Posts Tagged ‘financial news’

Deficit v. Debt – knowing the diference

July 21, 2016
In simple terms, a budget deficit is the difference between what the federal government spends (called outlays) and what it takes in (called revenue or receipts). The national debt, also known as the public debt, is the result of the federal government borrowing money to cover years and years of budget deficits.

What’s the difference between the U.S. deficit and the national debt …

money.howstuffworks.com/difference-between-u-s-deficitnationaldebt-.htm
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The Truth Behind the ‘Summer Rally’

June 6, 2016

Statistics students should read The Wall Street Journal article about the myth of the summer stock market rally (WSJ, June 6, 2016).  By examining the data the author shows that the summer historically had less rallies than other times of the year, and yet the name, the concept and the belief persists.  The author suggests that the name might go back to the Depression when in the summer of 1932 the Dow Jones Industrial Average gained 76.5% from the low close of June to the high close of August.

Sometimes we see what we expect to see, and no one is immune from the perception bias, but being aware of the tendency makes you better prepared to deal with it in an intelligent manner.

For the full article, click here: The Market’s Summer-Rally Myth – WSJ