Some people define themselves as fundamentally-based investors, but in practice they are technically-based traders. If you intend to be a fundamental investor, you need to be aware of four practices or habits worth avoiding.
Tracking a financial trend seems easy enough. When researching investments, monitoring certain indicators, like a company’s net profits, for example, or its stock price, over a number of years to detect any patterns sounds like a no-brainer. But the fact is, the methods investors and traders employ to track trends — and their assumptions — are easily misunderstood.
It’s a question I hear all the time: “I have this investment that has lost money. Should I sell now or wait for it to go back up?” The right question is: “Say someone took away your investment and gave you the current market value in cash. Would you use the cash to buy the investment back?”
Gold prices are at all-time highs, and historical experience tells us that investing in gold has been an excellent way to hedge against severe market downturns or economic crises. Here are the answers to some of the most frequently asked questions posed by beginner gold investors about building your pot of gold.
Ever thought what your life (and personal finances) would be like today if 20 years ago, instead of buying a bunch of what you thought then were must-have items you had invested in the companies that manufacture them? We explore several what-if scenarios in this infographic.
And as with most anything else in the investing world, capital gains are hardly straightforward. There are long-term capital gains — and there are short-term capital gains. And then, of course, there are capital gains taxes. We explain the basics in this infographic.
To make studying the fundamentals of investing fun, we recently kicked of a series of infographics explaining basic concepts. Now let’s move on to something that many investors — beginner and advanced alike — actually consider not only important, but even sexy: dividends.
Mining is a risky business for practitioners. Though 33 Chilean miners were recently rescued after surviving more than two months underground, in the past week alone a mine collapse in Ecuador and a mine blast in China have led to fatalities. Yet, the minerals under the earth’s surface – from coal to copper – are in high demand and the pace of mining is heating up.
Investors rely on accurate financial information to pick companies. But are you getting truly accurate information from a company’s balance sheet? Can you tell what a company is really worth based on a list of assets and liabilities? No.