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  • Happy Hour: Bald Advantage And Worst Sound Ever

    October 12, 2012

    ·

    Jon

    Welcome to the end of the week and another edition of Happy Hour!  Just sit back, relax, and enjoy your end of the week roundup of all things interesting in the land of money.

    Bald Advantage

    In the world of business, perception is everything.  When it comes to hair, bald is big.  A new study by the University of Pennsylvania’s Wharton School says that men with shaved heads are viewed as more dominant, masculine, taller and stronger.  Guess there’s no need to hit the gym anymore.

    Don’t grab that razor just yet.  There were two downsides to the study.  Those with shaved heads were viewed as less attractive and older.  So before you go razor shopping, you’ll have to weigh your options.  What’s more important: looking better at work or just looking better in general?

    Worst Sound Ever

    Sticking with the topic of studies, scientists at Newcastle University finally figured out the worst sound in the world.  And no it’s not fingernails on the blackboard.  That fell to number five.  The study conducted tests with 74 different sounds.  The volunteers were hooked up to an MRI to see the brains reaction to each sound. Continue Reading…


  • Happy Hour: Earnings Season And Proposed Debate Changes

    October 5, 2012

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    Jon

    Welcome to the end of the week and another edition of Happy Hour!  Just sit back, relax, and enjoy your end of the week roundup of all things interesting in the land of money.

    Earnings Season

    The third quarter earnings season starts next week.  The past three months we’ve seen another Fed QE program, a nice rally in the market and a boost in the housing market.

    Yet, the economy has been in slow motion all year.  With so many unanswered fiscal questions ahead, now is a great time to hear what companies have to say about the future.  What’s the outlook for next year?  Any concerns?

    These earnings reports and changes in forward guidance numbers should hint at what the CEO’s are thinking.

    Proposed Debate Changes

    The first of three presidential debates was this week.  The question becomes, with a month to go before the elections, did we learn anything? Continue Reading…


  • Happy Hour: Real NFL Refs & Drunk Trading

    September 28, 2012

    ·

    Jon

    Welcome to the end of the week and another edition of Happy Hour!  Just sit back, relax, and enjoy your end of the week roundup of all things interesting in the land of money.

    Real NFL Refs

    It only took the replacement referee experiment three weeks to hit the worst case scenario.  As it turns out, it was enough to put it to an end too.  With last nights game the real NFL referees received a standing ovation for their return.  Probably the last time we’ll ever see that.

    What was a great game between the Seahawks and Packers turned into a social media firestorm on the last play.  If you haven’t heard the Packers lost on what was obviously an interception but ruled as a touchdown for Seattle.

    It’s the one thing the NFL hoped would not happen.  But when you put a faulty product on the field, you should expect some outrage.  When you replace great with average you never get the same results.  Thankfully, all is well with the football world now that the real refs are back.  Right?

    Drunk Trading

    What could easily be titled What Not To Do After You’ve Been Drinking.  Apparently you shouldn’t head back to office after a few too many and start working again.  A British trader thought this was great idea and did it in a big way.  And lost almost $10 million in the process. Continue Reading…


  • What to Watch For In An Earnings Conference Call

    September 27, 2012

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    Jon

    Conference CallEarnings season is a conflicting time for long-term investors.  The idea of quarterly reports just fuels a short-term view of the market.  Something long-term investors can get drawn into without discipline and patience.  If you know what you’re looking for, the information gained from a quarterly earnings conference call can help you make money.

    The error most investors make is getting caught up in just the income and revenue numbers.  Sure it drives the stock price, but we want to know why?  All the good information, the stuff that matters, is packed inside each conference call and transcript.

    Where To Start

    The best place to start is the conference call.  Every stock has a company behind it.  Which should have a website by now.  The investors relations section should have a link to the conference call and the transcript. Continue Reading…


  • Happy Hour: Would You Rather With Apple Stock?

    September 21, 2012

    ·

    Jon

    Welcome to the end of the week and another edition of Happy Hour!  Just sit back, relax, and enjoy your end of the week roundup of all things interesting in the land of money.

    Would You Rather?

    I saw a couple of tweets this week that were fixated on Apple’s stock price and a belief that it’s better than spending $700 on something other than stock.  Yet in order for the stock to do well, it requires a lot of people to spend that much for its iStuff.

    • Would you rather have $700 to spend in an Apple store or one share of Apple stock?
    • Would you rather have two pair of LeBron’s new shoes or one share of Apple stock?

    Both focused entirely on the share price and not what really matters.  The share price is irrelevant.  It doesn’t tell us, as investors, anything important.  It certainly doesn’t tell us if we can make money if we bought the stock today. Continue Reading…


  • Risk Basics: Default Risk Premium

    September 20, 2012

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    Jon

    Default Risk PremiumBehind every investment is a company (or government in the case of bonds) that has bills to pay.  A well run company keeps those expenses in check and paid on time.  It even carries an acceptable amount of debt too.  But what happens to your investment when that company takes on too much debt?  Or it can’t pay its bills anymore?  A default risk premium is built into the price of every investment to cover this risk.

    Default risk or credit risk is just one more obstacle investors must consider.  Banks do it when you take out a loan.  Credit card companies do it when you apply for a new card.  As an investor, you need to consider it too.  If a company can’t pay its bills, it won’t be in business long enough for you to make money.

    What Is Default Risk?

    Default risk is the chance that a company or person won’t be able to make payments on their debt obligations.  Both the company and the lender are exposed to this risk.

    Lenders will charge a higher interest rate to companies with a higher risk of default.   Which raises the cost of borrowing for the company.  This premium must be built in to make the investment worth the added risk to the lender. Continue Reading…


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