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Investing 101 Archive

  • I will direct the Treasury to create a new way for working Americans to start their own retirement savings: MyRA. It's a new savings bond that encourages folks to build a nest egg. MyRA guarantees a decent return with no risk of losing what you put in. And if this Congress wants to help, work with me to fix an upside-down tax code that gives big tax breaks to help the wealthy save, but does little to nothing for middle-class Americans.

    President Obama, State of the Union Address, January 28, 2014

    In this installment of Investing 101, we take a deeper look into one of President Obama’s initiatives introduced at this year’s State of the Union Address, titled MyRA. Concerned that many workers across the country are not offered retirement savings plans through their employer, the White House hopes to encourage saving through the use of very low risk, modestly sized amounts to get the ball rolling.

    “It’s best to think of MyRA as training wheels for savers,” says Chip Castille, Head of the

    Read More »from Investing 101: What ‘MyRA’ means for your retirement savings
  • Never buy the dips: Hoenig

    Ask any new investor what advice he or she has gotten recently and one pearl of wisdom is sure to be "buy the dips." Well if buying dips and selling rallies is Wall Street gospel Jonathan Hoenig is a table-pounding heretic. In the latest edition of "Investing 101" the outspoken founder of CapitalistPig.com says investors are better off sticking with stocks that are working now as opposed to looking for a reversal.

    “Buying the dips in general is a bad strategy because you never know when a dip is the beginning of a prolonged downward move in a stock or market.” At Hoenig’s shop he regards dips with a visceral distaste. “Stocks are like sushi. You never want a bargain and you’d rather buy it higher than buy any stock or index on a dip.”

    Momentum investing or trading isn’t for everyone, but one of the notable advantages is that it dispenses with the misguided aphorisms surrounding so-called value investing. For everyone who claims to be a master of their emotions, capable of flawlessly

    Read More »from Never buy the dips: Hoenig

  • For this installment of Investing 101, we’ll take a look at how to spot accounting fraud. It can be found almost anywhere. In some cases, even well-known companies that are publicly traded have deceived investors using calculated dishonesty for financial gain.

    In 2008, Bernard Madoff, founder of a Wall Street investment firm, admitted that his business was an elaborate Ponzi scheme.

    Enron is another example of a huge, prominent fraud that took a multi-billion dollar company to bankruptcy in under a year.

    Identifying fraud requires being able to spot red flags, something Carson Block, founder of Muddy Waters Research, specialized in.

    Block has lately turned his attention to Chinese publicly traded companies like, NQ Mobile, criticizing delays in collecting payments from customers. He says investors can usually find warning signs in a company’s financial statements. "We might see things such as the accounts receivable just seem to be very high," Block says.

    Another one of Block's red flags

    Read More »from How to Spot Accounting Fraud Before You Invest

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(56 Stories)

ABOUT INVESTING 101

Breakout’s Investing 101 helps you gain insight on money management and trading. Whether you’re managing your own retirement account, just beginning, or an advanced investor in need of a good refresher, Investing 101 will help you learn, grow, and keep you informed of the basic steps to effectively manage your money. Expect investing tips that focus on trading strategies, asset allocation, and portfolio management.





Investing 101

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