Home > Resources > Government and Economics

Government and Economics

Regulations set forth by local, state and the federal government are constantly changing. Staying informed and up to date can help you understand what regulatory changes will have an effect on you, your family and your finances. Learn how changes in economic trends, monetary policy and savings rates might create a need to evaluate your financial situation

Monetary Policy and the Federal Reserve

government-and-economics

The Basics of Currency Fluctuations

An international investment's total return is based on two factors - the investment's return in local currency plus currency fluctuations. For example, suppose you purchase a British stock whose price increases 10% in one year in terms of British pounds. If, during that same year, the British pound increases in value by 5% compared to the U.S. dollar, your total return would be 15% - 10% from the investment's return plus 5% from currency fluctuations. However, if the British pound decreased in... more

Behavioral Finance

government-and-economics

Behavioral Finance

An industry leading research firm, DALBAR, reports that investors have certain behaviors which lead them to buy, sell and switch in and out of mutual funds. They just produced a study called the Quantitative Analysis of Investor Behavior (QAIB) and I'd like to share some of the main points with you so you'll hopefully avoid these pitfalls. The investor's behavior is the number one determinant in performance over the long haul as it relates to investments. There are terms that define the... more

Corporate America

government-and-economics

David and the Corporate Goliath

As the Bible story goes, the lowly but courageous David found the weak spot on the forehead of the mighty Goliath and 'slew him dead'. Will the individual investor vs. the corporate giants be so lucky? Probably not. First of all there is no single forehead to aim for. The corporate scandals of late have many legs and, arguably, less than one functioning head. So where does the slingshot aim? The finger of blame has pointed to all but the rank and file of the corporate team. Is it the... more

Government Regulations

government-and-economics

How Secure Is Social Security?

Unless you're close to retirement age, whether you can count on Social Security benefits to help fund your retirement is a concern. Currently, the system collects far more in Social Security taxes than it pays out in benefits, but that will change drastically as growing numbers of baby boomers retire. At the end of 2003, the Social Security system had excess assets of $1.5 trillion, invested in special-issue Treasury bonds. Starting in 2018, the system will start paying out more in benefits... more

World Economic Trends

government-and-economics

What the Oil (over)Supply Means for the Markets

Oil prices are down due to an oversupply, but this time it isn't all good news. By Anna B. Wroblewska   The stock market is having the worst January on record. At the same time, oil prices are sinking. These two asset classes -- which historically don't have much in common -- are moving together and going south.   But why? At the heart of the matter is an oversupply of oil, which is, in turn, related to a major economic shift in China. Here's what you need to know, why it matters,... more