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Myths & Facts: Fundamental Investing

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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

The US Is In Secular Economic Decline

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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

What To Do In A Selloff?

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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

Does The Fed Cause Inequality?

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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

Stock Buybacks Outperform CAPEX Spending

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Reading Time: 5 minutes In the past few years stock buybacks have been increasingly criticized by investors who believe the stock market and economy are in a bubble. The main evidence they bring to the table is that companies bought back a record amount of their own shares before the financial crisis in 2008.…CONTINUE READING

The Most Important Chart In Macroeconomics

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Reading Time: 4 minutes We’ve discussed the meaning of the 10 year bond yield at length in a couple articles. For almost this entire bull market, the point that low yields are causing stocks to go up has been repeated endlessly. That call didn’t matter much when yields were going down because it simply…CONTINUE READING

Gold vs Inflation: Not What You Expect

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Reading Time: 5 minutes We’ve had some readers question the Fed’s use of CPI as a measurement of price inflation. The chart below might satiate them as it shows the eight components of CPI. Medical costs have pushed inflation higher. Keep in mind, this is over a 17 year period. We’re not ignoring the…CONTINUE READING

Is Gold A Good Investment?

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Reading Time: 6 minutes While some investors are intellectually brave to even ponder whether gold is a good investment, sadly most investors malign it for even being considered a plausible investment option. Gold is probably the most interesting and at the same time misunderstood asset in the world. Some investors believe that because gold doesn’t…CONTINUE READING

Bull vs Bear Market: Historical Gains & Losses

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Reading Time: 7 minutes Bear Market Definition: A bear market is defined as an event where asset prices decline in excess of 20% for at least 60 days. In contrast, if a decline in asset prices in excess of 20% occurs for less than 60 days this is referred to as a “market correction”.…CONTINUE READING

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