Finance Investing

Rainy Day

How much do you need to have in reserve for unexpected events? The popular financial gurus have their opinions which can range anywhere from three to eight months of living expenses in savings. Being prepared is the name of the game. Whether you’re laid off, become ill, have major unexpected car repairs or significant child …

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Investing

Vol Mo

Volatility is a measure of the dispersion of returns of an individual stock or market index. Higher volatility tends to be associated with riskier securities and/or environments. Academic studies have shown that prices and volatility tend to be negatively correlated. In other words, when volatility is rising prices are falling. It’s not quite that simple …

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Investing

Rate Rapids

Interest rate volatility has become very topical recently. While rising rates can be detrimental to asset valuations, it’s the rapid rise in rates that has the most harmful impact, especially on long duration assets. For example, 20 and 30 year bonds have experienced the greatest losses in the bond market in the wake of the recent …

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Investing

Wilting Growth?

Growth stocks have noticeably underperformed over the past few weeks as interest rate increases have accelerated. While painful to experience for growth investors, the drop shouldn’t come as a surprise after growth stock’s meteoric rise in 2020. The chart below is the ratio of the iShares Russell 1000 growth ETF (ticker: IWF) versus the iShares …

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Economics Investing

The Great Debate

I’ve heard many people say they write so they can sort out their thoughts, learn something and ultimately arrive at what they think about a specific topic. That’s what I’m attempting to do today. One of the great debates currently in  the world of economics and investing is whether we’re headed for a sufficiently higher …

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