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Tip of the Day Refinance Your Mortgage if You Can Cut At Least One Point

Refinance Your Mortgage if You Can Cut At Least One Point - Refinancing a mortgage only makes good sense if you are going to save more than 1% on the...

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Unemployment

Definition: A carefully-watched economic indicator representing the percent of the labor force that's actively seeking employment.

TeenAnalyst Advice: The unemployment rate is a sign of how the economy has been doing.  But it's a lagging indicator, meaning it only confirms what's been going on.  It can't predict the future.

Historically, the unemployment rate has varied between 2-10%.  Its historical average is around 5% (which is called "full employment").

 

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Definition of the Day Survivorship Bias

Survivorship Bias In many cases, a company that has made it through a rough patch in its existence will be penalized in any reports that come out because of survivorship bias. These reports will not show that other companies have gone out of business during the...

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