Real Estate: Buy, Sell or Hold?
May 19th 2011Some economists say the housing market isn't just diving off a 10-ft. board into a swimming pool, it may be about to plunge off a 100-ft. cliff into the ocean. Another wave of foreclosures looms, which could further drag down home values. So should you sell now, or wait to buy? Hold on.
What Egypt Says About Investing in Emerging Markets
February 10th 2011Emerging markets are known to be risky, and the situation in Egypt drives the point home. Upheaval in the Middle East demonstrates political risk, one of the major dangers of emerging markets. Another danger? Investment advisers who downplay those risks for their own interests.
The "Seven Sins" of Memory: Why Financial Crises Keep Happening
May 25th 2010Joachim Klement delves into role memory plays in why financial crises keep recurring over time in his working paper "The Flaws of Our Financial Memory." The chief investment officer of Zurich's Wellershoff & Partners Ltd., believes the problem can be traced to flaws in memory that he calls the "seven sins."
Seeking Safety for Sideline Cash
August 24th 2009A man puts his cash in the freezer wrapped in brown paper and marks it ‘beans.' The idea is that accountants are called bean counters so labeling money ‘beans’ will trigger the gentleman’s memory as to what the packages contain. This is his stash of cash. Is there a better way?
Expert Financial Advice Impairs Decision Making
August 17th 2009An Emory University study invesitgating the brain function of subjects who made monetary decisions found that when the volunteers acted alone, brain scans showed that regions of the brain consistent with decision making were less active when a financial expert offered advice, compared with no guidance.
Municipal Bonds Have Teeth: Do They Need Braces?
March 31st 2009The veneer of municipal bonds was recently cracked, though they were commonly thought to be ultra safe because of their traditionally rare defaults. Munis can have credit problems that are not appreciated, especially by the individual investor.