Market analysts are wondering how much longer the current U.S. economic expansion can last. At 73 months, it’s now tied with the previous growth period of 2001-2007. Polina Vlasenko takes a look at the numbers and why our current situation is different. Investors who use the Shiller Price Earnings Ratio to time the market are headed for disappointment, according to Larry Swedroe. The author of seven books on investing discusses why this popular matrix doesn’t work. As much as we hear about the importance of our credit score, surprisingly few people know how it’s calculated. The answer to that can help you be more financially successful, as Joshua Ibanez explains.
A Milestone For The Economic Expansion– This month the current business-cycle expansion, which started in June 2009, has reached the 73-month mark. This makes it equal in length to the previous expansion, which lasted from November 2001 to December 2007. Since there are no signs of an imminent recession, it is a good bet that the current expansion will last more than 73 months. This will make it, so far, the fourth longest expansion since the end of World War II. But this expansion is different as explained in this article by the American Institute of Economic Research. Read more…
Shiller Price Earnings Ratio Has Problems– Robert Shiller, PHD and Nobel Prize winner, has published the Shiller adjusted price/earnings ratio for many years. Larry Swedroe discusses why this matrix can’t be used to time the market, despite the advice of the gurus who rely on it. Read more…
Financial First Steps: You And Your Credit Score– You’ve probably heard about it a hundred times, and you know it’s important, but what exactly is a FICO score? Understanding what factors go into to calculating your credit score is extremely important to your financial success. Imagine going to school and not knowing what factors contribute to your grade. It would probably be hard to get an A. Read more…
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John R. Day, Bill Ennis, Stephanie Davidson and Matt Heller