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http://www.theccchronicle.com/category/helpful-advice/
Peggy Doviak
Thursday, July 15, 2010
"Staying Cool"
Wednesday, July 14, 2010
Funny Video
Check out this YouTube video on how the stock market won't go to zero! Created by a CFP(r) practitioner, it's got some great advice.
http://www.youtube.com/watch?v=C3GtxtWSZxE
Be prosperous!
Peggy
http://www.youtube.com/watch?v=C3GtxtWSZxE
Be prosperous!
Peggy
Tuesday, July 13, 2010
Greece is the Word
First, I want to apologize for my complete failure at providing 365 posts this year! The good news is I finished the second half of my capstone, and barring any need for revisions, am also finished with my Masters in Financial Analysis degree! Hooray!!!
Second, I want to take a couple of columns and discuss what's been going on in the markets of late. I think we have had a lot of simultaneous events that have spooked people (but the end of the story is I think things will be all right). Now, I don't usually prognosticate market movements in writing, so PLEASE be aware that this is just my opinion, and I'm probably wrong. This isn't investment advice, so you can't get mad if this doesn't work. : )
First, the sovereign debt crisis in southern and southeast Europe (specifically Greece, Spain, Portugal, etc.) has caused great panic that entire systems are about to fail again. It's sort of like worrying that one of our states might go bankrupt, and then what would happen? Basically, Greece announced that owed too much money and didn't know how to pay it back. Over the next six weeks, other European countries (mostly Germany) loaned money, and Greece went on an austerity program that led to rioting in the streets but more stability in the financial markets.
Nevertheless, as this story broke in early May, the markets began to roil and even today, some commentators are quick to say we are about to return to 2008's decline. I would like to give you one sign that suggests to me that we are not. LIBOR is the rate at which banks loan money to each other, typically overnight. Usually, it is an incredibly low rate of interest because banks trust each other. However, in 2008 LIBOR rates went through the roof. Banks didn't trust each other enough to want to lend each other money, even for a day. I believe that if the debt crisis in Europe was really the beginning of a massive credit crisis, we would see LIBOR rates spiking again. Instead, LIBOR declined during the month of June.
Certainly, we're not out of the woods yet, but I don't think it's time to panic either.
Be Prosperous!
Peggy
Second, I want to take a couple of columns and discuss what's been going on in the markets of late. I think we have had a lot of simultaneous events that have spooked people (but the end of the story is I think things will be all right). Now, I don't usually prognosticate market movements in writing, so PLEASE be aware that this is just my opinion, and I'm probably wrong. This isn't investment advice, so you can't get mad if this doesn't work. : )
First, the sovereign debt crisis in southern and southeast Europe (specifically Greece, Spain, Portugal, etc.) has caused great panic that entire systems are about to fail again. It's sort of like worrying that one of our states might go bankrupt, and then what would happen? Basically, Greece announced that owed too much money and didn't know how to pay it back. Over the next six weeks, other European countries (mostly Germany) loaned money, and Greece went on an austerity program that led to rioting in the streets but more stability in the financial markets.
Nevertheless, as this story broke in early May, the markets began to roil and even today, some commentators are quick to say we are about to return to 2008's decline. I would like to give you one sign that suggests to me that we are not. LIBOR is the rate at which banks loan money to each other, typically overnight. Usually, it is an incredibly low rate of interest because banks trust each other. However, in 2008 LIBOR rates went through the roof. Banks didn't trust each other enough to want to lend each other money, even for a day. I believe that if the debt crisis in Europe was really the beginning of a massive credit crisis, we would see LIBOR rates spiking again. Instead, LIBOR declined during the month of June.
Certainly, we're not out of the woods yet, but I don't think it's time to panic either.
Be Prosperous!
Peggy
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