Financial Crisis: Mark to Market Accounting Demystified

Of late there has been a lot of negative press around the accounting requirements for companies and the methods by which they have to value their assets. Some critics and company executives have even attributed the accounting requirements, and specifically the Mark to Market valuation method, as a major cause …

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Leverage 101 – The Real Cause of Financial Crisis

Much of the past and current financial market crisis is blamed on two main factors – poor risk management by company executives and the ultra-depressed housing market. Company management is paying the penalty with most failed CEO’s fired and years of lawsuits and regulatory probes ahead for implicated senior executives. …

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Dividend Reinvestment Plans (DRIPs)- A great investment

I have received a lot of good and bad financial advice over the last few years and it is hard to categorize which advice was the best. However, one piece of advice that does come to mind and which I received early in my investing days, is to ensure I …

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Embrace Fear For Financial Freedom and Riches

FEAR is one of the most powerful forces in investing, as it is in life. One of the biggest universal fears is that of losing money, particularly when it can be so tough to earn in the first place. Yet those who fail to embrace fear run the risk of …

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Why the Fall in Stock Prices was Good For Your 401K

I hope you didn’t reduce your 401K or other retirement account contributions when stock prices and markets tumbled earlier this year. Even though the value of your current 401K or retirement plan probably fell over this time, in the long term the power of dollar cost averaging and recovering/rising markets would …

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Stock Selection – 5 Things To Look At Before Buying

Here is an investing 101 post based on some of my own experiences and lessons learned from being an active stock investor. With the market volatility to continue its even more important now to be careful with which stocks you pick for your portfolio. Here are the 5 key things …

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Reacting to Market Volatility

How are you feeling about investing nowadays? Do you own stocks that have tanked over 25% in one day? I did. On one occasion I got so worried by the fall in the stock price, that I sold it for a big loss only to see it bounce back a …

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Lessons From Investing in a Losing Stock

Want to tell you a story about my trading history with Brocade Communications (BRCD). This was one the first stocks I bought when I started investing. It had just announced good results and was trading around $10.50, There were some good articles about it and I saw some positive news …

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