Daily Economy
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Humans Aren’t Wired For Investing
Economists are frustrated by investors. Investors will just not follow their models. You see, there is a tendency among investors to sell stocks after a big drop in price, at exactly the time when the expected return has increased. On the flip side, there is a tendency to buy just after prices have risen, when…
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As U.S. Weighs Trade Pact, Trade Deficit Grows
With the Trans-Pacific Partnership heading to Capitol Hill for ratification, U.S. policymakers will weigh the proposed free-trade zone in an increasingly challenging trade environment. The strong dollar, a weaker global economy and low energy prices have all worked against the United States when it comes to trade, said Bob Hughes, senior research fellow at the…
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How Lesser Investments Can Create Better Investors
The humans that put their money into financial markets have a tendency to underperform their investments — by a wide margin.
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Mixed Reports May Give Fed (More) Pause
The broadly disappointing September Employment Report continues the recent trend of mixed economic reports but overall suggests the economy continues to grow at a slow to moderate pace.
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AIER Begins Distribution to Libraries
AIER materials are now available online in more than 500 libraries in Massachusetts. The distribution through the Massachusetts Library System went live September 23, and is part of the Institute’s new partnership with Biblioboard, an electronic library subscription service.
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Lefty Presidents Are Better For Markets
I tallied S&P 500 index returns under different presidents. Even with Herbert Hoover’s atrocious left-handed start from 1929 through 1932, lefty presidents have seen annual S&P 500 growth almost 2 percentage points better than righty presidents. Under their 40 years of tenure, lefty presidents have seen price appreciation of about 7.2 percent per year. This…
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How Obama’s College Scorecard Helps (and Doesn’t)
Earlier this month, the Department of Education released a new College Scorecard which contains a variety of information about almost all U.S. colleges, including costs, graduation rates, test scores and students’ future earnings. While it is a great source of data, the Scorecard has important limitations and users should be careful when using student outcomes…
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The Unresolvable Debate on Job Creation
If you’re a political candidate, “jobs” is a word that almost guarantees applause at any rally, regardless of party. We all agree that creating and sustaining good jobs is a key priority, but we’ve had essentially the same debate on how to do it for decades. So why do we keep having the same debate? …
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New GDP Report Signals Continued Economic Growth
This morning we received word that the second-quarter Gross Domestic Product numbers were revised upward by the Commerce Department, from 3.7 percent in the prior estimate to 3.9 percent. It was the third estimate of these numbers; the initial estimate was just 2.3 percent. Consumer spending rose at a healthy pace of 3.6 percent, and…
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Maximize Social Security Benefits: File And Suspend
Fifty-two percent of married Social Security beneficiaries receive at least half their total income from Social Security. Optimizing the claiming decision is critical to making sure they maximize their income. I want to take an opportunity to explain one way to do that: the “file and suspend” strategy for married, two-earner households. This approach has…
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•
Humans Aren’t Wired For Investing
Economists are frustrated by investors. Investors will just not follow their models. You see, there is a tendency among investors to sell stocks after a big drop in price, at exactly the time when the expected return has increased. On the flip side, there is a tendency to buy just after prices have risen, when…
-
•
As U.S. Weighs Trade Pact, Trade Deficit Grows
With the Trans-Pacific Partnership heading to Capitol Hill for ratification, U.S. policymakers will weigh the proposed free-trade zone in an increasingly challenging trade environment. The strong dollar, a weaker global economy and low energy prices have all worked against the United States when it comes to trade, said Bob Hughes, senior research fellow at the…
-
•
How Lesser Investments Can Create Better Investors
The humans that put their money into financial markets have a tendency to underperform their investments — by a wide margin.
-
•
Mixed Reports May Give Fed (More) Pause
The broadly disappointing September Employment Report continues the recent trend of mixed economic reports but overall suggests the economy continues to grow at a slow to moderate pace.
-
•
AIER Begins Distribution to Libraries
AIER materials are now available online in more than 500 libraries in Massachusetts. The distribution through the Massachusetts Library System went live September 23, and is part of the Institute’s new partnership with Biblioboard, an electronic library subscription service.
-
•
Lefty Presidents Are Better For Markets
I tallied S&P 500 index returns under different presidents. Even with Herbert Hoover’s atrocious left-handed start from 1929 through 1932, lefty presidents have seen annual S&P 500 growth almost 2 percentage points better than righty presidents. Under their 40 years of tenure, lefty presidents have seen price appreciation of about 7.2 percent per year. This…
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•
How Obama’s College Scorecard Helps (and Doesn’t)
Earlier this month, the Department of Education released a new College Scorecard which contains a variety of information about almost all U.S. colleges, including costs, graduation rates, test scores and students’ future earnings. While it is a great source of data, the Scorecard has important limitations and users should be careful when using student outcomes…
-
•
The Unresolvable Debate on Job Creation
If you’re a political candidate, “jobs” is a word that almost guarantees applause at any rally, regardless of party. We all agree that creating and sustaining good jobs is a key priority, but we’ve had essentially the same debate on how to do it for decades. So why do we keep having the same debate? …
-
•
New GDP Report Signals Continued Economic Growth
This morning we received word that the second-quarter Gross Domestic Product numbers were revised upward by the Commerce Department, from 3.7 percent in the prior estimate to 3.9 percent. It was the third estimate of these numbers; the initial estimate was just 2.3 percent. Consumer spending rose at a healthy pace of 3.6 percent, and…
-
•
Maximize Social Security Benefits: File And Suspend
Fifty-two percent of married Social Security beneficiaries receive at least half their total income from Social Security. Optimizing the claiming decision is critical to making sure they maximize their income. I want to take an opportunity to explain one way to do that: the “file and suspend” strategy for married, two-earner households. This approach has…