Category: Investment Strategy

The Power of Starting Young

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It is always exciting to see people in their twenties beginning to save for retirement. They are making life so much easier on themselves by harnessing the power of compound interest. The following chart assumes a theoretical 6.5% annual investment return, a $5,500 annual contribution to a Roth IRA, and a retirement age of 65. Using […]

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Rising Interest Rates & Your Bond Portfolio

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Bond prices and interest rates have what is called an inverse relationship. This means that when one goes up the other goes down. To understand why this is the case, let’s look at an example. Suppose you purchased a treasury bond for $1000 that was issued with a 3% yield. At the time you purchased […]

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Merger Arbitrage 101

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What is Arbitrage? Arbitrage is the practice of taking advantage of a price difference between two or more markets: striking a combination of matching deals that capitalize upon the imbalance, the profit being the difference between the market prices. Example: In the 19th century, the Rothschilds would buy gold in London one day and sell it […]

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