Month: January 2009
Below are all the posts archived for the month.
If you are buying a Target Retirement Fund: You can’t buy anything else
in ETF
Target Retirement Funds – function on the principle that you should invest in equity, while you are young, and move towards debt, as you get older. Since such funds are – fund of funds, when you buy a Target Retirement Fund, you are effectively buying the funds that your Target Investment Fund invests in. But,
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What is a money market mutual fund?
in Articles
A money market mutual fund is a type of mutual fund that invests in ultra-safe or low risk securities. The objective of the fund is to preserve the capital of the fund, and it is rare to see the NAV of a money market mutual fund go below one. The NAV can go below one,
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Should I buy a 100 billion dollar Zimbabwe Bank Note?
in Opinion
Zimbabwe is going through one of the worst humanitarian crisis that the world has ever seen, and the economy has all, but collapsed. The inflation rate exceeds 2 million percent per annum, and that means Zimbabwe is issuing some banknotes with – a very very high value. In fact you can pay – 15 USD
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What is a Target Retirement Fund?
in Articles
A Target Retirement Fund is based on a simple principle – your portfolio should have more equity early on in your career, and more debt as you near – retirement. Based on this principle a – Target Retirement Fund changes its allocation of funds every year. Target Retirement Fund is a Fund of Funds A
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How does China Manipulate its Currency?
in Articles
China’s currency manipulation remarks by Mr. Tim Geithner hit the front pages of all major newspapers last week. So let’s take a look at how China manipulates it currency. To be fair to China, almost every country in the world manipulates its currency. In an ideal free market world – there would be no government
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Interesting Reads – Jan 24, 2009
in Opinion
I think that one of the most disappointing things about the TARP, and the various other bailout plans – is the lack of effort; by those in power – to explain the rationale behind the bailouts. Very few people realize – the full scale of repercussions – if huge banks like Citi are allowed to
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The Small Probability of a Very Big Loss
in Opinion
Microsoft announced layoffs today: the stock dropped about 11% in one day, and is about half of its 52 Week High Price. It is not easy to get employed at Microsoft, and one can easily understand why. I am sure that a lot of Microsoft employees own Microsoft stock, and some of them must own
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What is a Bank Run?
in Articles
AÂ bank-run occurs when a large number of depositors queue outside a bank, and ask for their money back. Normally, customers and depositors hear rumors about the bad state of their bank, and decide that it is a good idea to take their money out of the bank. When a large number of people start
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How does a Leveraged ETF make money?
in ETF
Leveraged ETFs are a relatively new species of rapidly growing ETFs, that have already crossed the $6 billion dollar mark – for assets under management. Leveraged ETFs track an index, commodity, currency or sector, and target double or triple daily returns of the index. So, a 2X Leveraged ETF that tracks oil prices will gain
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How to invest in Gold?
in Articles
There has been a lot of discussion about Gold as an investment class and for people who are interested in buying – gold, there are several options. Gold ETFs You can invest in gold by buying gold ETFs. Here is a list of some Gold ETFs. 1. SPDR Gold Trust ETF (NYSE: GLD) 2. ISHARES
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