Wednesday Reading List
Massachusetts sees more cities filled with million-dollar homes by Axios Boston
Mass has 31 cities and towns where the typical home is $1 million or more. The number is growing here and nationally although some states like Florida, Texas, and Delaware say fewer million-dollar cities than a year ago.
Rule No. 1 of analyzing the economy 📋 by TKer
The inverted yield curve a usually reliable recession indicator “based on the notion that the economy is functioning normally when long-term interest rates are higher than short-term interest rates” so bad things will happen when the opposite is true is missing the mark as the yield curve has been inverted for two years without a recession. The number one rule of analyzing most things in finance is not to rely on any one indicator, except maybe corporate earnings driving stock prices.
Why do companies do stock splits by Sherwood
Companies that do stock splits outperform the S&P 500 in the 12 months following their announced split, but a stock split is just like creating more slices of a pizza. Same amount of pizza at the end, so the split shouldn’t help performance. Well, companies that announce splits have stocks that are doing well, and stocks that are doing well tend to continue to do well, so it’s not a stock split signal but just more evidence that momentum investing can work.
Ex-Factor: Housing Holds Some Economic Keys by Charles Schwab Asset Management
The housing market looks to be on the road to recovery, but not without significant scarring for a considerable portion of potential homeowners.
5 Money Tips for College Graduates by Heritage Financial
Graduation is an ideal time to arm younger generations with the tips and tools necessary to build a solid financial foundation. Here are five financial planning tips to help recent college graduates get their financial future started off right.
Latest Book Recommendation
An Economist Walks into a Brothel: And Other Unexpected Places to Understand Risk by Allison Schrager
In An Economist Walks into a Brothel, Schrager equips readers with five principles for dealing with risk, principles used by some of the world’s most interesting risk takers. For instance, she interviews a professional poker player about how to stay rational when the stakes are high, a paparazzo in Manhattan about how to spot different kinds of risk, horse breeders in Kentucky about how to diversify risk and minimize losses, and a war general who led troops in Iraq about how to prepare for what we don’t see coming.
When you start to look at risky decisions through Schrager’s new framework, you can increase the upside to any situation and better mitigate the downside.
Podcast
Lessons in Risk: From Brothels to Retirement (Wealthy Behavior) My discussion with Allison Schrager about Social Security’s depletion, what it means for future beneficiaries, and other retirement risks we face.
Things to Do in Boston This Weekend
Things to Do in Boston This Weekend
Things to Do This Week in Boston