tag:blogger.com,1999:blog-58156669499231087992012-02-13T08:08:00.592-08:00webchttp://www.blogger.com/profile/16134243770304968297noreply@blogger.comBlogger19761100tag:blogger.com,1999:blog-5815666949923108799.post-60385571923930458312012-02-13T08:08:00.000-08:002012-02-13T08:08:00.596-08:00

Enjoy this Friday's edition of, "Features".1. Guantanamo detainees have rights, court rules.2. Refinery oil premiums cast doubt on role of speculators.3. Real interest rates are negative in most Asian nations.4. Marc Faber feels most asset classes are currently overvalued.5. Andrew Smith, of Aberdeen Property Investors, discusses the UK property market with FT's "View from the Markets".6.

webchttp://www.blogger.com/profile/16134243770304968297noreply@blogger.com0tag:blogger.com,1999:blog-5815666949923108799.post-15344628740558386712012-02-13T07:51:00.000-08:002012-02-13T07:51:00.444-08:00

A while back I came across a pretty good website for those of you who are looking to break into the Investment Banking field - Mergers and Inquisitions. Here's their "about" section:Mergers & Inquisitions was launched after the author realized the web lacked good, free resources on investment banking, finance jobs and career advice in general for college students and recent graduates. Most

webchttp://www.blogger.com/profile/16134243770304968297noreply@blogger.com0tag:blogger.com,1999:blog-5815666949923108799.post-65021485178944352652012-02-13T07:44:00.000-08:002012-02-13T07:44:00.406-08:00

Will the U.S. subprime mortgage lending debacle go down in financial history alongside such notorious washouts as the 1990 junk bond fiasco?This is the question I asked myself recently while reading through some old articles that detailed the speculative excesses of the high-yield investment markets of the 1980s and early 1990s.This was a period in which leading investment banks were riding high

webchttp://www.blogger.com/profile/16134243770304968297noreply@blogger.com0tag:blogger.com,1999:blog-5815666949923108799.post-1136656471688054672012-02-12T12:39:00.000-08:002012-02-12T12:39:00.058-08:00

I just handed in grades for one of my classes. Not 20 minutes later, I got an email from a student asking why I couldn't give her a "B" because she "tried really hard and worked harder than most of the class". She's let me know repeatedly that she "really needs a "B". I considered sending her this cartoon:But that would be wrong. Funny, maybe. Satisfying, definitely. But definitely

webchttp://www.blogger.com/profile/16134243770304968297noreply@blogger.com0tag:blogger.com,1999:blog-5815666949923108799.post-135071183601808372012-02-12T09:19:00.000-08:002012-02-12T09:19:00.201-08:00

EconTalk recently interviewed Barron's economic editor, Gene Epstein, for a podcast entitled, "Gene Epstein on Gold, the Fed, and Money". In this interview, Epstein argues in favor of a gold standard money system and privately issued currency. He feels this sound money system would lead to greater price stability and help reduce the impact of economic recessions. If you are a Barron's reader,

webchttp://www.blogger.com/profile/16134243770304968297noreply@blogger.com0tag:blogger.com,1999:blog-5815666949923108799.post-2720078990864761482012-02-11T09:58:00.000-08:002012-02-11T09:58:00.428-08:00

We're taking a deeper look at market valuations today, and helping us in that task are a few articles taken from the most recent Big Picture "linkfest". Thanks to Barry for posting and drawing our attention to them.The first item we'll highlight is a Wall Street Journal article entitled, "Wealth Hazard: Guessing Low on Profit Growth".In this piece, Justin Lahart takes a look at the earnings

webchttp://www.blogger.com/profile/16134243770304968297noreply@blogger.com0tag:blogger.com,1999:blog-5815666949923108799.post-57907066606580088532012-02-10T17:24:00.000-08:002012-02-10T17:24:00.852-08:00

Created by OnePlusYouClick on the image to check your blog out.

webchttp://www.blogger.com/profile/16134243770304968297noreply@blogger.com0tag:blogger.com,1999:blog-5815666949923108799.post-71612880984032388192012-02-10T09:24:00.000-08:002012-02-10T09:24:00.033-08:00

Gazprom's prediction of $250 oil came right on time for today's post topic: the factors behind behind steadily rising oil prices. Last month, as oil moved up to $120 a barrel, we offered a wrap-up (with help from Jim Rogers, Bill Powers, and Matthew Simmons) of some of the factors fueling the nine-year uptrend in oil prices. Now that volatility in the crude oil market is increasing, with large

webchttp://www.blogger.com/profile/16134243770304968297noreply@blogger.com0tag:blogger.com,1999:blog-5815666949923108799.post-81648571432158143572012-02-10T09:15:00.000-08:002012-02-10T09:15:01.073-08:00

We're off to a neighboring state to visit my mother for Mother's day. It'll be the first time my side of the family gets to see the Unknown Baby Boy in person.As for the rest of my life, I have a final exam to write for Tuesday, followed by an executive education class on Wednesday, a Faculty retreat on Thursday, and a trip to Six Flags in Lake George over the weekend (Unknown Older Son is a big

webchttp://www.blogger.com/profile/16134243770304968297noreply@blogger.com0tag:blogger.com,1999:blog-5815666949923108799.post-68193411964177960552012-02-09T09:41:00.000-08:002012-02-09T09:41:00.336-08:00

Some recent stories and business features of note for your Monday reading:1. Lehman Brothers reports its first loss as a public company and outlines its plan to raise up to $6 billion in common and preferred stock.2. As prices surge, Argentines cry foul over the official figures - FT. "As food and fuel costs rise relentlessly, popular and official perceptions of inflation are diverging in many

webchttp://www.blogger.com/profile/16134243770304968297noreply@blogger.com0tag:blogger.com,1999:blog-5815666949923108799.post-83692838439447766452012-02-09T07:59:00.000-08:002012-02-09T07:59:00.222-08:00

Esquire just put up a great collections of things every guy should know. There's a lot of good stuff -- some of it pretty old-school, but still spot on. Here are a few of my favorites:give advice that matters in one sentence (#1)show respect without being a suck-up (#12)throw a punch (#13)approach a woman out of his league (#19)be loyal (#23)jump-start a car (without drama) (#35)step into a

webchttp://www.blogger.com/profile/16134243770304968297noreply@blogger.com0tag:blogger.com,1999:blog-5815666949923108799.post-77161785693578371282012-02-08T08:56:00.000-08:002012-02-08T08:56:00.356-08:00

I recently came across this site called Global Derivatives. They've got some resources that students (and faculty) might find useful: a number of excellent spreadsheet models here and a good set of definitions here.There's other stuff on the site you might also find useful or interesting. Check it out.

webchttp://www.blogger.com/profile/16134243770304968297noreply@blogger.com0tag:blogger.com,1999:blog-5815666949923108799.post-37939056739227440262012-02-08T08:14:00.000-08:002012-02-08T08:14:00.531-08:00

