Category: Investing

Reading List for March 27-29

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Mar 27, 2020
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Current Events, Economics, Investing, Student Loans, Budgeting
Coronavirus Pandemic coverage this week includes articles on the soon-to-be stimulus bill, actions by the Federal Reserve, unemployment statistics, the stock market volatility, and potential implications for student loans.   Stimulus Bill What is in it, and what is not. The NYT provides the answers with an FAQ. Will you qualify to a direct payment? (WaPo) provides a calculator for stimulus checks. If you don’t need your stimulus check to pay bills, what should you do with it? Save it...

Question of the Day: The stock market recently dropped 33% from its peak. What percentage increase would get it back to its original level?

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Mar 25, 2020
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Question of the Day, Math, Investing
Answer: 50% It's the math of investment returns. Let me explain: Your investment was worth $100. After a 33% drop, your investment is worth $67. In order to get back to $100, it has to rise $33 in value which would be a 50% increase from its current level of $67.  No additional questions. Click here for the ready-to-go slides for this Question of the Day that you can use in your classroom. Behind the numbers (Zachs): Big Losses Hard to RecoupThe math of percentages shows that as losses get...

Reading List for March 20-22

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Mar 20, 2020
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Current Events, Investing, Economics, Paying for College, Taxes
Dealing with our new reality—here are articles that you may find helpful. USA Today came up with this article to help kids come to terms with what is going on. The food supply is secure. No need to hoard groceries. While there will be shortages of some products as adjustments are made, like food that was going to restaurants will find its way to grocery channels, if anything, production is gearing up. (NYT) Jean Chatsky has been on NBC news affiliates today with her financial advice for...

NGPF Podcast from the Archives: Charlie Ellis on the indexing revolution

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Mar 20, 2020
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Podcasts, Investing
The markets are in bear territory and panic has hit Wall Street and Main Street. I thought it was time to bring back this podcast from Charlie Ellis who is a voice of reason with a great historical understanding of the markets. Enjoy! ------------------ Released on June 1, 2018   Harvard Business School professor, founder of influential investment consultant Greenwich Associates, chair of Yale University investment committee (top performing endowment led by David Swenson), director at...

Reading List for March 13-15

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Mar 13, 2020
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Current Events, Investing, Career, Taxes
Coronavirus The World Health Organization declares the Coronavirus is now a pandemic. This past week, we saw the worst day on Wall Street since 1987 on Thursday (NYT), and worst week since 2008. As I write this, markets are bouncing back, but the day isn't over yet.  Neil Irwin in his Upshot article explains the troubling phenomenon with this financial crisis: all asset classes are down.  Listen to him on MarketPlace Morning report recapping the crazy week. (listen to the 3/13/20...

NGPF Podcast: Jonathan Clements says "carry on" while the markets turn bearish

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Mar 13, 2020
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Podcasts, Investing, Index Funds
It's advice my Dad would have appreciated as he would have seen this British war poster, "Keep Calm and Carry On," as a child during WWII.  Jonathan and I had this conversation on Monday (the 9th) which now seems like eons ago. We pulled this together on short notice because I wanted listeners to get Jonathan's perspective on the recent market tumult. We discuss circuit breakers, oil markets, bear markets, investor psychology and what an investor should do in these uncertain times. I also...

Question of the Day: How many bear markets (stock market declines of 20% off the peak) have there been in the past 63 years?

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Mar 11, 2020
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Investing, Question of the Day, Stocks
Answer: 10+1 or about once every 6 years. It was 10 until yesterday when the S&P 500 index was more than 20% below its previous high.  From Invesco:  Note: The number in bold is the duration (in months) of the bull/bear market. The %age is the rise or decline in stocks over that period. Bull in green and bear in red.  Questions What time period had the best performing bull market? the worst bear market?  How do bull and bear markets compare when it comes to their...

