Real wage progress differs with volatility, Michael Green notes

Real wage progress differs with volatility, Michael Green notes
Volatility changes wage growth results

Three years of consistent 2% real wage gains result in a total increase of 6.12%, while the same arithmetic average from a volatile series of +6%, -6%, +6% leaves the total gain at 5.62% instead. Michael Green, chief strategist and portfolio manager at Simplify Asset Management, compared geometric and arithmetic returns in the context of wage growth.

Green previously commented on the key benefits in a potential merger between SPCX and TSLA. In an earlier observation, he identified growing convexity risk linked to yield levels. These remarks reflect a continued focus on specific market factors affecting returns and risk.

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