Month: March 2015

Dividend Reinvestment Plan, also known as DRIP, is a way for investors, shareholders and employees to reinvest the dividend back into the company’s shares. Most shareholders utilize this strategy for solid, stable company such as Pfizer, AT&T and Chevron. There are tons of companies that provide this strategy for investors (majority of DRIP stocks can … Continue reading Dividend Reinvestment Plan (DRIP) Good Investment or Not?

Homeownership is often a sign that dictates how an individual (general public) is doing. Below are some of the pros and cons of homeownership vs renting. Let me know in the comment section below if you are add/reinforce any point. Rentership - Pros and Cons + mobility + lower upfront cost + not personally liable for … Continue reading Homeownership vs. Rentership

Volatility is often denoted as VIX (ticker symbol for Chicago Board Options Exchange Market Volatility Index). VIX measures the implied violability of the S&P500 index. As depicted in the chart below, implied volatility peaked at 2008/2009 Great Recession. Investors and traders alike are less confident in the market. Since Janet Yellen from the Federal Reserve … Continue reading Market Volatility Back in 2015? [CBOE Inspired]

Leveraged ETFs are known for their natural decay. As my previous post emphasized, leveraged ETFs are meant for day trading. As depicted by the chart below, a traditional ETF in a volatile downward trending market will return 0% at the end of Day 3, resulting in a portfolio value of $$9680. However, in a 2x leverage … Continue reading Leveraged ETF Decay

Compounding is the black magic behind the financial world. “Compounding is the financial equivalent of a snowball rolling downhill: With each revolution, the snowball gets bigger because it picks up more snow [Franklin Templeton Investment].” Below shows the effect of compounding (excluding inflation rate and assuming the S&P500 will bear 8.13% annualized return in the … Continue reading Compounding in Traditional vs Leveraged Funds [ProShares Inspired]