Entries by admin

Understanding leverage – a double edged sword

Leverage is something that have made people very wealthy. In real estate, depending on the credit profile of the investor, the typical leverage is 5 to 1. If the investor has a good relationship with a bank, he/she need only place 10% down for a property, and the leverage is then 10 to 1. When […]

Assume Nothing – Our Pension Crisis Is Looming

Calpers, a couple of years ago, lowered their assumptions rates from 7.5 to 7 percent. The assumption rate – in simple terms – is the rate which Calpers gauges their investment return on the pension funds. The funds, are paid out to present and future retirees. In a perfect world, assumptions can be created; in […]

The State of the Financial Markets

Don’t fight the Fed. Or, don’t fight the global central banks. Since the market crash of 2008, central banks have been instrumental in propping up the world economy through creative monetary policies. Japan has used monetary policies to keep their economy afloat since 1990. Even though their Debt to GDP is over 200%  – double […]