question_id stringlengths 1 5 | question stringlengths 14 158 | pos_item_ids listlengths 1 23 | pos_item_contents listlengths 1 23 |
|---|---|---|---|
4190 | What is best investment which is full recession proof? | [
"147251",
"70575"
] | [
"Can anyone suggest all type of investments in India which are recession proof? There are no such investments. Quite a few think bullions like Gold tend to go up during recession, which is true to an extent; however there are enough articles that show it is not necessarily true. There are no fool proof investments.... |
4191 | Effect of Quantitative Easing on Price of Bonds | [
"515652",
"107097"
] | [
"\"The classic definition of inflation is \"\"too much money chasing too few goods.\"\" Low rates and QE were intended to help revive a stalled economy, but unfortunately, demand has not risen, but rather, the velocity of money has dropped like a rock. At some point, we will see the economy recover and the excess ... |
4193 | If gold's price implodes then what goes up? | [
"272547",
"239509",
"329023",
"584633"
] | [
"\"Ok, I think what you're really asking is \"\"how can I benefit from a collapse in the price of gold?\"\" :-) And that's easy. (The hard part's making that kind of call with money on the line...) The ETF GLD is entirely physical gold sitting in a bank vault. In New York, I believe. You could simply sell it short... |
4197 | Query regarding international transaction between governments | [
"248817",
"414772",
"773"
] | [
"$USD, electronic or otherwise, are not created/destroyed during international transactions. If India wants to buy an F-16s, at cost $34M USD, they'll have to actually acquire $34M USD, or else convince the seller to agree to a different currency. They would acquire that $34M USD in a few possible ways. One of whic... |
4200 | Mortgage sold to yet another servicer. What are my options? | [
"129480",
"328443",
"187201"
] | [
"Are my mortgage terms locked in? Who oversees this? Yes your terms like rate, balance, penalties, due dates, are all covered in the mortgage documents. Those will not change. If the mortgage is an adjustable or has a balloon payment those terms will be followed by the new company. That being said, mistakes can be ... |
4201 | How to make money from a downward European market? | [
"350366",
"100792",
"171197",
"549763",
"137073",
"384000",
"236444"
] | [
"If you want to make money while European equities markets are crashing and the Euro itself is devaluing: None of these strategies are to be taken lightly. All involve risk. There are probably numerous ways that you can lose even though it seems like you should win. Transaction fees could eat your profits, especial... |
4202 | How does the price of oil influence the value of currency? | [
"19606",
"116921"
] | [
"From an investor's standpoint, if the value of crude oil increases, economies that are oil dependent become more favourable (oil companies will be more profitable). Therefore, investors will find that country's currency more attractive in the foreign exchange market.",
"Because we need energy in the form of oil... |
4204 | Considering buying a house in town with few major employers (economic stability) | [
"525347",
"164059"
] | [
"It seems pretty clear to me that one of two things will happen regarding your local housing market: Personally, I'd hold out until either 1 or 2 happens, and then buy. (Assuming you plan to stay in your town regardless.) If you wait you'll end up with either a stronger investment or a big discount.",
"BLUF: Con... |
4206 | When will the U.K. convert to the Euro as an official currency? | [
"498163",
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"111266",
"150102",
"440103",
"26122"
] | [
"\"I read an account of why the U.K. didn't end up with the euro as its currency in David M. Smick's great book The World Is Curved: Hidden Dangers to the Global Economy. Chapter 6 of the book is titled \"\"Nothing Stays the Same: The 1992 Sterling Crisis.\"\" Here's a very brief excerpt; emphasis mine: [...] As t... |
4208 | The U.S. National Debt: What is it, where did it come from, and how does it work? | [
"399083",
"49602",
"14035"
] | [
"",
"\"It is measured in US dollars. The US cannot just print the money because that would cause inflation. Remember that money is really just a convenient placeholder for the barter system. Creating more money regardless of whether there is more value in the economy (work, resources, etc.) is a very bad idea,... |
4210 | What does an x% inflation rate actually mean? | [
"59225",
"32764",
"267176",
"117578",
"441904"
] | [
"\"Let's say there's a product worth $10 in July and the inflation rate in August is 10%. Will it then cost $11 in August? Yes. That's basically what inflation means. However. The \"\"monthly\"\" inflation numbers you typically see are generally a year over year inflation rate on that month. Meaning August 2017 ... |
4213 | What variety of hedges are there against index funds of U.S. based stocks? | [
"346389",
"214542"
] | [
"The only way to hedge a position is to take on a countervailing position with a higher multiplier as any counter position such as a 1:1 inverse ETF will merely cancel out the ETF it is meant to hedge yielding a negative return roughly in the amount of fees & slippage. For true risk-aversion, continually selling th... |
4214 | Why doesn't the emerging markets index reflect GDP growth? | [
"347586"
] | [
"\"GDP being a measurement for an economy's growth and with the stock market being driven (mostly) by company profits you would expect a tight correlation between GDP growth and stock market performance. After all, a growing economy should lead to a corresponding increase in profit right? But the stock market is he... |
4215 | Why do 10 year Treasury bond yields affect mortgage interest rates? | [
"127434",
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"379492",
"587032",
"310629"
] | [
"You’ve really got three or four questions going here… and it’s clear that a gap in understanding one component of how bonds work (pricing) is having a ripple effect across the other facets of your question. The reality is that everybody’s answers so far touch on various pieces of your general question, but maybe I... |