Lots to talk about in this Friday's edition of "Features of the week", especially in the subjects of oil, ethanol, and energy use. Plus, plenty of news besides, so kick back and enjoy.1. "Another Inconvenient Truth". Puru Saxena feels global production declines in crude oil will result in significantly higher prices and the possibility of shortages and rationing.2. Meanwhile, George Friedman of

webchttp://www.blogger.com/profile/16134243770304968297noreply@blogger.com0tag:blogger.com,1999:blog-5815666949923108799.post-61019504963627454182012-02-08T08:11:00.000-08:002012-02-08T08:11:00.816-08:00

Can your teach people how to think more creatively (or effectively)? Ed Boyden, assistant professor at MIT thinks he can:When I applied for my faculty job at the MIT Media Lab, I had to write a teaching statement. One of the things I proposed was to teach a class called "How to Think," which would focus on how to be creative, thoughtful, and powerful in a world where problems are

webchttp://www.blogger.com/profile/16134243770304968297noreply@blogger.com0tag:blogger.com,1999:blog-5815666949923108799.post-12453820008346844162012-02-08T07:51:00.000-08:002012-02-08T07:51:01.009-08:00

Once again, Scott Adams nails it.

webchttp://www.blogger.com/profile/16134243770304968297noreply@blogger.com0tag:blogger.com,1999:blog-5815666949923108799.post-73569992599575835182012-02-08T07:41:00.000-08:002012-02-08T07:41:00.246-08:00

I'm in the midst of giving my Advanced Corporate Finance class their final. Since it's open-book/ open-notes, monitoring costs are almost zero (I just have to check for occasional peeking at others' papers). So, in the next three hours, I get to grade my other final exam, do some reviewing for CFA, and empty out my cache of unblogged items.All hail the open-book exam. Of course, the cost is

webchttp://www.blogger.com/profile/16134243770304968297noreply@blogger.com0tag:blogger.com,1999:blog-5815666949923108799.post-85708586750292544032012-02-07T07:17:00.000-08:002012-02-07T07:17:14.323-08:00

I thought I'd put a few impressions of the EFA conference from this past week. While pretty short, it was a very good time: catching up with old friends, making some new ones, getting a lot of work done, and SLEEEEEP!Because of all the other stuff going on in the Unknown Household, I was only able to get away for a day, so I took an early Friday flight to Baltimore, followed by the train to

webchttp://www.blogger.com/profile/16134243770304968297noreply@blogger.com0tag:blogger.com,1999:blog-5815666949923108799.post-32474103316822808102012-02-07T07:16:00.000-08:002012-02-07T07:16:00.443-08:00

The day is still young, but I don't know if I'll manage to come across anything so objectionable as the following piece before it's through.FT.com is hosting a Q&A with Andrew Keen, author of a new book entitled, The Cult of the Amateur: How Today's Internet is Killing Our Culture and Assaulting Our Economy (UK title).An intro to the Q&A debate contains the following information:Mr Keen does not

webchttp://www.blogger.com/profile/16134243770304968297noreply@blogger.com0tag:blogger.com,1999:blog-5815666949923108799.post-17303348500470152662012-02-06T21:02:00.000-08:002012-02-06T21:02:00.732-08:00

We're winding down the semester at Unknown University (only one exam to go, and I'm done). So, I was looking ahead to next semester (hey - I was on the train, and had little better to do for an hour and a half), and I realized that it will be the most interesting and varied teaching load I've ever had. Here's the lineup:Fixed Income: This is a new prep for me. It's an overview of the Fixed

webchttp://www.blogger.com/profile/16134243770304968297noreply@blogger.com0tag:blogger.com,1999:blog-5815666949923108799.post-68130988744607679682012-02-06T07:26:00.000-08:002012-02-06T07:26:00.261-08:00

The financials seem to be the prevailing theme in this Friday's, "Features of the week". But Lehman, BKX, and Ambac aren't the only items we have in store for you; there's lots more to see and hear. Read on!1. Lehman Brothers may raise $5 billion in capital in an effort to de-lever the balance sheet. The bank had been seen as a sale target earlier in the week. For more, see: "Making sense of

webchttp://www.blogger.com/profile/16134243770304968297noreply@blogger.com0tag:blogger.com,1999:blog-5815666949923108799.post-51222097529526238552012-02-06T07:00:00.000-08:002012-02-06T07:00:08.849-08:00

Economist Paul Kasriel takes on the topics of savings and investment and the idea that America is sitting comfortably atop a golden nest egg in, "Gene Epstein's Great American Savings (sic) Myth".Here's an excerpt:In the cover article of the May 28 edition of Barron’s (see The Great American Savings Myth) Gene Epstein, Barron’s economics editor, argues that household saving is being

webchttp://www.blogger.com/profile/16134243770304968297noreply@blogger.com0tag:blogger.com,1999:blog-5815666949923108799.post-987772283070424052012-02-06T06:06:00.000-08:002012-02-06T06:06:00.948-08:00

One of the hot stories this last week was that the Obama Administration had supposedly pressured and/or threatened hedge fund managers who held Chrysler debt.ABC News reports:Thomas Lauria, Global Practice Head of the Financial Restructuring and Insolvency Group at White & Case, told ABC News that [White House financial adviser Steven] Rattner suggested to an official of the boutique investment

webchttp://www.blogger.com/profile/16134243770304968297noreply@blogger.com0tag:blogger.com,1999:blog-5815666949923108799.post-65929942472676903302012-02-06T05:03:00.000-08:002012-02-06T05:03:00.807-08:00

Earnings and cash flows are two of the recurring themes in my classes (Securities analysis, corporate finance, and my student-managed fund). But, unfortunately, there are multiple "flavors" of each. For earnings (profits), there's gross, operating, and net, and for cash flows , there's free cash flow to equity (or to the firm), cash from operations, free cash flow from operations, and (for

webchttp://www.blogger.com/profile/16134243770304968297noreply@blogger.com0tag:blogger.com,1999:blog-5815666949923108799.post-90601187059302575782012-02-05T11:12:00.000-08:002012-02-05T11:12:00.191-08:00

Speaking of Jim Rogers (see previous post), I thought I'd include this excellent video featuring the famed "adventure capitalist" that I found last night on the Dutch VPRO site, host to the fascinating Riverside Conversations series. In, "De Calculerende Cowboy" ( "The Calculating Cowboy", if my web translation is correct), Rogers takes us on a tour of his stops through Europe and dispenses his

webchttp://www.blogger.com/profile/16134243770304968297noreply@blogger.com0tag:blogger.com,1999:blog-5815666949923108799.post-16189753244087347452012-02-05T09:59:00.000-08:002012-02-05T09:59:00.110-08:00

I just wanted to follow up briefly on a post made over the weekend concerning protests and violence at the latest G8 summit in Germany.We talked a bit about the emotions stirred up by the world's "globalization" agenda, and reactions to such policies worldwide. I thought I'd add a bit to that discussion here with something I read last night in a 2002 essay by investor Jim Rogers.Here's what Jim

webchttp://www.blogger.com/profile/16134243770304968297noreply@blogger.com0tag:blogger.com,1999:blog-5815666949923108799.post-5217053487121316402012-02-05T09:45:00.000-08:002012-02-05T09:45:00.718-08:00

