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Stock Panic Mechanics

Submitted by Nicholas Atkeson and Andrew Houghton on Monday, August 31, 2015 - 9:00am

The chief reason for last week’s market slide – down more than 10% from its high, which is commonly known as a correction – is computer-driven institutional selling. If those traders’ algorithms tell them to sell, because everyone else is, they join the crowd and sell.

Valuing a Business Stupidly

Submitted by Josh Patrick on Friday, September 4, 2015 - 12:00pm

Buying and selling a business, particularly a smaller one, rests on what its value is. Trouble is, some of the most widely used are very complex and end up wide of the mark. Based on sheer guesswork, these methods, particularly discounted cash flow, make the deals end in sorrow.

Commodities: No Relief

Submitted by Yale Bock on Thursday, September 3, 2015 - 9:00am

Commodities tend to run in long cycles. The huge run-up in their prices, which peaked in 2011, has now degenerated into a rout. People who think that this situation will stabilize and turn around anytime soon are kidding themselves.

Handling Market Turmoil

Submitted by Eve Kaplan on Wednesday, August 26, 2015 - 12:00pm

Stoicism amid market turmoil comes hard when a tsunami of dire investment headlines and plunging prices hits you, as we’ve seen in the last few days. Your financial future rides on Wall Street. What should you do?

The Fed and Its Broken Record

Submitted by Brenda Wenning on Wednesday, August 26, 2015 - 9:00am

The Fed likes to keep people in the dark about when it will raise interest rates. Will this occur at their September meeting? October? December? To further the obfuscation, the board barely bothers to change the language in Fed monthly missives, which are supposed to discuss the factors that will compel it to finally act.

Cash: Perils and Promises

Submitted by Ray Ferrara on Thursday, August 20, 2015 - 9:00am

Cold, hard cash has a certain cache. A hoard of it allows people to do big things, whether wise or foolish. A lack of it causes pain, often widespread pain. Nevertheless, in this age of cyber-security breaches, cash has an advantage over other forms of payment.

Keys to Asset Mix: Risk, Time

Submitted by Jim Blankenship on Friday, August 21, 2015 - 12:00pm

How to balance thrill and security in your investing? Should you take more or fewer chances with your portfolio the closer you get to retirement or another long-term financial goal? The answers depend on your own level of honest self-assessment and frequent attention to the variety and mix of your assets.