Markets Demystified

Exchange traded funds, often called ETFs or index funds, offer the diversification that once was only available through mutual funds, yet they have the cost-effectiveness of a passive buy and hold strategy. These key features can make ETFs a good choice for long-term retirement investors. Click for print version.

Around half of Americans don’t participate in a retirement investment plan. Part of the reasons why many aren’t invested may have to do with what we call the hedge fund effect. Click to view written edition.

Recently, many media pundits have claimed that a recession is imminent, if not already present in the US. Historically high interest rate hikes by the Fed, accompanied by two consecutive quarters of declining gross domestic product has stoked recession fears, possibly causing some to sound the alarm prematurely.

A computer programmer with no known economic or finance credentials, Satoshi Nakamoto believed bitcoin would end inflation. He emphasized bitcoin’s scarcity as an escape from currency devaluation caused by central governments increasing the money supply. However, Satoshi’s inflation views, recorded in hundreds of forum posts and emails, may reveal a vision largely built on economic misconceptions. Click for print version.

Our “Money Movies” series explores how film portrayals may be far from what can be expected from a typical finance professional. Often, finance professionals are depicted as unethical, insider-info trading pump-and-dumpers. Quicksilver (1986) starring Kevin Bacon, is an outlier in that the stock trader is portrayed as a hero, rather than a scoundrel. However, the actual trading actions shown in the movie may present Bacon’s character as more of a reckless, irresponsible speculator.

It seems many have taken for granted that pandemic stimulus spending is the prime suspect for causing painful price increases. Despite the widely known mantra of eminent economist Milton Friedman, who said inflation is always related to money supply, researchers have been unable to find a relation since the 1990s. Other than the fact that no direct relationship between money supply and inflation has been found for decades, assessing stimulus details and the timing of inflation may also suggest pandemic aid is not the culprit. Read at: Relentless Inflation: Excess Stimulus or Suppressed Supply – Aesop Advisor

Stocks are firmly in bear market territory so far in 2022, having dipped more than 20% from their previous peak. Though losses in the last 6 months are painful, downturns are common and may provide opportunities for long term investors. For the average retirement investor, buckling up for the long haul may be a better choice than reacting to market moves by trying to jump in and out of tops and bottoms.

Even as crypto marketplaces adopt more regulation and consumer protections, it remains important to evaluate what crypto assets are actually worth. The writings of bitcoin’s creator, Satoshi Nakamoto, along with a community of cryptographers over a two year period may provide insights into why some believe the value of crypto will rise “to the moon”.

With a myriad of sometimes overlapping roles, it can be tough to piece together a clear view of the finance industry. We highlight a few types of finance professionals. Despite being a focus of movies and media, perhaps the most familiar finance professional may be the least used by average investors. Click to read.

Pundits throw around multiple terms when talking stocks. We break down what they mean by Dow, S&P 500, and Nasdaq. We’ll explore how they are alike, and how they are different. Surprisingly, perhaps the most used term may be one of the least useful.