4216 | If banks offer a fixed rate lower than the variable rate, is that an indication interest rates may head down? | [
"523406",
"2234"
] | [
"\"This is known as an inverted yield curve. It is rare, and can be caused by a few things, as discussed at the link. It can be because the view is that the economy will slow and therefore interest rates will go down. It is not caused by \"\"secret\"\" preparation. It could also be that there is generally in the wo... |
4218 | What governs the shape of price history graphs? | [
"44555",
"386162",
"72054"
] | [
"\"Let me see if I can restate your question: are speculative investments more volatile (subject to greater spikes and drops in pricing) than are more long-term investments which are defined by the predictability of their dividend returns? The short answer is: yes. However, where it gets complicated is in deciding... |
4219 | What will be the long term impact of the newly defined minimum exchange rate target from francs to euro? | [
"208623",
"558670",
"124479"
] | [
"The total size of the eurozone economy is $13 trillion, whereas Switzerland'd GDP is about $0.5 trillion, so the eurozone is about 26 times larger. As such, I would not expect this move to have a large effect on the eurozone economy. On the margins, this may decrease somewhat eurozone exports to Switzerland and ... |
4220 | Emerging markets index fund (VDMIX) for an inexperienced investor | [
"154229"
] | [
"\"In this environment, I don't think that it is advisable to buy a broad emerging market fund. Why? \"\"Emerging market\"\" is too broad... Look at the top 10 holdings of the fund... You're exposed to Russia & Brazil (oil driven), Chinese and Latin American banks and Asian electronics manufacturing. Those are sec... |
4222 | Why would a central bank or country not want their currency to appreciate against other currencies? | [
"42334",
"355990"
] | [
"I wrote about the dynamic of why either of a lower or higher exchange rate would be good for economies in Would dropping the value of its currency be good for an economy? A strong currency allows consumers to import goods cheaply from the rest of the world. A weak currency allows producers to export goods c... |
4223 | Why does money value normally decrease? | [
"232491",
"1311",
"313839",
"591007",
"133185",
"209497"
] | [
"\"Your house doesn't need to multiply in order to earn a return. Your house can provide shelter. That is not money, but is an economic good and can also save you money (if you would otherwise pay rent). This is the primary form of return on the investment for many houses. It is similar for other large capital inve... |
4224 | Pros & cons in Hungary of investing retirement savings exclusively in silver? What better alternatives, given my concerns? | [
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] | [
"\"To be honest, I think a lot of people on this site are doing you a disservice by taking your idea as seriously as they are. Not only is this a horrible idea, but I think you have some alarming misunderstandings about what it means to save for retirement. First off, precious metals are not an \"\"investment\"\"; ... |
4227 | How does the currency between countries relate | [
"499875",
"427991"
] | [
"Firstly currency prices, like any asset, depend on supply and demand. Meaning how many people want to exchange a currency to another one vs. wanting to buy that currency using another currency. Secondly, it really depends on which country and economy you are talking about. In emerging economies, currencies are ver... |
4231 | What do “cake and underwear” stocks refer to? | [
"419038",
"84610",
"125699"
] | [
"\"JoeTaxpayer's answer is dead on... but let me give my own two cents with a little bit of math. Otherwise, I personally find that people talking about diversified portfolios tends to be full of buzzwords. Let's say that Buffett's investments are $10 million. He would like to earn ≥7% this year, or $700,000. He ... |
4234 | Is there a good rule of thumb for how much I should have set aside as emergency cash? | [
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"61093",
"261619",
"97151"
] | [
"If you are still paying off debt, then you should have about $1000 in savings and put all you can towards non-mortgage debt. If you don't have any debt besides your mortgage, then add up all of your monthly expenses including food, gas, utilities and keep 3-6 months in liquid savings. Whether you keep 3 or 6 month... |
4235 | Equity prices during currency devaluation — Mexico 1994 | [
"453913"
] | [
"Yes, this phenomenon is well documented. A collapse of an economy's exchange rate is coincidented with a collapse in its equities market. The recent calamities in Turkey, etc during 2014 had similar results. Inflation is highly correlated to valuations, and a collapse of an exchange rate is highly inflationary... |
4236 | What is the difference between speculating and investing? | [
"248677",
"230733",
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"106864",
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] | [
"Speculation means putting your money on a hunch that some event may occur, depending on current circumstances and some future circumstances. So either you win huge or lose a lot. Investment is a conscious decision made on well defined research and grounded on good reasons i.e. economy, industry, company reports et... |
4237 | Are Target Funds Unsafe - Post Q.E.? | [
"62530"
] | [
"It's a what-if? sort of question. What if rates stay down or trend only slightly higher, despite no QE? look at other countries response to tepid economies. My experience as professional advisor (25 yrs) tells me the future is unknowable and diversity is good. Make alternative choices- they all won't work wonderfu... |
4239 | Dividends Growing Faster than Cost of Capital | [
"589481"
] | [
"I don't think the method falls short, it's the premise that is wrong. If the dividend stream really did grow faster than the cost of capital indefinitely, eventually the company behind the share would become larger than the entire economy. Logically, at some point, the growth must slow down."