I'm working on a project with my students, and need a list of the tickers of ALL publicly traded stocks. Does anyone out there have such a list (or know who does)?

webchttp://www.blogger.com/profile/16134243770304968297noreply@blogger.com0tag:blogger.com,1999:blog-5815666949923108799.post-63415547111150228802012-02-05T09:23:00.000-08:002012-02-05T09:23:00.768-08:00

White House aide Lewis "Scooter" Libby has been found guilty of perjury and obstruction of justice and sentenced to 30 months in prison for his efforts in stifling a CIA leak investigation.More from BBC News: A US judge has sentenced former key White House official Lewis "Scooter" Libby to 30 months in prison. Libby was found guilty of obstruction of justice and perjury in March over the

webchttp://www.blogger.com/profile/16134243770304968297noreply@blogger.com0tag:blogger.com,1999:blog-5815666949923108799.post-40014053187316986842012-02-05T06:21:00.000-08:002012-02-05T06:21:00.211-08:00

Here's a great piece in today's Wall Street Journal (off the Opinionjournal.com site, so it's free). Often it seems as though American higher education exists only to provide gag material for the outside world. The latest spectacle is an Ivy League professor threatening to sue her students because, she claims, their "anti-intellectualism" violated her civil rights. Priya Venkatesan taught

webchttp://www.blogger.com/profile/16134243770304968297noreply@blogger.com0tag:blogger.com,1999:blog-5815666949923108799.post-26067504563629398752012-02-04T09:28:00.000-08:002012-02-04T09:28:00.363-08:00

We looked back at the rise of Middle Eastern oil and imagined what lies ahead for the oil industry in Monday's post, "Oil: history and future". Today, we'll extend the conversation beyond oil and take a quick look into our energy future. What will the future of our energy use look like? Will oil and hydrocarbon energy continue to be plentiful, or will we require increased efficiencies and output

webchttp://www.blogger.com/profile/16134243770304968297noreply@blogger.com0tag:blogger.com,1999:blog-5815666949923108799.post-10059688570535111442012-02-04T08:41:00.000-08:002012-02-04T08:41:00.750-08:00

The Bear Mountain Bull tips us to a rather interesting Minyanville article that outlines the differences between the much-watched US Dollar Index and the Fed's trade-weighted dollar index.Why does it matter which index you use? Because every picture tells a story (don't it), and these pictures each tell a different tale about the present and future course of the US dollar.As Minyanville's Lance

webchttp://www.blogger.com/profile/16134243770304968297noreply@blogger.com0tag:blogger.com,1999:blog-5815666949923108799.post-51889586073300579512012-02-04T05:17:00.000-08:002012-02-04T05:17:00.213-08:00

I recently started reading Goldstein, Martin, and Cialdini's "Yes!: 50 Scientifically Proven Ways to Be Persuasive." It could easily be described as "Freakonomics for Social Psychology". It's a fun, easy, and very informative read, with each chapter only about 1500-2000 words long, and highlighting one persuasion technique. So, you can knock out a chapter in 10 minutes or so.It's a very

webchttp://www.blogger.com/profile/16134243770304968297noreply@blogger.com0tag:blogger.com,1999:blog-5815666949923108799.post-80804052291088003812012-02-03T17:25:00.000-08:002012-02-03T17:25:00.479-08:00

I just heard from a coauthor - we got a paper accepted at the Denver FMA meeting in October. The idea resulted from taking an idea we'd been working on and applying it to another data set we had available. It's funny - we submitted two papers: this one was an early version, and the other was pretty much finished. However, to be fair, the results on this one were more interesting. And since

webchttp://www.blogger.com/profile/16134243770304968297noreply@blogger.com0tag:blogger.com,1999:blog-5815666949923108799.post-64827501911457696572012-02-03T08:57:00.000-08:002012-02-03T08:57:00.770-08:00

"G8 riots erupt in Germany". This headline story is taken from the FT.com weekend edition.Demonstrations against globalization have provided a near constant backdrop to world business and trade organization summits in recent years. It's still hard for me to understand what to make of all of this. Having never witnessed one of these stand-offs close up, I'm left with impressions gained through

webchttp://www.blogger.com/profile/16134243770304968297noreply@blogger.com0tag:blogger.com,1999:blog-5815666949923108799.post-28853830324172386522012-02-03T03:28:00.000-08:002012-02-03T03:28:00.204-08:00

There's a new journal out geared towards undergraduate research. It's called (appropriately), The Journal of Undergraduate Research In Finance. Here's it's description:The Journal of Undergraduate Research in Finance publishes original work written exclusively by undergraduates. Accepted articles are largely the result of the highest quality senior or honors theses. Articles come from all

webchttp://www.blogger.com/profile/16134243770304968297noreply@blogger.com0tag:blogger.com,1999:blog-5815666949923108799.post-29930391704460956562012-02-02T07:45:00.000-08:002012-02-02T07:45:00.191-08:00

We have two rather unique articles on the subject of oil to share with you today. If you have any interest in the past and future of the oil and energy industries, I think you'll find these articles very worthwhile.Our first piece is a brief historical background on the rise of the Middle Eastern oil industry. Taken from Sunday's edition of the Chicago Tribune, this article was written by Tom

webchttp://www.blogger.com/profile/16134243770304968297noreply@blogger.com0tag:blogger.com,1999:blog-5815666949923108799.post-45789420441389082962012-02-01T08:03:00.000-08:002012-02-01T08:03:00.348-08:00

Welcome to our "features of the week", where we highlight some of the most interesting news stories and web features around. Grab a seat and enjoy!1. Let's have a sit down: "Bancrofts to discuss Dow Jones offer with News Corp".2. USA Today reports that government accounting rules are hiding trillions in liabilities.3. FT.com on the pros and cons of "Business oriented venture philanthropists".4.

webchttp://www.blogger.com/profile/16134243770304968297noreply@blogger.com0tag:blogger.com,1999:blog-5815666949923108799.post-67136517648239183172012-02-01T04:59:00.000-08:002012-02-01T04:59:00.310-08:00

I think it's good practice to mention new blogs of note -- I got some mention by established bloggers early on, and it helped a lot. So, I try pass the favor along and mention new blogs as I come across them - particularly when they're finance or academic in nature.In this case, here's one that's both: Finance Clippings, run by Richard Warr, a finance professor at North Carolina State

webchttp://www.blogger.com/profile/16134243770304968297noreply@blogger.com0tag:blogger.com,1999:blog-5815666949923108799.post-76548214428423011472012-01-30T07:01:00.000-08:002012-01-30T07:01:00.619-08:00

