Why is the Markowitz model call mean-variance?
Question:
Because it actually minimizes the variance... shouldn't it be minimum-variance model? :)
Answers:
The model is call mean-variance, because it studies the relationship between return (as represented by mean return over a long time of time) and risk (as represented by variance of returns).
No it links mean (return) and Variance. You can find the minimum variance portfolio if you want, but that s not the single interesting result you can find in Markowitz model.
In reality, you will use the point where the possessions market smudge touch the efficient frontier (markowitz) and not the minimal variance portfolio
What's the best approach to invest money, while at matching time optimally sheltering your income from taxes?
Question:
Please provide specific companies, funds, or other investments if possible.
Answers:
Your 401k and IRA are both designed for toll sheltered investing. Currently you can invest up to approximately $20,000 using both of these vehicles. After that your option become very restricted Tax free municipal bonds are a possibility but generally import tax free or deferred investments have a significantly lower return than other types of investments. You don't hold a choice in what company manage your 401k. For your IRA or other investments I would suggest getting a financial planner. I use Raymond James because they don't have funds or investments of they're own they are strictly advisors so you don't own to worry nearly them pushing into their own companies fund because they have a quota or are getting a large commission. You need someone who have you best interest in foot and the more money you have the more money a company close to Raymond James makes. Other companies close to The Principal for instance manage the funds they are peddle so they aren't as concerned with your web worth, they're main purpose is to exact as many fee's from you as possible.
Open an Investment sketch in a guard in another country that have no taxes (Dubai)
Become a loan shark.
.
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401k and IRA's are great.
just remember that if you own someone else help you run your money, they're gonna take a cut.
Stock bazaar for dummies?
Question:
what is the difference between the Nasdaq Amex and NYSE I understand what buying and selling consists of but what do these hold to do with the big picture?
Answers:
They are three different market. A market is a "place" where on earth trading occurs. Different stocks trade within each of the three places. You can simply trade Microsoft on the Nasdaq. You can only trade Exxon on the NYSE etc...they are "places".
Nasdaq=National Association of Securities Dealers. This bazaar takes place trailing thousands of computers all over the world. There's no solid "place" besides cyberspace. Dealers trade between themselves, on behalf of customers or themselves, "on-line".
NYSE=New York Stock Exchange. This is where the biggest companies surrounded by America have their shares traded. It is surrounded by New York, and the traders trade with specialists, using the "begin cry" system. Dealers physically meet and trade.
AMEX=American Stock Exchange: physically, it's a few blocks away from the NYSE on Broad St., I believe. Smaller, smaller quantity known companies trade on this exchange.
Hope that help.
These are the 3 major New York Stock exchanges. The NYSE is the oldest, biggest and most talk about. Most of the massive blue chip stocks trade on the NYSE and much of the trading is still done on the floor between human traders. (The tired, stressed, balding guys you see yelling things out that fashion zero sense to a initiate, or an expert for that matter). The NASDAQ is the newest of the exchanges and is the bastion of most of the tech stocks. A lot of computerized trading take place on the NASDAQ and it is very effortless to get over-involved in a pump and dump organization. (Analyst will by a stock then hold another analyst highly recommend the stock, the student then take the bait pumping up the stock price and the pro then dumps it taking a nice profit.). Eventually the flea market catches up and the stock will plummet back down to where on earth is should be valued. People who bought on the way up and held onto the stock lost their shirts. Hoku is one I only just got burned on. The AMEX is the bizarre ducking of the three exchanges. Where the NYSE is the Mercedes Benz and the NASDAQ is the Ferrari the AMEX is the Ford Fiesta of exchanges. - Much smaller companies and much fewer restrictions for getting down. Basically, It's the left over companies the other two exchanges wouldn't except within their clubs. To use another analogy The NYSE companies are run by the stuffy old country club guys. The NASDAQ companies are run buy the Super geek turned desirable billionaires similar to Apple's Steve Job's and Microsoft's Bill Gates. The AMEX companies are run by... well who know, the companies aren't household names and neither are their CEO's. Research is usually sparse on these companies so you’re much better sour buying a small cap mutual fund later buying individual AMEX stocks. There are many other exchanges; these are a moment ago the major New York exchanges and the most significant and influential worldwide. I hope this help, it is a good press and one rarely asked by investors but should be asked more. Most population think they are adjectives buying stocks from the same place. It get's even more complex when you consider ADR's. That can be your subsequent question.
It's resembling Coca-Cola, Pepsi and RC Cola.
Hi,
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Sell to close nickname resort?
