What’s to like about Closed End Funds (CEFs)?
Unlike ETFs, Closed End Funds generally have no preset process or mechanism for creation and redemption of shares. Instead, when an investor wants to buy or sell he must do so in the open market. As a result CEFs often trade at a discount to net asset value. A substantial discount can represent a favorable opportunity to invest.
Memorable Investment Adages, Axioms, Maxims, and Quotations
Buy the rumor; Sell the news… Be fearful when others are greedy and greedy when others are fearful…The trend is your friend…Buy Low; Sell High…Never confuse genius with a bull market.
What is the “Fear Index” and why should I care?
The VIX Index is a measure of market expectations for near-term stock price volatility derived from current market quotes on S&P 500 index options. The VIX is also known as the “Fear Index”. Watching the VIX allows professional portfolio managers to monitor the cost of principal-protecting a stock portfolio. As you can see in the chart […]
Asset Allocation Should be as Simple as Possible but No Simpler
A very simple, yet highly useful asset classification system consists of just two asset classes: (1) equity-growth-stocks and (2) debt-income-bonds.
The Low Risk Anomaly
Modern Portfolio Theory (MPT) is a statistical formulation of the risk reduction benefits of diversification. Under Modern Portfolio Theory, risk is measured quantitatively as volatility or beta. Volatility is the variance or standard deviation of an asset’s returns. Beta is the sensitivity of an asset’s returns to the return of the overall market. High-beta and […]
Why we love ETFs (Exchange Traded Funds)
At Successful Portfolios we consider ETFs (Exchange Traded Funds) to be one the most useful, investor friendly, financial innovations of the past twenty years. For a quick primer on ETF investing…
Duke Energy and Progress Energy Merger
Duke Energy (DUK) and Progress Energy (PGN) have announced plans for a merger that would create the largest publicly traded utility company in the U.S. Initial analyst reaction was unenthusiastic and both stocks traded modestly lower on the news. However, the expected 5.5% dividend on the new company looks attractive in comparison to alternatives and […]
Does your advisor have what it takes to help you beat the market?
Check out the new TV Ad to run on CNBC. Let us know what you think. Call us if you would like to attend a workshop.
What the heck is a “Covered Call”? And why should I care?
Selling a covered call is a powerful yet simple technique that enables you to increase the cash flow from your stock. Call options are available for trading on thousands of different stocks. The best way to learn about covered calls is to look at a specific example: Buy 100 shares of Walmart Corp. (WMT) @ […]
IRA Required Minimum Distribution (RMD)
The Financial Rules Regulatory Authority (FINRA) provides a free, easy-to-use calculator for determining the annual Required Minimum Distribution (RMD) from your Individual Retirement Arrangement (IRA). The calculator is based on life expectancy tables and Internal Revenue Service (IRS) regulations. FINRA, RMD, IRA, IRS, how is that for alphabet soup? […]
