- Mark Hulbert writes in The New York Times that stocks are a good inflation hedge because though future earnings are discounted at a higher rate when inflation is higher, corporate earnings tend to grow faster than inflation. Investors worried about the first effect ignored the second, offsetting effect in the past and drove stock prices so low that valuations became very attractive. Could history repeat itself? Could investors make the same mistake again? The paper (“Inflation Illusion and Stock Prices”) referred to in the article can be found here.
- Via rail is offering a 50% discount for purchasing a comfort class ticket at the regular adult fare using a Visa card. Thanks to Tyler for this tip.
- Forbes Magazine takes a look at how people in different countries allocate their budget to eleven consumption categories: Food, Alcohol, Clothing, Housing, Maintenance, Health, Transport, Communication, Recreation, Education and Eating out. The National Post ran a story on this topic.
- Amidst all the gloom and doom, Larry MacDonald wrote a post on a money manager who is extremely bullish on stocks.
- Insightful articles, media interviews and blog posts by financial advisors from PWL Capital, which manages investments based on a passive philosophy using index funds from Dimensional Fund Advisors, can be found on the firm’s website.
Blog roundup will be posted over the weekend. Have a great weekend everyone!
