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Sunday links: addressing existential challenges

Abnormal Returns

Strategy The math on the 60/40 portfolio looks a lot different than it did a year ago. theatlantic.com) Not every government in the world is getting older. washingtonpost.com) Economy The U.S. awealthofcommonsense.com) There is a difference between picking and choosing. labor market is slowing.

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10 Tuesday AM Reads

The Big Picture

My Two-for-Tuesday morning train WFH reads: • Stock Pickers Never Had a Chance Against Hard Math of the Market : In years like this one, when just a few big companies outperform, it’s hard to assemble a winning portfolio. economy is doing well, why do so many Americans say it’s terrible? Sapient Capital ) • If the U.S.

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How Do Higher Interest Rates Push Inflation Down?

Discipline Funds

In fact, because QE reduces interest income it might have a marginally deflationary impact on the economy, all else equal. Interest rates are different and have a much more meaningful impact on the economy by damaging banks and credit markets. So the US government is paying out an extra $390B per year in interest.

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Weekly Market Insights – January 8, 2024

Cornerstone Financial Advisory

Jobs and services sector news painted a better picture of the economy on Thursday, but as the 10-year Treasury hit 4%, stock prices responded negatively. Math errors: Simple addition and subtraction mistakes can delay your return. Consider using electronic filing software that does the math automatically to avoid mistakes.

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From Rocket Ship to Roller Coaster

Investing Caffeine

However, the fact remains the economy remains strong, corporate profits are at record levels, unemployment is low, and interest rates remain at attractive levels despite nagging inflation ( see chart below ) and the removal of accommodative monetary policies by the Federal Reserve. Math Matters. Source: Calafia Beach Pundit.

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RIA Net Organic Growth is Practically Non-Existent

Steve Sanduski

The total US Government Bond market total return for the 5 years ending December 2021 was 19.5%. Simple math says the CAGR of NET NEW ASSETS (i.e., Organic growth is the lifeblood of a business and without it, you are at the mercy of volatile financial markets. Crunch the Numbers. Here’s how I crunched the data. Revenue Growth.

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Emotional swings continue as the FOMC meeting looms

Nationwide Financial

The curve, however, continues to project cuts to the rate beginning next May, which seems optimistic given the tone of Fed officials and the math around getting inflation back close to their 2% target. on depressed spending from COVID and drought-driven shutdowns, driving calls for accelerated stimulus from the government.

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