Thursday, March 20, 2008

Fed helps market go up

Apparently, the Federal Reserve is capable of altering the stock market, we can see this when DOW increased 400 points on Friday due to the Central Bank lowering it's federal funds rate. At least the Federal Reserve is noticing that were going into a recession. Our economy is doing very poorly, and even if the DOW went up 400 points, I'm absolutely sure that in the oncoming weeks, it will rather than double the 400, simply go down 800 points to show how bad our situation is. If the stock market is going up, then nobody in our stock market game should be in the negatives. It's a bad time to be investing in stocks, especially now when our country is in the middle of a war, in national debt, and our economy is falling apart. I don't think that anything the feds can do could possibly help us.

Tuesday, March 18, 2008

Compound Interest and the Rule of 72

Compound Interest

Compound Interest is basically a way to invest your money in the bank in order for the money that you placed to increase over a long period of time. Compound interest starts out with a first deposit, and then takes a percentage of that, and adds it. The next time the percentage rolls around, the bank takes the percentage of the total of the previous percentage that it added. So basically you're money is slowly increasing.

The Rule of 72

In investing, is a way of calculating an investments doubling time, or halving time. They are more commonly used for compound interest rather than simple interest. Since simple interest doesn't add too much to your account.