Submitted by Financial Adviser on Wed, 01/25/2012 - 23:55
This is a continuation of our discussion about asset classes. A defensive component of an investment portfolio is very important for most clients to provide stability and help mitigate risk. Fixed interest securities are among the lowest risk and most liquid investments available. These characteristics make them a solid foundation for most financial plans.
Submitted by Financial Adviser on Mon, 01/02/2012 - 22:21
Financial Theory (ECON 251)- Present Value Prices and the Real Rate of Interest Philosophers and theologians have railed against interest for thousands of years. But that is because they didn't understand what causes interest. Irving Fisher built a model of financial equilibrium on top of general equilibrium (GE) by introducing time and assets into the GE model. He saw that trade between apples today and apples next year is completely analogous to trade between apples and oranges today.