Predicting and understanding markets is tough stuff, in fact I don’t think any one has done it well thus far.  Part of the problem is that markets have an irrational factor, namely, human behavior. Behavioral Economics is a new field of study that aims to integrate psychology and neuroscience to the study of Economics.

The web is cluttered with personal finance content, including blogs like thesimpledollar.com and mymoneyblog.com.  My favorite personal finance content, however, can be found at Kiplinger’s and Money.  Kiplinger’s content is divided into “Ahead”, “Investing”, “Money”, “Living”, and “In Every Issue” sections, while Money Magazine includes content on “Start”, ‘Money”, “Launch”, “Plan”, “Home”, “Spend”, and “Invest”. I also like the Wall […]

If you happen to have a Whole Foods supermarket in your area then you’ve probably noticed how popular the chain has become over the last 3-4 years.  After all, where else can you get a few stalks of organic Swiss Chard for $6.99 or imported whole been coffee for $17.99 a pound?  Heck, I was so enamored with the supermarket […]

Given a recent conversation on “where would you live in the world” I dug up some info on 1., standard of living and 2., human development index.  Here are some fun facts to consider next time someone asks the “where should you live” question:   The United States ranks 4th in GDP (or gross domestic product), but 92nd in terms of distribution of […]

I’m convinced that your average American citizen has the financial IQ of a cockroach.  After all, where else in the Western world is the savings rate less than 1 percent (the instinct in the US is to spend rather than save and that’s a problem)!  Read the latest on America‘s financial disaster (consumer debt and the mortgage crisis).

Every once in a while I have a realization about how well, for the most part, we live as American citizens.  Sure, I understand that the rich are getting richer and the poor are getting poorer (with the income gap growing each year) and that wages adjusted for inflation haven’t grown in well over 30 years, but when compared to […]

In my view, David Brooks is one of the preeminent op-ed writes in the US.  Brooks constantly gets “it” right and his latest piece, “The Great Seduction”, published on June 10 in the New York Times talks about the startling economic reality in the US.  Here’s snip it from the piece: “a typical US household with income under $13,000 spends, on average, $645 […]

A while back Vanguard published Dilbert’s guide (Scott Adams) to Personal Finance: Make a will. Pay off your credit cards. Get term life insurance if you have a family to support. Fund your 401(k) to the maximum. Fund your IRA to the maximum. Buy a house if you want to live in a house and you can afford it. Put six […]

Personal finance is not taught formally in elementary / high school in the U.S. and you can see the consequences in adult financial behavior: Abysmal savings rate High debt Credit card dependence Percentage of salary devoted to housing and other living expenses But personal finance isn’t difficult as long as some basic rules are followed: Live below your means Save […]