Your credit report is one of the most important documents in determining your financial standing. A good credit report can help you achieve your financial goals, purchase valuable assets, and qualify for competitive interest rates on new lines of credit. A bad credit report can keep you from purchasing a new home or car, as well as preventing you from qualifying for credit at low interest rates. This makes it essential to know what’s in your credit report and what you can do to improve your credit by reviewing your credit file regularly. According to a study released on Bankrate.com , a startling 70 percent of all credit reports contain serious errors or discrepancies which can affect an individual’s credit rating. These include having accounts listed twice, incorrect account statuses, discrepancies on the date penalties were incurred, and even the assignment of incorrect aliases that aren’t the same person. Each of these mistakes can cause decreases in your credit rating and affect yo...
Despite all efforts to corral Wall Street to avert a crisis, avoid market collapse, and instill confidence in the system, guess what happens. Yet another major misstep in the marketplace by one of its big participants. And not just the rare market mistake that occurs once every year or two. Missteps, hiccups, and strange collapses seem to be occurring these days just about every other week. This week, it's Knight Capital , the equities market-making firm that announced losses of over $400 million after it launched new software in its trading systems. Software errors and technology glitches led the firm's black boxes to spew large orders of errant trades. By the time the firm's humans (not machines) could discover what was happening, it was too late. The losses had piled up on trades the firm had no idea it had booked and would have never wanted to make in the first place. The losses wiped out about half of its book-value equity, and now it struggles to survive in...
What If Jeremy Grantham is Right? Jeremy Grantham, president of investment management firm GMO LLC, has been getting a lot of press lately. At the market's top, he warned of an impending bear market. At the bottom in March, he forecast a historic rally. Today, he says the market is 25% overvalued. Should you be worried? Perhaps not. Let's start with Grantham's track record. He's made a couple of good calls lately. But does he get it right all the time? Of course not. No one does. But even if he's right, it wouldn't necessarily be negative. It all depends on your time horizon. Here's why... How Long-Term Investors Can Benefit From A Bear Market If you own stocks on margin, call options, or LEAP options, a market downturn could be devastating. A 50% decline in the value of a fully margined account would erase your equity. Your options could expire worthless. Who benefits from a bear market? The obvious answer is short sellers and put options buyers. But others...
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