Education

What They Don’t Tell You About Indexes

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Reading Time: 4 minutes The biggest change in investing strategies in this cycle is that investors have moved to index funds in droves. With the power of the internet and the free flow of information, people realized they were getting fleeced by mutual funds who usually missed their benchmark. Investing used to be unfair…CONTINUE READING

Stock Buybacks Harm US Competitiveness

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Reading Time: 4 minutes Stock buybacks are share purchases that a company makes of its own equity, using profits from business operations or through acquisition of debt. Share buybacks and dividends are the two ways firms return cash to shareholders. Share buybacks are more tax efficient because dividends are taxed immediately while buybacks aren’t.…CONTINUE READING

FDIC Insurance Puts You At Risk Of Losing Your Money

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Reading Time: 4 minutes If you walk into a bank, you will likely see a sign that says FDIC insured. The FDIC stands for Federal Deposit Insurance Corporation. This government program insures deposits up to $250,000 in principal plus accrued interest due to the depositor in case the bank fails. To take advantage of…CONTINUE READING

Destroying Minimum Wage Fallacies

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Reading Time: 5 minutes There is a lot of misinformation on the internet about the minimum wage. The reason for this is it is a politically charged topic. If your goal is to push an agenda, it’s easy to manipulate statistics in your favor. The phrase popularized by Mark Twain is applicable in this…CONTINUE READING

Fractional Reserve Banking: History & Risks

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Reading Time: 4 minutes The monetary system underlying economies in the West, and throughout much of the rest of the world as well, relies on what is known as fractional reserve banking. Understanding how this system works, its effects and tendencies, is important not only from an academic but also an investing perspective. This…CONTINUE READING

The Federal Reserve: Everything You Need To Know

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Reading Time: 9 minutes What Is The Federal Reserve? The Federal Reserve System was established on December 23, 1913 with the enactment of the Owen-Glass Act also known as the Federal Reserve Act, making the Federal Reserve System (The Fed) the central bank of the United States. The Federal Reserve System consists of twelve regional…CONTINUE READING

Rating Agencies & The 2008 Financial Crisis

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Reading Time: 4 minutes In the 2008 financial crisis there were several acronyms that popped into the common vernacular simply because they were at the root of the problem. Most of these arcane instruments were difficult to understand, confusing nearly anyone who was not at the heart of dealing with them on a day…CONTINUE READING

Why Is China Dumping US Treasuries?

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Reading Time: 4 minutes China is a major manufacturer of merchandise. They are the world’s second largest economy, following the United States. China is the world’s biggest exporter of goods and have the largest trade surplus. That trade surplus results in vast currency reserves. This positive balance of trade for China has continued to…CONTINUE READING

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