Classical mean-variance portfolio theory assumes that investors are risk-averse. Here's a paper that examines the "volatility risk" premium using options data, titled "The Price of Market Voilatility Risk", by Jefferson Duarte and Christopher Jones:We analyze the volatility risk premium by applying a modified two-pass Fama-MacBeth procedure to the returns of a large cross section of the returns

webchttp://www.blogger.com/profile/16134243770304968297noreply@blogger.com0tag:blogger.com,1999:blog-5815666949923108799.post-83940383255405471032012-01-30T06:58:00.000-08:002012-01-30T06:58:00.577-08:00

Today, a little bit of info in the personal finance and investing department.Ever wonder about the benefits of investing in index funds vs. ETFs, or vice versa? Here's a post from The Financial Philosopher blog that might help you to fine tune your investment strategy.Parts one and two in The Financial Philosopher's index fund vs. ETF debate.See also: Altruist Financial Advisor's ETFs vs. index

webchttp://www.blogger.com/profile/16134243770304968297noreply@blogger.com0tag:blogger.com,1999:blog-5815666949923108799.post-56799953738614431572012-01-30T06:36:00.000-08:002012-01-30T06:36:00.816-08:00

Get set for our, "Features of the week".1. US economy: first-quarter growth estimates raised. 2. Fresh fears for US economy as corporate profits tumble again. 3. Marc Faber: credit crunch will continue and spread. 4. Banks establish central clearing facilty for OTC credit derivatives. 5. The CFTC investigates crude oil trading practices, and announces closer crutiny of commodity index funds. 6.

webchttp://www.blogger.com/profile/16134243770304968297noreply@blogger.com0tag:blogger.com,1999:blog-5815666949923108799.post-85977892937921704542012-01-30T05:12:00.000-08:002012-01-30T05:12:00.262-08:00

Chutzpah is typically defined as "brazenness, audacity, or shamelessness". One wag defined it as "killing both parents and then throwing yourself on the court's mercy because you were an orphan".I now have an updated definition. A colleague just forwarded me this ad on Craigslist in the city where the Unknown Alma Mater is located (I've changed the details enough to make it anonymous):I Will

webchttp://www.blogger.com/profile/16134243770304968297noreply@blogger.com0tag:blogger.com,1999:blog-5815666949923108799.post-30879214712735958692012-01-29T08:48:00.000-08:002012-01-29T08:48:00.118-08:00

The fallout from the U.S. housing bubble continues, as Barry Ritholtz details in his recent post, "Housing Freefall Continues Unabated". He notes that the S&P/Case-Shiller Home Price indices show negative returns in the National Home Price Index, and many of the other sub-indexes besides. Ritholtz also points to recent news that suggests the housing and construction bust is far from over, despite

webchttp://www.blogger.com/profile/16134243770304968297noreply@blogger.com0tag:blogger.com,1999:blog-5815666949923108799.post-36493077139546717372012-01-29T08:16:00.000-08:002012-01-29T08:16:00.746-08:00

An interesting essay from the Mises Institute called, "The Truth About Tulip Mania". Here's the author explaining why this speculative mania, much misunderstood and frequently mischaracterized, is important to understand: The story of Tulipmania is not only about tulips and their price movements, and certainly studying the "fundamentals of the tulip market" does not explain the occurrence of this

webchttp://www.blogger.com/profile/16134243770304968297noreply@blogger.com0tag:blogger.com,1999:blog-5815666949923108799.post-49366476570213037632012-01-28T10:14:00.000-08:002012-01-28T10:14:00.182-08:00

Meredith Whitney, the Oppenheimer & Co. analyst whose skeptical view of the investment banking industry has made her a star on Wall Street, says the credit crunch is far from over. Whitney recently joined Bloomberg TV to talk about the credit crisis, consumer lending, the outlook for the mortgage securitization market, and the health of the US consumer. In spite of all the highly-publicized

webchttp://www.blogger.com/profile/16134243770304968297noreply@blogger.com0tag:blogger.com,1999:blog-5815666949923108799.post-29489172394608633342012-01-28T07:43:00.000-08:002012-01-28T07:43:00.461-08:00

I wanted to hold back from commenting on the idiocy of this latest gasoline price gouging legislation I'd heard about until I got a little more feedback and information.My first reaction upon hearing of this ill-conceived exercise in demagoguery was a lack of surprise, combined with a head-shaking disgust regarding the undefined nature of the supposed crime.Assuming that our wise and omniscient

webchttp://www.blogger.com/profile/16134243770304968297noreply@blogger.com0tag:blogger.com,1999:blog-5815666949923108799.post-45179441693904384412012-01-28T05:54:00.000-08:002012-01-28T05:54:00.665-08:00

If you were an informed trader, would you trade in the options market or in the market for the underlying asset? Finance theory says you'd trade in the options market because of increased leverage. Now here's another paper that supports this idea. In their March 2008 paper Xiaoyan Zhang, Rui Zhao and Yuhang Xing look at whether relatively expensive put options can be used as "bad news"

webchttp://www.blogger.com/profile/16134243770304968297noreply@blogger.com0tag:blogger.com,1999:blog-5815666949923108799.post-31287062455632933202012-01-28T04:10:00.000-08:002012-01-28T04:10:01.137-08:00

Spent the weekend going through the Ethics material for the CFA Level 2 exam. It's pretty dry, and nary a number in over 200 pages of text. But, the Level 2 exam is weighted about 10% on the exam, so it's got to be done.Now all I have is a quick review of Portfolio Management (I've gone through it once already, but after 299 pages of Ethics, I needed to see some numbers) and then it's on to

webchttp://www.blogger.com/profile/16134243770304968297noreply@blogger.com0tag:blogger.com,1999:blog-5815666949923108799.post-62912690124806130262012-01-27T08:49:00.000-08:002012-01-27T08:49:00.608-08:00

Recent surges in commodity prices have brought attention to the increased role commodity index investors have taken in the futures markets. The upsurge in commodity index investing has led some observers to claim that commodity prices are being pushed higher due to the growing involvement of these long-focused funds, which buy and hold distant-month futures contracts in order to gain exposure to

webchttp://www.blogger.com/profile/16134243770304968297noreply@blogger.com0tag:blogger.com,1999:blog-5815666949923108799.post-56062500937272434272012-01-27T05:31:00.000-08:002012-01-27T05:31:00.212-08:00

Once again, it's that happy time - the end of the semester at Unknown University.I teach my last classes tomorrow - in one, I hand back some assignments and talk about the final (that means today is all about the grading, and in the other (the student managed fund), I hand out stock assignments for which they must come up with final analyses.As always, the last week was crazy - the

webchttp://www.blogger.com/profile/16134243770304968297noreply@blogger.com0tag:blogger.com,1999:blog-5815666949923108799.post-65684175322748149532012-01-26T08:33:00.000-08:002012-01-26T08:33:00.535-08:00

