Inflation, decency! What can we learn from Mark Twain?

We are familiar with Mark Twain’s book Adventures of Tom Sawyer, published in 1879. Tom stumbles upon a box of gold which the adults invest for him while giving him an allowance of one dollar a day. One dollar today buys 3.6% of what Tom’s dollar bought in 1876. The average inflation rate  since that […]

How has inflation affected your practice/business/retirement?July 15, 2022 Survey results

First, a thank you to all who gifted a membership or a one-on-one zoom meeting to friends and relatives. We think that they make ideal gifts. Consider it. And now, our sincere gratitude to all members who took the time to respond to our Friday, July 15 survey about the impact of inflation in their […]

How to benefit from inflation. It could be here for a while.

The media tell us that governments are doing everything possible to tame inflation. Really? Like all borrowers and bond issuers, governments are the biggest beneficiaries of inflation. They repay all debts with money of lesser value. In addition, as the price of goods and services goes up due to inflation, so does the goods and […]

How the rule of 72 helps us calculate loss of the value of money resulting from inflation.

Albert Einstein said that compound interest is the eighth wonder of the world. Some writers have stated that he discovered the rule of 72 and that he considered it more important than discovering E = mc2! That could be an exaggeration, nevertheless…. A brief review of the rule of 72: If we take the rate […]

How to prosper during highest inflation in nearly 40 years.

A sincere thank you to all of you who bought memberships in the Monday Morning program as gifts. If you have not done so, consider it. Yesterday’s Wall Street Journal had an article on the current inflation rate. At 6.7% for November, it is the highest in nearly 40 years for that month! Not guilty. The annual […]

What is the simplest way to protect oneself against inflation?

The main reason for investing rather than simply saving is to keep up with or to outpace inflation. Among themselves, economists are welcome to discuss what type of inflation we have. Is it cost-push, demand-pull, or built-in? In what percentage is each present? Without an even elementary understanding of economics, John and Jane Doe see […]

Bonds, Stocks, Inflation

If you look at the 1899 menu of Delmonico’s, the famous New York City restaurant, you will see that you could have had a first-rate dinner at that first-rate establishment for under five dollars! Today, a similar dinner at Delmonico’s would cost you about $130. An 1899 dollar is worth $27.00 today. Over that period, the […]

When will we have near zero interest rates again? Does it matter?

Paul Krugman In a New York Times column last Tuesday, Nobel Prize-winning economist  Paul Krugman predicted interest rates would return to virtually nothing once the inflation fight is over. Krugman predicted a return to near-zero interest for two reasons. First, long-term rates have a delayed effect and advanced economies central banks have raised rates this […]

We are in bear market territory. Good or bad?

  From yesterday’s Wall Street Journal: “Had you been able to sink $100 into U.S. stocks in each of the 199 months from February 1966 through the end of August 1982, your $19,900 in cumulative investments would have left you with $18,520 after inflation, according to Morningstar.” Hard to ignore. However… …history shows that investors […]