Discount Rate: Everything Must Go!

If we were to discount an investment, much like a US Treasury is sold at a discount to its face value, we would be accommodating the cost of our risks rather than discounting a good to meet our relative satisfaction. If we think about equilibrium and replace the idea of relative satisfaction with the value of risk, we can suppose that someone is willing to pay more for an investment with decreased risk, and less for an investment with increased risk.

Hey You Turkeys: The Holidays Are Here!

[video_lightbox_youtube video_id=Gm1wpNEA174 width=640 height=390 anchor=] Oreo Turkey Cookies (Explored), Photo Credit: Coopet Photography Thanksgiving is here, and if you’re planning on blaming tryptophan, the organic protein found in turkey, for your extreme Thanksgiving Day drowsiness, scientists would argue it’s all in your head!  Tryptophan’s presence is far too small to have any real effect, and rather, sheer caloric intake, booze, …

Hold On to Your Stocks! One Thing to Know About Your Investments

A widely traded stock, commodity, property, or good is priced based on its present-day prospects, near-future prospects, far-future prospects, past production, or any number of infinite indicators convincing experts of ‘value’. If gold was guaranteed to price at $3,000, it’s already there, it’s that simple. For every expert convinced that one particular indicator, say past performance, concludes a rise in gold’s price, you’ll find another expert convinced that an alternate indicator, say moving average, ensures a drop in price.