Sunday Video Links: Economics, Sub-Prime, Investment Banking

The Ten Principles of Economics (true so true).

The Investment Banking Sector Explained.

Socially Irresponsible Investment Banking.

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Constructing a simulated stock trading portfolio with Google Finance

The portfolio I will be constructing is based on the five Australian stocks highlighted in Smart Investor magazine. If you haven’t read the previous article on “Economic Moats” I would advise you to read that before reading this article. The tool I will be using for this is Google Finance, therefore you will need to sign up for a Google account (this is free). Go to Google Accounts and click on “create an account now “. Once you are logged in go to Google Finance click create portfolio and name the portfolio and then add desired stock.

Portfolio Calculations

In order to determine how much money we can allocate to each share we will have to do a few simple calculations. Firstly we work out each shares maximum share of equity, as we are giving equal weight to each different stock this is simply: (more…)

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Global market downturn: Time to think long term?

I am sure you have heard about the stock markets of the world losing large portions of their value. The mainstream media is really having a field day with it. Some finance blogs are noticing considerably high search volumes as people look for answers. The Australian market has not been immune to this global phenomenon with the market having its longest losing streak in a quarter of a century. You can see the steady decline in in the benchmark All Ordinaries Index from about the 8th of January, this is shown below with 13 straight days of losses.

All Ordinaries Index AORD (more…)

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