Inflation (the increase in prices and decrease in purchasing power; how much a dollar is worth) is widely known to be the scourge of savers, retirees, and workers, notorious for obliterating savings and piling up debt. But inflation’s lesser-known cousin poses an even greater risk to economies: deflation. Today, we’ll take a look at deflation […]
Many financial enthusiasts have most likely heard of the film The Big Short, adapted from the book by Michael Lewis with the same title. The story follows one of the greatest trades in Wall Street history where a hedge fund manager, Michael Burry, from California predicted the financial crisis of 2008 and made his investors […]
“In investing, what is comfortable is rarely profitable.” Robert Arnott Bonds are an important component of many investors’ portfolios. In the past, they offered a stable return compared to other investments such as stocks, which are more volatile. There are many types of bonds, but most of them typically fall into one of two categories: investment […]
Earnings: the thing all investors obsess about. Every company reports earnings and investors pay close attention to them. Investors look at metrics like EPS, EBITDA, P/E, and many more to judge the company and its stock. The company’s earnings are a very important factor, but understanding it can seem extremely overwhelming. In reality, earnings and […]
You may have heard of credit scores before in various places during your daily life. These scores are part of a much larger rating system that has immense influence over our economy and investors’ attitudes. The Basics A credit rating is an assessment of how suitable a borrower is to receive financial credit or money. […]
“Gentlemen prefer bonds.” Andrew Mellon There are several types of investments that people can make today in including stocks, bonds, mutual funds, ETFs, and more. Today, we’re going to focus on bonds, which are one of the most commonly held investments in the world. A bond is basically a “glorified loan” in which a company […]
With the stock market reaching record highs, many investors have good reason to be worried about a potential correction. With an unstable political climate and an unceasing US-China Trade War, the Dow’s continued ascent towards 30,000 appears to be part of a growing bubble. Yet, inflation numbers continue to hover around 1.8% annually. If investors […]
A vast majority of government intervention in the economy is intended to benefit consumers and workers. However, many businesses see government intervention as an obstacle or even as an enemy to growth. Regardless of this opinion, there are government policies which when enacted actually create a better economic environment for business. This lesson will cover […]
Huawei, espionage, 5G, no matter the form it takes, it’s all over the news. But how did we arrive at the current situation? Let’s take a look at the past, present, and future of Huawei and its implications for the US and global economy. Huawei: What Is It? If you own some sort of electronic […]