Archive for July, 2007
Emotions and Investing
Changes in the prices of stocks can induce emotional reactions in the best of us. This last week was quite a rollercoaster. To see how I feel about daily fluctuations in stock prices, check out my latest animation, StockEmotion!
Betting on an Overheated Market: Shorts and Puts
When the stock market begins to soar, sometimes people become interested in betting on a downturn. There are two ways that this can be done, which have substantially different risks associated with them.
Shorting a Stock
When you short a stock, you essentially sell the stock to another person at its current price, with the promise of [...]
The Cost of Living… Does Regional Variation Exist?
At times, I have heard from people that it is cheaper to live in Location X than Location Y because “the cost of living is lower.” Usually, when someone says that the cost of living is lower in an area, it means that the wages for a given job are lower there as well. With that [...]