The following excerpt is from The Bond Book, written by Annette Thau and published by McGraw-Hill. The terms “real” rate and “nominal” rate are sometimes used to refer to rates of return on bonds. These terms represent a method of adjusting bond yields for the rate of inflation. The nominal rate measures the actual dollars…
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Category Archives: Investing
Six Guidelines for Making Grounded Money Decisions
The following excerpt is from The Secret Language of Money, written by David Krueger, M.D. and published by McGraw-Hill. A safety deposit box requires two keys being placed and turned to open the box: one by the bank and one by the owner. Financial decisions need the same thing: the keys of the left and…
Investment Risks
The following excerpt is from Winning The Loser’s Game, written by Charles D. Ellis and published by McGraw-Hill. Risk is such a simple little word that it is amazing how many different meanings are given to it by different users. Risk is different from uncertainty. Risk describes the expected payoffs when their probabilities of occurrence…
How To Avoid Personal Financial Disaster: These 22 Tips
While the global recession is unpleasant for everyone, you should worry more about your personal financial situation. Suffering from a personal financial disaster is more painful than reading about recession in the news. What you can do to avoid it? Certainly a lot of things: save money, avoid getting into debt, secure your income, and…
I Should Have Bought An Index Fund
An index fund is a mutual fund that tracks a certain index. Large market indexes include the S&P TSX, Dow Jones and S&P 500. Index funds based on these indexes are a great way to invest in the stock market without buying individual stocks or actively managed mutual funds. Unfortunately, I didn’t always know about…
Learning to Fail Fast
Nobody likes to make mistakes. However, the simple reality of life is that at some point, all of us are going to be wrong, do something bad, or somehow screw something up. That’s just life, and it has been since we learned how to walk, write out the alphabet, and do calculus. We are going…
What Is A Price To Earnings Ratio (P/E Ratio)?
P/E Ratio, also known as the Price To Earnings Ratio, is a calculation that can indicate what the market expects the future earnings of a company to be. A high P/E Ratio likely shows that investors are expecting more future earnings growth than compared to a similar stock with a lower Price To Earnings Ratio….