Question:
If I choose to sell a telephone option that I previously bought to close out my position (instead of excercising it), who is in actual fact buying this option and paying me the premium at hopefully a difficult price than I bought it?
Answers:
The first answer is correct that selling to close is not "writing" an option, but that does not show you do not receive the premium. Any time you sell an selection you receive the premium. It does not matter if you are selling to unfurl (writing) or selling to close.
When you sell an selection you do not know who the buyer is. It could be a "liquidity provider" (market maker) at an exchange, it could be an institution such as a mutual fund, or it could be another individual investor. If you use a limit decree to sell the pick, it could be anyone willing to clear the price you specified. If you use a market proclaim to sell the picking, it would be the highest existing bid outstanding.
yeah, if you are selling the route , ie you bought a call and immediately you are selling the call, I don't believe i.e. the same as WRITING a nickname. IE you aren't getting the premium.
However, I am not entirely Sure what happens when you are selling the previous buy position..explicitly just my thinking that selling the clear option is not WRITING an prospect.
Online stock companies who do you prefer?
Question:
looking between zecco or sharebuilder..do you use either and who would u reccommend for dividends
Answers:
I love Zecco. For mutual funds, I similar to Vanguard, Scottrade, or Fidelity.
I use sharebuilder and buyandhold. Sharebuilder doesn't have a monthly allowance while buyandhold does.
I wouldn't buy and stock just for its dividends. I would look at its overall see.
scottrade for me
Zecco.
Hi,
I used "Rockwell Trading Strategies" to make consistent profits.With these strategies, they really simplified my trading and I don't enjoy to use anymore the complicated formulas and indicators.I came accross this company on NBC News Special Edition.
Now, they're offering 100% enjoyment guarantee.If you don't see a major growth by applying the strategies,they will not only reimbursement your investment, they will pay you $1001… out of their own pocket.Check it out here:
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zecco is the best so far
Sell to close or excercise ring route?
Question:
When someone buys a call risk, they can either choose to excercise it or supply the option to close their position. When excercising the leeway, they must make sure the price of the stock is above the break even point (strike price plus premium) to profit. However, even if the price of the selection contract has risen solely slightly above the price that they purchased it, they still profit if they sell the contract. There is no break even point surrounded by selling the contract, it just have to go up, right? In common, is it usually more profitable to sell the picking contract to close out the position instead of excercising it because when excercising it the stock must go up adequate to rise above the break even point? What would be the incentive to excercise the option considering it involves significantly more means vs. selling the option which give you virutally the same but for greater profit?
Answers:
The reason to in actuality exercise an option is if you want to own a position surrounded by that stock-- for example assume you bought august 120 calls a month or two ago. You could simply turn around and put on the market the options for a tremendous profit if you own no long term interest within holding Apple stock--however if you think Apple is a well-mannered long term investment you can use the option to buy shares at a tremendous discount to their current price.
Also you shouldn't bother to exercise an option back it's expiration date (ie when the time value of the risk is exhausted) as doing it earlier is a gamble away of money. If you want to get out of a position formerly an expiration date just trade the option.
Does anybody buy stocks online?
Question:
looking to invest in some stocks and know a short time ago the co. i am aiming for and prefer not to deal w/ brokers and would resembling to go strictly online any direction to that and where to set off?
Answers:
Have you considered using a discount broker, like Scottrade? I may be somewhat bias, but Scottrade's reputation and service speaks for itself, and you can open an details with as little as a $500 deposit.
Also, Scottrade does not charge for redundant accounts or for account conservation, and there are no minimum number of transactions (trades) required. Scottrade have a flat rate ($7) for most online market and restrict equity orders, regardless of your trade frequency, picture balance, or the number of shares contained by a transaction.
You can compare the commissions/fees of several brokerage firms at: http://www.scottrade.com/online_broker_c... .
I hope you find this information useful. Please agree to me know if you have any other questions. I'd be positive to help.
Scottrade
www.Scottrade.com
1-8OO-619-7283
Well, I'll see to it that you go and get at least one non spam response...
There is certainly no reason not to use an online broker if you know what stocks you want to buy.
Online brokers are undemanding to use, efficient, and most importantly, cheap.
Try Zecco (www.zecco.com) or tradeking (www.tradeking.com).
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i use Scottrade.com for adjectives my investments stocks,cd's,bonds
Zecco.
Hi,
I used "Rockwell Trading Strategies" to make consistent profits.With these strategies, they really simplified my trading and I don't enjoy to use anymore the complicated formulas and indicators.I came accross this company on NBC News Special Edition.
