Gold Up, Gold Down

The enduring popularity of gold as an investment has to do with its tangible nature. Unlike a stock or a bond, you can feel and touch golden coins and larger ingots. The problem with such tangible assets, of course, is that there is nothing alive about them; that is, there is no claim on the […]

Financial Habits and Net Worth

 

You already know that our financial habits determine our financial fate. If we avoid credit card debt, spend less than we earn and create a financial buffer against the unexpected, we tend to thrive financially. If we carry a lot of debt or live constantly on the edge, with little savings, then our financial […]

When Diversification Fails

 

Correlation coefficients are one of the most complicated areas of the asset management world, but the idea behind them is pretty simple–or, at least, most of us thought it was until the 2008-2009 meltdown. The basic idea is that you study the price movements of, say, the stocks of large companies (represented by the […]