] |
4242 | How inflation in China makes real exchange rate between China and US to rise? | [
"403457"
] | [
"Chinese currency is not freely convertible. Its exchange rate is not determined by the market but rather by the Chinese government. Thus the counter-intuitive result. In essence, the Chinese government is subsidizing exports (which is reasonable since exports is what drives the Chinese economy)."
] |
4243 | I'm thinking of getting a new car … why shouldn't I LEASE one? | [
"244004",
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"311446",
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] | [
"If you are looking to build wealth, leasing is a bad idea. But so is buying a new car. All cars lose value once you buy them. New cars lose anywhere between 30-60% of their value in the first 4 years of ownership. Buying a good quality, used car is the way to go if you are looking to build wealth. And keeping ... |
4244 | How are mortgage interest rates determined? | [
"491219",
"59710",
"411332"
] | [
"Mortgage or other interest rates are determined by the banks on cost of funds, risk and operating cost. The Fed raises money from the markets by issuing Tresury Bonds at a specified rate. This rate at which it raises money varies depening on the economy. Thus there are 2 rates: the rate at which banks can borrow... |
4245 | When will Canada convert to the U.S. Dollar as an official currency? | [
"90845",
"165695",
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"123835"
] | [
"I don't see countries switching to the USD, I see countries moving away from it. The US has the largest peace time debt ever, is not being even close to fiscally responsible (approving ~4 trillion budget!) and is faced with 100 trillion in future commitments (social security, medicare) with a workforce (tax base) ... |
4246 | How will the fall of the UK Pound impact purchasing my first property? | [
"556594",
"288167"
] | [
"\"Just to get the ball rolling, here's an answer: it won't affect you in the slightest. The pound happened to be tumbling anyway. (If you read \"\"in the papers\"\" that Brexit is \"\"making the pound fall\"\", that's as valuable as anything else you've ever read in the papers.) Currencies go up and down drastica... |
4247 | What does the Fed do with the extra money it is printing? | [
"221169",
"539381"
] | [
"\"First of all, just for the sake of clarity, the Federal Reserve doesn't actually \"\"print\"\" money - that's the job of the BEP. What they do is they buy US Treasury bonds - i.e., loan money to the US government. The money they do it with are created \"\"from thin air\"\" - just by adding some numbers in certai... |
4250 | Who creates money? Central banks or commercial banks? | [
"589859",
"353662",
"398318"
] | [
"A central bank typically introduces new money into the system by printing new money to purchase items from member banks. The central bank can purchase whatever it chooses. It typically purchases government bonds but the Federal Reserve purchased mortgage-backed-securities (MBS) during the 2008 panic since the FE... |
4253 | What market conditions favor small cap stocks over medium cap stocks? | [
"508858",
"176253",
"459970",
"475405"
] | [
"Small cap companies are just smaller, so the risk for them to fail is higher but the potential for higher returns is also higher.",
"Small companies are generally able to adapt quickly to take advantage of changing conditions to enter new markets when the economy is growing. This gives them a lot of growth poten... |
4255 | How to measure how the Australian dollar is faring independent of the US dollar | [
"163303",
"304580",
"182010",
"310016"
] | [
"What you want is the average change in rate of the Australian Dollar against multiple other currencies, to even out the effect of moves in a single other currency. People often look at the trade-weighted exchange rate to get an idea of this, as it allows you to look at the currencies that are most relevant, rather... |
4256 | Please help me understand reasons for differences in Government Bond Yields | [
"138213",
"46716"
] | [
"\"The real question is what does FT mean by \"\"Eurozone Bond\"\". There is no central European government to issue bonds. What they seem to be quoting is the rate for German Bunds. Germany has a strong economy with a manageable debt load, which means it is a safe Euro denominated investment. Bunds are in high dem... |
4258 | What is a “fiat” currency? Are there other types of currency? | [
"519845",
"146573",
"352771",
"445939"
] | [
"\"A \"\"fiat\"\" currency is non-convertible paper currency that a government establishes as legal tender. Most countries today are using fiat currencies. The rest have currencies pegged (or convertible to) US Dollars (which is a fiat currency). In the past, money was usually based on precious metals such as gold ... |
4259 | Are there any hedged international funds in India? | [
"290830",
"283774"
] | [
"No there aren't any such funds.",
"There aren't and for a good reason. The long term trend of INR against USD, GBP, EUR and other harder currencies is down. Given the inflation differential between these economies and India's, fund managers and investors should expect this to continue. Therefore, if you are inve... |
