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“Welcome 2 Detroit” – A Case Study of Corruption and Its Consequences

The financial situation in Detroit has gotten so dire that the Governor of the State of Michigan, Rick Snyder, appointed appointed Kevyn Orr, a bankruptcy attorney, as the emergency manager of Detroit in early 2013.  Mr. Orr has proposed some drastic measures, the results of which are captured in the cartoon dialogue in a comic strip called […]

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Sometimes Clients Say It Best: An Investor’s Own Experience

Sometimes the readers of our articles say it better than we can.  Here is one letter we received in response to  articles that we wrote for the Journal of the American Association for Individual Investors (AAII): Dear Richelsons, Thank you so much for your AAII Journal articles October 2012 and May 2013. I agree – […]

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Premium or Discount Bonds? That is the Question

KEY POINTS: Premium Bonds: Hold value better Partial return of premium with interest payments Can be sold at a profit More likely to be called before the maturity date Reinvestment risk in low interest rate scenario Discount Bonds Preferred by retail clients, along with par bonds. Lower cash flow, but interest payments may be only interest due. […]

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Concerned about Inflation? What about TIPS (Treasury Inflation Protected Securities)?

Buying Considerations Many investors are sure that higher inflation and higher interest rates are right around the corner.  As a result we have had a number of inquiries as to whether, in 2012, a bond investor should buy Treasury Inflation-Protected Securities (TIPS). Investors like the idea of TIPS because they will appreciate if there is […]

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