Best of Money Carnival

. Most people make the assumptions that if it’s in print, its correct and if it’s from a reliable source, it’s correct. I hope to educate people to take action in educating themselves. This post gives actual case study to show the consequences of blind trust. 

4 – Co-Signing For A Loan: Never A Good Idea Unless You Like Paying For Other People’s Stuff – Thinking about co-signing a loan? Don’t do it unless you like paying for other people’s things!

3 – Passive Investing and the Ostrich Effect – The most ardent passive investors will tell you to completely ignore financial commentary in order to avoid straying from your financial plan. I can’t bring myself to take that approach with our money. It seems to me that those who advocate this are falling victim to The Ostrich Effect, which is a behavioural finance term for investors who ignore risky financial situations by pretending they don’t exist. 

2 – Defining the Terms of the Stock Market – We’ve compiled 25 of the most used terms when buying and selling stock.  

1 (the winner) – Efficient Market Hypothesis: So Are Markets Efficient? – Modern Portfolio Theory (MPT), which is widely used by the financial industry, can serve investors very well. But, as many investors know, MPT has been criticized more vigorously in recent years. MPT is the model for proper asset allocation and portfolio diversification. By constructing a portfolio of assets that have a low or even negative correlation, an investor can, in theory, reduce overall portfolio risk and maximize returns.

And there you have them — the top 10 personal finance posts of the week and the kick-off of year #2 of the Best of Money Carnival. Here’s to another great year!