There are things in life we all wish we’d never heard of: bacon-flavored toothpaste, tramp stamps, combovers, meat from a can. That sentiment is true in the investing world, too, especially for those of us who have been burned once or twice. But remember, information is the best asset, and knowing more is always better than knowing less. Ask yourself how many kinds of bonds you can name, and you’ll know what I’m talking about. Here are a few more that… Read More

There are things in life we all wish we’d never heard of: bacon-flavored toothpaste, tramp stamps, combovers, meat from a can. That sentiment is true in the investing world, too, especially for those of us who have been burned once or twice. But remember, information is the best asset, and knowing more is always better than knowing less. Ask yourself how many kinds of bonds you can name, and you’ll know what I’m talking about. Here are a few more that you’ve probably never heard of. Step-Up Bonds A step-up bond has a coupon that increases (“steps up”), usually at regular intervals, while the bond is outstanding. Government agencies, as well as Fannie Mae and Sallie Mae, issue these bonds.#-ad_banner-# Consider a five-year step-up bond issued by Company XYZ. The coupon rate might be 7% for the first two years,… Read More

One of Johnny Carson’s best characters was Carnac the Magnificent. Clad in a cape and giant feathered turban, the comic great pretended to prophesy the answers to secret questions.  The act went something like this: Carson holds an envelope to his head, pretends to concentrate, and then sternly says, “Sis boom bah.” Then he opens the envelope and reads the question that prompted the answer: “What sound does a sheep make when it explodes?” If only it were this hilarious and easy to predict the future values of investments.  That’s why people use options. Predict the future price of a… Read More

One of Johnny Carson’s best characters was Carnac the Magnificent. Clad in a cape and giant feathered turban, the comic great pretended to prophesy the answers to secret questions.  The act went something like this: Carson holds an envelope to his head, pretends to concentrate, and then sternly says, “Sis boom bah.” Then he opens the envelope and reads the question that prompted the answer: “What sound does a sheep make when it explodes?” If only it were this hilarious and easy to predict the future values of investments.  That’s why people use options. Predict the future price of a security accurately, and you’ll make far more money than just holding the security. Blow it, and you can at least limit your downside.  It sounds easy, but before you put on your own feathered turban, here are a few things you need to know about options. 1. What Are Call Options And Puts — And How Do They Work? The most popular forms of options are puts and calls. A call gives the holder the right, but not the obligation, to purchase 100 shares of a particular underlying security (usually a stock) from the seller at a specified strike… Read More

One of Johnny Carson’s best characters was Carnac the Magnificent. Clad in a cape and giant feathered turban, the comic great pretended to prophesy the answers to secret questions.  The act went something like this: Carson holds an envelope to his head, pretends to concentrate, and then sternly says, “Sis boom bah.” Then he opens the envelope and reads the question that prompted the answer: “What sound does a sheep make when it explodes?” If only it were this hilarious and easy to predict the future values of investments.  That’s why people use options. Predict the future price of a… Read More

One of Johnny Carson’s best characters was Carnac the Magnificent. Clad in a cape and giant feathered turban, the comic great pretended to prophesy the answers to secret questions.  The act went something like this: Carson holds an envelope to his head, pretends to concentrate, and then sternly says, “Sis boom bah.” Then he opens the envelope and reads the question that prompted the answer: “What sound does a sheep make when it explodes?” If only it were this hilarious and easy to predict the future values of investments.  That’s why people use options. Predict the future price of a security accurately, and you’ll make far more money than just holding the security. Blow it, and you can at least limit your downside.  It sounds easy, but before you put on your own feathered turban, here are a few things you need to know about options. 1. What Are Call Options And Puts — And How Do They Work? The most popular forms of options are puts and calls. A call gives the holder the right, but not the obligation, to purchase 100 shares of a particular underlying security (usually a stock) from the seller at a specified strike… Read More

If “Frankenstein” author Mary Shelley had been an investment fanatic, she might’ve liked the idea of the business development company, or BDC: Fashion a company out of parts of other companies, then set the creation loose by taking it public. Of course, society doesn’t shun BDCs as it did Victor Frankenstein’s monster, nor has Mel Brooks made a comedic movie about the investment (though that would be cool). In fact, BDCs can be gentle giants.#-ad_banner-# But before you invest in one, it’s best to understand a few key… Read More

If “Frankenstein” author Mary Shelley had been an investment fanatic, she might’ve liked the idea of the business development company, or BDC: Fashion a company out of parts of other companies, then set the creation loose by taking it public. Of course, society doesn’t shun BDCs as it did Victor Frankenstein’s monster, nor has Mel Brooks made a comedic movie about the investment (though that would be cool). In fact, BDCs can be gentle giants.#-ad_banner-# But before you invest in one, it’s best to understand a few key terms, lest you wake one night to a financial monster staring back at you. What’s A BDC? First things first: What is a BDC? It’s basically a private equity or venture capital firm that goes public. It uses the proceeds of the public offering to invest (typically) in small or midsize private companies — but it can’t invest in just any company. The goal is to invest in new companies and provide… Read More

Practically every zoo has a giraffe, and they all look alike: long neck, tan spots, four legs. Until around 2007, scientists thought there was just one kind of giraffe. But then a team of geneticists at UCLA discovered that there are actually at least six and maybe even 11 different species of giraffes. Those different species, it turns out, really are different, and some are quite rare — a finding that has helped scientists and conservationists rearrange their giraffe priorities. It just goes to show the dangers of thinking “They’re all the same.”#-ad_banner-#… Read More

