Interest rates, surprisingly, have fallen over the course of the last week. Bond prices, which move inversely, have risen, probably in response to increased volatility in the stock market. Whether the stock market is fluctuating more is due to geopolitical
The way I look at a company like Talisman Energy is different from many of the smaller companies that I have reviewed in the past. Talisman is a huge $24.5 billion company, it is very well researched and very liquid.
Mutual funds make sense for beginning investors who want exposure to the stock market, especially when their account size is small. They also have a place in the portfolio of an investor who wants to delegate stock selection to a
This post is a day late, due to the Family Day holiday. Markets were closed in Canada and the US (Presidents Day). I spent some time with my in-laws. I had set up Google Voice for my father-in-law, who phones
The Facts (as of February 17, 2011) Share price: $8.43. Book value per share: $6.99. Market cap: $83.5 million (small). Dividend: $0.15 per quarter or $0.60 per year (as of conversion). Current yield: 7.1%. P/E: 7.7. Debt/equity ratio: 16% .
In the theoretical world of homo economicus, the rational man without emotion, meritocracy may exist. In order for that to be the case, a person would have to continually contrast all options to find the technically superior solution, experience very
Interest rates have remained unchanged. The markets will not be able to take their cues from prevailing rates, and the interest rate won’t have an affect of the present value of money. However, after remaining steady for a long time
If the stock market were perfectly efficient, the share price of a dividend paying stock would rise gradually over the quarter by the amount of the dividend, then drop overnight as the stock goes ex-dividend. As an example, a stock
Please excuse the lateness of this post. I was sick for a couple days, which reminds me that money really doesn’t matter much if we don’t have our health. Last week, I worried that markets have risen very quickly, and
Because of Simpson’s Paradox, outperforming the market each year doesn’t guarantee outperformance while a person is saving. In fact, a person could underperform the market each year, but still achieve multi-year outperformance if their deposits and withdrawals are judiciously timed.