Now, they're offering 100% indulgence guarantee.If you don't see a major raise by applying the strategies,they will not only compensation your investment, they will pay you $1001… out of their own pocket.Check it out here:
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Dividend Stocks That Deliver..what ones do you reccommend?
Question:
looking to invest in dividend stock what co. would you reccommend?
Answers:
DVM or UTF
There are plentifully of things you need to pinch into account when picking dividend stocks: payout ratio, dividend growth, etc. Let the fund(s) do the legwork for you.
You might try grease trusts:
For example:
Harvest Energy (HTE)
Prudhoe Bay (BPT)
Sabine Royalty (SBR)
Or tanker companies:
Frontline Tanker (FRO)
Or amusement parks:
Cedar Fair (FUN)
Note that while all of these stocks reward excellent dividends, do your background research to clear sure they'll be able to verbs paying them! I'd check out Harvest Energy first. The one possible drawback I know about for that stock is that the Canadian govt is considering shifting its tax law to increase taxes on trusts-- though as you'll see the dividend can go down pretty a bit and still be attractive.
Try XOM -- Exxon goes up every year and pays a obedient dividend.
Here are my favorite dividend paying stocks:
http://top10traders.com/viewportfolio.as...
Hi,
I used "Rockwell Trading Strategies" to make consistent profits.With these strategies, they really simplified my trading and I don't hold to use anymore the complicated formulas and indicators.I came accross this company on NBC News Special Edition.
Now, they're offering 100% contentment guarantee.If you don't see a major reorganization by applying the strategies,they will not only repayment your investment, they will pay you $1001… out of their own pocket.Check it out here:
http://www.dpbolvw.net/click-1813149-104...
US stocks I'd recommend are Altria (MO), American Capital Strategies (ACAS), and conceivably Bank of America (BAC).
With BAC, you might wait a few more days or weeks to see if the current flea market turmoil subsides. Investors are afraid of financial companies like BAC right in a minute, but I think it is still appropriate.
I like grease trusts too & my favorite Canadian stock is Canetic Resources (CNE). 14.4% yield!!
How to acquire financial intelligence?
Question:
hi i am jimmy, 23 years old, engg graduate.
economically i want to know how to have financial intelligence or financial aptitude.
-I wanna invest surrounded by shares-stock markets, investments, mutual funds, or concrete estate and for that i wanna have thorogh culture how the market works ?
please enlighten me what should i know. and do i need to read books on how to become aware fr investing
***I DONT know ANYTHING ABOUT COMMERCE,
**i am totally insensible but i really wanna know so tell me the requisites and
*please suggest some books if i need to or some links you come up with would be appropriate to have sufficient wisdom which a person must own so as to start such that i be able to arbiter how to invest where and when.
***i am a MECH. ENGR. so you can merely have an theory that i really lack within financial education.but i am interested contained by investments, shares, realestate!!i really wanna knw and wanna be part of this hobby...
please suggest . i'll be highly grateful to you!!
Answers:
The simple answer is that FIRST you own to crack some books
There are lots of free tutorials on the web and lots of books and tape offered for sale.
Instead I would choose you local PUBLIC FREE LIBRARY.
Ask at the information desk to be shown the fragment for "finance tutorials". There will be dozens of booms on bread flow, financial statement interpretation, stock market science etc etc.
Don't overdo it ! Choose one or two nonspecific books on business . Make notes and synopsize what you suppose is important.
The first entry you need is to swot up the nomenclature of business.
It is a vocabulary all ofits own.
Next you must own a thorough knowledge of a "FINANCIAL STATEMENT so that you can pick oneup and instantly know the common health of that company and predict its adjectives, basedon the figures shown.
The third step is to contact inhabitants in the investment business. Most of them are charitable with their fluency. It might cost you a few lunches but if you prepare your questions with care you can pick their brains and learn a large amount.
Finally, start a million dollar portfolio in the stock flea market. Pretend you have the wealth. From what you have widely read from your studies and from what you have read within the Finance pages of the Wall St Journal etc, switch on to buy your stocks and bonds;
Make graphs of you stocks. Learn when to buy, sell or hold.
Look at you holdings respectively month. Do you still have the million or have it gown 10 % or lost 15%.?
Well there's a start. Something tells me you will do all right since you already know how to study andhow to organize your course of act.
Good luck !
.
Jimmy,
I'll be upfront: the better you are at mechanical engineering, the worse investor you are promising to be. An engineering mind wants to quantify and total everything, and investing is mostly about human psychology explicitly harder to quantify. It is inexact.
Having said that, you may want to check out "Encyclopedia of Chart Patterns" by Thomas Bulkowski. He is a former hardware design engineer at Raytheon and have done an excellent job quantify chart patterns.
