Understanding inflation is crucial to bettering your finances. It impacts your earnings, spending, and investment returns, which all result in a change to your purchasing power.
It’s worth looking into true inflation and its impact, and not just the CPI number. Investigating the effects of true inflation can change the way you think about money.
CPI stands for Consumer Price Index. CPI is often used interchangeably with inflation because CPI measures the change in prices over time that consumers pay for goods and services.
The bureau of labor statistics defines CPI as,
The Consumer Price Index (CPI) is a measure…
In 2016–2017 it was pot stocks. In 2020–2021 it’s EV stocks. And in a few years, it will be quantum computing stocks.
As is often the case, there are industries that offer innovation and potential returns years before profits are made. A few years ago marijuana companies saw their share prices skyrocket as legalization crept across states. Recreational marijuana is still not legalized on the federal level. These companies have seen their share prices fall as they haven’t been able to produce revenue and profit numbers that meet analysts’ expectations.
Tesla has been on a remarkable ride the last few…
I had started looking at data for a different article I planned to write. Like always, I spent way too much time looking at the data and playing around with it.
But, I decide what I had created was helpful for my investing future, so I thought I’d share it.
What I created was a spreadsheet using Google finance that tracks how much a stock is off its 52 week high, in terms of percentage.
This information can help identify a great buying opportunity into a company you are interested in owning. Below are the steps to make your own!
Last week I wrote the stock market was soon due for a 10% correction. Boy, was I wrong.
The S&P 500 is down 2.5% from its all-time highs. I still think there's more room for it to fall. (On a technical-related side note, it will be interesting to see how it reacts now that it is at its 50 day moving average.)
While “the market” isn't down much yet, many individual stocks are. I filtered through the data and compiled a list of how much each stock in the S&P 500 is off its 52 week high.
Here are the…
The stock market has been on a tear for the last year and a half.
Following the crash in Spring 2020, prices rebounded and closed out 2020 at new highs. The gains didn’t stop there. Year to date, the S&P 500 is up 20% for 2021.
But trouble is just around the corner.
There are two historical trends and several current economic reasons why a correction is likely.
Market corrections occur every 17 months, on average.
Doing some quick math, the crash from Spring 2020 was 17 months ago.
That means we’re due. Likely sometime soon. A 10% correction occurring…
SPACs were all the craze in 2020.
Special Purpose Acquisition Companies (SPACs), also known as blank check companies, exploded in popularity last year. There were over 200 SPACs in 2020, with gross proceeds that far exceeded 2018 and 2019 combined.
And 2021 got off to a hot start for SPACs as well, but it has since cooled down. So what's happened?
Let’s keep this brief.
As previously said, SPAC stands for Special Purpose Acquisition Company. SPACs are a way of bringing companies public. They offer a “simpler” and quicker alternative to the traditional IPO process.
They are also commonly referred…
IPOs always grab attention. They’re like the new girl at school. Investors have spent years trading the same old, boring stocks — now a new stock is available to invest in generating plenty of buzz.
Just a few weeks ago, Robinhood IPO’ed. Their stock price shot up in the first week.
It often seems all IPOs provide great returns. It turns out that is not the case at all.
Fortune recently had an eye-opening article on IPOs, collaborating with Jay Ritter, a leading expert on IPOs.
He revealed the best approach to maximize gains from IPOs.
I’ll keep this section…
For years, betting against the market hasn’t worked out. Yet year after year, people put money into hedge funds hoping to outsmart the masses.
Sure, the people who bet against the housing market in the 2000s made a killing. But for most people who buy into a hedge fund or an ETF that hedges the general market, the results are worse than if they had just put the money into the market.
Using data from Hedge Fund Research (HFR), CNBC put together a comparison of HFRI Fund Weighted Composite Index vs the S&P 500.
Something I’ve been thinking a lot about recently — and can’t get a good measurement on — how common is investing in cryptocurrency?
There’s no doubt cryptocurrency has blown up the past two years. The volume of trades has slowly increased over time. The image below shows the floor steadily rising.
I wasn’t always on the crypto train. It wasn’t until late 2020 that I started investing in Bitcoin and Ethereum.
But the rebound in prices over the last month has shown how much money can be made, in the short and long term.
There was a brief time I day traded stocks. It was time-consuming. And I didn’t have the risk appetite or enough capital to make serious profits.
I noticed my other portfolio, which was only invested for the long run, was doing just as solid. …