Today we have guest post from our friends over at Realized Volatility regarding the recent NPR/ProPublica piece on the mortgage giant GSE (Government Sponsored Enterprise) Freddie Mac. RV gives some great insight into the mortgage backed security market and the general operations of the big GSE’s –
Let’s dive into the compelling arena of mortgage finance. Specifically, we are going to take an inside look at the big GSEs (Fannie, Freddie, the like).
As investors, we all want to beat the market, but most people have a hard time doing it, let alone doing it consistently. In this 3-Step guide, we explore some simple techniques that will give your portfolio the edge in 2012. Following these 3 simple rules, we will take control of your portfolio and position it to beat the market.
So what do smart investors do differently than the rest?
Yes I said it, I’m Buying Stocks…
Not Bonds…Not Mutual Funds…Not Real Estate…Not Gold…Not Artwork or paintings…Not Wine, (yes, I said wine)…Not Sports memoribila…Stocks.
So why buy stocks first??
In this article we’ll explore the concept of Dollar Cost Averaging (DCA). Even if you start late, we all want to just finish rich. DCA is a tool to help you be successful in this tough market by maximizing the value of your investments. If you want to buy low, sell high and preserve your portfolio, DCA continues to pay.
So…what do you know about DCA?
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In response to my previous post in which we discussed the basics of options and how to utilize them to profit, a reader asked:
Great article explaining options. It seems like if you did want to enter into one of these hedging strategies using both calls and puts that you would need a pretty big upswing or downswing to realize any profit. This is probably more effective in a volatile market like we are seeing today but under more stable conditions would you still recommend this strategy? – Jeff
That’s a great question, and we can examine the question in a few parts.