[Trak Ratt]

Originally Posted by Mike W

Sorry, in my studies, we refered to that as a direct inverse relationship.

Convoluted I know, but this is as opposed to an indirect inverse relationship. Again, sorry, getting way to technical.

As for how they are valued and priced, well I spent a semister studying Bond and equity Markets. It's complicated, but here is a good overview:

http://www.duke.edu/~charvey/Classes...al/bondval.htm

Zzzzzzzzzzzzzzzzzzzzzzz

[Seltzer]

Oh and on top of todays DJ decline, I was really quite surprized when I got my Fairfax County tax assessment notice and it said my house appreciated over 5 percent this last year......whereas all the rest of Fairfax County declined. And I live in a 1900 sf 1953 house.

Maybe it is the cars in the driveway?

[turbo23dog]

x2 on the bad news for FFX Co assesment. The entire stinkin county has a average decrease in tax assessment this year, but not us in our 25 yo house.

[DDD]

Originally Posted by wludavid

Shouldn't you old guys have diversified by now? Sure, stocks took a hit, but 10-year T-bills spiked. Not that I understand how t-bills work.

This is a buying opportunity.

Buy high quality, safe index funds like SP 500 and like the iShares Top 100 dividend paying companies fund, or some blue chip type mutual funds as soon as the market hits rock bottom in the next week or two.

And in the mean time you can make money on bonds.

And if there is a correction in commodities, such as oil, in the coming weeks, buy low and anticipate that oil prices will rise in the summer driving season.

EDIT: The market will come back, I swear. In the meantime, buy low.

[Lucky]

Originally Posted by turbo23dog

x2 on the bad news for FFX Co assesment. The entire stinkin county has a average decrease in tax assessment this year, but not us in our 25 yo house.

Mine went up 5%, while most of my neighbors' went down. That's what I get for doing improvements...

[Vicegrip]

Dollar cost averaging. Invest every month and you get to spread the field. I am not a market insider and could not time a 3 min egg. Save and build wealth. Little bit if scratch left over at the end of the month? Salt it down. Big market downward moves are only a time not to sell. Yes this is simplistic and void of any deep insight but long term good solid savings and movement into well run instruments pays out. All you need to do is start about 25 years or more ago and have another 15 or 20 before you need to pull from it.

Green-spin said the "R" word again, run for the hills!

[Noah]

What about an indirect obverse relationship?

Thanks, BTW, for the quick and easy primer on stocks and bonds. I found this part of it particularly easy to understand:

A forward interest rate is a marginal return for investing your money for an extra period, i.e., investing for t periods rather than t-1 periods. The annualized forward rate between period 1 and 2 can be written:

(1+0 i 2)2 = (1+0 i 1)1 (1+1 f 2)1

Solving for the forward rate is quite easy.

We can also calculate multiperiod (annualized) forward rates. The forward rate between years 1 and 3 is:

(1+0 i 3)3 = (1+0 i 1)1 (1+1 f 3)2

Finally, if the interest rates are compounded semiannually, then the annualized forward rate between years 3 and 4 is

(1+0 i 8 )8 = (1+0 i 6)6 (1+6 f 8 )2

Now that that's out of the way, I think I'm ready for the intermediate class.

[Terry #44]

Originally Posted by david riley

Don't understand what you mean by diversify? Isn't there only one type of Money? Or did I miss the memo

When I decided I needed to diversify my assets, I decided to add an air cooled car.

[kaefer]

Originally Posted by DDD

This is a buying opportunity.

Dave,

I just sent you an email. Please let me know your thoughts. Thanks!

[Jase007]

Well, I guess I can count my lucky stars ... my FFX county asessment on the property stayed the same ... building went down 2%... no improvements or betterments