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Understanding Risk

Understanding Risk

Risk is the permanent loss of capital. It is not volatility, nor is it uncertainty. It is the realization of a loss. Therefore, risk ishard to understand because it is only clear with hindsight that a loss has occurred.Understanding how risk works can avoid this...
Time to Worry

Time to Worry

When Everything is Going Great, It Probably Isn’t. Gradually, Then Suddenly Things can only get better from here…said the turkey the day before Thanksgiving It might be time to start worrying about tech-stock valuations. Usually all it takes is a few overly...

Markets and Valuations

It’s the Discount Rate The current low interest rate environment increases the discounted present value of future cash flows and reduces the return demanded for every investment. In other words, when the Fed funds rate is zero, 6% bonds become disproportionately...

Portfolio Strategy

Fixed Income Strategy: I own a basket of fixed income securities that are publicly traded on the New York Stock Exchange. The securities include Ticker                          Company                                Current Yield AINV                            Apollo...