The Global Market Update is curated by Douglas Tengdin, CFA an employee of Charter Trust Company.
The opinions expressed herein are those of the author and do not necessarily represent the views of Charter Trust Company.
Investments may involve investment risk, including the possible loss of value.

Considering Our Options (Part 3)

By |March 5th, 2019|

Where do we find options in our everyday lives? Photo: William S. Farrow. Source: US Army Options are choices. They represent the ability, but not the obligation, to buy or sell something. Financially, we know that options are complex instruments that have strike prices, an implied leverage and time-decay. They’re priced according to a complex formula that only folks with high-powered math or finance degrees [...]

Considering Our Options (Part 2)

By |March 3rd, 2019|

Can we use options to invest? Illustration: Aia Fernandez. Source: Wikipedia. CC-BY-4.0 Options are powerful. And there’s a lot to understanding them. Call options give us the right, but not the obligation, to buy something at a specific price within a certain time. They don’t cost as much as the underlying stock, but they benefit just as much when the price goes up. As a [...]

Considering Our Options (Part 1)

By |March 1st, 2019|

What are options? Photo: Aia Fernandez. Source: Flikr. CC-BY-2.0 Strictly speaking, options are choices: the choice to buy, sell, or hold; the choice own or rent a home; the choice of what to eat for dinner. Having options means we have the ability to make – or not make – choices about our lives. Financially, though, options have a very specific meaning. An option on [...]

Growing National Income

By |February 28th, 2019|

Why are some nations richer than others? Source: Pexels Some countries get rich and stay rich, while others always seem to struggle struggle. Economists have looked at this question and believe that three critical ingredients matter most of all: capital, technology, and well-trained workers. Not raw materials –l just look at Japan. They don’t have oil, minerals, or precious metals. Not access to a major [...]

The size effect

By |February 27th, 2019|

Why do small stocks do so well? S&P 500 and S&P Small Stock indices since 1973. Source: Bloomberg If you look at a chart of long-term stock market returns, you’ll see it. Since 1973, small stocks have grown 10.5% per year, while big companies have grown about 1% less. Over time, that adds up. But small stocks are lot more volatile. And that makes sense. [...]

Traffic-Jam Investing

By |February 25th, 2019|

Have you ever been caught in a traffic-jam? Photo: Victor Hanacek. Source: Picjumbo It can be excruciating. I was recently on my way to the airport and suddenly there was a swarm of vehicles in front of me, whether because of an accident or construction or some other reason – I really couldn’t tell. All I knew was there was a huge mob, all going [...]

Dude, Where’s My Jet-Pack?

By |February 21st, 2019|

Have you seen the future? Photo: Bernard Spragg. Source: Picography We used to think it was coming with supersonic flight and high-octane service. The hood ornament to a ’56 Chevy Bel Air had a hood ornament that looked like a futuristic airplane. In fact, when Boeing introduced the 747 fifty years ago, it was considered primarily a freight design. People assumed that the skies would [...]

Mossy Thinking

By |February 21st, 2019|

How do you keep your mind sharp? Photo: Lisa Yont. Source: Morguefile I recently read the reminiscences of Byron Wien, a 60+ veteran of the investment industry. He’s famous for the “Ten Surprises” predictions he publishes each year: ten news events he expects to take place but the market doesn’t. He’s not just famous because he’s been doing this since the mid-‘80s, but because he [...]

The Hucksters

By |February 20th, 2019|

How do we avoid investment scams? 19th-century farm scam. Public Domain. Source: Flikr Investment scams are everywhere. From Ponzi schemes to obscure bank instruments to fraudulent crypto-operations, today’s financial landscape seems designed to encourage crooks and criminals to try to bilk us out of our savings. What are some of the signs that someone is trying to swindle you? First, check the pitch. To [...]