In 2013, the United States’ Debt to GDP ratio officially hit 100%. This meant that the total debt of the US was equal to its total economic output. The Federal Reserve was already several years into ZIRP (Zero Interest Rate Policy). The Fed had cut rates to zero percent for the first time in US…
In this article, I will analyze US equity styles from the ending of the gold standard to when the United States eclipsed 100% Debt to GDP in 2012. This is an important era to study because in 1972, the United States got off of the gold standard. The United States dollar was no longer backed…
Fixed income investments are important to analyze because they are a key component of the global financial system and of individual investor’s portfolios. Financial managers typically recommend an allocation to fixed income such as bonds because they offer a guaranteed return and are supposed to protect your portfolio if stocks go into a downturn. One…
In 1995, Vanguard opened the door for the average person to access international markets, including mutual funds for Emerging Markets, International Small Caps, and International Value. This marked a turning point for retail investors. Data Note: This analysis begins in 1995 to capture a full 30-year history. Please note that investable Index Funds for Global…
International investing existed before 1986, but it was very different than what it looks like today. In 1969, the EAFE (Europe, Australasia, and Far East) index was created by Capital International, a unit of The Capital Group. The Capital Group wanted to invest internationally, but couldn’t find good data, so they created their own index…
What is the Money Supply? The money supply is the total amount of money that is circulating in economy. It’s also known as the M2 money supply. Key Components of M2 Money Supply – Cash– Checking Accounts– Saving Accounts– Money Market Funds It’s essentially any money that can be converted to cash quickly and be…
Below are CAGRs (Compounded Annualized Growth Rates) of US equity styles from the ending of the gold standard to today. It’s important to look at CAGR because it accounts for “investing math”. CAGR answers the question, “If I put money in at the start and don’t touch it, what steady interest rate would have gotten…