Keep INVESTING Simple and Safe (KISS)
****Investment Philosophy, Strategy and various Valuation Methods****
The same forces that bring risk into investing in the stock market also make possible the large gains many investors enjoy. It’s true that the fluctuations in the market make for losses as well as gains but if you have a proven strategy and stick with it over the long term you will be a winner!****Warren Buffett: Rule No. 1 - Never lose money. Rule No. 2 - Never forget Rule No. 1.
A: Spain's borrowing costs rose to the highest level since the euro was created on Monday. The yield on benchmark 10-year yields rose to 7.5pc, where the higher the yield the lower the demand for Spanish debt.
A: The crisis in Spain has escalated. It has been clear for weeks that Spain's banks needed emergency bailout funding, but now fears are mounting that the country will also require a full-blown sovereign bailout. European leaders on Friday agreed to grant up to €100bn (£78bn) of funds to Spain's banks.
There have also been further warnings on prospects for growth, as officials in Madrid warned the economy was likely to shrink throughout 2013. Spain is battling with a tough austerity programme as the government tries to bring down its debt mountain. The unemployment rate is 24pc, and roughly half of young people are out of work.
Q: What does it mean for the rest of the eurozone?
A: Eurozone leaders were already struggling to convince the rest of the world that the single currency has a sustainable future. They now face an even tougher job. Financially and politically, a bail-out for Spain would prove a huge challenge. And as we have seen with Greece, it is unlikely that it would be enough to permanently put to rest fears over Spain, and indeed other financially vulnerable countries including Italy and Portugal. Noise about a potential break up of the euro is once again building.
Q: What does it mean for Britain?
A: Europe is Britain's largest trading partner so continued problems in the region will weigh on demand for UK goods. The eurozone crisis is also damaging confidence among British businesses and consumers, who are unwilling to spend and invest at a time of heightened uncertainty. If one or more countries did ultimately exit the euro, the knock-on effect for the global economy would be huge, and Britain's recession prolonged.
Q: Is Spain the biggest problem in the eurozone?
A: Spain is an immediate concern, but so too is Greece. Greece's international creditors - the so-called "troika" comprising the European Commission, the International Monetary Fund, and the European Central Bank - will arrive in Athens on Tuesday to assess whether the government is making sufficient progress to earn another cash injection.
The visit is crucial: without further bailout funding Greece will be unable to meet its debt obligations or keep up with salary and pension payments. "If the current government fails, the next one will be a government of the drachma," said Costis Hatzidakis, the Greek development minister. Beyond Spain and Greece, there are also mounting concerns over Italy, as the government's borrowing costs rise.