. A portion of the funds involved in saving and financing flows directly to the financial markets instead of being routed via banks’ traditional lending and deposit operations. The general public’s heightened interest in investing in the [...]
All blue — Just as important as Senator Obama’s victory on Tuesday is the factthat the Democrats won full control of Congress, with a large working majority,suggesting that the next President may have Congressional support to potentiallyturn much of his electoral platform into actual policy.
The first 100 days — The history of the [...]