Investment banking is not an exact science. At its most basic, investment banking is a balance between risk (e.g. stock crash, bank failure) and reward (e.g. return on investment, annual percentage yield). This basic understanding has led many people, anxious to find a predictable investment, to turn to bonds. They think that because a bond has a listed maturity and return that those figures are stable and dependable; however, investment banking is more complicated. Interest rates must also be accounted for.

The value of a bond will actually go down as interest rates go up. On your monthly statement, you will still see the return as promised but the actual value of the stock will go down; this rule holds true whether your own individual stocks or interest in a bond fund.

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Odds are, you’ve been getting credit card offers since you turned 18, or even earlier. The credit card industry sent out 1.1 billion offers in the second quarter of 2010 alone, more than twice as many as they did in 2009. Despite dire predictions, the industry is far from failing.So what are the best credit cards you, as a young worker or student, can get? That depends on your needs, but there are a few good options.The Discover More Card is one good choice, with a zero-percent annual percentage rate for fully 15 months – though you should always pay your monthly balance on time. Read full post…

Thomas Hoenig, president of the Federal Reserve Bank of Kansas City, in his remarks seemed critical about the current zero percent rate of the Federal Reserve (link to ). He says that it should be hiked from 0% to 1% and then moving to 2% gradually. This is needed or else it will leave a policy that will only result in financial imbalances in future. He is quoted saying “We need to get off the emergency rate of zero, move rates up slowly and deliberately.”

Recently, the Fed has decided to support the economy by maintaining the size of its balance sheet without allowing it to shrink. The Fed will do this by reinvesting into the Treasury, as well as the proceeds of its mortgage holdings. But

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Leaving home for college is an exciting time for young adults and is the time when many learn how to cook, how to manage an overly-full schedule, and how to handle bills; it is also the time to learn how to get good credit. Life is full of expenses – rent, groceries, utilities, clothes, books – the list is almost endless.

Before long, car payments become a necessity, and house payments often follow graduation. The amount that one pays for these expenses varies depending on many factors, including credit score. Having a good credit score can mean hundreds of dollars a month in savings by getting a better rate on a loan for a car or home purchase. Her

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Like most people nowadays, I’ve worked several different jobs over the course of my career. I’ve worked for some folks who were great managers and I’ve worked for some that were their own worst enemy. My first job out of college was working for an individual who built his own investment firm from the ground up. After over 30 years in business, that investment firm doesn’t even exist any more (I’ll get into that a little bit later).

It turned out that some of the traits that served him best as he built his company also led to the downfall of it. A co-worker and I discussed this very topic on occasion and after reviewing the proof we both came to the same conclusion – entrepreneurs make bad managers. The evidenc

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