2010 April | The Market Capitalist

Part 2 – Increasing interest rates & how to best position your portfolio

Published on April 28, 2010 by Dominico Johnston in Dividends, Interest Rates, Investing, Risk, Strategy, Valuation

Increasing interest rates & how to best position your portfolio. If the Fed increased short-term borrowing rates, what borrowing rates will be hit hardest? You guessed it, short-term rates. Therefore, stay away from companies that are heavily burdened by short-term debt. Companies that rely heavily on short-term debt will be the most adversely impacted by a rate increase. This will impact their profitability and impede their ability to maintain operations and pursue future growth opportunities.

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Benefits & Dangers – Investment Message Boards

Published on April 25, 2010 by Dominico Johnston in Investing

Online Message Boards This is a pretty light topic, but one worth discussing, since online message boards tend to be filled with misinformation (Have you looked at the Yahoo! Finance individual stock message boards?). Yet, through all of the garbage, a few good message boards do exist and can be very helpful to you as an investor. The video primarily discusses Yahoo!’s boards, but the discussion could apply to any finance site that has open

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Part 1 – Increasing interest rates & how to best position your portfolio

Published on April 21, 2010 by Dominico Johnston in Interest Rates, Investing, Risk, Stock Ownership, Strategy

Increasing interest rates & how to best position your portfolio Many investors foresee an increase in the Fed’s short-term borrowing rate as a negative force against rising stock prices. Increasing interest rates increase the reward investors receive from “risk-free” investments and therefore cause risk to be more expensive (figuratively speaking). Dividend paying stocks have been noted as a tool to help position your portfolio against adverse effects the an increase in interest rates could have

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Successful Investing by Anticipating Future Trends

Published on April 20, 2010 by Dominico Johnston in Investing, Strategy

Anticipating Future Trends & Successful Investing Example – The coming arrival of electric cars A more mainstream offering of electric cars is expected to come on-line within the next 1 – 2 years. This could be the start of a future trend. Being on the front lines as an investor at the start of a trend can prove to be very lucrative. Let’s assume electric cars end up being a hot selling item on the

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The best of both worlds – Dividend paying growth stocks

Published on April 18, 2010 by Dominico Johnston in Dividends, Investing, Stock Ownership, Strategy

Dividend Paying Growth Stocks These stocks enable investors to earn return on investment (ROI) through regular dividend distributions and significant share price appreciation. This allows investors to capture the two main areas where ROI can be gained through investing in a stock. For a stock/company to offer such an opportunity to an investor it must be able to support company growth with less than 100% of its earnings. For a dividend to continually be paid,

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How much of a bonus should you expect from taking on more risk?

Published on April 15, 2010 by Dominico Johnston in Interest Rates, Investing, Ratios, Risk, Stock Ownership, Strategy

CAPM – Capital Asset Pricing Model CAPM claims that the expected return on a security (stock, fund…) is the risk free rate of money plus the investment’s risk premium. CAPM = Risk Free Rate + Beta*(Expected Market Return – Risk Free Rate) Risk Free Rate – Typically the going rate on a Treasury Bill is used…The idea here is that there is a time value of money. Simply by saving you will earn X%. Expected

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Strategy & Investment Goals – Beyond Retirement

Published on April 10, 2010 by Dominico Johnston in Investing, Retirement, Strategy

Beyond Retirement – Identifying your Investment Goals and Developing a Strategy to reach those goals. Retirement is not the only major financial event that will impact our lives. Many goals in your life hinge on having the right amount of financial capital to ensure these goals are accomplished….home, car, business, child’s education… Consider what your goals are in life and how your finances impact the ability to realize these goals. What funds will you need?

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Maximizing Return & Minimizing Taxes

Published on April 6, 2010 by Dominico Johnston in Dividends, Investing, Strategy, Taxes

Maximizing Return & Minimizing Taxes If you have an account that is not protected from taxes (not a retirement account), then you need to factor in a defensive tax strategy when investing. You only need to remember a few simple facts and concepts Frequent trading – This will cause you to be subject to a higher tax rate on any profits you realize. Dividend paying stocks – Each time you receive a dividend you

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