Hey everyone, just wanted to let you know about some recent improvements and new additions to the site. Comments and suggestions are welcome, so let me quickly describe the new features.First, I moved the site search bar and subscribe/bookmark buttons to the top portion of the blog homepage. These tools are now more visible "above the fold", having been moved up from the bottom of the righthand

webchttp://www.blogger.com/profile/16134243770304968297noreply@blogger.com0tag:blogger.com,1999:blog-5815666949923108799.post-75292610760152435962012-01-26T08:31:00.000-08:002012-01-26T08:31:00.305-08:00

Here's one for my next semester's Security Analysis class: In "What Drives Stock Price Movement?" Long Chen and Xinlei Zhao use analyst forecast and stock market data to examine whether stock price changes are associated more with changes in cash flows or discount rates. Here's the abstract (note: the emphasis is mine):A central issue in asset pricing is whether stock prices move due to the

webchttp://www.blogger.com/profile/16134243770304968297noreply@blogger.com0tag:blogger.com,1999:blog-5815666949923108799.post-91626728778355157222012-01-26T06:37:00.000-08:002012-01-26T06:37:00.740-08:00

It's that time of the year - I have one more day of classes, followed by final exams. My student-managed investment fund did a bang-up job on their end-of-semester presentation to the advisory board, so that's another big item to cross off the list.So now all I have to do is write a couple of final exams, grade them and some final projects, and start my summer.The only downside to the end of the

webchttp://www.blogger.com/profile/16134243770304968297noreply@blogger.com0tag:blogger.com,1999:blog-5815666949923108799.post-76097478024971225352012-01-25T07:03:00.000-08:002012-01-25T07:03:00.329-08:00

Welcome to this Friday's edition of "Features of the week". Many interesting stories and article links ahead!1. Wolfowitz has departed his role as the World Bank president, but the media focuses on the search for a new president. Meanwhile, few bother to ask what the World Bank really does in the first place.2. At James Simons' Renaissance Technologies hedge fund, only scientists need apply.3.

webchttp://www.blogger.com/profile/16134243770304968297noreply@blogger.com0tag:blogger.com,1999:blog-5815666949923108799.post-16962190920522251972012-01-24T05:55:00.000-08:002012-01-24T05:55:00.894-08:00

Dr. Money advised readers to get ready for the hard times. High inflation may be here to stay.http://newpaper.asia1.com.sg/columnists/story/0,4136,165866,00.htmlhttp://www.tankinlian.com/drmoney/

webchttp://www.blogger.com/profile/16134243770304968297noreply@blogger.com0tag:blogger.com,1999:blog-5815666949923108799.post-48233601683708687152012-01-23T22:45:00.000-08:002012-01-23T22:45:00.267-08:00

Cheating is an act of lying, deception, fraud, trickery, imposture, or imposition. Cheating characteristically is employed to create an unfair advantage, usually in one's own interest, and often at the expense of others. Cheating implies the breaking of rules. The term "cheating" is less applicable to the breaking of laws, as illegal activities are referred to by specific legal terminology such

webchttp://www.blogger.com/profile/16134243770304968297noreply@blogger.com0tag:blogger.com,1999:blog-5815666949923108799.post-8900136100994015792012-01-23T17:43:00.000-08:002012-01-23T17:43:00.481-08:00

Insurance companies have increased their premium rates by about 20% this year. Dr. Money said that the increase is not justified, as these companies have made a lot of profit from their investments. Here is his article:http://newpaper.asia1.com.sg/columnists/story/0,4136,168843,00.htmlhttp://www.tankinlian.com/drmoney/

webchttp://www.blogger.com/profile/16134243770304968297noreply@blogger.com0tag:blogger.com,1999:blog-5815666949923108799.post-39234543387949870132012-01-23T09:47:00.000-08:002012-01-23T09:47:00.533-08:00

Warren Buffett goes to Europe, private equity jaunts through Africa, and investors venture into Cambodia. All this and much more in our, "Features of the week".1. Government's "numbers racket" is about to blow up in our faces.2. If inflation is low, then why are bond prices falling and yields rising?3. The market is beginning to think that the Fed will raise interest rates.4. Africa investment

webchttp://www.blogger.com/profile/16134243770304968297noreply@blogger.com0tag:blogger.com,1999:blog-5815666949923108799.post-28219618205481566312012-01-23T07:38:00.000-08:002012-01-23T07:38:00.046-08:00

So you've come back from the grocery store, ready to fire up the grill and throw on a few delectable corn cobs with your steak. The only problem is that you seem to be more hot than your recently turned on grill, and what's got you fired up is rising food prices! Kind of hard to enjoy the bountiful meal you've prepared when you're paying out the nose for it, right?At times like this, there's only

webchttp://www.blogger.com/profile/16134243770304968297noreply@blogger.com0tag:blogger.com,1999:blog-5815666949923108799.post-50323399944819595772012-01-23T05:48:00.000-08:002012-01-23T05:48:00.273-08:00

Dr. Money gives some tips on how to invest in foreign currencies to get a higher return:http://newpaper.asia1.com.sg/columnists/story/0,4136,166429,00.htmlhttp://www.tankinlian.com/drmoney/

webchttp://www.blogger.com/profile/16134243770304968297noreply@blogger.com0tag:blogger.com,1999:blog-5815666949923108799.post-62843055868301828922012-01-23T03:19:00.000-08:002012-01-23T03:19:00.874-08:00

An insurance agent in Indonesia sold a large investment-linked policy to a senior government official. The annual premium was SGD 15,000 a year. The policyholder was angry when he learned that 15% of the premium was deducted as first year charge. He was not told about this deduction by the agent. He lodged a complaint with the insurance company.The insurance company was worried that this official

webchttp://www.blogger.com/profile/16134243770304968297noreply@blogger.com0tag:blogger.com,1999:blog-5815666949923108799.post-71948828570362986912012-01-22T22:35:00.000-08:002012-01-22T22:35:00.644-08:00

A young man bought an investment linked policy with a saving of $200 a month. He was mistaken that the premium payable for 42 years was $33,600 when the actual premium was $100,800.He realised that the policy did not give an attractive return. He sent this message to me:"I think the figure I received were a bit misleading and I have asked and confirmed to the advisor. I have now terminated the

webchttp://www.blogger.com/profile/16134243770304968297noreply@blogger.com0tag:blogger.com,1999:blog-5815666949923108799.post-76532315036758276302012-01-22T22:11:00.000-08:002012-01-22T22:11:00.163-08:00

I'm a flaming extrovert: I strike up conversations with people waiting in line, with the guy (or gal) in the seat across the aisle on planes or trains, and in general with almost anyone I spend some time with.The good thing about this is that I find out a lot about people, and much of it is pretty interesting. Last night, I was on the train, and I started talking with the guy across the aisle.

webchttp://www.blogger.com/profile/16134243770304968297noreply@blogger.com0tag:blogger.com,1999:blog-5815666949923108799.post-47978984572283804302012-01-22T14:18:00.000-08:002012-01-22T14:18:00.215-08:00

