Across the rich world inflation is raging by about 9% year on year. This constitutes the highest rate of inflation the rich world has seen since the early 1980’s. The last time inflation was this high, it ran for about sixteen years from its inception in the mid 1960’s to the recession in 1983. But […]
THE WAR AGAINST INFLATION Read More »
The key to any investment begins with the potential investor coming up with a supply of available money. Often this occurs with a windfall such as a tax refund, an inheritance, or a bonus at work, etc. But what if a potential investor doesn’t have any of these windfalls? How can a potential investor get
SAVINGS: THE MOTHER OF INVESTMENT Read More »
Inflation is upon us, and it won’t be going away very soon, echoes the sentiment in Washington D.C. as the Federal Reserve sets out to combat it. Whenever inflation passes above 4% and unemployment falls below 4%, the U.S. economy has gone through a recession, as per Lawrence Summers, Harvard professor and former Treasury Secretary.
IS THE NEXT U.S. RECESSION JUST AROUND THE CORNER? Read More »
Inflation is upon us as evidenced by rising fuel and food prices, along with almost everything from clothing, to housing, to new vehicles. Most economists point to this round of inflation as owing to ultra-low interest rates coupled with low unemployment thereby providing strong demand. The supply chain, still recovering from Covid, cannot rise up
THE ROLE OF QUANTITATIVE EASING IN INFLATION Read More »
At the end of World War I, the U.S. economy went through a major boom era known popularly as the roaring twenties. Rising incomes meeting up with rising technological advances created progressive lifestyles for many middle and upper class Americans. It also nourished the get-rich-quick attitude that has long pervaded American society. Those times and
THE 1920’s, AN ERA OF GET-RICH-QUICK SCHEMES Read More »
When World War I ended in November, 1918, Germany’s economy was in a shambles. At the Paris Peace Conference in 1919, Germany was obliged to accept defeat and agree to pay a huge amount of money for reparations primarily to France and Belgium, owing to the great destruction and loss of life inflicted on those
INFLATION IN GERMANY AFTER WORLD WAR I Read More »
Today’s financial markets have shown considerable volatility that’s likely to unnerve many private investors. Much of the reason for it comes from the changing character of the economy due to the massive amount of government stimulus stemming from the pandemic. As this stimulus winds down in the face of inflation, financial markets have been shifting
HOW HEDGE FUNDS IMPACT TODAY’S MARKETS Read More »
Ninety-three years ago on October 24, 1929, the U.S. stock markets went on a sharp decline that eventually fell by 89% of the all-time high of 381.17 reached on September 3 of that year. On July 8, 1932, the bleeding finally stopped as the Dow Jones Industrial Average bottomed out at $41.22, and didn’t reach
THE 1929 STOCK MARKET CRASH Read More »
The Federal Reserve has all but guaranteed us that interest rate increases will be forthcoming, perhaps as soon as March of this year. Further, the process of quantitative easing, or increasing the money supply as the Fed buys government bonds, will be dialed back to zero. We know that interest rate increases should have an
WHAT INVESTORS SHOULD DO ABOUT INTEREST RATE INCREASES Read More »
All investments, big or small, have three structural components: the amount of money invested, the expected rate of return, and the time or duration of the investment. Many investors, especially smaller, private ones, are familiar with the first two components, but don’t pay that much attention to the third one. The Time Value of Money:
TIME: THE FORGOTTEN DIMENSION OF INVESTING Read More »