Just what is leverage anyway?

I was responding to some comments to a post I made to www.seekingalpha.com a few minutes ago, when I said something that I think needs to be explained further.  I mentioned “leverage” and since that’s been in the news (especially regarding financial stocks) quite a lot over the past few months, I decided to expound […]

Don’t argue with the market

Some headlines from today for perspective. Fed Officials Saw Contraction in Economy `Likely’ Washington Mutual to slash jobs despite cash injection Pending home sales index off 1.9% in February: NAR Credit crunch cost $1 trillion estimates IMF Basically there was a lot of bad news that came out today, and the US stock markets were down […]

Writedowns soar – stocks soar

It’s been done to death today, but a quick scan of the headlines tonight will make you think everyone is in on a huge April Fool prank.  UBS wrote down $19 billion and Deutsche Bank wrote down $4 bilion, so investors bought everything in sight, sending the market up almost 400 points to close at […]

“Fraidy Cat” Investor

“Fraidy Cat”?  C’mon, Walter, can’t you do better than calling people names and making fun of them when they get nervous? http://money.cnn.com/2007/11/29/pf/expert/expert.moneymag/index.htm?postversion=2007112910 Since this article was posted by Walter Updegrave on November 29th, the market (as measured by the S&P 500) is down more than 7%.  That’s more that it gained during all of 2007.  But Walter says […]