This year, it is estimated that Americans will spend $9.1 billion on Halloween; $700 million more than last year. Major spending holidays like Halloween can have a short-term benefit for the economy, but some also think that because so much is being spent, the economy is already doing well. More spending equals higher Gross Domestic Product which equals jump-starting economic activity and potential job growth.
Halloween also has a seasonal impact on jobs and businesses. Some businesses are only open during Halloween like costume stores and other retail stores. They open before the holiday begins, thrive during the season, and close after the holiday is over.
In his 2009 article, economics writer Jeffrey A. Tucker wrote about how Halloween teaches valuable lessons. These lessons include: children should work for their rewards, bartering is an option, and appearance matters. Children get to have fun, dress up, and eat as much candy as their heart desires while learning important life lessons.
Halloween is a multi-billion dollar industry and it takes place only once a year. I personally can't believe so much money is spent on candy, costumes, and decorations, but the consumer spending has a net positive impact on the economy, on employment, and on small businesses.
This theory states that there is a direct relationship between the amount of money in an economy and the level of prices of goods and services sold (inflation). More money equals more inflation.
To calculate QTM:
M: Money Supply
V: Velocity of Circulation
P: Average Price Level
T: Volume of Transactions of Goods and Services
Total Spending= Amount of Money x Velocity of Circulation
If an economy had $3, and those $3 were spent 6 times in a month, the total spending for the month would be $18.
I believe this is an important topic to understand. QTM says that the quantity of money determines the value of money, and this is the basis of monetarism.
Investing could be either a blessing or a curse. Some say it's a curse because so many people lost their livelihood and retirement funds in the 2001 and 2008 market crashes, and they lost trust and faith in the market. Others say it's a blessing because they believe in investing, the benefits of investing, and the opportunity investing can and will give them. I believe they are an opportunity to build passive income that can support your family and yourself for the future. I believe it's best to start as early as possible because with compounding interest and growth, time is everything.
Investments are confusing to understand and difficult to get into, but they are also important and essential to have if you plan on becoming financially independent in the future.
Here is a list of the obvious investment truths:
1. If you need to spend your money in a relatively short period of time it doesn’t belong in the stock market.
2. If you want to earn higher returns you’re going to have to take more risk.
3. If you want more stability you’re going to have to accept lower returns.
4. Any investment strategy with high expected returns should come with the expectation of losses.
5. The stock market goes up and down.
6. If you want to hedge against stock market risk the easiest thing to do is hold more cash.
7. Risk can change shape or form but it never really goes away.
8. There’s no such thing as a perfect portfolio, asset allocation or investment strategy.
9. No investor is right all the time.
10. No investment strategy can outperform at all times.
11. Almost any investor can outperform for a short period of time.
12. Size is the enemy of outperformance.
13. Brilliance doesn’t always translate into better investment results.
14. “I don’t know” is almost always the correct answer when someone asks you what’s going to happen in the markets.
15. Watching your friends get rich makes it difficult to stick with a sound investment plan.
16. If you invest in index funds you cannot outperform the market.
17. If you invest in active funds there’s a high probability you will underperform index funds.
18. If you are a buy and hold investor you will take part in all of the gains but you also take part in all of the losses.
19. For buy and hold to truly work you have to do both when markets are falling.
20. Proper diversification means always having to say you’re sorry about part of your portfolio.
21. Day trading is hard.
22. Outperforming the market is hard (but that doesn’t mean it’s impossible).
23. There is no signal known to man that can consistently get you out right before the market falls and get you back in right before it rises again.
24. Most backtests work better on a spreadsheet than in the real world because of competition, taxes, transaction costs and the fact that you can’t backtest your emotions.
25. Compound interest is amazing but it takes a really long time to work.
26. Investing based on what every billionaire hedge fund manager says is a great way to drive yourself insane.
27. It’s almost impossible to tell if you’re being disciplined or irrational by holding on when your investment strategy is underperforming.
28. Reasonable investment advice doesn’t really change all that much but most of the time people don’t want to hear reasonable investment advice.
29. The best investment process is the one that fits your personality enough to allow you to see it through any market environment.
30. Successful investing is more about behavior and temperament than IQ or education.
31. Stock-picking is more fun but asset allocation will have more to do with your overall performance.
32. Don’t be surprised when we have bear markets or recessions. Everything is cyclical.
33. You are not Warren Buffett.
34. The market doesn’t care how you feel about a stock or what price you paid for it.
35. The market doesn’t owe you high returns just because you need them.
36. Predicting the future is hard.
My name is Camden Alchanati and my goal is to teach you how to create a future of financial stability and growth!