Investments

Losing All Your Money Investing On Margin Is Not The Worst Thing

“What happened to your friend who bought Tesla stock on margin,” a reader asked. He likely lost a lot of money, but I haven’t asked for details. That would be rude. On March 31, 2021, I published a post entitled, Buying Stocks On Margin Is A Bad Idea: You Could Lose Big. I wrote the […]

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2023 Wall Street Forecasts For The S&P 500: Huge Dispersion

Below are the newest 2023 Wall Street S&P 500 forecasts. The S&P 500 price targets range from 3,675 to 4,500. This implies returns of between -4.6% and +16.8% from the Dec 16, 2022 close of 3,852. The key risks to the S&P 500’s performance include earnings cuts and valuation compression. If these two things were

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How To Become A Good-Enough Investor: Investing Lessons Since 1996

You don’t need to be a great investor to make lots of money. You just need to be a good-enough investor. Once you’re good enough you’ll be able to ride an almost constant tailwind toward financial independence. Further, you’ll learn to no longer blow yourself up and lose all your progress. One of my favorite

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Post-Mortem Analysis Of A Bullish Investment Thesis

In order to become a good-enough investor, it’s worth doing a post-mortem analysis of your investment calls. Constantly reviewing what we got wrong and what we got right is important for improvement. We must not confuse any investment outcome with improper reasoning. If we do, we will suffer from Dunning-Kruger, which could lead to deleterious

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The FTX Crypto Exchange Collapse: Lessons We Should Learn

Something crazy just happened. FTX, formerly the second-largest cryptocurrency exchange, collapsed overnight. It went from a valuation of around $16 billion to a negative valuation due to a liquidity crunch and debt. How did this happen? FTT, a crypto coin that the FTX exchange issued, plummeted in value because Binance, the largest cryptocurrency exchange, said

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It’s Easier To Generate More Passive Income In A Bear Market

Although going through another bear market is a bummer, the positive is we can all generate more passive income! And given we can now generate more passive income we can also get that much closer to financial freedom. As a reminder, financial freedom means having enough passive income to cover your desired living expenses. When

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High-Yield Corporate Bond Spread: A Good Stock Market Indicator

The high-yield corporate bond spread is an important stock market indicator. The larger the spread, the greater the concern high-yield corporate bond investors have about the stock market and vice versa. The high-yield corporate bond spread is the difference between the yield of the bonds issued by riskier companies and risk-free Treasury yields. The spread

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How To Have A Risk-Appropriate Asset Allocation When Investing

Since 2009, one of the things I have focused on is trying to help readers have a risk-appropriate asset allocation. A risk-appropriate investor invests according to their true risk tolerance. When you invest according to your true risk tolerance, you usually become a calmer, wealthier person. Over the long run, your investment asset allocation is

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How To Buy Treasury Bonds And Buying Strategies To Consider

With U.S. Treasury bond yields zooming higher, the interest in buying Treasury bonds has followed suit. Let me show you how to buy Treasury bonds online. I’ll then share some buying strategies to help maximize returns and liquidity. Treasury bonds are risk-free investments if you hold them until maturity. You don’t have to pay state

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