What is Tapering in Finance and the Taper Tantrum of 2013?

The word tapering is getting mentioned a lot in the news these days as central banks are starting to tighten monetary policy. What does it mean when a central bank discusses tapering and how might it affect markets? What was the Taper Tantrum of 2013 I keep hearing being mentioned? This article will take a […]

Top-Down Analysis – The Big Picture

Top-down analysis is an investing approach that examines the big picture of macro factors in the economy such as interest rates, GDP growth, inflation, employment, default rates, and taxes. These macroeconomic factors are critical to choosing which countries, asset classes, and industries to allocate investments to. It is important for investors to be aware of […]

Secular Trend Definition and Examples

Secular is the term used to describe trends that are long-term in nature and not affected by short-term seasonal, cyclical, or economic factors. Secular trends are driven by fundamental changes in critical areas such as technology, politics, and demographics, as well as societal changes which drive consumer behavior. While secular trends are expected to continue […]

4 Money-Saving Hacks to Ring in the New Year!

As we roll into the New Year, it is time to get started with some great money-saving hacks to help you retire rich. While smart investing is part of the journey to early retirement, saving money daily will light a fire beneath the power of compounding within your investment portfolio. Put together, these savings tips […]

What is a Breakeven Analysis?

A Breakeven Analysis is one of the most common ways to assess a business decision. In its most simplistic form, a breakeven analysis looks at how many units of a product or service must be sold in order for total revenues to equal the cost of production. A breakeven analysis is commonly used in financial […]

Economics 101: Macro vs. Micro Economics

Understanding the basic concepts of economics is critical to making smart investment decisions both at the stock-picking level and also at the portfolio asset allocation level. There are two major fields of economics; microeconomics and macroeconomics, and the laws of supply and demand play a factor in both which we will discuss as well. Microeconomics […]

Make Life 2% Cheaper with Cash Back Credit Cards!

Credit cards can get a bad wrap, but when using the right card and paying your account down to zero on a monthly basis, cash back credit cards can be a powerful way to help knock 2% off your annual expenses! Smart savers would be wise to use cash back credit cards and get a […]

Types of Inflation: Demand-Pull vs. Cost-Push Inflation

With inflation now running over 4% in the U.S. and other developed countries, investors are wondering how to classify the seriousness of the situation. As this article will discuss, the two main types of inflation are demand-pull inflation and cost-push inflation. Both demand-pull inflation and cost-push inflation are likely contributing to the economic environment we […]

What are the Stock Market Sectors? – Global Industry Classification Standards

One of the most common ways investors think about a company and analyze their portfolio diversification is by sector. There are 11 main sectors used by the S&P and MSCI in their popular Global Industry Classification Standards (GICS), which was started in 1999 to offer investors a standardized way to segment the market. From these […]

Be Aware of Liquidity Risk as an Investor

Liquidity Risk is an important concept that continuously pops its ugly head up from time to time. It occurs when a party has urgency or an obligation to discharge an asset and it affects the market price for that asset by trying to sell it too quickly. Sometimes obligations cannot be met fully (even at […]