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Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: What is the opposite of Economic Bubble? ### Answer: A financial panic is in my mind would be the opposite of a bubble. A bubble is irrational exuberance -- uncontrolled exhilaration. People will ign...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: What is the opposite of Economic Bubble? ### Answer: The opposite of an economic bubble is a bubble burst :p! Jokes aside though, an economic bubble occurs when the economy is in bull market mode and...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Are variable rate loans ever a good idea? ### Answer: 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) ...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Are variable rate loans ever a good idea? ### Answer: Fixed You are confirming the amount you are going t pay over the term of the loan. Variable: 3.79% over 82mo. The total difference over the life ...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Are variable rate loans ever a good idea? ### Answer: It all has to do with risk and reward. The risk is that interest rates will rise. To entice you to go with the variable, they make it so it is ch...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Are variable rate loans ever a good idea? ### Answer: It is often the case (more commonly in countries other than the USA) that a fixed-term loan has an early redemption penalty, because the lender th...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Are variable rate loans ever a good idea? ### Answer: I have an example that may be interesting for your question. My grandfather had a tennis club around 35 years ago, and some other businesses. Some...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Are variable rate loans ever a good idea? ### Answer: The earlier you are in your career, the more willing you should be to take a better opportunity even if it has a short-term financial cost. You g...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Are variable rate loans ever a good idea? ### Answer: The simple answer is absolutely. With the parameters you quote, if you will pay off the loan in 82 months or less, you will be ahead taking the v...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Are variable rate loans ever a good idea? ### Answer: Up to some degree, a higher or lower interest rate means a bit less or a bit more money in your pocket. If the interest rate gets too high, you ma...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Are variable rate loans ever a good idea? ### Answer: What's going on here is that the variable rate loan is transferring some of the risk from the bank to you. In a reasonable deal taking on risk br...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Adjusting a value for inflation each month using rolling 12-monthly inflation figures ### Answer: In the style of the Bank of England's Inflation Calculator, you can do the calculation like so. The th...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Adjusting a value for inflation each month using rolling 12-monthly inflation figures ### Answer: The actual increase in the cost of living for one month over the previous month cannot be calculated f...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Given advice “buy term insurance and invest the rest”, how should one “invest the rest”? ### Answer: Buy term and invest the rest is in fact the easiest plan. Just buy the term insurance based on you...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Given advice “buy term insurance and invest the rest”, how should one “invest the rest”? ### Answer: The simplest way is to invest in a few ETFs, depending on your tolerance for risk; assuming you're ...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Investing in USD from the Eurozone (Jan 2015) ### Answer: 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 a...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Does the currency exchange rate contain any additional information at all? ### Answer: No. An exchange rate tells you the exchange rate, that's all. Changes in exchange rates are a little more inter...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Does the currency exchange rate contain any additional information at all? ### Answer: Relative changes in rates are significant. Why? Exchange rates encourage cross-border trade. For example, I live...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Are there special exceptions to the rule that (US) capital gains taxes are owed only when the gain materializes? ### Answer: Normally, you don't pay capital gains tax until you actually realize a capi...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Are there special exceptions to the rule that (US) capital gains taxes are owed only when the gain materializes? ### Answer: In addition to the expatriation case already mentioned by Ben Miller, trade...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Are there special exceptions to the rule that (US) capital gains taxes are owed only when the gain materializes? ### Answer: This is really an extended comment on the last paragraph of @BenMiller's an...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: What should I reserve “emergency savings” for? ### Answer: 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....
