6 Ways Dividends Are Important.

Dividends are an important part of investing – especially if you are an income or value investor. Investing for income is all about dividend yield, but dividends have many other virtues – even if generating income from your investments isn’t of paramount concern.

Dividends are a large part of a stock’s overall return. In fact, dividends [...]

3 Structured CDs With Big Potential.

Structured CDs (Certificates of Deposit) offer some upside under certain market conditions of environments where traditional CDs only offer safety of principal. In a general sense, the value of a structured CD is based on some underlying asset. This is usually done by the use of some kind of index to track that asset. Here [...]

Beware These 10 Investment Scams.

There are the two times when investment scams are most prominent: the best of times and the worst of times. At the heart of an investment scam is one person taking advantage of another, so it’s not surprising that scammers focus on the desperate and the greedy – both have a strong emotional motivation for [...]

The Danger of Short-Term Performance.

Every investor ought to have the phrase “past performance is no guarantee of future results” tattooed backwards on their forehead – backwards so they see every morning when they look in the mirror. But sadly, that doesn’t happen. And perhaps because of this fact, it’s one of the most ignored pieces of investment advice around.

I [...]

Investing Term Tuesday – Tax Selling.

This week’s investing term is all about investment decisions motivated by tax implications. It’s called tax selling and as the name suggests, it’s when an investor sells an asset at a loss, in order to pay less taxes when he sells an asset at a profit. The way this works is that the U.S. tax [...]

Investing Term Tuesday – January Effect.

In honor of just closing the books on January, I thought it might be nice to examine the January Effect.

The January Effect is an investing term that refers to a general increase in the stock market during the month of January. This effect is typically attributed to an increase in buying caused by the addition [...]

Mutual Fund Monday – Tips For Mutual Fund Investment.

With thousands of mutual funds to choose from, picking the “right one” can be a daunting task. Most investors know not to fall for a short term hot streak – one or two years isn’t a long enough track record to show superior skill of the management team over sheer luck – but where should [...]

The 6 Biggest Investing Mistakes Warren Buffett Avoids – and You Should Too!

According to Burton G. Malkiel, a Princeton economics professor, and Charles D. Ellis, author of ‘Winning the Loser’s Game,’ the only difference between them and Warren Buffet is that Warren Buffet hasn’t made these mistakes.

Of course, it’s more than that but since you and I (or Malkiel and Ellis for that matter) don’t have any [...]

Mutual Fund Monday – How to Compare Funds.

The Mutual Fund Monday post this week is a highlight of a recent post from Kyle over at Amateur Asset Allocator .

Millions of Americans own mutual funds in their 401(k) plans, and many others own them in their IRA’s or even in a taxable, non-retirement account. But many people don’t have any idea of how [...]

Investing Term Tuesday – January Barometer.

The January Barometer is based on the theory that the performance of the S&P 500 during the month of January is indicative of how the market will perform for the year. For example, if the S&P 500 is up for January, the January Barometer states that the stock market as a whole should end the [...]