If you are in the market for a financial adviser to help you manage your assets, here are some financial planner interview questions you might consider asking them before signing up for their services. We believe a good financial planner will offer you the widest range of investment options and help you craft a customized financial plan based on your financial goals and particular savings needs. And since your life conditions may change, they...more
Sometimes, financial news can be hard to understand, which is just like the professional words, such as rotary kiln, vibratory feeder, etc. Understanding them is not easy. Here, a former official of Goldman Sachs investment bank explains what his group did before the financial crisis.Josh Birnbaum was involved in synthetic C.D.O.s. These are really financial bets on whether some asset will gain or lose value. They are at the heart of the...more
President Obama now turns his attention to financial reform after his victory last month on health care.He met Wednesday with congressional leaders from both parties at the White House. Republicans and Democrats differ on what to do. But the president says there are some areas on which both sides can agree.BARACK OBAMA: "If there's one lesson that we've learned, it's that [an] unfettered market where people are taking huge risks and expecting taxpayers to bail them out when things go sour is simply not acceptable."Treasury Secretary Tim Geithner wrote in the Washington Post that the deep financial crisis is close to the end. But he said the nation must not forget the near-collapse of the banking system in two thousand eight without fixing its causes.On Tuesday, he told the American Society of News Editors in Washington that no one is arguing against new financial protections. The debate now, he said, is more complex.The aim is to find a way to let big financial companies fail without harming the economy, or do little harm to the economy, such as impact crusher economy.In December, the House of Representatives passed the Wall Street Reform and Consumer Protection Act. That bill...more
Everyone understands that it is prudent and wise to diversify the assets in various investments, such as a wide portfolio of securities or mutual funds. This is what is called "not putting all your eggs in one basket". Is to give up on finding the ideal investment in exchange for greater security and lower the risk of the entire estate.The temporal...more
The opportunity cost is something every investor should keep in mind permanently. This is what is left to gain by not having the money invested anywhere else other than that found today.In theory everyone (except for rare exceptions) is provided at a cost incurring opportunity because you can not have all the assets invested permanently in the...more
Diversification is based on prudence. Diversifying is to accept a lower return in exchange for a lower risk also.If an investor was able to know what is the most value will go up in the future would not need to diversify, since in that case would invest all his money on that value and get the maximum return.But in practice we do not know what that ideal value in advance so that the most prudent, even for very experienced investors, is to resort to diversify.When diversification must take into account 3 main factors (the number, weight and type of values that comprise the portfolio) and 2 secondary (emrpresa subsector and geographical area).Regarding the number of values that comprise the portfolio very thorough studies have been conducted in different bags that stand at about 20 the number of "ideal", taking into account the profitability and risk.The greater diversification and lower risk would be achieved by investing in all securities listed on the Stock Exchange. For small and medium-sized portfolios that have the problem of having to bear too high a commission that would reduce profitability, as it would have to buy 200, 1,000, 5,000, ... companies, depending on the stock...more
Ideally find some way or system to detect the minimum (and maximum) of market movements. But it is not realistic. Some tools try to detect the minimum (and maximum) of each movement, such as graphic and technical analysis, Japanese candlestick or...more
It is commonly accepted that the vast majority of mutual funds fail to even match the performance of its benchmark index (IBEX 35, Eurostox 50, S & P 500, etc.). Long term. Some may beat during certain periods of time, but are not able to overcome...more
The big Spanish banks (Banco Santander, BBVA, Banco Popular) and any other company, such as Iberdrola, have programs of reinvestment of dividends to its shareholders. For example, dividends that are charged to the shares of Banco Santander which are...more
The stock index (IBEX 35, Stock Exchange General Index of Madrid, S & P 500, Dow Jones, Eurostoxx 50, Xetra DAX, CAC 40, etc.) Do not include dividends paid by companies. This means that when, based on a particular index, a means of public...more
Average, or pyramiding, low is to buy more shares of a value that already has at prices below that made the initial purchase.Do it right or not depending on the value and the strategy that uses the inverter.I think when you trade should not be...more
The Spanish stock market is one of the cheapest (in terms of transaction costs), efficient and transparent in the world. In addition, many Spanish companies are among the strongest and best managed in the world. It is therefore logical that a large...more