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: What should I reserve “emergency savings” for? ### Answer: I think it is stated perfectly in the question, "unforeseen critical needs." You know you will need to buy new tires for your car, they are c...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: What are investment options for young married couple with no debt that have maxed out retirement savings? ### Answer: 4.7 is a pretty low rate, especially if you are deducting that from your taxes. I...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: What are investment options for young married couple with no debt that have maxed out retirement savings? ### Answer: You can't max out your retirement savings. There are vehicles that aren't tax-adva...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: What are investment options for young married couple with no debt that have maxed out retirement savings? ### Answer: Paying the mortgage down is no different than investing in a long term taxable fix...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Where do countries / national governments borrow money from? ### Answer: It's more complicated than that. Governments raise money in a number of ways. First, they tax economic activity within their ...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Where do countries / national governments borrow money from? ### Answer: Typically the debt is held by individuals, corporations and investment funds, not by other countries. In cases where substanti...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Where do countries / national governments borrow money from? ### Answer: The answers provided so far as good and informative, but I just thought I'd add one small point... There are super-national or...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Where do countries / national governments borrow money from? ### Answer: Sovereign states borrow money explicitly in a two primary ways: A sovereign cannot be compelled to repay debt, and there isn't...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Where do countries / national governments borrow money from? ### Answer: There no legal framework that allows states like the US or countries in Europe to default on their debt. Should congress pass...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Where do countries / national governments borrow money from? ### Answer: Depends on the country, whether its a currency issuer with floating exchange rate, and what the debt is denominated in. For in...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Was this a good deal on a mortgage? ### Answer: 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 yo...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Was this a good deal on a mortgage? ### Answer: I'm calculating that to about a 7% apr, which given loan rates available today seems a bit high. I wouldn't get too caught up on what that equates to ...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Was this a good deal on a mortgage? ### Answer: Some part of the payment is probably also going for tax escrow, insurance payments, probably PMI if you aren't putting at least 20% down. Get a complet...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Was this a good deal on a mortgage? ### Answer: The key question is whether this number includes taxes and insurance. When you get a mortgage in the U.S., the bank wants to be sure that you are paying...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Was this a good deal on a mortgage? ### Answer: The price of the loan may be justified if you're considered a high-risk applicant for some reason (e.g. you're putting very little money in initial paym...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Was this a good deal on a mortgage? ### Answer: I'm a visual person so the idea of a 30 year mortgage didn't make much sense to me until I could see it This isn't exact but it's pretty close. The gre...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Why would a bank take a lower all cash offer versus a higher offer via conventional lending? ### Answer: It's because financing can fall through, and then the time between offer and closing is wasted....
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Why would a bank take a lower all cash offer versus a higher offer via conventional lending? ### Answer: One other point to consider is that cash offers often include no contingencies. That is, the of...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Why would a bank take a lower all cash offer versus a higher offer via conventional lending? ### Answer: Often the counter-party has obligations with respect to timelines as well -- if your buying a h...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Why would a bank take a lower all cash offer versus a higher offer via conventional lending? ### Answer: @OP: It's all about risk. With a cash buyer the decision is left up to one person. With a fi...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Why would a bank take a lower all cash offer versus a higher offer via conventional lending? ### Answer: A bank selling a foreclosed property would negotiate a lower cash deal, I doubt it would be tha...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Why would a bank take a lower all cash offer versus a higher offer via conventional lending? ### Answer: Also keep in mind that with an all-cash offer, they get their money now and not spread over X-m...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Where can I find announcements of official GDP figures for the US and other countries? ### Answer: For press releases about economic data, the Bureau of Economic Analysis press release page is helpful...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Where can I find announcements of official GDP figures for the US and other countries? ### Answer: For immediate availability, by far the fastest (and cheapest) way to get macroeconomic figures as the...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Where can I find announcements of official GDP figures for the US and other countries? ### Answer: There are tons of data provided on the CIA - The World Factbook webpage. Among the rest, there are th...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Upward Spike in US Treasuries despite S&P Downgrade in August 2011 ### Answer: The only resources or references you need are a chart showing you what happened in those months. The exuberance for US tr...