The largest financial meltdown since the Great Depression of 1929. Coined the Great Recession, large financial institutions became over leveraged taking risky bets on the security of mortgages. Mortgages are usually safe and great money makers for banks because Americans almost always pay their mortgage. When the economy began to slow, in 2007, many Americans […]

To sell when you have made money or profited from an investment. Many investors take profits as an investment grows to diversify the earnings into other investments.

Bonds issued by the government to raise capital to find operations. Regarded as safe and secure because they are backed by the U.S. government which has the ability to print money and raise taxes to cover bond obligations. T-bonds mature in 30 years and offer investors the highest interest payments bi-annually. TLT T-notes mature anywhere […]

A significant decline in general economic activity. Economists define recession as two consecutive quarters of GDP decline.

Earnings refer to a company’s profits in a given quarter or fiscal year. Earnings are an important figure to use when analyzing a company’s profitability. It can be compared to analyst’s earnings estimates, the company’s past performance, or against peers within the same industry.

Slang term for Securities and Exchange Commission (SEC) filings that occur quarterly and annually. For public companies it is mandatory to publish the financial standing with the SEC for investors to scrutinize. The filings consist of the balance sheet, Income statement, and cash flow statement.

A company that pay a dividend but in addition consistently increased the size of the payout over time. Mainly large multinational companies that no longer have the benefit of rapid growth.

Is a portfolio strategy that mixes a wide variety of investments in hopes of mitigating risk. Diversification can occur across asset classes, sectors, and countries.