Stock valuation is the process of determining the appropriate price to pay for a stock. As we discussed in last week's article, a bond's value is based solely on it's future cash flows. The same is true for stocks. The present value of all future … [Continue reading]
Bond Valuation: Price is Paramount
Bond valuation is the process of determining the appropriate price to pay for a bond. A bond's value is based solely on it's future cash flows. Therefore, the first step in the fundamental analysis of a bond is determining the present value of all … [Continue reading]
Stock Market Crash is coming – Are you prepared?
The stock market reached an all-time high this week, with the S&P 500 index surpassing 2400 for the first time. There isn't anything in particular about an all-time high that signals an impending stock market crash. Markets achieve new highs … [Continue reading]
America Saves Week – Savings is required for successful Investing
This week is America Saves Week. America Saves focuses on encouraging United States citizens to save money, reduce debt, and build wealth. My goal is to help you build wealth. One of the key precursors to building wealth through investing is … [Continue reading]
Leverage can destroy your investments and ruin your life
I was listening to an episode of Joshua Sheat's Radical Personal Finance podcast this week. He highlighted the story of someone who began investing in real estate in the late 1990's and accumulated twenty rental houses over the course of a decade. … [Continue reading]