The paltry returns from many traditional income investments like government bonds and CDs and the volatility of stocks have inspired brokers to push investments that promise high yields, but often carry hidden dangers. According to a recent release from the Financial Industry Regulatory Authority (FINRA), these kind of investments include high-yield bonds, floating-rate loan funds […]
The Japanese Earthquake and Leveraged ETFs
The earthquake and tsunami in Japan are a horrifying human tragedy, and our hearts must go out to the thousands of victims and their families. It would be wrong to equate financial loss with loss of actual lives. Yet, the natural disaster and its subsequent impact on the Japanese stock market highlights the investment risk […]
Leveraged ETFs
These Wall Street products take a simple idea and make it way too risky for ninety-nine out of a hundred investors. The simple idea is the Exchange Traded Fund, or ETF. These are index funds. Unlike mutual funds that trade only at the end of the day, ETFs can be bought and sold throughout the […]