4260 | How to rebalance a passive portfolio if I speculate a war is coming? | [
"115517",
"146639"
] | [
"At a risk of stating the obvious: a passive portfolio doesn't try to speculate on such matters.",
"Normally, in a war everybody suffers and the entire economy goes down. Military contractors do better than average, but the average sucks. The way to take advantage of knowing a war is coming is to leave as soon as... |
4262 | Ways to trade the Euro debt crisis | [
"25582",
"98726"
] | [
"Short the Pound and other English financial items. Because the English economy is tied to the EU, it will be hit as well. You might prefer this over Euro denominated investments, since it's not exactly clear who your counterpart is if the Euro really crashes hard. Meaning suppose you have a short position Euro'... |
4264 | Does it make sense to buy a house in my situation? | [
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] | [
"Personally I would hold off on buying a house until you have the credit card paid down even more or paid off completely so that it is one less bill you have to worry about and once it is paid off you free up that much more money to maintain the home. Likewise, you also have a lot of variables right now and the res... |
4267 | Buy small-cap ETF when you already have large-cap of the same market | [
"541335"
] | [
"Yes, you should own a diverse mix of company sizes to be well diversified. While both will probably get hit in a recession, different economies suit different sized companies very differently in many cases, and this diversity positions you best to not only not miss out in cases where small companies do better out ... |
4268 | How big of a mortgage can I realistically afford? | [
"555947",
"55077",
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"584083",
"163289",
"54513",
"571671"
] | [
"\"Let's start with income $80K. $6,667/mo. The 28/36 rule suggests you can pay up to $1867 for the mortgage payment, and $2400/mo total debt load. Payment on the full $260K is $1337, well within the numbers. The 401(k) loan for $12,500 will cost about $126/mo (I used 4% for 10 years, the limit for the loan to buy ... |
4271 | Brent crude vs. USD market value | [
"93897",
"506616"
] | [
"I don't think the two are particularly linked. While Brick is right in that the price of oil is denominated in dollars, I don't think that's responsible for most of the movement here. Oil has been weak for intrinsic reasons related to oil: supply/demand imbalance, largely. (Oil also was way over-priced back when... |
4272 | Is Real Estate ever a BAD investment? If so, when? | [
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] | [
"\"No, it can really not. Look at Detroit, which has lost a million residents over the past few decades. There is plenty of real estate which will not go for anything like it was sold. Other markets are very risky, like Florida, where speculators drive too much of the price for it to be stable. You have to be sure ... |
4276 | $10,000 to invest in the house - Pay down principal or spruce up to increase appraisal? | [
"329504"
] | [
"\"There is no guarantee improvements will raise the appraised value. You also don't want your property tax appraisal to go up if you can avoid it. Since you are talking on the order of $10k I'll assume you're only a few thousand dollars more from getting to 20%. That said, any schemes you might come up with like ... |
4277 | Repaying Debt and Saving - Difficult Situation | [
"75754",
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"11802",
"403842",
"162751"
] | [
"She seems to be paying an inordinate amount of money for car payments. $850/month is just too high. She may be able to get by on public transit, depending on where she lives, but if not, she needs to look at selling her car and picking up a cheap second-hand vehicle. Public transit would probably save her $750/mon... |
4280 | Are variable rate loans ever a good idea? | [
"65461",
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] | [
"First, let me fill in the gaps on your situation, based on the numbers you've given so far. I estimate that your student loan balance (principal) is $21,600. With the variable rate loan option that you've presented, the maximum interest rate you could be charged would be 11.5%, which would bring your monthly payme... |
4284 | Adjusting a value for inflation each month using rolling 12-monthly inflation figures | [
"105238",
"324968"
] | [
"In the style of the Bank of England's Inflation Calculator, you can do the calculation like so. The third column is an index made from the inflation figures and the forth column shows the inflation-adjusted values. Using the index to calculate the difference in costs, for example: The formulas used to produce the... |
4288 | Investing in USD from the Eurozone (Jan 2015) | [
"237828"
] | [
"\"No, this is not solid advice. It's a prediction with very little factual basis, since US interest rates are kept just as low and debt levels are just as high as in the Eurozone. The USD may rise or fall against the EUR, stay the same or move back and forth. Nobody can say with any certainty. However, it is not n... |
4290 | Are there special exceptions to the rule that (US) capital gains taxes are owed only when the gain materializes? | [
"208215",
