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Stock Market Slot Machine
I strongly recommend an excellent article to you, from the Psy-Fi blog, a regular on my daily reading list. The title of the article is B.F Skinner’s Stock Market Slot Machines: Win Big, Win Rarely, Win Never. I often refer to B.F Skinner, intermittent variable reinforcement, and how the stock market creates superstitions much like those […]
Are Covered Calls Good in a Bear Market?
You’re approaching retirement and suddenly the market moves sharply lower. More than ten percent of your portfolio has disappeared over the past month and you’re concerned that the bear market could worsen over the next couple of months. You’re starting to worry that you may have to adjust your retirement income expectations if nothing changes. […]
Are Buy-Write Funds a Good Hedge Against Volatility?
There are many different ways to minimize volatility in a portfolio, including diversification into multiple asset classes, but buy-write funds have become a popular alternative for stock investors looking to reduce volatility and generate income. Most investors are concerned with two things when it comes to building a retirement portfolio, risk and return, and it’s […]
The Process of the Tender Offer
The stock market is a place where buyers and sellers congregate to trade. Usually, when you sell shares, you can just click sell and the broker will match a buyer on the other side and vice versa when you buy shares. However, there may be a special occasion where a buyer will contact you directly […]
5 Signals to Predict a Bear Market (and Why It’s So Hard)
Bear markets occur when a market index falls more than 20% from recent highs. While it would be great to predict a bear market and sell immediately before it occurs, timing the market is impossible to do consistently. In fact, that’s a huge reason why actively-managed funds tend to underperform passive funds. However, watching bear […]
Should You Trade Covered Calls Around Earnings?
Covered calls are a great strategy for investors looking to generate an income from a stock portfolio—such as retirement investors living on a fixed income. By selling the right to buy a stock that you own, you can collect option premiums and you are only required to sell if the stock hits the (higher) strike […]
Should You Sell Your Company Stock?
Many people hold an oversized chunk of their portfolios in company stock. While it may be performing well, there is a large body of research that has shown that holding a diversified portfolio of stocks outperforms concentrated stock holdings. You may be unwittingly giving up potential returns that could be compounding over time – potentially […]