Tutorials

Over time, “tutorial” posts will be collected here.

My hope is that these posts will help explain intermediate concepts from the worlds of investing, finance and the economy.

Please leave comments within the posts if you don’t understand something, if you’d like the topic expanded, or if we’ve got something wrong.

Have a suggestion for a topic you’d like covered? Send an e-mail to optionarmageddon at gmail.com with “tutorial” in the subject line.

• Stop using P/E!
  • Part 1: What is a share of stock?
  • Part 2: P/E ratio defined
  • Part 3: Stop using P/E ratios!  Use EV / Unlevered FCF.

• Understanding why interest rates impact the foreign exchange value of the dollar
• Understanding the Trade Deficit
• Understanding inflation, how the Fed impacts it, and why Bernanke is lowering rates despite it
• Fannie Mae and Freddie Mac: What are they?
• LIBOR defined, and why you care
• “Tier 1″ Capital Ratios
• Leverage
• “De-leveraging”
• What is a “bad bank?”
• Geithner’s public-private plan for toxic assets