"211122",
"403701"
] | [
"Normally, you don't pay capital gains tax until you actually realize a capital gain. However, there are some exceptions. The exception that affected Eduardo Saverin is the expatriation tax, or exit tax. If you leave a country and are no longer a tax resident, your former country taxes you on your unrealized capi... |
4291 | What should I reserve “emergency savings” for? | [
"404868",
"267945"
] | [
"Emergency funds are good to keep yourself out of debt, for whatever reason. Job loss is a big place where an emergency fund can help you out. It buys you time to find another job before hauling out the credit cards for your groceries, falling behind on your mortgage and car payments, etc. But it can just as easil... |
4292 | What are investment options for young married couple with no debt that have maxed out retirement savings? | [
"587768",
"44187",
"151741"
] | [
"4.7 is a pretty low rate, especially if you are deducting that from your taxes. If you reduce the number by your marginal tax rate to get the real cost of the money you end up with a number that isn't far off from inflation, and also represents a pretty low 'yield' in terms of paying off the loan early. (e.g. i... |
4296 | Was this a good deal on a mortgage? | [
"481977",
"536681",
"583396",
"272289",
"33200",
"400343"
] | [
"That seems a very bad offer, it borders on fraud. In the current US economy, you should be able to get between 3 and 4 % APR (and that number is what you should look at). That means that for $300,000 over 30 years, you'd pay $1,265 to $1,432 per month. If you are able to pay more than that monthly rate, you should... |
4298 | Why would a bank take a lower all cash offer versus a higher offer via conventional lending? | [
"102830",
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"509662",
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] | [
"It's because financing can fall through, and then the time between offer and closing is wasted. Often buyers will include preapprovals and other evidence of financing eligibility with their offer for this reason.",
"One other point to consider is that cash offers often include no contingencies. That is, the offe... |
43 | Advice on money transfer business | [
"76662"
] | [
"\"As soon as I see the word \"\"friends\"\" along with money transfer I think scam. But ignoring that red flag.... You will have American companies reporting to the IRS that you are a Canadian Vendor they have hired. Then you are transferring money to people in Bangladesh. Assuming also that you fill out all the ... |
4300 | Upward Spike in US Treasuries despite S&P Downgrade in August 2011 | [
"231986",
"294"
] | [
"The only resources or references you need are a chart showing you what happened in those months. The exuberance for US treasuries comes from the fact that there are no better options than them for putting cash. There are better sovereign debt instruments around the world depending on your goals, but they do not of... |
4302 | What are the top “market conditions” to follow? | [
"113099",
"228889",
"228485",
"293999"
] | [
"\"If you're investing for the long term your best strategy is going to be a buy-and-hold strategy, or even just buying a few index funds in several major asset classes and forgetting about it. Following \"\"market conditions\"\" is about as useful to the long term trader as checking the weather in Anchorage, Alask... |
4304 | Why does quantitative easing negatively affect stocks? | [
"108519",
"345910"
] | [
"Can you isolate the market impact to just the Fed's quantitative easing? Can you rule out the future economic predictions of low growth and that there are reasons why the Fed has kept rates low and is trying its best to stimulate the economy? Just something to consider here. The key is to understand what is the ... |
4305 | Why would I buy a bond with a negative yield? | [
"439010",
"475393",
"184838"
] | [
"It would be preferable to purchase a bond with a negative yield if the negative yield was the smallest compared to similar financial securities. The purchase or sale of a security is rarely a mutually exclusive event. An individual may have personal reasons or a desire to contribute to the activity the bond is fi... |
4307 | Should I pay off my student loan before buying a house? | [
"475629",
"97642",
"290584",
"143472",
"502594",
"148259"
] | [
"Paying off your student loan before buying a house is certainly a great risk reduction move for you. It will lower your debt to income ratio allowing your mortgage approval to go easier and it will free up more of your dollars to pay for the many miscellaneous projects that come with buying a house. I think that i... |
4309 | Advice on preserving wealth in a volatile economic/political country | [
"552298",
"407259",
"316219"
] | [
"\"I suggest that you're really asking questions surrounding three topics: (1) what allocation hedges your risks but also allows for upside? (2) How do you time your purchases so you're not getting hammered by exchange rates? (3) How do you know if you're doing ok? Allocations Your questions concerning allocation a... |
4315 | How to invest in the Russian oil market? | [
"581038"
] | [
