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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 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 products to put on the shelves and help investment banks decide what securities to put on the market. However, their core job is always the same: Draw conclusions about what will happen in the real world based on numbers. Read more

by Eric Reed Aug 17, 2022

Funds want to be Lipper leaders. They want to beat a Lipper Average, which is a way to classify funds based on their performance. The rating system takes a lot of data to determine where each fund falls, on a 1-to-5 scale that separates Lipper losers from “Lipper Leaders.” If you’re concerned about investing in specific funds or aren’t sure how to apply the Lipper data, consider working with a financial advisor who can make all of your fund investment decisions for you. 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 entirely and buy at the stock’s peak or sell when it had bottomed out? There is no clean answer to that question. But a metric called volume weighted average price (VWAP) is a good place to start, because it values shares on both their price and trading volume. Read more

by Eric Reed Apr 14, 2022

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

by Eric Reed Jan 24, 2020

For both retail and professional investors alike, most portfolios should strike a balance between risk mitigation and profit seeking. Long-short equity investing is one strategy that many large-scale… Read more

by Eric Reed Jan 16, 2020

An asset’s total return measures how much value it generates in total. This includes both capital gains (when an asset gains market value) and income (when an asset makes a direct payment). Total… Read more

by Eric Reed Jan 16, 2020

Many investors look at their portfolios piecemeal. They measure an asset by how much money it made, or by growth. For investors taking a comprehensive view, however, there is the idea of Total Return… Read more

by Eric Reed Jan 16, 2020

If you own any investments, capital appreciation is probably your goal. Capital appreciation occurs when an investment asset gains value as reflected by its market price. When a stock’s price goes up… Read more

by Eric Reed Jan 06, 2020

Random walk theory holds that short-term and mid-term price movements of a specific stock appear to be random and thus are unpredictable. Using a share price’s past movements, for example, is an… Read more

by Eric Reed Sep 29, 2022

Efficient market theory, or hypothesis, holds that a security’s price reflects all relevant and known information about that asset. One upshot of this theory is that, on a risk-adjusted basis, you… Read more

by Eric Reed Dec 31, 2019

Data collection is one of the least appreciated but most important services the federal government provides. Much of its research focuses on business, economic and financial phenomena, and its data… Read more

by Eric Reed Dec 30, 2019

A successful portfolio requires a consistent strategy for analyzing stocks (or any security). Successful investors create long-term goals and metrics to help them decide which stocks and funds to buy… Read more

by Eric Reed Dec 30, 2019

A transaction order is a set of instructions to buy or sell a security, such as a stock, and it sets the conditions under which you want that transaction to happen. If a broker manages your portfolio… Read more

by Eric Reed Dec 30, 2019

Business students call them the “quants.” They’re the people who can look at the world through a complex frame of numbers. They make investment choices based on reams of data that spin most people’s… Read more