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Q-Ratio
The Q-ratio is one of the methods to estimate the fair value of the stock market. It is defined as the total price of the stock market divided by the replacement cost of all its companies. To put it...
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Mortgage Rate Spread
The spread on interest rates between mortgage loans and central banks’ loans to other banks are increasing. While banks pay less for long-term loans, the private households who want a loan to buy a...
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NASDAQ 2% Below Ten Year High
Just an interesting note: NASDAQ 100 is only 2% below its ten-year high now. How many years ago was it that we reached the 10 year high last time? Actually it was this summer. I guess that,...
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Stocks vs. Long and Short-term Bonds
The relative performance of long and short-term bonds vs. the S&P500 index for the last 5 years. As one can see, even short-term bonds, the safest theoretically assets one can buy, have...
View ArticleBuffett Doesn’t Like Gold
Warren Buffett, the world’s most famous and richest investor, wrote the following in his annual letter to his stockholder: “Today the world’s gold stock is about 170,000 metric tons. If all of this...
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Most People Should Rely on Passive Investment
The intelligence of the average stockholder is probably above the population average. Still they cannot bet the index. That is to say they cannot even beat random guessing, a coin flip, or similar, as...
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Cash Better than Stocks?
In my search to provide you with more evidence that stock investments are bad placement for most investors/traders, I found an article about the e-book “Monkey With a Pin.” It’s free so go ahead and...
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Do You Understand Financial Markets?
Many think that they can easily understand human behavior and financial markets by reading financial press and use common sense. But when an outcome is based on complex factors such as human behavior,...
View ArticleSpeculative Stocks
Most first-time investors and gamblers seem to focus on high beta stocks or markets, such as oil prospecting companies or the Russian stock market. In the article in the link below there is an...
View ArticleS&P 500 Makes a New Multi-Year High
Some people cannot believe it — The S&P 500 and the NASDAQ 100 has made a new four-year high under what seems the be a financial Armageddon if one was to listen to the financial press. Readers here...
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