Interest Rates: Hot Housing and All-Time High Stock Market

I have often said in the past that if you can understand interest rates, then you can understand just about anything going on in the economy with regard to a macro-scale.  In today’s world, this couldn’t be more true.  Let’s take a look. Mr. Smith wants to buy a house.  He has $250,000 for aContinue reading “Interest Rates: Hot Housing and All-Time High Stock Market”

How Inflation Affects Debt

We have talked about the effects of inflation on the value of the dollar before.  Now how does this translate to our everyday lives?  One key thing to understand about inflation is how it affects debts that you may owe or that someone owes to you.  Understanding the basics will not only help you understandContinue reading “How Inflation Affects Debt”

Inflation, Interest Rates, and Dividends

Most people believe it is impossibly hard to understand how interest rates and dividends affect the value of the share price of a stock, but if you can understand opportunity cost then you can understand these concepts.  Understanding these concepts will not only make you a better investor, but they will also allow you toContinue reading “Inflation, Interest Rates, and Dividends”