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Eric Reed

Retirement and Investing Expert

Eric Reed is a freelance journalist who specializes in economics, policy and global issues, with substantial coverage of finance and personal finance. He has contributed to outlets including The Street, CNBC, Glassdoor and Consumer Reports. Eric’s work focuses on the human impact of abstract issues, emphasizing analytical journalism that helps readers more fully understand their world and their money. He has reported from more than a dozen countries, with datelines that include Sao Paolo, Brazil; Phnom Penh, Cambodia; and Athens, Greece. A former attorney, before becoming a journalist Eric worked in securities litigation and white collar criminal defense with a pro bono specialty in human trafficking issues. He graduated from the University of Michigan Law School and can be found any given Saturday in the fall cheering on his Wolverines.

Posts by Eric Reed:

by Eric Reed Jun 30, 2020

A tax cliff happens when a small increase to your income triggers an increase in your tax bill. Personal income taxes increase gradually as a proportion of income; even if your income increases to the point that you enter a new tax bracket, only the income that falls into the bracket is taxed at the higher rate. Tax cliffs, on the other hand, occur when the tax code triggers a credit, deduction or increase at a very specific amount of income. Cross that threshold and you will change your taxes significantly. Here’s how it works. Read more

by Eric Reed Jun 23, 2020

A PEG ratio is a tool used in fundamental stock analysis by investors to assess a share’s value. It measures a stock’s price-to-earnings ratio against the anticipated earnings growth for the underlying company. If the ratio is significantly above 1, the stock might be overvalued; its price might not accurately reflect how the company is expected to perform. If the ratio is significantly below 1, the stock might be undervalued; its price might not accurately reflect future expectations. Here is a description of this metric and its usefulness.  Read more

by Eric Reed Jun 23, 2020

The phrase “buying to cover” describes the final step in an investment tactic, known as short selling, that seeks to profit from a bearish market. Investors who believe a security or index is going to decline can turn a profit – provided their analysis of the security or index is correct – by selling borrowed securities, typically stocks. Returning the borrowed securities requires the investor to buy them, which is known as buying to cover. There are other types of investment strategies that seek to profit from a declining market, but a short sale and buying to cover is one of the simplest. It is not, however, without risk. Here’s what you need to know about this tactic. Read more

by Eric Reed Jun 18, 2020

Unemployment is a messy statistic. Every month the U.S. Bureau of Labor Statistics publishes its civilian unemployment rate or what is more commonly referred to as simply “the unemployment rate.”… Read more

by Eric Reed Jun 10, 2020

Times of economic uncertainty and market instability tend to affect the housing market, frequently including drops in average home prices. Yet for all the economic and financial convulsions of the… Read more

by Eric Reed May 27, 2020

Despite a recent bounce-back, stock prices have fallen sharply since the coronavirus first emerged. For some investors this may not prove much of a problem. Historically stocks have rebounded… Read more

by Eric Reed Jun 09, 2020

By some estimates, nearly one in four Americans is out of work. A steady stream of bankruptcies has begun, both out loud and quietly, and many businesses have shuttered for good. The full extent of… Read more

by Eric Reed May 20, 2020

At time of writing the United States owed $19.3 trillion in public debt. It owed another $5.9 trillion in debt held by its own agencies. Together, these figures come to a national debt of $25.2… Read more

by Eric Reed May 18, 2020

When the stock market is plunging, or at least stagnant, it may make sense to move your assets out of equity markets and put them into bonds or even cash. These don’t offer much in the way of growth,… Read more

by Eric Reed May 12, 2020

Stepped-up basis is a tax provision that allows heirs to reduce their capital gains taxes. When someone inherits property and investments, the IRS resets the market value of these assets to their… Read more

by Eric Reed May 12, 2020

The $2.1 trillion CARES Act, which Congress passed in response to the coronavirus pandemic, includes a ban on corporate stock buybacks. Specifically, the law prohibits large corporations that receive… Read more

by Eric Reed Jun 10, 2020

The coronavirus pandemic has hammered the U.S. economy and Americans’ incomes. The National Bureau of Economic Research (NBER) said on June 8 that in February 2020 the economy fell into recession,… Read more

by Eric Reed May 05, 2020

Subsidies, which are a kind of economic stimulus, are government payments made to businesses. Subsidies can target either specific companies or an entire industry, and they typically apply in one of… Read more

by Eric Reed May 15, 2020

During a recession the Federal Reserve gets the most headlines for dropping its benchmark interest rates to spur lending, and the spending that lending allows. While that’s the most well-known move… Read more

by Eric Reed Apr 30, 2020

State bankruptcies have recently become an open question as the coronavirus pandemic shreds many states’ finances. But before that, the issue emerged in 2017 when the U.S. territory of Puerto Rico… Read more

by Eric Reed Apr 29, 2020

The CARES Act includes a temporary change to how companies make use of net operating losses when they file taxes. A company that earns less taxable income than it can claim in deductions can now… Read more

by Eric Reed Apr 28, 2020

In Brookline, Mass., Talia Glass runs a local market called Allium Market, an independent specialty foods market selling cheese, baked goods and coffee. Like many such businesses, the market has been… Read more

by Eric Reed Jun 04, 2020

It’s hard to recall a time when market volatility has been as intense as it has been during the coronavirus pandemic. Over the course of March, federal, state and local governments imposed shutdown… Read more

by Eric Reed Apr 23, 2020

The Small Business Administration (SBA) has a number of programs available for small business owners suffering during the coronavirus pandemic. The most prominent are the Personal Paycheck Program … Read more

by Eric Reed Apr 22, 2020

As the economy remains shut down due to the coronavirus pandemic, export businesses have taken a significant hit. With transport links reduced and consumers staying home, global demand for U.S.… Read more

by Eric Reed Apr 21, 2020

When markets closed on April 20, 2020, crude oil on the futures market sold for -$37.63 per barrel. That minus sign is not a typo. In fact, the price of crude oil had indeed closed negative, tumbling… Read more

by Eric Reed Apr 20, 2020

Investors have gotten surprisingly used to negative interest rates. Originally an extraordinary crutch to help economies recover from the supposedly once-in-a-generation catastrophe of the Great… Read more

by Eric Reed Apr 14, 2020

The Small Business Administration’s most significant function is to help small businesses secure funding. Often this comes in the form of startup capital for someone looking to create a business.… Read more

by Eric Reed Apr 13, 2020

Deficit spending occurs when the federal government spends more than it collects. This means that the federal budget exceeds both the government’s revenues for the year and any surplus it currently… Read more

by Eric Reed Apr 13, 2020

One of the most important functions of the Small Business Administration (SBA) is to help entrepreneurs and small businesses raise funds to open or expand a business. To assist with this, the SBA… Read more