Mar 31, 2020
It’s official, we reached a bear market in stocks. But when and how long will a pending recession last? How do you know an official recession has been declared?
What is a recession?
Two consecutive quarters of negative GDP growth
NBER vs GDP 2 quarters decline
Calculate GDP C + I + G + (X – M)
Annualizing GDP...
Mar 22, 2020
An official bear market has occurred and now down over 20% from recent highs. The speed of the 2020 decline only took 22 days to happen. How does that compare with previous bear markets? How long does it take to recover on average? And when do they officially call recessions? Get a sense of the numbers behind previous...
Mar 16, 2020
People have been getting into arguments at grocery stores hoarding toilet paper, hand sanitizer, and bacterial soap among other things. News outlets have reported on Amazon and eBay pulling listings trying to “gouge” prices. But would price gouging create a market where items like this actual get rationed due...
Mar 8, 2020
The Federal Reserve just announced an emergency 50 basis point cut in the fed funds rate. What does cutting interest rates mean? What are the differences in the fed funds rate, discount rate, and IOER or interest on excess reserves? How does a fed rate adjustment effect my mortgage rate? Plus, how do they figure...
Mar 1, 2020
Strong opinions exist on each side of this debate. Some believe plowing money to pay off the mortgage early is better. Others would rather step up their periodic investments and keep a low rate mortgage? In this episode Derek walks through how interest rates affect mortgage monthly payments. Key things to consider...