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Happy Hour: July 4th And New Treasury Notes

July 3, 2013

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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.

July 4th

Can’t argue with an early edition of happy hour. Have a great Independence Day!

Floating Rate Treasury Notes

In other news, the Treasury will start issuing floating rate T-Notes later this year or early 2014. Just because it’s available doesn’t mean you should own it. Take the time to do some research and see if it fits with your investment strategy. You can get a general idea about floating rate bonds here. Continue Reading…
Create A Stock Watch List

July 2, 2013

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Jon

There are a number of great tools you can use to simplify and streamline your investment process. An investor armed with a good stock screener, an investment checklist, and a stock watch list is set for success.

There’s a number of reasons to create a watch list. First, it’s an easy way to track your portfolio. It keeps you updated on all the news and information around the stocks and funds you own.

A stock watch list is most useful for tracking those great companies you run across through research but don’t meet your price requirement yet. You can try to remember it or you can write it down.

You ever go grocery shopping without writing down what you need. It works when you’re just grabbing bread and milk. But what if its several dozen items?

Shopping for stocks without a watch list is like grocery shopping by memory. Continue Reading…
Happy Hour: Optimism And Selling Low

June 28, 2013

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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.

Optimism

Investing seems to be only place where there’s a constant struggle between optimism and pessimism. The markets are full of both and the media is their battleground. There’s a constant flow of information trying to convince us to one side.

It’s easy to get swept up in the all the short-term rhetoric (the sky is always falling for someone). The odds for long-term success is so much rosier. Most of the time we should just shut it off and focus on the big picture. Continue Reading…
The Case For A Regional Bank ETF

June 27, 2013

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Jon

The banking sector was hit hard by low interest rates. Now that rates are rising, it stands to reason both national and regional banks should do better with higher interest rates. An easy way to play this is through a bank ETF.

There’s a big difference between the two types of banks. Big banks have the added risks from their investment bank, proprietary trading desk, and global reach. Not to mention big banks are still dealing with a higher legal, regulatory, and consumer scrutiny since the crisis.

However, regional banks follow a more traditional banking model, where banks make money on the spread between interest paid on deposits and the interest charged on loans. When interest rates rise, the spread widens and profits increase. Continue Reading…
What Affects Stock Price?

June 25, 2013

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Jon

Some investors focus on owning stocks outright others use a diversified approach through index funds, ETFs, or mutual funds. Both deal with the daily swings in stock prices.

Whatever your flavor, price changes have a big impact on your returns. Understanding what affects stock price changes in the short-term can lead to higher long-term returns.

Supply And Demand

The basic answer to what affects stock price is supply and demand. For every stock transaction a buyer and seller gets together and agrees on a price. When there are more sellers than buyers, the price is pushed lower. Alternatively, when there are more buyers than sellers, the price moves higher.

Still, there are limits to both sides. Supply is limited by the number of outstanding shares. Even then, that supply is limited further by the number shareholders willing to sell. And demand is bound by the price buyers are no longer willing to pay. Continue Reading…
Happy Hour: Sell Off And 4 Minute Workout

June 21, 2013

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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.

Sell Off

Yesterday was the biggest sell off this year. If you were surprised by it, know that it was going to happen eventually. A market up 16% over the first five months this year is impressive, expecting more is just being greedy. By the way, after yesterday your S&P 500 index fund is still up 9% despite the fall from the May highs.

My basic belief is this – Bernanke just orchestrated a sell off to prevent an equity bubble. It worked. In effect, stock prices lost the QE premium that investors have paid. This should push stocks to trade on fundamentals going forward. Continue Reading…

Happy Hour: July 4th And New Treasury Notes

July 4th

Floating Rate Treasury Notes

Create A Stock Watch List

Happy Hour: Optimism And Selling Low

Optimism

The Case For A Regional Bank ETF

What Affects Stock Price?

Supply And Demand

Happy Hour: Sell Off And 4 Minute Workout

Sell Off