You may also longing to join our stock picking group at:
http://finance.groups.yahoo.com/group/tr...
Having some to stock traders and their picks should also comfort.
Good luck!
You might want to consider creating a "practice" portfolio of stocks at http://www.top10traders.com - it's free - each month the site ranks the best performing investors.
Financial Accounting?
Question:
The account, Stock Investments, is a subsidiary ledger commentary, a general ledger control information, a long-term liability account or another autograph for Debt Investments?
Answers:
The term investments finances these are assets, and by stock I think you indicate securities, so I would say this is a standard ledger control a/c title. A subsidiary ledger for investments would track all the individual stocks you've invested contained by, the purchases and the disposals. Investments are assets, not liabilities.
Any wager on the dow falling another 500 to 600 points this coming week?
Question:
Answers:
Considering that the Dow did hit the 14000 points not long time ago, I guess those big fishes are trying to capitalized on gain until it reaches a unmistaken level... And my guess, is that this even is far from being get yet!! In my judgment better invest in futures... Metals would worth raise as fast as grease in a decade or so...
Sell, put on the market, sell!
Big grease will hold up the DOW enough to prevent that helpful of fall within the next week.
PE is lone at an average 18 or half the later collapse.
People are running scared and big investors approaching contary investing. You sell and they will buy.
I do not see 500 or 600 more because greed will over come unease and those seeing a correction will attempt to get contained by before everyone else.
No the buys are irresistible presently. I put in a buy command Friday when I didn't even plan to buy anything.
Nah, buyers will come back.
HI,
Its possible but not predictable. wait for a double top and a
current wave of suckers .
Rgds......
Just look put money on in history and see how masses times out of the past almost 100 years have the Dow ever been down for an extended interval of time? Not many...
http://www.mastersoequity.com
http://www.optiontradingpedia.com...
.
The open market is falling because of a lot of factor. At first it was mear scare of the sub-prime market.
However this previous week has be a nightmare on the street because of a statement that loan defaults be spreading further than just the sub-prime souk, oil prices soaring, and worries something like corporate buyouts that were planned, not occuring, and mixed 2Q earn reports - amoung many other multiple factors.
This week's communication has put investors into a bearish frenzy and one-sidedly I think they are over-reacting. This is a short residence problem and will pass duly soon. Be very guarded coming into the next week though as I don't believe it's moderately over yet.
I see the DOW hitting 12,500 or so beforehand it goes support up. Nobody really knows what is truly going to occur, but the money is there to pay for it up! Company's for the most part are showing increasing lattice profit and sales, especially within foreign markets, however they are individual brought down because of the US market.
Once the souk corrects itself, I believe the market will climb at narrative numbers! I myself invested Friday as well, it may be a bit soon but atleast I know I get a good buy :)
Here's a few of the through factors, which I can show will correct themselve's contained by the coming weeks...
G00GLE (GOOG) - G00GLE took its toll on the market this week because of Microsoft's unusual "Club Live" a free game system which give out free prizes, but uses a search works in respectively game's "answers" taking 13% of the market share of adjectives search engines. Once this is factored surrounded by, people will realize that G00GLE is still producing one and the same numbers it has be...
Netgear (NTGR) - A large home and corporate network solutions company reported mixed earnings. Although their sale were up appx 6% they showed a slight loss because of increased R&D funding for their up to date state of the art products to be released in the 3Q and more funding for marketing/advertising of their unsullied products. Netgear lost 26% on Fri, but will skyrocket in the 3Q!! BUY BUY BUY!!
The housing bazaar is another sector to question, although sub-prime mortgages aren't doing powerfully - mid-upper class is doing extremely well, and more importantly the extreme big end ($50M+) housing open market is at an all-time high! This tell me that our economy is so strong that empire are simply buying bigger!
Nearly all world market took a bad hit end week, but the money is there. Analysts are over-reacting - have need of to throw back a bottle of Zanax - and really verbs deeper into the numbers. Once they realize how great the economy really is, things will turn up, and fast!
I could be wrong - NO ONE really know what is really going to happen, but everyone can nick a guess and from what I have see this is an over-reaction and market correction.
...and a superlative time to buy!
Just curious, what scandals would you be referring to? I'm not a huge investor, but I own a 2 great advisors - both have simply told me the same things. Is in attendance more going on that I'm un-aware of??
Whats my best chance for diversification or rate?
Question:
I am 26 and have completed my first year of a nice paying work post B.A., I'm currently rebuilding my credit history so I can't buy a house or a car.
I enjoy already invested 12k into my retirement and would like to move some money into some seperate venture.
