Stay calm during the market storm

Mar 31

Stay calm during the market storm

The collapse of Bear Stearns should not surprise anyone. When things go sour for an investment bank, the damage will be ugly, as we’ve now seen. I’m adjusting my portfolio to reduce my risks.

You must be logged in to post a comment.

Investing

Investing is a term with several closely-related meanings in business management, finance and economics, related to saving or deferring consumption. An asset is usually purchased, or equivalently a deposit is made in a bank, in hopes of getting a future return or interest from it. The word originates in the Latin "vestis", meaning garment, and refers to the act of putting things (money or other claims to resources) into others' pockets.

Differences

The term "investment" is used differently in economics and in finance. Economists refer to a real investment (such as a machine or a house), while financial economists refer to a financial asset, such as money that is put into a bank or the market, which may then be used to buy a real asset.

Investing guide