Hi Mr. Tan,Last week, I went to an insurance company to terminate my regular investment link policy. It was only purchased last December and I had considered carefully about the huge financial loss that I will incurr upon closing it. I had decided to close it despite incurring huge losses as I feel that this is in my best interest that I do not have any dealing with this company anymore.I put up

webchttp://www.blogger.com/profile/16134243770304968297noreply@blogger.com0tag:blogger.com,1999:blog-5815666949923108799.post-8010667528498791392012-01-22T09:48:00.000-08:002012-01-22T09:48:00.166-08:00

Platinum's hot, palladium's hot. So let's take a quick look at what's happening in the platinum group metals (PGMs) space.We recently covered the news of some newly-launched exchange-traded commodities (ETCs) in the precious metals groups. ETF Securities and Swiss bank ZKB both recently introduced ETCs representing physical platinum and palladium. No platinum or palladium ETFs currently exist in

webchttp://www.blogger.com/profile/16134243770304968297noreply@blogger.com0tag:blogger.com,1999:blog-5815666949923108799.post-72794385740678310122012-01-22T07:54:00.000-08:002012-01-22T07:54:00.456-08:00

Today we complete our series on retirement planning with a look at the final segments in Financial Sense Newshour's recent "Planning for Retirement" broadcasts.Part 1 of our post series gave an overview of the current global Boomer retirement wave, and an intro to the first part of FSN's "Retirement" programs. Part 2 focused on the the second part of the FSN broadcasts, and the lessons given on

webchttp://www.blogger.com/profile/16134243770304968297noreply@blogger.com0tag:blogger.com,1999:blog-5815666949923108799.post-14009643404808644092012-01-22T07:22:00.000-08:002012-01-22T07:22:00.646-08:00

Marc Faber says most financial markets are in the "final stages of a bubble" in this interview with Bloomberg TV. He points out that in previous periods, the bubble or bubbles tended to be limited to one or two sectors or asset groups .This was the case, for example, with gold and silver during their late 70's-early 80's runup, or for internet and technology stocks in the late 90's to early 2000.

webchttp://www.blogger.com/profile/16134243770304968297noreply@blogger.com0tag:blogger.com,1999:blog-5815666949923108799.post-78506987030122014782012-01-22T01:14:00.000-08:002012-01-22T01:14:00.446-08:00

Dear Mr. Tan,I understand from MOH website that "Since 1 July 2005, each of these Medisave-approved plans have been integrated with MediShield to form a single integrated plan."I bought a private Shield plan in 2002. I think at that time, the insurer will cancel the CPF medishield for me. Since the medisave-approved plan has been integrated with medishield from 1 July 2005, does it mean I am

webchttp://www.blogger.com/profile/16134243770304968297noreply@blogger.com0tag:blogger.com,1999:blog-5815666949923108799.post-47977954079121121142012-01-21T21:10:00.000-08:002012-01-21T21:10:00.219-08:00

I am now working as a consultant to a life insurance company in Singapore. It intends to launch low cost insurance and investment funds in early 2009.Details of suitable products are set out in these FAQs:http://www.tankinlian.com/faq/low.htmlhttp://www.tankinlian.com/faq/btid.htmlhttp://www.tankinlian.com/faq/termassurance.htmlhttp://www.tankinlian.com/faq/finplan.htmlhttp://www.tankinlian.com/

webchttp://www.blogger.com/profile/16134243770304968297noreply@blogger.com0tag:blogger.com,1999:blog-5815666949923108799.post-40063029929016027892012-01-21T17:56:00.000-08:002012-01-21T17:56:00.099-08:00

We need strong business ethics, to operate business honestly and give fair value to consumers. I am speaking on this topic at a dinner of the alumni of an American university.Here are some points contained in my speech:In Ancient China, the “four categories of the people” was a hierarchic social class structure developed by scholars as far back as the late Zhou Dynasty (c. 1046–256 BCE). In

webchttp://www.blogger.com/profile/16134243770304968297noreply@blogger.com0tag:blogger.com,1999:blog-5815666949923108799.post-35655170315946442052012-01-21T17:50:00.000-08:002012-01-21T17:50:00.123-08:00

I lost my identity card last month. I applied for a new card, but was advised to wait for two weeks, in case the card was found.After four weeks, I received a letter from the relevant department. Someone found my identity card and returned it to them. The letter asked me to collect the card from their office.What a wonderful service!

webchttp://www.blogger.com/profile/16134243770304968297noreply@blogger.com0tag:blogger.com,1999:blog-5815666949923108799.post-45871609824726002242012-01-21T17:41:00.000-08:002012-01-21T17:41:00.245-08:00

Dr. Money wrote this article about car insurance:http://newpaper.asia1.com.sg/columnists/story/0,4136,170194,00.htmlYou can find more articles from Dr. Money at:http://www.tankinlian.com/drmoney/

webchttp://www.blogger.com/profile/16134243770304968297noreply@blogger.com0tag:blogger.com,1999:blog-5815666949923108799.post-60347631840716528562012-01-21T09:36:00.000-08:002012-01-21T09:36:00.731-08:00

Fintag has an interesting take on the growth of the high-profile private equity business. The site's proprietor, an anonymous hedge fund manager, has lately aired his view of private equity dealings as a form of back-door imperialism, whereby firms undertake debt-financed deals for the prized assets of other countries. Now, news of the Chinese taking a $3 billion stake in private equity firm,

webchttp://www.blogger.com/profile/16134243770304968297noreply@blogger.com0tag:blogger.com,1999:blog-5815666949923108799.post-45329196594024154702012-01-21T06:52:00.000-08:002012-01-21T06:52:00.177-08:00

FT.com hosts an "Ask the expert" Q&A on alternative energy investing with Robin Batchelor and Poppy Allonby of the BlackRock New Energy Fund.Here's a sample from that Q&A session with FT readers:Q: What types of electricity generation are likely to be commercially viable while reducing carbon emissions?Paul Davies, Adelaide, Australia Robin Batchelor and Poppy Allonby: Some forms of

webchttp://www.blogger.com/profile/16134243770304968297noreply@blogger.com0tag:blogger.com,1999:blog-5815666949923108799.post-66075155614615512772012-01-21T06:42:00.000-08:002012-01-21T06:42:00.684-08:00

When Financial Rounds first started out, a number of the bigger names in the finance/econ blogoshpere were nice enough to mention this site. So, whenever possible I try to pay the favor "forward" by doing the same for newer blogs. The latest new finance blog of note is titled Empirical Finance Research, which is intended to (in the authors' own words):Highlight research from the academic

webchttp://www.blogger.com/profile/16134243770304968297noreply@blogger.com0tag:blogger.com,1999:blog-5815666949923108799.post-51613808260503368552012-01-20T20:25:00.000-08:002012-01-20T20:25:00.302-08:00

