Investing

The Four Horsemen

In their Complete Guide to a Successful & Secure Retirement, Larry Swedroe and Kevin Grogan identified the four horsemen of the retirement apocalypse at the time. The first horseman was historically high equity valuations. The second horseman was historically low bond yields. The third horseman was increasing longevity of life. The fourth horseman was the …

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Investing

Another Great Debate

Lots of debates in the financial markets going on today that will probably continue for the foreseeable future. They all seem to come back to one debate in particular, inflation versus disinflation. I’ve written about that a few times and have concluded that nobody can predict with any reliable certainty what is going to happen …

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Economics Investing

Expectations versus Reality Follow Up

In April, I wrote about inflation expectations versus reality. Today’s post is a short follow up to that one displaying a chart from TLR Analytic’s Philippa Dunne and Doug Henwood showing inflation expectations versus actual inflation outcomes. The expectations come from the Conference Board’s expectations survey. The gist of Ms. Dunne’s and Mr. Henwood’s observation …

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Investing

Breaking Even

I’m reluctant to write about something so mainstream as inflation but I can’t help but notice a few unavoidable important data points. First, 5-year and 10-year inflation expectations have stopped going up and are actually modestly retreating. The peak in inflation expectations occurred a few days after the release of April’s “monster” CPI figure, which …

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Investing

Supply and Demand

The law of supply and demand states the price of a good or service is at the intersection of the supply and demand curves of that good or service. In other words, the price is where buyers and sellers come together and agree to transact. The higher the price a buyer is willing to pay …

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Investing

Collision Course

I’ve said this before, but I’m going to say it again. We are conditioned to expect crashes in asset markets. After the tech bust in 2000, the Great Financial Crisis in 2008-2009 and the global pandemic last year, we’re more prone to feel the next crash is right around the corner. This is especially true …

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Investing

How Much Risk Should You Take?

Risk is a part of our every day lives. We encounter it in many different forms with health and financial risks probably being the biggest risks we face. We purchase insurance policies to help mitigate many of the risks we face, providing protection for ourselves and for our loved ones. Managing risk is a critical …

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Uncategorized

UTMAs and UGMAs

We discussed education planning in last week’s post. What if you don’t think your child is college material? Well, some of the planning tools mentioned above can be used for trade schools and other professional programs that aren’t university related. Other options exist that enable parents to save for their children’s future. The Uniform Gift to …

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