Regardless of whether the bad news is company-specific,
industry-wide or concerns the overall economy, stocks may start
moving their way down a slippery slope that lasts anywhere from a
day to several months.
With the recent economic uncertainties and corresponding market
performance, brokers may have been calling their clients and
suggesting they buy put options on stocks they’ve been holding for
the long haul. This potentially provides a bit of protection
against their stocks going down.
What are “put options?” Here are some basics:
For those who are unfamiliar with put options, here’s a basic
rundown of how they work. They provide you with a way to protect
your portfolio from losses during marke…
Have you been saving money all your life for retirement? If so,
or you are in the process of doing so, beware. Have you considered
that the debt obligations of the world's leading governments will
most likely be financed by eroding the value of your savings?
According to leading economist Carmen Reinhart, this is probably
going to happen.
Economist Carmen Reinhart argued in her March 2011 academic paper,
“The Liquidation of Government Debt” The Liquidation of
that the US Government can finance its debt by placing “caps on
interest rates” and by creating a “captive domestic audience” to
invest in US Treasuries. She argues that negative real interest
rates in the face of a steady, although not necessarily extreme