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Investing

Answers to Frequently Asked Investing Questions

August 25, 2008
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We spend a lot of time each week answering questions from our readers and some of them come up so often that I wanted to share them with everyone. So each day this week, I’ll be posting a frequently asked investing question, and of course, the answer. Here goes … Question: Do you believe this bear market has any chance of being like 2000-2002?  If not, why not? Answer: I joined Cabot in June 1999, and since then, I’ve seen a dramatic bubble, a tremendous decline, a multi-year recovery, and lastly, the current bear market. So I know that...

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Obama’s Dueling Views on the Economy

August 25, 2008
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This weekend, The New York Times Magazine featured a story about Senator Barack Obama’s dueling views on the economy. The article discusses how he would reconcile his belief in the free market with his desire for a more equal distribution of wealth if he is elected in November. A huge part of this would be determined by how much Obama is influenced by the last 25 years of presidential policies on the economy. From Ronald Reagan’s call for lower taxes and a smaller government to George H. W. Bush’s famous line, “No new taxes,” (which incidentally came back to...

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Short Stocks During Bear Markets?

August 21, 2008
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I recently got asked a question that comes up often and I wanted to share it (and the answer) with you. Question: Why don’t you short stocks in your newsletters?  Seems like it would be a good way to make some money during bear markets. Answer: We have nothing against shorting, but most investors don’t realize that making money on the short side is MUCH more difficult than making money on the long side. Why?  Because fear is a more intense emotion than greed; when a stock declines, it happens quicker than when it rises.  And that means your...

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It’s a Finance Fiesta

August 21, 2008
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Good morning! Two of our posts have been re-published over at the Finance Fiesta blog carnival, along with some other interesting finance-related articles. Enjoy!

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Pinching Pennies

August 19, 2008
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The Festival of Frugality is up today (you’ll notice one of our posts there) and it contains a lot of great information from around the Web about budgeting and saving money.

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