The most financially destructive events investors face are recessions. By some estimates, more than 12 trillion dollars was lost during the 2008 Financial Crisis. In 2019, most people still quote a handful of arcane models that use a single piece of data to measure recession risks. With new innovations disrupting the status quo across all […]
Life Insurance as an Investment?
Arthur Williams is credited in coining the phrase, “Buy term and invest the difference”, which you’ve probably heard by pundits of purchasing term insurance. The idea is by buying a term policy, the least expensive type of life insurance, you can invest what you saved from purchasing a permanent policy such as whole life (a more […]
Yield Curve Inversions and S&P 500 Forward Returns
The Yield Curve Inverted – Now What?
An inverted yield curve is often heralded as the best predictor of when the US economy is heading into a recession. The yield curve is a measure of the difference between short-term and long-term interest rates. Historically, prior to every recession, the level of short-term rates rises above long-term rates. Why does this matter, and […]
Disappearing Investment Risk?
With the 10-year anniversary of the bull market upon us, investors have to work a little harder to understand the risks inside their portfolios. While all investment strategies provide details about their performance history, those details get murky beyond ten years. Often times, measures of investment risk are non-existent. Nearly all investment strategies have some form […]