Earn What You Spend

Archive for the ‘investing’ Category

Investments versus Consumption

A mere six months ago, the phrase the ‘Paradox of Thrift’ was unknown to virtually everyone besides dedicated economists and academics.  It has now spread into our common parlance - it’s hard to pick up a newspaper these days without seeing at least one reference to this economic theory.
The reason behind its emergence is simple: [...]

Written by William

February 11th, 2009 at 1:25 pm

Posted in Business, investing, stimulus

Tagged with ,

The Most Depressing Calculator You’ll See Today

It’s a way to calculate how long it will take you to earn back all the money you’ve lost in this stock market crash. What we often forget is that even if a market drop is followed by outsize returns, it is quite difficult to regain your previous position. 
Say you invested $100 last year and [...]

Written by William

January 23rd, 2009 at 9:29 am

Posted in investing

Tagged with

Failed Assumption: Bonds Are Safe

Earlier this year I went shopping for a bond fund to invest in.  I didn’t want to invest in equities because I thought I might need the money in the next year, so I figured a safe, conservative bond fund would be the best way to protect the principle.  
Looks like I wasn’t alone in [...]

Written by William

December 15th, 2008 at 10:02 am

Posted in investing

Tagged with

The Blue Chip Special?

Is it time for a buying spree?  JD has an excellent post that tackles this and other timely investment questions.  Everyone is asking the same thing: what should I do?
His conclusion is spot on:
I believe that for the average long-term investor, the best course of action right now is to make regular scheduled purchases of low-cost [...]

Written by William

October 13th, 2008 at 10:09 pm

Posted in investing

Tagged with , ,