“Quantitative Easing” Means What, Exactly? as published in InsideNova.com
You’ve probably heard the term “quantitative easing.” You probably also have no idea what it means. That’s okay; it’s not your fault. Whoever coined it assigned a horribly convoluted expression to a relatively simple thing. Quantitative easing (QE) is the act of a country’s central bank adding “new money” into its economy.
Behavioral Finance: The Far-Reaching Risks of Recency as published in InsideNova.com
A few articles ago, I introduced the field of behavioral finance, and the threats investors face if they ignore the emotional, instinct-driven side of money management. I promised to follow up with some of the specific biases that impact otherwise rational investors … like recency. It’s a good one to recognize if you’re wondering what to make of recent increases in market volatility.
March Madness and Investing
My favorite annual sporting event is the NCAA Men’s Basketball Tournament. I’m writing this during the first weekend and, wow, what a truly mad season it’s been so far. #13 Buffalo beat #4 Arizona, play-in Syracuse beat #3 Michigan State, and Texas A&M beat #2 UNC. Then, in an upset for the history books, the University of Maryland, Baltimore County (UMBC) Retrievers trounced UVA, the #1 team in the country. Never has a #16 underdog beat a #1 seed in the men’s tournament … by 20 points, no less!