"The Russian ETFs may be broad, but a quick glance at ERUS and RBL's sector breakdown shows they're 45% and 47% energy sector, and their top holding is Gazprom comprising 9% and 14% of each ETF respectively, with plenty more oil and gas companies in their top 10 too. A harder question would be how to invest in Rus... |
4318 | Are you preparing for a possible dollar (USD) collapse? (How?) | [
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] | [
"There are two basic ways you can separate your investments from the dollar (or any other currency).",
"I am not preparing for a sudden, major, catastrophic collapse in the US dollar. I am, however, preparing for a significant but gradual erosion of its value through inflation over the space of several years to a... |
4319 | What should a 21 year old do with £60,000 ($91,356 USD) inheritance? | [
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"496275"
] | [
"\"What a lovely position to find yourself in! There's a lot of doors open to you now that may not have opened naturally for another decade. If I were in your shoes (benefiting from the hindsight of being 35 now) at 21 I'd look to do the following two things before doing anything else: 1- Put 6 months worth of livi... |
4320 | Should I get a personal loan to pay on my mortgage to go “above water” to qualify for a refinance? | [
"543616",
"303795",
"58785",
"104577"
] | [
"It depends on how long it will take you to pay off the personal loan, the rate for the personal loan, the refi rate you think you can get, how much principal you will have to add to get the refi (may have gone up since then). Since you did not provide all the necessary details, the general answer is to sketch out ... |
4322 | How to invest in a currency increasing in value relative to another? | [
"279151",
"75606",
"347556",
"293777"
] | [
"\"What you're looking for are either FX Forwards or FX Futures. These products are traded differently but they are basically the same thing -- agreements to deliver currency at a defined exchange rate at a future time. Almost every large venue or bank will transact forwards, when the counterparty (you or your ... |
4325 | Why does a stock's price fluctuate so often, even when fresh news isn't available? | [
"584901",
"222363",
"78648",
"366315",
"544506"
] | [
"News about a company is not the only thing that affects its stock's price. There is also supply and demand. That, of course, is influenced by news, but it is not the only actor. An insider, with a large position in their company's stock, may want to diversify his overall portfolio and thus need to sell a large a... |
4328 | If USA defaults on its debt, will the T bond holder get back his money | [
"252227",
"373717"
] | [
"\"The only party that can pay back a government bond is the government that issued it itself. In the case of Argentina, US vulture funds have won cases against it, but it has yet to pay. The best one can do to collect is to sue in a jurisdiction that permits and hope to seize the defaulted government's assets hel... |
4329 | How can I predict which way mortgage rates are moving? | [
"88774",
"548971",
"589236"
] | [
"Obviously you can't predict the future too much, but it's not too hard to figure out what is going to happen to mortgage rates in the short term. Mortgage rates are heavily influenced by 10 year treasury yields. You can find the daily 10 year rates here. It's easy to see the direction they've been moving recentl... |
4332 | What is the cause of sudden price spikes in the FOREX market? | [
"580757",
"19618",
"248794"
] | [
"If you do not understand the volatility of the fx market, you need to stop trading it, immediately. There are many reasons that fx is riskier than other types of investing, and you bear those risks whether you understand them or not. Below are a number of reasons why fx trading has high levels of risk: 1) FX trade... |
4333 | What is a good way to save money on car expenses? | [
"500069",
"440470",
"136112",
"483998",
"487016",
"573615",
"59829",
"99551",
"335226",
"106011",
"431782"
] | [
"Apparently, if you keep your tires' air filled to the recommended level, your car will burn less gas. I loved this article at WikiHow, which confirmed what I had heard about air in tires, and had others to suggest, such as removing unnecessary items from inside and on your car (such as bike racks, trailer balls)... |
4336 | Fractional Reserve Banking and Insolvency | [
"340436",
"94279",
"352832",
"37189"
] | [
"You bet if it was so simple. This is when financial acumen comes into its true form. The bank would never ever want to go insolvent. What it does is, take insurance against the borrower defaulting. Remember the financial crisis of 2008 which was the outcome of borrowers defaulting. The banks had created derivativ... |
4338 | When is it better to rent and when is better buy in a certain property market? | [
"378616",
"177261",
"468581",
"500762",
"453305"
] | [
"Besides the long-term concern about which is cheaper, which has already been addressed by other answers, consider your risk exposure. Owning property has financial risks associated with it, just like owning stocks or bonds. The risk-related downsides of owning a home as an asset include: The risk-related upsides o... |
4340 | What traditionally happens to bonds when the stock market crashes? | [
"149900",
"565226",
"16924"
