Parts of America are Becoming Uninsurable by Heritage Financial
If you’re thinking of buying a second home factor the insurance cost into your analysis. Implementing risk mitigation efforts could reduce costs, as could taking advantage of state insurance pools, shopping around with different insurers, and partially self-insuring.
The Super Bowl Indicator: A Lesson on Correlation Versus Causation by Stephen Foerster
No, I’m not telling you to see who wins the Super Bowl for investment clues, but the Super Bowl indicator is a great way to understand an important investment lesson. Once upon a time the Journal of Finance published a seemingly unbeatable investment strategy that predicted the market’s direction 20 out of 22 years. If the NFC won the Super Bowl stocks went up, if the AFC won stocks went down. Correlation is different than causation. Just because two things happened together, doesn’t mean one caused the other. Lots of bear market and doomsday predictions (like Harry Dent’s demographics charts) fall into this trap. If you look hard enough you’ll find data to back up whatever theory you want to create. Ignore the storytellers.
Count Down to Rate Cuts (and Hikes) by Charles Schwab Asset Management
Markets are expecting rate cuts by the Fed, ECB, and BoE and Japanese rate hikes. Those are reasonable expectations, but if the cuts don’t come as quickly as markets anticipate it could create some stock market volatility and it’s important not to overstate the theory that rate cuts immediately help stocks. The data on this is mixed, particularly in Europe.
The Market and US Presidential Elections by Dimensional Fund Advisors
PSA as we get into election cycle, U.S. stocks tend to do well no matter who wins elections.
The path to financial wellness starts here by Vanguard
Money is a significant source of stress for 65% of Americans—a figure that grows to 82% for people under age 43. January is Financial Wellness Month and Vanguard has put together a lengthy guide to help people get control of their finances. While too lengthy to recap here, the 52 page guide includes tips on: budgeting, maximizing employer savings plans, debt management, emergency funds, insurance, legal documents, retirement planning, saving for college and more.