Forbes: Is GDP Outmoded? Maybe, Maybe Not

By SIMON CONSTABLE

It’s sometimes hard to remember that economics is a young discipline, especially when it’s compared to other areas of study such as philosophy and mathematics. Economics really only got going when Scottish philosopher Adam Smith published The Wealth of Nations in 1776. It’s still a classic.

From then until the first half of the twentieth century there remained no accepted measure of economic output that could easily compare the wealth that different countries were producing with even a modicum of accuracy.

Then came Gross Domestic Product or GDP. That was the invention that Ehsan Masood refers to in his book The Great Invention which is scheduled to be published this month. Indeed, it was a great invention, but as Masood points out in some detail, it wasn’t perfect and also it remains imperfect.

Read more here.

Forbes Video: Why I'm Worried About U.S. Stocks, Catalano

By SIMON CONSTABLE

The trick with investing is always to buy assets that are undervalued and then patiently wait until their true value is appreciated by other investors. You buy low and then sell high. That’s the theory, anyway.

The question at the moment for many small investors is whether to jump headlong into stocks now that the economy is looking at least somewhat steadier. Maybe not, says Vinny Catalano, global investment strategist at Blue Marble Research.

He thinks that U.S. stocks look expensive by a number of different measures. Those measures include looking at the ratio of the stock prices to the earnings of the companies, as well as similar valuation methods. Catalan explains himself in this video. Watch, listen, and learn here.

U.S. News: What You Need to Know About Investing in Currency-Hedged ETFs

By SIMON CONSTABLE

Currencies that just won't stay still are causing havoc for investors who ventured to buy foreign stocks and bonds.

It's not a new problem, but over the past few years there has been a surge in products designed to eliminate that risk – so-called currency-hedged exchange-traded funds. 

But should you consider them as part of your portfolio? Read more here.

TheStreet: Why Stocks Did Better Than You Think Last Year

By SIMON CONSTABLE

Should investors have been disappointed by last year's flat stock market?

Probably not, because indexes don't measure the true changes in your wealth. And there's a bigger lesson for anyone saving for retirement. Read more here.

Forbes Video: Time To Hydrate Your Portfolio With Water Stocks

By SIMON CONSTABLE

Without water we can’t live. That should be clear to anyone. The unfortunate thing is that water resources are becoming increasingly scarce.

There is an upside though. Entrepreneurs are already well aware of the problem and are plowing resources into the field. It means there will be huge spending in the years to come on things like dam building and utilities, says Vinny Catalano, global investment strategist at Blue Marble Research. He explains his thoughts in this video.

Forbes: Do We Need The Fed? Maybe Not, But We Need Free Markets

By SIMON CONSTABLE

Reason Foundation scholar, and economics journalist, John Tamny has written a new book titled Who Needs the Fed? If you believe Tamny and what he’s written, then the answer is clearly, not us.

His book, published earlier this month, is about much more than the Federal Reserve,the central bank of the United States. It’s about sound economic policy. It’s about what works in economics, and what doesn’t work.

Read more here.

Forbes Video: Beat The S&P 500 By 2-To-1

By SIMON CONSTABLE

Making money in the market is often hampered by the reality that taxes need to be paid on the gains. But what if you could let your money grow over a long period of time and only then pay your taxes? There is a way to do that and to beat the market at the same time. It's a trick that can beat the broad market, as measured by the S&P 500, by a factor of two-to-one, says Adam Johnson, founder of Bullseye Brief newsletter in this recent video.