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Daily Archives: August 6, 2011

Assets Segregate Liabilities Accumulate

August 6, 2011
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Assets Segregate Liabilities Accumulate

Now for this week’s Contrary Opinion Button. Remember, you can always view all of the buttons by clicking here. Assets Segregate Liabilities Accumulate Many people learned the second part of this the hard way in 2007 and the years that followed when the over-leveraged U.S. housing market collapsed, dragging the developed world into a global recession. As to the first part, it’s been expressed in more common language as “A fool and his money are soon parted.” (We sometimes wonder how a fool and his money get together in the first place.)

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Don’t Fall in Love with Your Stocks

August 6, 2011
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Imagine yourself in the following position: You buy a stock you’ve researched and feel excited about. The company has a new product or service, and as soon as you buy the stock, the price heads higher … and higher … and higher! There might be a shakeout or two that you’re able to sit through, but after a few months, you’re sitting on huge gains. At this point, it’s only natural to feel affection toward the stock. After all, it’s done everything you’ve asked it to do, and all the news is good, pointing to even higher gains. It...

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