The biggest news in the financial markets yesterday was Deutsche Bank. The shares of DB have fallen more than 7% since yesterday. This month alone, the share prices have plummeted more than 30%. However, the Dow was pretty resilient to the news and merely dropped 1%. It seems that people don’t think Deutsche Bank will… Continue reading How Deutsche Bank Crisis Could Affect Your Investment – Part I
Month: September 2016
Phasing out SPG by 2018
Based on Marriott’s response, SPG members and American Express SPG cardholders are going to be very disappointed. For now, Marriott plans to continue operating both programs at least through the next two years, before eventually phasing out SPG. The key phrase is “phasing out SPG.” SPG is linked to American Express. By phasing out SPG… Continue reading Phasing out SPG by 2018
How to Start Investing with Little Money
After I graduated from the college and landed my first full-time job, I realized how important investing was. I needed money for retirement, emergency funds, vacation money, and so on and so forth. For my retirement, starting the 401K at work was simple. I simply invested the maximum amount that the company would match 100%.… Continue reading How to Start Investing with Little Money
Build a Portfolio with Dividend-Paying Stocks and Covered Calls to Maximize Returns – Part 2
Benefits of Covered Call Writing Covered calls writing generates returns in three ways: The call writer collects the premium up front. The covered call writer earns any dividends paid on the call-covered stock. The call writer may realize the gain when the underlying stock price goes up. For example, AT&T is trading at $35. The… Continue reading Build a Portfolio with Dividend-Paying Stocks and Covered Calls to Maximize Returns – Part 2
Build a Portfolio with Dividend-Paying Stocks and Covered Calls to Maximize Returns – Part 1
Dividend Stocks Stock dividends are a great way to increase earnings in a low interest rate environment. Combined with the covered call writing strategy, we can increase our returns on investment and minimize the downside risks at the same time. If you don’t need the income from dividends now, you can opt in to take part… Continue reading Build a Portfolio with Dividend-Paying Stocks and Covered Calls to Maximize Returns – Part 1
Investing in Bonds Can Be Very Profitable Too – Part 2
In Part 1, we discussed the benefits of the buy and hold strategy. Its long term goal to seek steady income and capital preservation. In part 2, we are going to look into the bond investment from an opposite perspective – Maximizing returns, capital growth and interest income. This situation arises when buying a bond… Continue reading Investing in Bonds Can Be Very Profitable Too – Part 2
Investing in Bonds Can Be Very Profitable Too – Part 1
Buying bonds or mutual bond funds has typically lower risks than investing in stocks. The length of time and risk tolerance help guide the strategy we can employ to achieve the financial goals. The investor who is close to retirement or is already retired may seek for steady income after retirement and capital preservation. The… Continue reading Investing in Bonds Can Be Very Profitable Too – Part 1