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On Wednesday June 14^th the U.S. central bank (Federal Reserve aka the “Fed”) delivered its biggest rate hike since 1994. The Fed increased its benchmark rate by 75 basis points (bps) or 0.75%. The drastic action by the Fed was however not surprising. Many financial market participants...

You may be wondering how an interest rate could be negative. So, let's take a brief look at "negative interest rates". Firstly, what are they? As the name suggests, the rate is literally negative, i.e., it is below zero. In essence, this means that it costs you to keep your money at the...

Earlier this month, Heritage Petroleum (Formerly known as Trinidad Petroleum Holdings Limited “TPHLTT”) announced it would offer to repurchase its 9.75% 2026 bond from investors at a price of 102.563 on May 12^th 2022 (or 107.563 for investors responding and agreeing to the tender by May 10...

Inflation is a word we often hear in the news and during budget speeches. Inflation refers to the sustained increase in prices of goods and services in an economy or the increase in the cost of living over time. Many people may understand the concept and know what inflation is but may not...

Close your eyes and imagine an ostrich. One of two images will most likely come to your mind- either an ostrich running (they are known for their speed after all) or an ostrich with its head buried in the sand. Interestingly when I was doing research for this article, I found out that the...

With great risk comes great reward is a quote famously attributed to Thomas Jefferson. An investor's risk tolerance is a very personal thing and their appetite for risk will change over time. 2022 has certainly begun with a bang and investors may be wondering what risks are necessary to...

“Time is Money” is a famous phrase attributed to Benjamin Franklin that many of us have heard before. So why is time so important to an investor and is time really money? The simplest answer is yes. The time value of money is a concept that a sum of money is worth more now than the same...

Ever noticed how many animal-related references are used in the finance world? In the past we have written articles about pigs, wolves, bunny markets, and more recently explained a bull versus a bear market. Yet, we still haven’t covered all the animal terms- it’s a real jungle out there!

How often have you heard someone say, “I made so much money in the stock market today”? I personally hear it very often, especially when stock markets are doing so well. When someone says that I always get worried because it is usually not true. Before you crucify me, I am not saying that...

In my July article, which was based on reasonable analyses and deductions, I predicted that the U.S. Federal Reserve Bank (the Fed) would likely start “tapering” in March 2022. Sadly, I was completely wrong. In my defence, however, I suggested then that the timeline could be brought...