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Pragmatic Capitalism

Practical Views on Money, Finance & Life

‘How Things Work’

Saving is not the Key to Financial Success

You’ve probably heard it a million times from financial “experts” – the key to financial success is saving.  The idea is that if we save more now then we’ll have more to spend later.  And while that’s true at the individual level it’s actually disastrous advice in the aggregate.   Saving isn’t the key to financial success.… Read More

Understanding Your Real, Real Returns

Thornburg Funds has a new report out on understanding your real, real returns and it’s fantastic.  I discuss this topic in detail in my book, but they do a much better job covering this than I do.  So go have a read. The chart below is super important.  Most people who get into investing think only of their nominal… Read More

Is a House Really a Good “Investment”?

I’ve had this post queued up for three months debating whether to post it or not because I know it will ruffle a lot of feathers.  Then I read this great article confirming many of my thoughts and I figured I should just throw this one out there for everyone to kick around….   Recent… Read More

Is the Stock Market a Zero Sum Game?

I got this question in the forum over the weekend and I think it’s an important one since I seem to get it quite often.   It’s interesting to note that there doesn’t actually seem to be a very good answer online (at least not as far as my brief search went) so I used a… Read More

Understanding Moneyness

Moneyness: Refers to how pure a particular type of asset or financial asset is in meeting the definition of “money” as a means of final payment.