Practically every zoo has a giraffe, and they all look alike: long neck, tan spots, four legs. Until around 2007, scientists thought there was just one kind of giraffe. But then a team of geneticists at UCLA discovered that there are actually at least six and maybe even 11 different species of giraffes. Those different species, it turns out, really are different, and some are quite rare — a finding that has helped scientists and conservationists rearrange their giraffe priorities. It just goes to show the dangers of thinking “They’re all the same.”#-ad_banner-# It’s a common misperception investors have when it comes to stocks, too: Many people think a stock is a stock is a stock. But actually, there are several different kinds, and you ought to know how to tell them apart so that you too can get your priorities straight. Here are five types of stocks to know about before you invest. Common Stock Common stock is the most popular kind… Read More

Practically every zoo has a giraffe, and they all look alike: long neck, tan spots, four legs. Until around 2007, scientists thought there was just one kind of giraffe. But then a team of geneticists at UCLA discovered that there are actually at least six and maybe even 11 different species of giraffes. Those different species, it turns out, really are different, and some are quite rare — a finding that has helped scientists and conservationists rearrange their giraffe priorities. It just goes to show the dangers of thinking “They’re all the same.”#-ad_banner-#… Read More

Practically every zoo has a giraffe, and they all look alike: long neck, tan spots, four legs. Until around 2007, scientists thought there was just one kind of giraffe. But then a team of geneticists at UCLA discovered that there are actually at least six and maybe even 11 different species of giraffes. Those different species, it turns out, really are different, and some are quite rare — a finding that has helped scientists and conservationists rearrange their giraffe priorities. It just goes to show the dangers of thinking “They’re all the same.”#-ad_banner-# It’s a common misperception investors have when it comes to stocks, too: Many people think a stock is a stock is a stock. But actually, there are several different kinds, and you ought to know how to tell them apart so that you too can get your priorities straight. Here are five types of stocks to know about before you invest. Common Stock Common stock is the most popular kind… Read More

Using the wrong words can be dangerous. Confuse “sapo” for “sopa” in Spain, for instance, and you’re going to get a frog instead of soup. Fail to listen to the Rolling Stones song “Beast of Burden” closely, and your friends will be howling when you croon, “I’ll never leave your pizza burnin’.”#-ad_banner-# In the bond world, the stakes are even higher. As with any investment, words are all you have to help you understand what you’re buying and what… Read More

Using the wrong words can be dangerous. Confuse “sapo” for “sopa” in Spain, for instance, and you’re going to get a frog instead of soup. Fail to listen to the Rolling Stones song “Beast of Burden” closely, and your friends will be howling when you croon, “I’ll never leave your pizza burnin’.”#-ad_banner-# In the bond world, the stakes are even higher. As with any investment, words are all you have to help you understand what you’re buying and what the risks are. Here are two of the most confusing yet most fundamental. Make sure you understand what they mean before your next foray into the market. Yield to Maturity (YTM) Yield to maturity is one of the most misunderstood bond terms because it involves math that looks hard. But don’t let it faze you. First of all, the math… Read More

Using the wrong words can be dangerous. Confuse “sapo” for “sopa” in Spain, for instance, and you’re going to get a frog instead of soup. Fail to listen to the Rolling Stones song “Beast of Burden” closely, and your friends will be howling when you croon, “I’ll never leave your pizza burnin’.”#-ad_banner-# In the bond world, the stakes are even higher. As with any investment, words are all you have to help you understand what you’re buying… Read More

Using the wrong words can be dangerous. Confuse “sapo” for “sopa” in Spain, for instance, and you’re going to get a frog instead of soup. Fail to listen to the Rolling Stones song “Beast of Burden” closely, and your friends will be howling when you croon, “I’ll never leave your pizza burnin’.”#-ad_banner-# In the bond world, the stakes are even higher. As with any investment, words are all you have to help you understand what you’re buying and what the risks are. Here are two of the most confusing yet most fundamental. Make sure you understand what they mean before your next foray into the market. Yield to Maturity (YTM) Yield to maturity is one of the most misunderstood bond terms because it involves math that looks hard. But don’t let it faze you. First… Read More

If you’ve ever taken a road trip, you know there are usually two ways to get to a place: the boring interstate way and the “scenic” route. The first option is usually pretty much a straight line between point A and point B;… Read More

In recent years, many Asian economies have been booming while European and North American ones struggle. But the tables may soon turn, according to data from the Asian Development Bank.  In its July 2012 Asian Development Outlook Supplement, the financial and policy institution forecasts 6.6% GDP growth in the region, down from 7.2% in 2011. The forecast also represents a downward revision from the ADB’s initial 2012 GDP growth estimates of 6.9% in July for the 44 Asian countries that belong to the bank. #-ad_banner-#The translation is that things seem to be… Read More

In recent years, many Asian economies have been booming while European and North American ones struggle. But the tables may soon turn, according to data from the Asian Development Bank.  In its July 2012 Asian Development Outlook Supplement, the financial and policy institution forecasts 6.6% GDP growth in the region, down from 7.2% in 2011. The forecast also represents a downward revision from the ADB’s initial 2012 GDP growth estimates of 6.9% in July for the 44 Asian countries that belong to the bank. #-ad_banner-#The translation is that things seem to be slowing down in Asia. But why? The answer is lower demand for Asia’s exports and unwinding policy stimulus programs in the region. In short, consumers have less money to spend in Asia. Many investors might take this as a cue to move toward stocks that rely on U.S. consumers for growth, but be careful: many All-American stocks actually rely on revenue from Asian consumers, though you wouldn’t really know it. Here are a few: 1. J.M. Smucker Company (NYSE: SJM) This classic American food brand is more than just jelly on your toast; Smucker also owns many food brands… Read More