Take a look at my view on the workings of the market.
I AM NOT an investment expert. I am befuddled by such things as puts and calls. Who is putting what where?
I do know the difference between stocks and bonds. I know that bond prices go up when interest rates go down, and vice versa, and I eventually figured out why. I also know stock markets are used to raise capital and that shareholders are actually owners of a company, but with little power or influence, especially small individual investors. In addition, I know you can make money in the financial markets in two ways: increases in the price of a stock or bond, and through the payment of dividends or interest.
But then I get to the point where I don’t understand. What the heck is the yield curve and does it matter to me? And don’t even get me started on the VIX.
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