Someone asked me to explain about the impact of non-disclosure of pre-existing condition on medical insurance.Under the contract, the insurance company has the right to reject a claim due to the non-disclosure of a pre-existing condition. They are likey to reject the claim, even if the non-disclosure was unintended, namely the policyholder was not aware about it.What is pre-existing is also a

webchttp://www.blogger.com/profile/16134243770304968297noreply@blogger.com0tag:blogger.com,1999:blog-5815666949923108799.post-27507816729509901562012-01-20T19:07:00.000-08:002012-01-20T19:07:01.050-08:00

I find the practice of life insurance companies in giving low cash values to be most unfair to policyholders.Here is an example. The policyholder took an endowment policy 15 years ago, and paid an annual premium of $5,925. After 15 years, the cash value of $86,299 represents a yield of 0% on the premiums that have been invested.The insurance company projected a maturity value of $166,622. This

webchttp://www.blogger.com/profile/16134243770304968297noreply@blogger.com0tag:blogger.com,1999:blog-5815666949923108799.post-22658746929414168002012-01-20T14:20:00.000-08:002012-01-20T14:20:00.743-08:00

Free Market News Network is focusing on the spreading internet coverage of attempts to shut Congressman Ron Paul (R-TX) out of upcoming presidential debates.In fact, much of the social internet and blogosphere has been abuzz lately over perceived attempts by mainstream media and political insiders to stifle Congressman Paul and drown out his message to the American public.Here's FMNN contributor

webchttp://www.blogger.com/profile/16134243770304968297noreply@blogger.com0tag:blogger.com,1999:blog-5815666949923108799.post-83089640642745835302012-01-20T08:58:00.000-08:002012-01-20T08:58:00.087-08:00

In Part 1 of our "Planning for Retirement" post series, we started with a brief overview of the Baby Boomber retirement schedule and the problems and changes that could arise out of this huge demographic shift. We also looked to the retirement wisdom imparted by investment manager and Financial Sense Newshour host Jim Puplava, and his co-host John Loeffler, in their recent FSN radio broadcast, "

webchttp://www.blogger.com/profile/16134243770304968297noreply@blogger.com0tag:blogger.com,1999:blog-5815666949923108799.post-29057904729299187022012-01-20T07:38:00.000-08:002012-01-20T07:38:00.371-08:00

COMMENT POSTED IN MY BLOGWhole life product advocates and especially insurance agents argue that a whole life policy is useful during old age, a time when one is most likely to contract dread illnesses.Apart from other economic reasons, I want to show that whole life policies are hardly kept beyond age 65. Why is it not kept beyond this age, the obvious reason is many don't believe that it is

webchttp://www.blogger.com/profile/16134243770304968297noreply@blogger.com0tag:blogger.com,1999:blog-5815666949923108799.post-2901836572421882652012-01-19T22:43:00.000-08:002012-01-19T22:43:00.136-08:00

Read my suggestions in:http://theonlinecitizen.com/2008/07/improving-public-transport-%e2%80%93-an-express-alternative/#comment-15330

webchttp://www.blogger.com/profile/16134243770304968297noreply@blogger.com0tag:blogger.com,1999:blog-5815666949923108799.post-43521722351492404362012-01-19T22:30:00.000-08:002012-01-19T22:30:00.767-08:00

Dear Mr. Tan, My uncle (as policy holder) bought a life policy for his wife (as insured). If the policy holder passes away, does it mean that the ownership of the policy automatically transfers to his wife (the insured)? Or does it become a 'no ownership policy'. If it is the latter, who has the rights to deal with the policy, for instance, to take a policy loan/terminate it? REPLYYour uncle

webchttp://www.blogger.com/profile/16134243770304968297noreply@blogger.com0tag:blogger.com,1999:blog-5815666949923108799.post-85575720179411862742012-01-19T20:27:00.000-08:002012-01-19T20:27:00.535-08:00

My friend saw an unforgettable sight during his recent visit to Beijing - something that he has not seen before, and will never see again in the future.He looked up and saw a blue sky. In preparation for the Beijing Olympics which will start soon, the authority has asked the factories to stop or reduce their production within a large part of Beijing. This reduces the pollution and makes the air

webchttp://www.blogger.com/profile/16134243770304968297noreply@blogger.com0tag:blogger.com,1999:blog-5815666949923108799.post-78905626701150616472012-01-19T19:50:00.000-08:002012-01-19T19:50:00.560-08:00

A reader asked how it is possible for the cost of a private Shield plan to be more than $100,000 for ages 30 to 85.You can add up the total cost from the websites of the insurance companies. Here is an example from NTUC Income:For the enhanced plan (subject to deductible and co-insurance):http://income.com.sg/insurance/incshield/premium.aspFor the plus rider (to cover the deductible and

webchttp://www.blogger.com/profile/16134243770304968297noreply@blogger.com0tag:blogger.com,1999:blog-5815666949923108799.post-40381158616541305792012-01-19T17:15:00.000-08:002012-01-19T17:15:00.376-08:00

An elderly person told me, "Long ago, many people can trust their bank to give them a fair return on their savings. Nowadays, the banks make a lot of profit by selling bad financial products to their customers. Many customers now distrust the banks".What has happened during the past ten years, that makes the banks lose the trust of their customers?Long ago, the banks are tightly controlled by the

webchttp://www.blogger.com/profile/16134243770304968297noreply@blogger.com0tag:blogger.com,1999:blog-5815666949923108799.post-55997887683360021832012-01-19T17:05:00.000-08:002012-01-19T17:05:00.212-08:00

Since I pretty much wear khakis and button down shirts every day (and khakis and polo shorts when it gets warm, this made me chuckleFrom PhDComics.

webchttp://www.blogger.com/profile/16134243770304968297noreply@blogger.com0tag:blogger.com,1999:blog-5815666949923108799.post-82224525929146254652012-01-19T08:23:00.000-08:002012-01-19T08:23:00.521-08:00

Back in April, the Financial Sense Newshour produced a series of program segments devoted to the issue of retirement planning. Today we're going to look at the first installment of FSN's retirement special, and guide you to the archived broadcast link and a written transcript of this program. But first, a quick overview. Why is retirement such an important topic? Retirement is currently a very

webchttp://www.blogger.com/profile/16134243770304968297noreply@blogger.com0tag:blogger.com,1999:blog-5815666949923108799.post-43733312968356147032012-01-18T20:32:00.000-08:002012-01-18T20:32:00.113-08:00

I gave an advice to young people - to save 15% of your earnings. Someone commented that this is not possible. Young people do not earn enough, and will find it difficult to save 15%.I believe that this goal is possible, and here are my reasons. Many young people stay with their parents and do not have to pay for housing and other expenses. Due to their low expenses, they can have savings, if they

webchttp://www.blogger.com/profile/16134243770304968297noreply@blogger.com0tag:blogger.com,1999:blog-5815666949923108799.post-68728547596824952432012-01-18T16:53:00.000-08:002012-01-18T16:53:00.266-08:00

