Financial Literacy

Solution To Wealth Inequality

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Weakness in real median income is the backbone of the income inequality debate because if median incomes are increasing people don’t care as much about how well the rich are doing. If people have jobs and are getting raises, they aren’t willing to protest. If they are getting real pay…CONTINUE READING

Past & Future US Equity Performance

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Everyone knows the bull market is 9 years old; it is the longest bull market ever. However, the length of the bull market is largely irrelevant because it came very close to ending. It’s arbitrary to say a bear market is a 20% decline, but not a 19% decline. Returns…CONTINUE READING

The Myth Of Retiring Early

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Some of the most widely shared articles on the internet are on the concept of FIRE. Fire stands for Financial Independence Retire Early. The basic assumption is that you hate your job, so you will be happier by saving most of your money while you are working with the goal…CONTINUE READING

Are You Paying For Your Neighbor’s Vacation?

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Financial security and stability have immense value just like any product or service. It can become a product as is the case with insurance. It’s clear financial stability has value, but how do we pay for it outside of insurance? The two most prominent ways we pay are through delayed…CONTINUE READING

Are New Valuation Methods Valid?

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Some investors believe in maintaining the use of old models because they have historical precedence; new ideas can be risky to try. One example which comes to mind is when the 1990s tech firms were valued based on eyeballs instead of earnings. Believing in new models can easily turn into…CONTINUE READING

Revenue Growth Drives Shareholder Returns

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The market works in long term cycles even though it seems like changes occur often. There will always be news which drives short term action, but in the long run there are strategies which last for years or even decades. In the past 11 years, growth stocks have outperformed value…CONTINUE READING

What Are Leading Indicators Showing For 2H 2018?

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Everyone wants to know where the stock market and the economy are moving next because that’s what determines the profitability of investments, timing for personal life decisions, business decisions such as investing in CAPEX or acquisitions and how governments decide to set policy. President Trump recently stated his trade policy…CONTINUE READING

Alternative View: GDP Growth

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The 2008 financial crisis was pivotal in the economic history of America, not only because it was large and almost toppled the nation’s financial system, but also because it catalyzed a deleveraging. Investors often refer to a deleveraging as a cleansing of the economic system because when debt is recklessly…CONTINUE READING

2016 Was A Recession

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The US economy continues to outperform the rest of the world despite the fear of trade wars and with weakness in emerging markets and Europe. The chart below, using Haver Analytics data, gives an example of the stupendous U.S. growth. The current vertical increase is rivaling the improvement from 2010…CONTINUE READING

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