Reading List for March 6-8

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Mar 06, 2020
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Current Events, Investing, Economics, Mortgages, Financial Literacy
This week's list is devoted predominantly to the wide-ranging impacts of the Coronavirus in addition to wild fluctuations in the stock market.  (As predicted after last week's tumbling market, this isn't over yet.) Investing What should stock market investors do in this market? A Wealth of Common Sense suggests you ask yourself some questions to help figure that out. Of Dollars and Data explains why now you will understand why you should invest in bonds. 10-year Treasuries dropped...

NGPF Podcast: Lazetta Braxton discusses her "financial planning for the rest of us" model

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Mar 06, 2020
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Podcasts, Investing, Budgeting
Lazetta Braxton thinks about financial planning a little bit differently than most other practitioners. She shares how she developed her missionary zeal to provide financial planning services to those who are often forgotten or not well served by the current commission-based models. She provides some tips on how she motivates people to budget as well as how she's developing her daughter's financial capabilities. Enjoy!  Details: 0:00~1:44 Introduction 1:44~3:41 Early money lessons...

Chart of the Week: How have historical events affected the Dow over the past 120 years?

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Mar 03, 2020
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Investing, Chart of the Week, Research, Stocks
With the stock market last week undergoing its worst week since 2008, it's instructive to take the long view, the very long view. Here's a chart of the Dow Jones over the past 120 with historical events superimposed on the chart.    Questions: What historical event required the longest recovery time for the Dow Jones Industrial Average?  What historical event caused the last big drop in the stock market (before last week's decline)?  Find 2-3 historical events on the chart...

Reading List for February 28-March 1

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Feb 28, 2020
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Investing, Stocks, Current Events, Paying for College, Financial Literacy, Retirement
Given the huge and rapid correction in the stock market this week, we start this week’s list with the “Investing” articles:   This is the fastest market “correction” in history, and we aren’t done yet. (Yahoo Finance) "Is The Stock Market Going to Crash?" The Irrelevant Investor takes a deep dive for those of you that like numbers and stats and graphs to address this question. WSJ-(subscription) columnist Jason Zweig reports on survey results...

Question of the Day: Can you name the 4 companies worth over $1 trillion in market value (as of 2/21/20)?

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Feb 25, 2020
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Question of the Day, Investing, Stocks
Answer: Market Capitalization (as of 2/21/20)  Apple - $1.37 trillion Microsoft - $1.36 trillion Amazon - $1.04 trillion Alphabet (Google's parent) - $1.02 trillion Market capitalization - valuation of a company calculated by multiplying the current stock price by the number of shares outstanding for that specific company.  Questions: How many of these company's products do you use?  Calculate the percentage of students in your class who use each of the company’s...

Reading List for February 21-23

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Feb 21, 2020
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Advocacy, Personal Finance, Current Events, Investing, Career, Mortgages
Advocacy The West Virginia Senate considers two education bills: a financial education bill requiring a high school class, right alongside one reestablishing cursive writing in elementary school. (Bluefield Daily Telegraph)   Personal Finance Ever wonder what files you should keep and for how long? Michelle Singletary of the Washington Post explains how she used “Homefile: Financial Planning Organizer,” by certified financial planners J. Michael Martin and his wife Mary E....

NGPF Podcast: Author Roger Lowenstein discusses Warren Buffett, the subject of his book, The Making of An American Capitalist

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Feb 14, 2020
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Podcasts, Investing, Index Funds
  The book, The Making of An American Capitalist, may be 25 years old but the subject, Warren Buffett, remains a fascinating character today. In this podcast. Roger shares what he discovered through his exhaustive research on Buffett which included conversations with neighbors in Omaha, college classmates and his early investors. You will learn about Buffett's habits, his talents and the characteristics of the businesses he invests in. With the gift of time, Roger also provides his...

Reading List for February 14-16

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Feb 14, 2020
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Personal Finance, Savings, Credit Cards, Investing, Economics, Retirement
Happy Valentine’s Day (and Presidents’ weekend)! In recognition of the holiday, I am sharing the first article from Barry Ritholz’ reading list this morning from Behavioral Scientist in case you still need to find that perfect Valentine’s card for the people in your life. Enjoy!   Personal Finance We do what we do to keep future generations from repeating our financial mistakes. According to a recent survey by Deposits.com, 85% of Americans admit to making financial...