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Upward Spike in US Treasuries despite S&P Downgrade in August 2011 ### Answer: US government bonds are where money goes when the markets are turbulent and investors are fleeing from risk, and that app...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: What are the top “market conditions” to follow? ### Answer: 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 se...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: What are the top “market conditions” to follow? ### Answer: The best advice I've heard regarding market conditions is: Buy into fear, and sell into greed. That is, get in when everyone is a bear and ...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: What are the top “market conditions” to follow? ### Answer: The very term 'market conditions' is subjective and needs context. There are 'market conditions' that favor buying (such as post crash) or ...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: What are the top “market conditions” to follow? ### Answer: Check out http://garynorth.com if you have $15/month. Or at least subscribe to his free newsletters (Tip of the Week, Reality Check). Well...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Are there any catches with interest from banks? Is this interest “too good to be true”? ### Answer: The 1.09% is per year, not per month. Not too bad for a regular savings, but it's just interest rat...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Are there any catches with interest from banks? Is this interest “too good to be true”? ### Answer: Tax won't be an issue. You have a personal tax free allowance of £7475 this coming year, so your fi...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Are there any catches with interest from banks? Is this interest “too good to be true”? ### Answer: The 1.09% is per year, not per month, so you will be getting about 1K per year just for sitting aro...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Why does quantitative easing negatively affect stocks? ### Answer: Can you isolate the market impact to just the Fed's quantitative easing? Can you rule out the future economic predictions of low gro...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Why does quantitative easing negatively affect stocks? ### Answer: The stock market in general likes monetary easing. With lower interest rates and easy cheap money freely available, companies can bor...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Why would I buy a bond with a negative yield? ### Answer: It would be preferable to purchase a bond with a negative yield if the negative yield was the smallest compared to similar financial securitie...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Why would I buy a bond with a negative yield? ### Answer: Perhaps something else comes with the bond so it is a convertible security. Buffett's Negative-Interest Issues Sell Well from 2002 would be an...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Why would I buy a bond with a negative yield? ### Answer: The question in my view is going into Opinion and economics. Why would I buy a bond with a negative yield? I guess you have answered yourself;...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: How do currency markets work? What factors are behind why currencies go up or down? ### Answer: Q: How do currency markets work? A: The FX (foreign exchange) market works very much like the stock mark...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: How do currency markets work? What factors are behind why currencies go up or down? ### Answer: From my limited experience with foreign exchange... Money is a commodity.. people buy it and sell it lik...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: How do currency markets work? What factors are behind why currencies go up or down? ### Answer: The fiat currency is the basis for currency markets - that is, currency that is not made of precious met...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: How do currency markets work? What factors are behind why currencies go up or down? ### Answer: According to Soros in "The Alchemy of Finance", exchange rates fluctuations are mostly influenced by: (s...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Should I pay off my student loan before buying a house? ### Answer: Paying off your student loan before buying a house is certainly a great risk reduction move for you. It will lower your debt to inco...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Should I pay off my student loan before buying a house? ### Answer: It depends on the terms. Student loans are often very low interest loans which allow you to spread your costs of education over a lo...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Should I pay off my student loan before buying a house? ### Answer: There may be specific answers that can be determined based on the interest rates, amounts, tax provisions, etc. But I'm here to tell...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Should I pay off my student loan before buying a house? ### Answer: It might be a good idea, because later in life if a large expense shows up or an income source disappears, you will only have the mo...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Should I pay off my student loan before buying a house? ### Answer: One extremely important aspect that must be taken into consideration is the state of the housing market. If prices are rising it wil...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Should I pay off my student loan before buying a house? ### Answer: IMO student loans are junk debt that should be dealt with as soon as possible. Buying a house comes with risks and expenses (repair...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Advice on preserving wealth in a volatile economic/political country ### Answer: I suggest that you're really asking questions surrounding three topics: (1) what allocation hedges your risks but also ...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Advice on preserving wealth in a volatile economic/political country ### Answer: You might find some of the answers here helpful; the question is different, but has some similar concerns, such as a ch...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Advice on preserving wealth in a volatile economic/political country ### Answer: US Treasury securities are the safest investment. You can buy short term by buying T-Bills. You buy T-bills at a disco...