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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 Mar 27, 2020

A trade deficit sounds like a very bad thing. A trade deficit is an economics term which indicates the difference a country’s imports and its exports. If the country imports more than it exports, it has a trade deficit. If it exports more than it imports, it has a trade surplus. Both can be good or bad. Read more

by Eric Reed Mar 25, 2020

When it comes to fixing an economy, the government has two main tools at its disposal: monetary stimulus and fiscal stimulus. This isn’t the limit of what a dedicated government can do, but most economic relief packages fall into these two categories. With the US government employing both strategies to stimulate a flagging economy in the face of the coronavirus pandemic, it’s useful to understand how it works. Here is what you need to know about these two primary tools the government has to fix or revive an economy. Read more

by Eric Reed Mar 19, 2020

Did you know you can make money in the stock market when shares go down, or in commodity markets when prices fall? In other words, the buy-low-sell-high approach can be reversed and still produce a profit. In fact there are two ways to do this: a futures contract and an option. While they are similar there is a key difference, and it’s right in their names. Read more

by Eric Reed Mar 25, 2020

This one is happening. We might get lucky. The coronavirus pandemic might burn out quickly, or policymakers might soon decide that it wasn’t as serious as they thought. The government might enact… Read more

by Eric Reed Mar 17, 2020

An option contract is a form of financial asset known as a “derivative.” Purchasing an option contract it gives you the right to buy or sell some underlying asset on specific terms. You choose a… Read more

by Eric Reed Mar 14, 2020

NAFTA is dead. Long live NAFTA! In 2018 and 2019, the Trump administration announced that it had signed a renegotiated version of the North American Free Trade Agreement. The administration tried to… Read more

by Eric Reed Mar 16, 2020

The Great Wealth Transfer is coming. More than 10,000 baby boomers are turning 65 every day, and over the next 20 to 30 years trillions of dollars’ worth of wealth will transfer to their children. It… Read more

by Eric Reed Mar 12, 2020

Don’t panic. At time of writing in March 2020, the stock market has posted some of its biggest losses and gains since the Great Recession. It’s been a roller coaster: One day stocks posted their… Read more

by Eric Reed Mar 07, 2020

Morningstar ratings are a system for evaluating the strength of an investment based on how it has performed in the past. On a scale of one to five stars, a Morningstar rating measures investments… Read more

by Eric Reed Mar 06, 2020

Participating preferred stock may be the most desirable security for an equity investor to own. Shareholders who own preferred stock generally receive any payments made by the underlying company,… Read more

by Eric Reed Mar 06, 2020

A quantitative analyst uses mathematical models to review data, draw conclusions and make recommendations for businesses and investment firms. Their skills enable them to help retailers decide what… Read more

by Eric Reed Feb 27, 2020

Funds want to be Lipper leaders. They want to beat a Lipper Average. But what the heck is it? It’s a way to classify funds based on their performance. A 1-to-5 scale separates Lipper losers from … Read more

by Eric Reed Feb 25, 2020

“Did I get a good price?” Anyone who has traded a security has asked themselves this question. Did you buy when the stock was low enough? Did you sell right before it peaked? Did you get it wrong… Read more

by Eric Reed Feb 25, 2020

An investment’s “expected return” is a critical number, but in theory it is fairly simple: It is the total amount of money you can expect to gain or lose on an investment with a predictable rate of… Read more

by Eric Reed Feb 24, 2020

More than a decade out from the Great Recession, it might be hard to remember the sheer scope of misdeeds that led to the second worst financial crisis in modern history. While the proliferation of… Read more

by Eric Reed Feb 19, 2020

Capital markets, more commonly known as financial markets, connect people and entities, either corporate or governmental, who have money (or “capital”) with people and businesses who need it. There… Read more

by Eric Reed Feb 15, 2020

Are you a noise trader? If so, professional investors probably don’t like you. They’ve even come up with a specific name for how you influence stocks: noise trader risk. That’s volatility from… Read more

by Eric Reed Feb 14, 2020

It’s tough to find a clear definition for “alternative beta.” Investors love to talk about this concept. It has become a hot topic among investors. But most of them publish articles on the subject of… Read more

by Eric Reed Feb 07, 2020

A hybrid security is a single financial product that combines different types of financial securities, or has features of multiple kinds of securities. Typically, this means that the security has… Read more

by Eric Reed Feb 06, 2020

An economic shock, also known as a macroeconomic shock, is any unexpected event that has a large-scale, unexpected impact on the economy. Many, but not all, economists also say that a shock has to be… Read more

by Eric Reed Feb 06, 2020

Many publicly traded corporations periodically release statements about how they think they will do in the coming months. These statements, which typically come out every quarter, are known as… Read more

by Eric Reed Jan 31, 2020

When deciding between two securities, the main factors to consider are risk and return. Investing in stocks is relatively risky, but over the long term, there’s great potential for returns. Bonds,… Read more

by Eric Reed Jan 31, 2020

Broadly speaking, there are two approaches to investing: passive and active. The former entails buying assets and holding them, typically over a period of years, with the goal of building long-term… Read more

by Eric Reed Jan 27, 2020

If you’re like most investors, your exposure to the bond market is likely limited to U.S. government debt. Treasury bonds have been popular investments for consumers since World War II and are by far… Read more

by Eric Reed Jan 26, 2020

Hot money is a form of short-term investing in which investors move their money between financial markets to take advantage of interest rate fluctuations. Generally, this refers to moving money… Read more