Are you paying a fair premium for your private Shield plan? Are you being over-charged? How can you find out?You can look at the ratio of claims to premiums, as reported by the insurance company for this plan, in their return to MAS.Take this example. If an insurance company has 100,000 policyholders and pays a total claim of $10 million each year, the average cost of claim is $100 per

webchttp://www.blogger.com/profile/16134243770304968297noreply@blogger.com0tag:blogger.com,1999:blog-5815666949923108799.post-49712565753885441812012-01-18T15:56:00.000-08:002012-01-18T15:56:00.579-08:00

Hi Mr. Tan,1) I read in many reviews that index funds such as the STI usually outperforms managed funds on average. Is this true and would you advise me investing in the STI at this time and who do you advise I manage and adjust on a regular basis?2) I am looking for a good financial advisor and institution. So far, I have talked to a few financial planners but none has given me the confidence

webchttp://www.blogger.com/profile/16134243770304968297noreply@blogger.com0tag:blogger.com,1999:blog-5815666949923108799.post-88061578054667232512012-01-18T09:21:00.000-08:002012-01-18T09:21:00.899-08:00

Put on your reading, thinking, and relaxation caps; its' time for our, "Features of the week".1. "White House to quickly replace Wolfowitz". The AP reports that the White House would like to quickly find someone to replace departing World Bank president Paul Wolfowitz.Wolfowitz announced that the would resign his post on Thursday following a flap over a compensation package arranged for his

webchttp://www.blogger.com/profile/16134243770304968297noreply@blogger.com0tag:blogger.com,1999:blog-5815666949923108799.post-9919949563308306362012-01-18T08:02:00.000-08:002012-01-18T08:02:00.487-08:00

A colleague just pointed out a great article in the New York Times, titled "The Default Major". Here's a few choice pieces:Business majors spend less time preparing for class than do students in any other broad field, according to the most recent National Survey of Student Engagement: nearly half of seniors majoring in business say they spend fewer than 11 hours a week studying outside class.

webchttp://www.blogger.com/profile/16134243770304968297noreply@blogger.com0tag:blogger.com,1999:blog-5815666949923108799.post-65740840720084283062012-01-17T19:42:00.000-08:002012-01-17T19:42:00.752-08:00

A policyholder upgraded into an expensive private Shield plan. He had to undergo angioplasty. The insurance company rejected this claim on the grounds for non-disclosure of high cholesterol. The policyholder was not aware that this condition was serious to be disclosed, as his doctor did not ask him to take medication. He asked the insurance company to justify their decision for

webchttp://www.blogger.com/profile/16134243770304968297noreply@blogger.com0tag:blogger.com,1999:blog-5815666949923108799.post-21682152705666910912012-01-17T19:19:00.000-08:002012-01-17T19:19:00.299-08:00

I received a few questions each day from readers of my blog. I usually give a reply within the same day or the following day. Quite often, the replies are returned to me, as the server could not deliver the e-mail. It could be due to a wrong e-mail address or other reasons.Sometimes I post the questions on my blog, after removing personal details. I hope that my person who ask the question will

webchttp://www.blogger.com/profile/16134243770304968297noreply@blogger.com0tag:blogger.com,1999:blog-5815666949923108799.post-13507187352103894802012-01-17T18:10:00.000-08:002012-01-18T16:04:51.088-08:00

I've had a number of emails asking if it's possible to go to a reputable finance Ph.D. program on a part time basis. Unfortunately, the writers probably won't like the answer. To the best of my knowledge, it's not possible -- and a program that offers a part time doctoral program probably isn't worth it.Getting a doctorate in Finance isn't like getting a "Super MBA" - it's a totally different

webchttp://www.blogger.com/profile/16134243770304968297noreply@blogger.com0tag:blogger.com,1999:blog-5815666949923108799.post-76474520071036544162012-01-17T15:41:00.000-08:002012-01-17T15:41:00.452-08:00

It was another nice day today (but windy as all get out). So, I did another 17 1/2 mile ride. Yesterday, my feet were freezing (it was about 50 degrees). Today, it was warmer (no need for a jacket), but the wind was brutal - over 20 mph at times. Still, it was good, and about 5 minutes faster than yesterday for the same course. I was pretty tired after yesterday's ride, but the forecast says

webchttp://www.blogger.com/profile/16134243770304968297noreply@blogger.com0tag:blogger.com,1999:blog-5815666949923108799.post-31858606716078303812012-01-17T15:22:00.000-08:002012-01-17T15:22:00.070-08:00

Hello Mr.Tan,I am an avid reader of your blog and find the information you have shared with your visitors well written.I understand from reading your blog, you are starting a new insurance company.I am keen to explore a potential employment with your new company.Currently, I am working in the IT industry in the private sector.Although I do not have the necessary experience in the financial

webchttp://www.blogger.com/profile/16134243770304968297noreply@blogger.com0tag:blogger.com,1999:blog-5815666949923108799.post-11909290562957248472012-01-17T14:30:00.000-08:002012-01-17T14:30:00.802-08:00

If you have invested in Singapore or Global equity over the past 10 to 20 years, your average yield (computed up to 2007) would have been 8% to 9% per annum. The stockmarkets had dropped by 25% from its recent peak.If you allow for this drop, the impact on the average yield would be 1% to 2.5%. The average yield would have dropped to 5.5% to 8% per annum. It is still an attractive yield, compared

webchttp://www.blogger.com/profile/16134243770304968297noreply@blogger.com0tag:blogger.com,1999:blog-5815666949923108799.post-17223466140183330242012-01-17T14:03:00.000-08:002012-01-17T14:03:00.999-08:00

Many people are worried about suffering from a critical illness. The insurance agent scare them about the high cost of this event.Let us take this example. The chance of making a critical illness claim before 65 is probably 10%. The average cost of the illness is $50,000. You should pay a total premium of only $5,000 to cover this risk. Allowing for interest earned from investing your premium,

webchttp://www.blogger.com/profile/16134243770304968297noreply@blogger.com0tag:blogger.com,1999:blog-5815666949923108799.post-57062876418682514682012-01-17T13:52:00.000-08:002012-01-17T13:52:00.071-08:00

You are not familiar with investing your money. You appoint a trusted person to handle your money and take care of investing it.Thirty years later, you found whom you have trusted had taken away 65% of the investment gains, and left you with only 35% of the gain. Do you feel that you have been cheated?If you invest $200,000 over 30 years and your total gain is $600,000, your trusted friend has

webchttp://www.blogger.com/profile/16134243770304968297noreply@blogger.com0tag:blogger.com,1999:blog-5815666949923108799.post-21478325164062892672012-01-17T12:35:00.000-08:002012-01-17T12:35:00.032-08:00

Hi, Mr TanI'm currently 34 years old (male). I am interested to obtain a $200k coverage in critical illness for life as I'm concerned about the rising medical costs as I grow older.My financial adviser has advised me to buy LifeSecure (Limited pay plan) that requires me to pay 20 years' of premium. Thereafter, I need not pay anymore premium.I would be grateful if you could advise if there are

webchttp://www.blogger.com/profile/16134243770304968297noreply@blogger.com0