Invest

Weekend Linkage: Investor Psychology, Financial Recovery and Google Voice

Why do we make bad decisions, even when we know they’re bad? Emotions play a big role in how we think and act around money, and for the most part, they’re negative influences. That’s why automation is so important if you’re looking to grow your net worth. Flexo at Consumerism Commentary goes even further, laying […]

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

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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 […]

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Why Reverse Stock Splits Hurt Shareholders

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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 […]

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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 […]

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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 […]

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Are You Properly Valuing Your Stock’s Dividends?

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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 […]

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

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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 […]

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Should You Keep Multiple Investment Accounts?

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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 […]

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Investing in Gold to Preserve and Grow Wealth

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Today’s guest post is from Andrew, who presents a view of gold generally opposite of mine — but worth understanding to better round out your personal finance knowledge. – Jason “The desire for gold is the most universal and deeply rooted commercial instinct of the human race.” – Gerald M. Loeb Gold may be the […]

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The Argument For Actively Managed Funds

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Look, it’s not going to surprise anyone that I heavily advocate investing in low-cost, passively managed index funds. They offer the best return on your money for most investors, and not only do they help you better understand your investments, they ensure that some salesperson isn’t hoodwinking you with their investment suggestions. But I can […]

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Weekend Linkage: Investing Again, Student Loans and Lazy Portfolios

Have you been investing throughout the downturn in the economy? Hopefully the answer is yes, because otherwise you’ve missed out on an amazing 45% increase since the bottom in March. But if you’re waiting to get back in to the market, or are about ready to make the plunge, check out Business Insider‘s 12 Things […]

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Ask the Readers: Do You Manage Your Own Investments?

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As the role of money managers and investment advisers change following the stock market crash, many “normal” investors are re-evaluating the value in hiring someone to make financial decisions for them. You know that we’re big proponents of understanding what you’re investing in and, if you feel comfortable, managing those investments yourself. But it may […]

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Diversify Your Investments. No, Really, We Mean It

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Diversifying your portfolio is one of the most fundamental pieces of an investment strategy. It’s essentially the old aphorism that says you shouldn’t put all your eggs in one basket. The underlying motive for diversification is to reduce risk: by having your investments spread between different funds, equities, or financial instruments, your portfolio is less […]

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