Category: Investing

Reading List for June 11-13

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Jun 11, 2021
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Investing, Economics, Employment, Paying for College, Taxes, Advocacy
Investing “The Mystery of the $113 million Deli” provides insight into the mechanics of SPACs while resolving this mystery. (NYT-Sunday) Here is the CNBC article on adding I-Bonds to your portfolio (following one from the Wall Street Journal in last week’s list.) Inflation figures haven’t spooked the market as the S&P 500 hit a new record yesterday. (CNBC) Have you heard of the banking app “Dave?” It is backed by Mark Cuban and will go public via a SPAC....

Question of the Day: Over a recent 20 year period, what percent of pros investing in large companies "beat the market?"

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Jun 06, 2021
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Question of the Day, Investing, Stocks, Index Funds
Answer: 94% of investment pros underperformed (see below), so 6% outperformed.  Questions: Why do you think investing professionals struggle to "beat the market? Why do you think investors continue to invest their money with professionals despite their record of not being able to "beat the market?" Your friend says "you are better off investing with professionals instead of buying a simple index fund (e.g., S&P 500) that matches the market return." Do you agree or disagree based on...

Reading List for June 4-6

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Jun 04, 2021
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Economics, Investing, Student Loans, Retirement
Economics Ed Yardeni, president of Yardeni Research, seems to agree with economists previously cited in reading lists and EconExtras that inflation may go up temporarily as economy starts back up, but demand and therefore prices will cool down soon. (CNBC) This New York Times presents lots of economic indicators (graphs) to evaluate the recovery so far. Unemployment claims dropped to under 400,000 last week. (Reuters) May jobs report showed payroll increase of 559,000 and unemployment at 5.8%....

EdPuzzle Thursday: Short Selling

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Jun 03, 2021
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EdPuzzle Thursday, Investing
EdPuzzle is a great platform to test for knowledge while students watch a video and learn remotely. We will be releasing new EdPuzzle videos here on the blog each week so that your students can answer questions that are directly embedded within engaging videos.  This week's EdPuzzle video from TwoCents titled "A Short Explanation of Short Selling" explains the concept and risk of short selling a stock.      Interested in more EdPuzzle videos? Visit our Video...

Reading List for MDW 2021

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May 28, 2021
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Financial Literacy, Economics, Investing, Paying for College
Economics Personal Consumption Expenditures Index jumped 3.6% in April (core up 3.1%) year-over-year. (CNBC) For more on the PCE and why it is important (this is the metric the Fed relies on as an inflation measure), check out this MarketPlace article. And for even more fine-tuning, check out this Cleveland Fed post on their measure: Median PCE. Initial jobless claims dropped for the fourth week in a row to 406,000. (Yahoo Finance) Of Dollars and Data takes a closer look at the financial...

Question of the Day: What is the average amount of retirement savings for 20-29 year olds?

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May 26, 2021
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Question of the Day, Investing
Answer: $15,000 Questions: Why do you think it is so important to start saving for retirement at a young age? Where do you think most people put their retirement savings: a savings account or the stock market? When do you think that you will start to save for your retirement? Click here for the ready-to-go slides for this Question of the Day that you can use in your classroom. Behind the numbers (CNBC): You should think of planning for retirement as something you do...

NGPF Podcast: Don O'Neal of the Capital Group on the value of investing for the long-term

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May 21, 2021
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Investing, Podcasts, Stocks
  Don O'Neal of Capital Group joins the NGPF podcast this week. The Capital Group manages more than $2 trillion in assets and is considered one of the top "active" investment managers. Don shares with us the insights from his 35 years in the business, including the analytical process that goes into picking stocks, the value of having a long-term time horizon and how he overcomes the common cognitive biases that plague investors.He also shares the unique organizational structure at the...