] | [
"The short answer is if you own a representative index of global bonds (say AGG) and global stocks (say ACWI) the bonds will generally only suffer minimally in even the medium large market crashes you describe. However, there are some caveats. Not all bonds will tend to react the same way. Bonds that are consider... |
4341 | Is there any way to know how much new money the US is printing? | [
"327369",
"375794",
"388830"
] | [
"\"The Fed doesn't exactly have a specific schedule when they decide to create a new dollar. Instead, they engage in open market operations, creating and destroying money as is necessary to preserve a certain interest rate for lending and borrowing. It's an ongoing process. When the Fed meets periodically and they ... |
4343 | Is there a general guideline for what percentage of a portfolio should be in gold? | [
"190772",
"339169",
"371390",
"61329",
"463451",
"326599",
"117902"
] | [
"I think most financial planners or advisors would allocate zero to a gold-only fund. That's probably the mainstream view. Metals investments have a lot of issues, more elaboration here: What would be the signs of a bubble in silver? Also consider that metals (and commodities, despite a recent drop) are on a big ru... |
4344 | Does the common advice about diversification still hold in times of distress | [
"384857"
] | [
"The common advice you mentioned is just a guideline and has little to do with how your portfolio would look like when you construct it. In order to diversify you would be using correlations and some common sense. Recall the recent global financial crisis, ones of the first to crash were AAA-rated CDO's, stocks and... |
4348 | Is keeping old credit cards and opening new credit cards with high limits and never using an ideal way to boost credit scores? | [
"142536",
"339030",
"496080"
] | [
"Problems with your plan (in no particular order) there is a limit, once they have decided that you have enough credit they won't offer any more. If the economy changes (like it did in 2008) they can reduce the limit on existing accounts. If you don't use them, they may decide to close them. Using existing cards wi... |
4349 | I'm 20 and starting to build up for my mortgage downpayment, where should I put my money for optimal growth? | [
"75326",
"518664",
"320675",
"540919"
] | [
"Good job. Assuming that you are also contributing to retirement, you are bound to be a wealthy person. I'm not really sure how Australia works as far as retirement, but I am pretty sure you are taking care of that too. Given your time frame (more than 5 years) I would consider investing at least a portion of ... |
4350 | Why do stock prices of retailers not surge during the holidays? | [
"534734",
"284802",
"373903",
"32138",
"491064",
"88385",
"261975",
"594187",
"155880"
] | [
"\"Systemic and well know patterns in sales are priced in to the security. Typically companies with very cyclical earnings like this will issue guidance of earnings per share within a range. These expected earnings are priced in before the earnings are actually booked. If a company meets these expectations the s... |
4353 | How could the 14th amendment relate to the US gov't debt ceiling crisis? | [
"236383",
"62378"
] | [
"It's a disturbing development -- someone is floating the idea that the executive has the ability to issue debt without the consent of congress to measure the public's reaction. Why disturbing? Because people are using language like this: The president, moreover, can move quickly, but court cases take time. “At the... |
4354 | I have an extra 1000€ per month, what should I do with it? | [
"100882",
"133788",
"223551",
"395471",
"132839",
"546598",
"416358",
"231246"
] | [
"I'm almost in the same situation as you. Here is what I'm doing. Buy ETFs each time you have above 3000€ saved up. I buy these: HSBC S+P 500 C.S.-MSCI PACIFIC UBS-ETF-MSCI EMERGING MARKETS ISH.STOX.EUROPE 600 They are taxable under Abgeltungssteuer, so no hassle with that, are cheap and cover almost the entire wo... |
4355 | What does bank do with “Repaid Principal”? | [
"580852"
] | [
"Does it add to their lending reserves or is it utilized in other ways? It depends on how the economy and the bank in particular are doing. To simplify things greatly, banks get deposits and lend (or otherwise invest) the majority of those deposits. They must keep some percentage in reserve in case depositors want ... |
4358 | What is a good size distribution for buying gold? | [
"559027",
"281234",
"135113",
"374669"
] | [
"Diversification is an important aspect of precious metals investing. Therefore I would suggest diversifying in a number of different ways:",
"\"Look at a broader diversification. Something like: For physical gold, I'd look at a mix of gold coins and bullion. Study the pricing model for coins -- you'll probably ... |
4359 | Trading large volumes with penny profits per share | [
"443451",
"333784"
] | [
"How do you know the shares will go up after you buy? The ultimate risk in your scenario is that you buy at a peak, and then that peak is never reached again. Over time, stock markets go up [more or less because there is a net increase in the overall production of the economy as time goes on]. However, you won't ex... |
4360 | Is the stock market a zero-sum game? | [
