Should I buy gold coins?
Gold bullion are an asset that will hold value due to their gold content; gold coins which are more numismatic, that is, collector’s items, may not retain the same value. The value of gold coins is twofold: the price of the gold in the coin and the numismatic value of the coin. There is an important distinction to be made, because some gold coins will have a lot of one, and not the other, and, if you want to make sure your investment is an investment in precious metal and not just a collector’s item, you should make sure you’re getting a coin that qualifies as bullion. Continue reading...
Should I invest in private placements?
Different opportunities to invest in private placements may present themselves to wealthy individuals over time. Unless the opportunity comes from someone that you know and trust, and you have the ability to research the opportunity, it is probably something you should avoid. Private Placements are sometimes complex deals that cost people a lot of money. You should definitely have your guard up if one is pitched to you. In general, the company or partnership seeking the private placement will not have to register with the SEC or report their books accurately on a public record. Continue reading...
What is a SIMPLE IRA?
SIMPLE IRAs are like safe-harbor 401(k)s for small businesses. A SIMPLE IRA is a type of retirement plan for small businesses. A business can only start a SIMPLE IRA if they have fewer than 100 employees who earned $5,000 or more in compensation for the year. As the name implies, a SIMPLE IRA provides an easier method for making contributions to both employees’ and the employers’ retirement accounts. Employees may choose to make salary reduction contributions to their SIMPLE IRA while employers are required to make either matching or non-elective contributions. Continue reading...
What is a Merkle Tree?
A Merkle Tree is a technique widely used to create the blocks in blockchains. When records of numerous transactions are blended together into a block and sent to a blockchain to be deciphered and validated, Merkle Trees are generally the design with which they are put together. Ralph Merkle first designed this hashing method in 1979 but didn’t see it popularized for some time. They are sometimes called hash trees. In case you are unaware, the difference between hashes and encryptions is that hashes are not intended to be decryptable unless someone has the original content. Hashes are basically symbols of a certain length generated using the “seed” of the actual content that was fed into the hash function. If the same content is entered as the seed, it will produce the same hash, but any differences will yield a completely different result. Continue reading...
What is the Advance/Decline Divergence Oscillator?
The advance/decline divergence oscillator (also called the McClellan Oscillator after its creators) tracks the rate of change in the advance-decline line (net advances). The AD line is formed from the Net Advances/Declines calculated daily at market close; this represents the proportion of stocks which advanced (increased) in price that day versus those which declined – the size of the difference is called the daily breadth. The advance/decline divergence oscillator can be applied to any group of stocks or exchange. Continue reading...
Should I consolidate my debt?
This seems to be a better choice than debt settlement, and it may make payments easier. Debt consolidation allows people to pay one bill a month towards their debt obligation, rather than many, and it may also give them a lower interest rate payment. A debt consolidation company or bank can settle the outstanding debts of the individual; this settlement amount plus fees becomes the principal loan amount or a new loan, which will probably be designed to have lower payments than the individual was paying before consolidation. Continue reading...
Who is a commodity trader?
Commodity traders must at least pass the FINRA Series 3 exam, which focuses on the commodities market exclusively. The term “trader” is often used in reference to the people at an investment firm who work on the actual trading desk, sometimes executing trade orders from the front office but also trading for the account of the firm and sometimes giving investment advice. Traders often have a role to seek out and engage in trades that will improve the portfolio of the firm at which they are employed and benefit the clients of the firm. Commodity traders could work for a commodity pool or they could be a commodity specialist at a firm focused on a wider variety of investing. Continue reading...
What Percentage and What Kind of Bonds Should I Have in My Portfolio?
Bonds can provide consistency and balance to a portfolio otherwise comprised of stocks. In the long run, stocks are generally associated with a higher yield, but as we know, higher returns mean higher risks. Bonds are seen as a safer, yet lower-yielding investment. Bonds offer a spectrum of risk and return potential, however, and various kinds of bonds and bond funds can be used in various market climates and portfolios. Continue reading...
What are Blend Mutual Funds?
Blend mutual funds offer exposure to both growth stocks and value stocks. Blend mutual funds seek to capture the upside of growth stocks as well as the dividend yield of value stocks. P/E ratios can be used to identify a growth or value stock: where a P/E over about 25 is a growth stock and under about 15 is a value stock. Blend funds are generally considered a good core asset, but are not the same thing as a Core Fund. Continue reading...
What is a long position in options trading?
To be “long” means to own a security, and to essentially be bullish on it. A long position is to own a security and to expect it to appreciate. When people buy stocks, they are “long” those stocks. Listening to fund managers giving market commentary, you may hear them say they are “long” on China or Industrials or Apple Inc., and this means that even though they may have hedged their position with some “short” sales, their outlook for those markets is optimistic and their bullish bets outweigh their bearish ones. Continue reading...