How Do Bank Stocks Perform During Inflation?

Inflation has the greatest impact on the value of fixed-rate debt securities since it devalues both interest rate payments and principal repayments. After correcting for inflation, lenders lose money if the inflation rate exceeds the interest rate. This is why investors sometimes look at the real interest rate, which is calculated by subtracting the nominal […]

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Has The Futures Market Created More Uncertainty For Stocks?

Stock index futures, such as the S&P 500 E-mini Futures (ES), reflect expectations for a stock index’s price at a later date, based on dividends and interest rates. Index futures are two-party agreements that are considered a zero-sum game because when one party wins, the other loses, and there is no net wealth transfer. While […]

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Will Inflation Be A Problem In The Near Future?

Although the recent jump in consumer goods inflation does not portend long-term inflation in this sector, two additional factors pose a threat to the inflation outlook: labor supply and demand in the services sector, as well as recent housing price increases. Demand for labor in the services industry will expand beyond already-high levels as consumer […]

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What Is GDP Rate?

The GDP growth rate examines the change in a country’s economic production year over year (or quarterly) to determine how fast it is increasing. This indicator is popular among economic policymakers because it is regarded to be strongly linked to important policy aims such as inflation and unemployment rates. It is usually presented as a […]

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