Invest

Ask the Readers: What Does the Dow 10,000 Mean?

Thumbnail image for Ask the Readers: What Does the Dow 10,000 Mean?

Now that the Dow Jones has topped the 10,000 mark, everyone has an opinion on what this means for the state of the economy and whether or not we're recovering from the recession. Obviously, the stock market is not the only indicator of how the economy is performing, but it can be a strong psychological [...]

Read the full article →

Why Reverse Stock Splits Hurt Shareholders

Thumbnail image for Why Reverse Stock Splits Hurt Shareholders

Once primarily a tool of shady penny stocks, the reverse stock split has become a favorite of exchange-listed financial companies during the chaos of the past year. A reverse split reduces the total float of common shares while maintaining the same total market cap, mashing the stock price of multiple shares into the price of [...]

Read the full article →

Weekend Linkage: 10,000, 401(k)s and Closing Costs

Although the week ended with the Dow Jones under 10,000, when it passed the mark on Wednesday, I sent out this tweet: The Dow is over 10,000. Let's party like it's October 2008! Of course, I was joking, but it is a significant milestone — at least for day traders, who often react only to [...]

Read the full article →

Weekend Linkage: Active Management, Kids and the World Series

It almost seems like an echo chamber in here. We're constantly talking about how index funds perform better and cost less than actively managed funds; now, we can safely say they're less risky, too. New research from Morningstar, which rates and researches mutual funds, has found that rarely is it worth the risk to invest [...]

Read the full article →

Are You Properly Valuing Your Stock's Dividends?

Thumbnail image for Are You Properly Valuing Your Stock's Dividends?

Recently, some of America's big corporations have been cutting or eliminating their dividends. As an investor, I would like some income with my investment dollar. Dividends help recover the initial investment. For companies that do pay dividends, the current yield is an easy and ever present method to check and compare stock returns. One method [...]

Read the full article →

If You're Going to Trade Stocks, Read This First

Thumbnail image for If You're Going to Trade Stocks, Read This First

Regular readers of Automatic Finances will know well that we advocate long term, buy-and-hold investing. Overall, for both small and large investors, it remains the most stable and consistent approach to both wealth creation and preservation. Short-term trading, in comparison, carries considerable risks to an investor's capital. That's why it's important to make that distinction [...]

Read the full article →

Should You Keep Multiple Investment Accounts?

Thumbnail image for Should You Keep Multiple Investment Accounts?

In the past, when we've talked about diversifying your investments to manage risk and preserve wealth, it's been in relation to multiple asset classes or industry sectors for equities. But what about the equally obvious strategy of spreading your investments around, and maintaining separate accounts at different institutions? Amongst high net worth individuals, it's commonplace [...]

Read the full article →

← Previous Entries

Next Entries →