I'd like to do stock, however I judge I want to invest in a compact disc or a money market depiction 1st, does anyone know what would be a quality rate or the best rate that you can receive? I hold also thought about purchasing bonds and or loaning money to others through prosper.com ----- any suggestions will be greatly appreciated thank you
Answers:
Bankrate.com is a apt place to check rates. If your goal is to buy a house or a motor what you're probably looking to do is accumulate some dosh in proclaim to make a down stipend. With that being said the subsequent thing you necessitate to consider is how long you want to wait beforehand making that down payment. When buying stock you have need of to consider tax implication (long-term vs. short-term). In my opinion if you want to stockpile to make a down grant I would start putting money monthly into an online savings sketch that yields approximately 5% (ING Direct, HSBC, Capital One, etc) because the majority of them are FDIC insured so you hold no risk (taxes will be assessed at your current marginal rate). You could invest in stocks but here is a lot of risk principally if you're thinking you are saving for the short-term.
You are too infantile to be investing in bonds or CDs! Invest within high ability mutual funds. This is your retirement money! 12k will double every 6 years at the stock market average of 12%. If you verbs to save $100 per month until you're 60 you'll enjoy approximately $1.2 million. Save another $100 per month in a money marketplace account as an emergency fund and live below your mechanism. Your goal is to build retirement money AND speculation money!
Why does a slowdown surrounded by existing home sale affect the stock bazaar?
Question:
People need places to live, so if existing homes are not selling next it seems to me associates are just renting more, varying jobs smaller amount, and possibly will invest more in home imporvement, so the ways money is spent and the beneficiaries may shift, but the lattice affect on the overall market would be token?
I can understand topical home sales a bit better, but even later i would think that would affect by and large construction-related companies and mortgage finance related companies, not the broad open market.
What relationships am i missing?
Answers:
A slow down of home sales signifies that constraint is falling and supply has increased which cause a drop in average public sale price.
Consumers who have used equity release to fund home improvements and buy clean cars are withdrawing or having problems repaying debt as interest rates hold increased.This spills over into the stock market as consumers spend smaller number which means companies earn smaller amount and thier profits are lower.
Liquidity dries up and spending goes down.
Housing sale is considered one of the leading indicators of monetary activity. It is also an indicator of consumer confidence.
If here is a downturn in a "main indicator" such as housing sales, it portends a downturn within overall economic distraction at some point in the close by future. Why this is so is still up for debate, but history shows it to be a meaningful predictor of economic trends.
Since the market are at an all-time high (and investors misgivings that they are overvalued), anything that points to a potential weakness contained by the economy will forgivably cause a bit of a sell-off.
The issue is one of liquidity. Investors are frightened that a liquidity crisis brought on by the artificially-low interest rate housing boom and the subsequent sub-prime mess will bring an end to a liquidity-based financial expansion.
I've read an assortment of articles on this topic over the past year or so; but here's one that I read of late a few moments ago that was written contained by response to yesterday's meltdown.
http://www.wsws.org/articles/2007/jul200...
How to receive million dollars brisk?
Question:
Answers:
Is a decade fast satisfactory for you?
Start with a billion dollars, and run into the business of making small airplanes.
ask 1 million people for 1 dollar, everyone can afford 1 dollar
quick there is no such point unless your ripping people stale in something they most imagined wont suceed in aka the squad. quixtar or any other mlm scheme ; realestate is the best money designer but nothing is ever as virtuous as it sounds ; i dont like anything currently ; hurried is not a good aspiration it would put you at risk for losing lots of money fast . dont trust anyone who say you will be rich over night or even surrounded by a year or so things very extremely very on the odd occasion happen approaching that; also invest Cds and iras for good investments i would voice. im going to try to open a business if i can procure some investors.
Is everything closed down at this time contained by the forex flea market? if so when do they embark on up?
Question:
I don't see any movement with any of the curriencies i own listed nzd, aud,us,cad,eur,jpy,chf,gbp, and it wont consent to me buy anything. WHat are the closing times for all of these? and if you are a trader and yearning to help me to revise how to trade email me
Answers:
Hey,
The Forex market is enlarge 6 days a week from Sunday to Saturday based on US main time. It closes at 2p.m. Friday and opens at 2p.m. Sunday. The weekends would be a moral time to take a break from the intense trading. I've be trading for a year now. I am currently element of the 97 percent of traders who lose money in Forex, but I do believe that I enjoy a good elucidation of the ins and outs of Forex, and I should be able to turn my side around in the in the neighbourhood future. How long enjoy you been trading? Are you trading on Demo? What platform do you trade on? Let me know
Nliang@luc.edu
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