Category: Economy
114 posts categorized as "Economy"
Trivia Tuesday!
November 13, 2012
Test your financial knowledge! 1. How did the word “buck” come to mean a dollar? 2. Who coined the term “fiscal cliff”? 3. What was the value of the global bond market in 2011? 4. What’s the largest privately held company in the U.S.? 5. When was the first debt ceiling established and what was…
Fiscal Cliff Update
November 12, 2012
The Fiscal Cliff will be a hot topic in the coming weeks, as Congress will be charged with making decisions that will vastly affect our nation’s future. If Congress does not take action to stop them, approximately $600 billion in tax increases and spending cuts will be implemented in January 2013, which could drive the…
First Wednesday of November
November 9, 2012
Regardless of your political affiliation, Wednesday was a tough day for markets. Typically the day-to-day changes in the market are not necessarily a concern to the long-term investor. However, there were some interesting developments yesterday. The following chart, which was published before the election, predicted reactions of some industries based on the victory of each respective party: These…
Why Should I Invest Now?
November 7, 2012
Right now, investors are facing economic headwinds: slowing global growth, disappointing earnings releases, and the infamous approaching fiscal cliff. However, there are plenty of reasons to stay invested or start investing now, even with the fear and uncertainty that surrounds the financial landscape. Reasons to stay invested: Within the next year, uncertainties will dissipate. The fiscal cliff…
Economic and Stock Market Impacts of Costliest U.S. Hurricanes
November 6, 2012
S&P 500 Index return is computed over the year following dissipation of the hurricane. Most hurricanes occurred in either the third or beginning of the fourth quarter, so GDP quarter over quarter percentage changes are shown for the following year. Key takeaways Overall, historically there has been no significant impact on markets, the economy, or…
Retirement: Painting a Realistic Picture
October 22, 2012
We’ve all heard the stats: the oldest Baby Boomer turned 65 in 2011 for the next 18 years boomers will be turning 65 at the rate of 10,000 per day 13% of the population today is older than 65 In 2030, 18% of the population will be older than 65 This aging population phenomenon presents…
The Economy’s Gone to the Dogs
October 3, 2012
When you read my headline you may have thought you’d be reading about one of the Madoffs of our world, but I’m not quite brave enough to tackle that topic. The title is literal, although I’ve never quite understood why so many phrases refer to dogs with negative connotation. I’m a dog lover myself, and…
October McRip-Off
September 26, 2012
October is just around the corner. It’s the first full month of autumn, the first month of the last quarter, and oftentimes it sets us up for what we affectionately call the “Santa Claus rally.” There will be fund manager window dressing, arguments over the merits of gold, and even some AAPL stock put on investors’…
Kim Kardashian Holds the Key to S&P 500 Movement?
September 19, 2012
There are three kinds of lies in the world: lies, big lies, and statistics. During the first decade of my professional life, this was my mantra as a sportswriter. In a nutshell, it meant that one should always question statistics, because truthfully, numbers can be manipulated and distorted in many ways to try and prove…
Capital Asset Pricing Model Provides Interesting Insight about Investor Expectations
September 14, 2012
The Capital Asset Pricing Model provides interesting insight about investor expectations. A core assumption in the theory is that the average person is risk averse. This means that he or she would like to get the highest possible return with the least amount of risk. For example, given the option between receiving $100 and flipping…