Financial Literacy

Myths & Facts: Fundamental Investing

By
By

Reading Time: 5 minutes In this article we will review a couple of dynamic changes in the market and one myth which needs to be busted. One of the most important questions on Wall Street is if correlated metrics have a causal relationship. Even when relationships have been correlated for years, that doesn’t mean…CONTINUE READING

Explanation Of Corporate Debt & Leveraged Loans

By
By

Reading Time: 5 minutes There has been a huge increase in corporate debt to record levels, but the cost to service the debt is manageable because interest rates are low and investors are extremely sanguine. As you can see from the chart below, the spread between junk bonds and investment grade bonds is the…CONTINUE READING

Are You Investing In Cash?

By
By

Reading Time: 4 minutes There is lots of incredible analysis when it comes to finance and economics. However, a lot of it overlooks the simplest detail that is vital for any financial portfolio. While we cannot give you information that is specific to your circumstance, cash serves a critical role in any portfolio. It…CONTINUE READING

Are You Making This Investing Mistake?

By
By

Reading Time: 5 minutes There is a lot of speculation about what the rise of passive investing will do to the economy and the stock market. In theory, if everyone invested passively, then public companies would have less incentive to improve their businesses. This is far from reality as of 2018. As you can…CONTINUE READING

Is 2008 Financial Crisis A Reason To Be Bullish About Future?

By
By

Reading Time: 5 minutes Many bearish investors have become obsessed with being negative about stocks on the grounds that investor sentiment was at an all-time high in January 2018. You can’t blame them going against almost euphoric sentiment that existed earlier this year given that this is the 2nd longest bull market since WWII.…CONTINUE READING

The US Is In Secular Economic Decline

By
By

Reading Time: 5 minutes A statement popular in business is “if you’re not growing, you’re dying” (attributed to William Burroughs). It’s a great quote because it shows how quickly a business can fail. Unfortunately, America’s economy is trending in the wrong direction as growth is falling towards the flatline in expansions. If an economy…CONTINUE READING

Will This Be The Longest Business Cycle In History?

By
By

Reading Time: 4 minutes The U.S. stock market is in a 9 year bull market which makes many investors skeptical of the continued likelihood of market out performance. However, simple looking at the length of time without accompanying data to support this view that the business cycle is concluding is an irrational assumption. For…CONTINUE READING

What To Do In A Selloff?

By
By

Reading Time: 4 minutes The most important factor which determines if you successfully deal with a selloff is how you are positioned before one. When faced with a correction or a bear market your portfolio’s risk needs to be properly set to your personality, age, goals, savings and overall position in your life. It’s very…CONTINUE READING

Government Won’t Save You

By
By

Reading Time: 5 minutes In normal circumstances you don’t want to depend on the government because no one who relies exclusively on transfer payments (excluding people collecting public pensions) is living a comfortable successful financial life. The current budget situation for the government is dire, so your personal goal to avoid relying on the…CONTINUE READING

Does The Fed Cause Inequality?

By
By

Reading Time: 6 minutes Note: Our goal is to follow the facts, wherever they may lead. If your argument is better, let us know and we will adjust our framework. While sometimes events appear to be white or black, often the truth is in the middle, a muddied up gray, therefore rarely are their…CONTINUE READING

1 2 3 8