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Is it true that 90% of investors lose their money? ### Answer: The game is not zero sum. When a friend and I chop down a tree, and build a house from it, the house has value, far greater than the valu...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Is it true that 90% of investors lose their money? ### Answer: For some studies on why investors make the decisions they do, check out For a more readable, though less rigorous, look at it, also cons...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Is it true that 90% of investors lose their money? ### Answer: It depends on the market that you participate in. Stock markets are not zero sum as JoeTaxpayer explained. On the other hand, any kind of...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Is it true that 90% of investors lose their money? ### Answer: Fail? What is the standard? If you include the base case of keeping your money under a mattress, then you only have to earn a $1 over you...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Is it true that 90% of investors lose their money? ### Answer: No, 90% of investors do not lose money. 90% or even larger percentage of "traders" lose money. Staying invested in stock market over the ...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Is it true that 90% of investors lose their money? ### Answer: The article "Best Stock Fund of the Decade: CGM Focus" from the Wall Street Journal in 2009 describe the highest performing mutual fund i...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Is it true that 90% of investors lose their money? ### Answer: Very likely this refers to trading/speculating on leverage, not investing. Of course, as soon as you put leverage into the equation this ...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: How to invest in the Russian oil market? ### Answer: 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...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Are you preparing for a possible dollar (USD) collapse? (How?) ### Answer: There are two basic ways you can separate your investments from the dollar (or any other currency). ###end
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Are you preparing for a possible dollar (USD) collapse? (How?) ### Answer: I am not preparing for a sudden, major, catastrophic collapse in the US dollar. I am, however, preparing for a significant bu...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Are you preparing for a possible dollar (USD) collapse? (How?) ### Answer: Depends what kind of expenses you intend to use this money for. If you plan to buy housing in the future (eg you're saving a ...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Are you preparing for a possible dollar (USD) collapse? (How?) ### Answer: I've thought of the following ways to hedge against a collapsing dollar: ###end
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Are you preparing for a possible dollar (USD) collapse? (How?) ### Answer: I recently finished reading a book that you may be interested in based on your question, The Ultimate Suburban Survivalist Gu...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Are you preparing for a possible dollar (USD) collapse? (How?) ### Answer: Invest in other currencies and assets that have "real" value. And personally I don't count gold as something of real value. O...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Are you preparing for a possible dollar (USD) collapse? (How?) ### Answer: I'd like to provide ideas other than gold, stocks, property, bonds on how to prepare for a severe crisis. My suggestions belo...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Are you preparing for a possible dollar (USD) collapse? (How?) ### Answer: Buying gold, silver, palladium, copper and platinum. The first two I am thinking about new currencies. The last three for the...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Are you preparing for a possible dollar (USD) collapse? (How?) ### Answer: The collapse of the US economic system is one of the many things I am preparing for. To answer the how, me personally I am do...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Are you preparing for a possible dollar (USD) collapse? (How?) ### Answer: I think it's apt to remind that there's no shortcuts, if someone thinks about doing FX fx: - negative sum game (big spread o...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: What should a 21 year old do with £60,000 ($91,356 USD) inheritance? ### Answer: What a lovely position to find yourself in! There's a lot of doors open to you now that may not have opened naturally f...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: What should a 21 year old do with £60,000 ($91,356 USD) inheritance? ### Answer: Myself I am in a similar position. I've had a few good conversations about this with people in the financial services i...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: What should a 21 year old do with £60,000 ($91,356 USD) inheritance? ### Answer: It's important to consider your Investor Profile when deciding the right kind of vehicle for your finances. You are a y...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: What should a 21 year old do with £60,000 ($91,356 USD) inheritance? ### Answer: Depending on where you live in the UK, buying a house sooner might be a better option. I would echo the advice about pu...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: What should a 21 year old do with £60,000 ($91,356 USD) inheritance? ### Answer: The above answers are great. I would only add to the "rainy day" part, that even though the cash provides a good cushio...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: What should a 21 year old do with £60,000 ($91,356 USD) inheritance? ### Answer: I assume you've no debt - if you do then pay that off. I'd be tempted to put the money into property. If you look at p...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Should I get a personal loan to pay on my mortgage to go “above water” to qualify for a refinance? ### Answer: It depends on how long it will take you to pay off the personal loan, the rate for the pe...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Should I get a personal loan to pay on my mortgage to go “above water” to qualify for a refinance? ### Answer: Let's say you owe $200K (since you didn't mention balance. If you do, I'd edit my respons...