Reading List for May 21-23

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May 21, 2021
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Current Events, Cryptocurrencies, Investing, Economics
  100th Anniversary of the Tulsa Massacre Next weekend marks the 100th anniversary of the destruction of Tulsa. Morning Brew takes a look at “Black Wall Street” today, 100 years later, with a series of five excellent articles. (List titles) Black Investors Trade Their Way Through the Pandemic In Finance, 'People of Color are Shut Out Before They Ever Get In' Why Banking With Greenwood Is About More Than the Money 8 Charts that Explore Racial Disparities in the Banking Industry...

Question of the Day: What percent of American families invest in the stock market?

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May 19, 2021
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Question of the Day, Investing, Stocks, Mutual Funds, Index Funds
Answer: 52.6% Questions: When do you hope to start investing in the stock market?  This data is from a 2019 Federal Reserve survey. Do you think more families have invested in the past two years?  This data shows that only 15% of families own individual stocks. Why do you think that most investors choose funds (indirect) which are collections of stocks rather than individual stocks (direct)?  Click here for the ready-to-go slides for this Question of the Day that you can use in...

Interactive Wednesday: This NEW Interactive is on FIRE!

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May 18, 2021
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Interactive, Investing
FIRE stands for Financial Independence, Retire Early. It is a movement in the space of personal finance that encourages people to live well within their means, and aggressively save money towards early retirement.  If you don’t know a lot about the FIRE movement, I encourage you to watch this 9 minute segment on PBS NewsHour or listen to our podcast with what many consider to be the godfather of the FIRE movement, JL Collins, who also wrote The Simple Path to Wealth.    ...

Question of the Day: What do Yankee Stadium (NY) and Soldier Field (Chicago) have in common?

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May 16, 2021
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Question of the Day, Investing
Answer: The stadiums were built by issuing bonds (IOUs) that were bought by investors Questions:  These stadiums were able to issue these bonds at a lower interest rate due to a government subsidy. Do you think it is fair for stadiums to receive a government benefit? Why or why not? Do you think bonds that are issued to pay for stadiums would be popular with sports fans?  Click here for the ready-to-go slides for this Question of the Day that you can use in...

Reading List for May 14-16

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May 14, 2021
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Taxes, Economics, Investing, Cryptocurrencies, Budgeting
The delayed tax deadline is Monday. So let’s start this week’s list with one on Taxes. 5 tax tasks to take care of by May 17 (Don't Mess With Taxes)   Economics Here are several articles discussing the Consumer Price Index jump in April. CNBC covers the basics and the NYT (I highly recommend reading anything by Jeanna Smialek) provides a bit more analysis. The WSJ discusses Fed Governor Waller’s comments on the number, and also discusses which components of the CPI may...

NGPF Podcast: Bill Bernstein on his latest book, The Delusions of Crowds

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May 07, 2021
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Podcasts, Investing, Behavioral Finance
GameStop, cryptocurrencies, NFTs...and the list goes on of examples of speculation in today's financial markets. Who better to weigh in on these and other examples of financial speculation than Bill Bernstein. The full title of his new book, The Delusions Of Crowds: Why People Go Mad in Groups, captures the essence of our conversation. In this podcast, Bill discusses the power of narrative to fuel "bubbly" behavior and why social media (think sub-reddit groups like...

Reading List for May 7-9

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May 07, 2021
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Investing, Economics, Financial Literacy, Identity Theft
Financial Literacy Market Watch covers the research explaining the gender gap in financial literacy (confidence).     Investing It’s the season of annual shareholder meetings. Here are the highlights from this year’s address by Buffet and his team. (Yahoo) The market is still going gangbusters. Here is a trio of posts on the growth: Reuters discusses the midweek bounce and economic data. The NYT explains why the proposed tax increase isn’t dampening enthusiasm....

The Ultimate Interactive Roth IRA Calculator

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May 04, 2021
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Investing, Interactive
Late last week a teenager stopped by to promote his power washing business. We walked through what needed to be done, and after we agreed on a price, I told him about a Kiddie Roth IRA. When I used this calculator to illustrate what he could have at retirement if he started to invest now -- his eyes lit up and widened like Yanely’s during a Fin Cap Friday video as she makes her most important point!    Teachers had to deal with kids trading in brokerage accounts during the...