"428018",
"339327",
"270926",
"55322",
"469368"
] | [
"No, the stock market and investing in general is not a zero sum game. Some types of trades are zero sum because of the nature of the trade. But someone isn't necessarily losing when you gain in the sale of a stock or other security. I'm not going to type out a technical thesis for your question. But the main f... |
4361 | What is inflation? | [
"519596",
"184776",
"513249",
"204711",
"264603"
] | [
"Inflation is basically this: Over time, prices go up! I will now address the 3 points you have listed. Suppose over a period of 10 years, prices have doubled. Now suppose 10 years ago I earned $100 and bought a nice pair of shoes. Now today because prices have doubled I would have to earn $200 in order to affor... |
4362 | 5/1 ARM: Lifetime cap, First Adjustment Cap, Margin, and Annual Cap? | [
"147093",
"467266",
"569691",
"223032"
] | [
"\"I hope this image is clear. A spreadsheet is how I look at these things. Unfortunately, you didn't offer the starting balance so I use $100K which makes it easy to scale. You build a simple spreadsheet and enter the \"\"what if\"\" scenario, this tells me that worse case, an increase of 1% on the rate each year ... |
4364 | Nanny taxes and payroll service | [
"467390",
"415345"
] | [
"For Federal Return, Schedule H and its Instructions are a great start. You are the nanny's employer, and are responsible for FICA (social security and medicare) withholding, and also paying the employer portion. You will offer her a W4 so she can tell you how much federal and state tax to withhold. You'll use Ci... |
4366 | Starting off as an investor | [
"61924"
] | [
"\"You've asked eleven different questions here. Therefore, The first thing I'd recommend is this: Don't panic. Seek answers to your questions systematically, one at a time. Search this site (and others) to see if there are answers to some of them. You're in good shape if for no other reason than you're asking t... |
4367 | What choices should I consider for investing money that I will need in two years? | [
"450228",
"104724",
"453625",
"573713",
"487817"
] | [
"Never invest money you need in the short term. As already suggested, park your money in CDs.",
"\"Books such as \"\"The Pocket Idiot's Guide to Investing in Mutual Funds\"\" claim that money market funds and CDs are the most prudent things to invest in if you need the money within 5 years. More specifically:\"",... |
4368 | Does gold's value decrease over time due to the fact that it is being continuously mined? | [
"83687",
"290252",
"536456",
"541321",
"278903",
"240211",
"578223",
"134235",
"388242"
] | [
"\"does it mean uncontrolled severe deflation/inflation is more likely to occur compared to \"\"normal\"\" currencies such as USD, EUR etc? Look at the chart referenced in the link in your question. It took approximately 50 years for annual production of gold to double from 500 tons to 1000 tons. It took approx... |
4369 | What argument(s) support the claim that long-term housing prices trend upward? | [
"252336",
"599860",
"339024"
] | [
"Several people have mentioned the obvious: inflation. But let's assume we are talking about real (inflation adjusted) prices. One argument is that populations keep rising while the land does not change. So the price of homes in desirable places gets pushed up and people move to second-best locations, pushing tho... |
4370 | Is this investment opportunity problematic? | [
"244278",
"75017",
"170194",
"289342",
"153968",
"528021",
"237197",
"451284",
"390848"
] | [
"\"It would have to be made as a \"\"gift\"\", and then the return would be a \"\"gift\"\" back to you, because you're not allowed to use a loan for a down payment. This is not to evade taxes. This is to evade a credit check. The problem is that banks don't like people to have too much debt. The bank could void ... |
4373 | How do I hedge properly against inflation and other currency risks? | [
"317429"
] | [
"I apply what you term 'money' to the word 'commodity'. And I agree with littleadv, you are just selling us your perspective on (such things as) precious metals. What I want you to think about is these truths: When used as currency gold just has two values: utility value and currency value. I hold it is better to ... |
4374 | Why does gold have value? | [
"80156",
"176869",
"470759",
"548676",
"229153",
"532381",
"74248",
"36066",
"4171",
"137444",
"446972",
"542788",
"99089"
] | [
"Gold's value starts with the fact that its supply is steady and by nature it's durable. In other words, the amount of gold traded each year (The Supply and Demand) is small relative to the existing total stock. This acting as a bit of a throttle on its value, as does the high cost of mining. Mines will have yields... |
4378 | Are forward curves useful tools for trading decisions and which informations can be gathered from them? | [
"394886",
"308289"
] | [
"As far as trading is concerned, these forward curves are the price at which you can speculate on the future value of the commodity. Basically, if you want to speculate on gold, you can either buy the physical and store it somewhere (which may have significant costs) or you can buy futures (ETFs typically hold fut... |
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