Capital

Accumulated assets.

Compensation as a Share of National Income Falls to Historic Low

Recent data indicate that wages and salaries as a share of national income have fallen to the lowest level since 1948—a time when the government began to collect the data. During the third quarter of 2011, wage and salary compensation represented 49.4 percent of national income. Meanwhile, Bloomberg reports that the profit margins of U.S. companies are at the highest level in 40 years. The profit margins of non-financial companies in the United States reached 15 percent during the third...

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Trees Grow

“Trees grow” is an adage that has stuck with me over the past several years.

In a post financial crisis interview, a successful investment manager was talking about his decision to load-up on Citigroup and a handful of other banks in early 2009 when the decision to do so was difficult to say the least.

The manager referenced a professor who shared the trees grow saying with him, and he emphasized the impact that the idea had on his decision to build and maintain significant long positions in banks and other financial services stocks when everyone else was certain the world was coming to an end.

The trees grow idea involves considering fundamental qualities of things—whether trees, people or businesses.

Growing is what trees do—it is...

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Why Indexed Financial Products are Appealing

I am currently researching and am likely to purchase an indexed universal life insurance product. This first-hand research and learning process...

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Record High Deficits for Defined Benefit Pension Plans

Defined benefit pension plans are the traditional and increasingly rare type of pension plans offered through employers. In contrast to defined contribution pension plans such as the 401(k), participants in defined benefit (“DB”) plans receive contractually guaranteed income and assume none of the risks (investment risk, interest rate risk , longevity risk , etc) associated with producing that lifetime income stream. The problem is that defined benefit plans are scarce, and many of...

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Understanding Swiss Annuities

While it might be an unusual time to provide an explanation of Swiss annuities given what has been taking place of late with the Swiss franc and related decisions made by the Swiss National Bank, it still makes sense for any financial services consumer to understand potential benefits of these products.

Switzerland - Courtesy of Travellingtamas