Why Potential GDP Has Been Cut in Half Since the 1950’s? The main reason is a lower productivity than previous business cycles, due to: – lower population growth – the service sector is growing faster…
Despite Full Employment, Why Real GDP Should Stay Above Potential GDP? Because monetary and fiscal policies continue to support growth in the USA. So, real GDP could remain close to potential GDP. It also suggests…
What Are the Advantages of a Geographically Diversified Portfolio? A geographically diversified portfolio may minimize drawdowns and the amount earned from compounding may grow faster over time. Image: Bridgewater Associates, LP
“Rule No. 1: Never lose money…” – Warren Buffett Quote of the day: “Rule No. 1: Never lose money. Rule No. 2: Never forget rule No. 1.” — Warren Buffett
Why the Current Business Cycle Can Continue? Even if we are in a late business cycle, real Fed funds rate is near zero, the Fed remains “patient” at the moment and has little influence on…
No Recession, But a Growth Slowdown Is Coming, JPM’s Kelly Says As David Kelly (chief global strategist at JPMorgan Asset Management) points out, a slowdown is not a recession and the current expansion could last…
Warren Buffett Gives Advice On Success And Life’s Big Decisions “You want to associate with people that are better than you are… the partner in life is the most important one.”
Does Surging Oil Prices Cause Recession? Historically, a rise oil prices can cause recession because high inflation tends to lead to higher interest rates. But nowadays, oil shale production in the US limits the rise…
The Long-Term Impact of Compounded Returns The amount earned from compounding grows exponentially over time. Successful investing is all about patience and discipline. So, a lack of patience and investment discipline may impact long-term returns.…
Why U.S. Productivity Is Lower Than Previous Business Cycles? The real yield is the most important measure of financial tightness. But as the real yield is near zero, artificially low interest rates are then associated…
Ray Dalio, Founder and Chairman, Bridgewater Associates In this video at Stanford Graduate School of Business, Ray Dalio discusses his life and career, principles, relationship, conflicts with other nations, increasing wage gap in the U.S.…