Comments for FinancialBounce.com

Comment on What would happen to the economy if the president disbanded the Board of Governors? by Hannah D

Hannah D — Wed, 10 Mar 2010 02:26:49 +0000

It would, sort of, be like a monarchy. Without the board of governors the voice of many will not be heard. It would only be the president’s choice. Advantages are,
- voice of the people within the jurisdiction of the governor will have a more chance of being heard.
- Different suggestions will be heard throughout the meeting.
The board of Governors usually have a high percentage that their voice or suggestion will be chosen in the said meeting.
Hope this one helps. . .

Comment on How much $ should i have to start investing safely, and Stocks or Bonds? by Paul

Paul — Wed, 10 Mar 2010 01:38:12 +0000

First of all, scalping (buying and selling short term) is a idiotic and dangerous idea for novices. Of the few who try it, probably only 20% of *experienced* investors consistently make money at it.

Save your money and buy bank CDs ($1000). If you have less than that, then you should leave it in a bank for emergencies (car repairs, hospital bills, etc. ).

This is not a good time to buy stocks. Some people will tell you that if you try to time the market, you’ll miss the big up days where most of the profit is made. Of course, they forget that if you saty in cash, you miss the big down days as well.

Spend about a year “paper trading. ” Start a spreadsheet and list the quatity and starting price of the stock you want, e. g. 5 shares of Exxon at $69. 17 and 5 shares of JNJ at $50. 66. Then follow these stock and keep track of the price to see how you would have done.

Comment on What would happen to the economy if the president disbanded the Board of Governors? by Bertux

Bertux — Wed, 10 Mar 2010 01:33:15 +0000

Nothing in the short term. Someone else would step in.
The board however is independent of short term politics, ensuring stability of the monetary system. This is necessary to stay trustworthy in the eyes of other states and international banks, as well as the American people.

Comment on How much $ should i have to start investing safely, and Stocks or Bonds? by null

null — Wed, 10 Mar 2010 01:28:20 +0000

I would say 5-10k would be a good start.

Comment on Question about Tax Returns. Can I use my Student Loans for a Tax Credit. How does that work? by Griffin

Griffin — Wed, 10 Mar 2010 01:28:05 +0000

If you receive a 1098, it will tell you want you can report on your taxes. That amount is technically not a deduction, it is an adjustment to your income. It would be entered on line 33 (of form 1040) or line 18 (of 1040A). It will reduce you overall taxable income in a manner similar to a deduction. See page 30 of the attached pdf link from the IRS.

Comment on Question about Tax Returns. Can I use my Student Loans for a Tax Credit. How does that work? by spicertax

spicertax — Wed, 10 Mar 2010 01:22:33 +0000

You can deduct the loan interest shown on the Form 1098. That may not be all of your loan payments since loan principal is not deductible.

Comment on Is the economy going to tank any time soon? Should I start investing for the first time now? by trader

trader — Wed, 10 Mar 2010 01:21:16 +0000

Most humans cannot tell the future. The only method is to watch what is going on with your investments and make the appropriate changes i. e. keep your losses small and let your winners ride. Watch the ETF for precious metals and for the stock sectors you are interested in. Buy when the price goes up on volume and sell when they start loosing their momentum. Read/learn about technical analysis of the stock market. Best of luck to you. Having luck is executing with a prepared mind.

Comment on Is the economy going to tank any time soon? Should I start investing for the first time now? by Adam J

Adam J — Wed, 10 Mar 2010 01:05:13 +0000

There’s no way to tell, really. . .

Remember that you’ll ALWAYS be able to find someone who thinks the stock market is about to crash (there’s an old wall street joke about stock market analysts predicting 34 of the last 5 recessions). Unfortunately some times those persons will be right. The market has gone up quite a lot over the last year, and part of me says that its time for it to go down for a while (though mean this in terms of it shedding a couple of percentage points over a few months or a year as opposed to crashing). However stocks aren’t trading at unreasonable prices (as they were during the last crash in 2000) and over the long term I think that if you get in now you should do pretty well.

Comment on Is the economy going to tank any time soon? Should I start investing for the first time now? by T T

T T — Wed, 10 Mar 2010 00:49:36 +0000

There is no doubt that the US economy is going to tank soon. Maybe other parts of the world is different. All the numbers that you have been hearing were “cooked up” to sound rosy. The fact that there is “no inflation” is a myth. Did you spend less for you cars, insurance, gas, clothes, drinks, foods, housing than last year?
Everything goes up in price. Wages can no way keep up with the price increases. Its only a matter of time, which will definitely come one day, people will stop spending and the economy will shrink. Bottom line is, invest in foreign stocks and currencies.

Comment on What can be expected to happen when stocks having the same expected risk do not have the same expected return? by what?

what? — Wed, 10 Mar 2010 00:43:41 +0000

whoever wrote this question is an idiot.

a is “right” even though it is very poorly worded.

it doesn’t BECOME mispriced, it IS mispriced.