What You Pay, What You Get: Connecting Price and Expected Returns
It has been more than 50 years since the idea of stock prices containing all relevant information was put forth. Information might come in the form of data from a company’s financial statements, news
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Is Current Economic Growth Sustainable?
The U.S. unemployment rate dropped to 3.8% in May, as low as it’s been since 2000, and the economy added 223,000 new jobs, more than the 190,000 expected.
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The Impact of Inflation
This erosion of the real purchasing power of wealth is called inflation. Inflation is an important element of investing. In many cases, the reason for saving today is to support future spending. Therefore,
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Models, Uncertainty, and the Importance of Trust
Models are approximations of the world. They are simplifications of reality. Models can be useful for gaining insights that help us make good decisions. But they can also be dangerous if someone is overconfident
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Fed Shatters Conventional Economic Wisdom
Conventional economic wisdom holds that the record-low unemployment rate will cause employers to bid up wages, which then will be passed through to consumers in the form of higher prices, triggering rising
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What Is Correlation (and Why Would You Care)?
Here at Finley Wealth Management, we try to keep the financial jargon to a minimum. But even where we may succeed, you’re likely to encounter references elsewhere that can turn valuable information into
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Four New Signs Point To Economic Strength
In the news affecting your wealth, four good signs are currently pointing to continued economic growth for 2018.
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Are You Better Off Than 10 Years Ago ?
The progress of humanity moves inexorably slowly, but there is irrefutable evidence that Americans are better off than they were 10 years ago — about 20% better off.
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Tuning Out the Noise
For investors, it can be easy to feel overwhelmed by the relentless stream of news about markets. Being bombarded with data and headlines presented as impactful to your financial well-being can evoke
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A Focus on Fixed Income
It’s been approximately a decade since the Great Recession began. By year-end 2008, the U.S. Federal Reserve (the Fed) had lowered the target federal funds rate to near-zero and embarked on an aggressive
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