Tuesday, August 8, 2017
Thursday, August 3, 2017
Is the U6 unemployment number the one you should really pay attention to?
Probably....
Here's the breakdown according to Wikipedia.
The Bureau of Labor Statistics also calculates six alternate measures of unemployment, U1 through U6, that measure different aspects of unemployment:[41]
- U1:[42] Percentage of labor force unemployed 15 weeks or longer.
- U2: Percentage of labor force who lost jobs or completed temporary work.
- U3: Official unemployment rate per the ILO definition occurs when people are without jobs and they have actively looked for work within the past four weeks.[43]
- U4: U3 + "discouraged workers", or those who have stopped looking for work because current economic conditions make them believe that no work is available for them.
- U5: U4 + other "marginally attached workers", or "loosely attached workers", or those who "would like" and are able to work, but have not looked for work recently.
- U6: U5 + Part-time workers who want to work full-time, but cannot due to economic reasons (underemployment).
Note: "Marginally attached workers" are added to the total labour force for unemployment rate calculation for U4, U5, and U6. The BLS revised the CPS in 1994 and among the changes the measure representing the official unemployment rate was renamed U3 instead of U5.[44] In 2013, Representative Hunter proposed that the Bureau of Labor Statistics use the U5 rate instead of the current U3 rate.[45]
https://en.wikipedia.org/wiki/Unemployment
Thursday, May 25, 2017
Jack Bogle's Index Fund Portfolio and How Warren Buffett Bet that Index Fund Investing would Beat Hedge Funds
John Clifton "Jack" Bogle is known as the common sense investor. He started the first index fund in 1975 which is in my opinion the only intelligent way for most of us to invest. Our fortunes grow as the nation's fortunes grow. All while giving less money to the big investment firms and banks.
The power of the index fund method was illustrated by a bet that Warren Buffett made with hedge fund managers. Mr. Buffett bet $1 million that he would beat their returns by investing in an index fund. Warren Buffett won.[3-5.]
The power of the index fund method was illustrated by a bet that Warren Buffett made with hedge fund managers. Mr. Buffett bet $1 million that he would beat their returns by investing in an index fund. Warren Buffett won.[3-5.]
Below are his eight basic rules for investors:[1]
- Select low-cost funds
- Consider carefully the added costs of advice
- Do not overrate past fund performance
- Use past performance to determine consistency and risk
- Beware of stars (as in, star mutual fund managers)
- Beware of asset size
- Don't own too many funds
- Buy your fund portfolio - and hold it
Below is his suggested portfolio along with suggestions for asset allocation based on age.[2.]
Sources:
1. Sigma Investing. Review of Common Sense on Mutual Funds.
2. http://www.npr.org/2015/10/17/436993646/three-investment-gurus-share-their-model-portfolios
3. http://www.npr.org/2016/03/10/469897691/armed-with-an-index-fund-warren-buffett-is-on-track-to-win-hedge-fund-bet
4. https://www.bloomberg.com/view/articles/2017-05-03/why-i-lost-my-bet-with-warren-buffett
5. http://www.npr.org/sections/money/2016/03/04/469247400/episode-688-brilliant-vs-boring
3. http://www.npr.org/2016/03/10/469897691/armed-with-an-index-fund-warren-buffett-is-on-track-to-win-hedge-fund-bet
4. https://www.bloomberg.com/view/articles/2017-05-03/why-i-lost-my-bet-with-warren-buffett
5. http://www.npr.org/sections/money/2016/03/04/469247400/episode-688-brilliant-vs-boring
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