Another strategy to profit from a crisis is to stake a wager that one will occur. One approach to profit from a bear market is to short sell equities or equity index futures. A short seller borrows shares they don’t own in order to sell them and, presumably, repurchase them at a cheaper price. Option […]
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There is doubt that the Fed will be able to navigate the chaotic global economy and geopolitical circumstances adequately. “We’re really asking the US Federal Reserve to do the impossible,” said Joe Brusuelas, chief economist at consulting firm RSM. With Russia’s conflict on Ukraine and increasing oil prices, expecting the Fed to only lower inflation
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Previous publications, such as the one titled “Consumers Switch To Cheaper, Lighter Beer During COVID-19,” have overlooked the fact that while cheap beer sales are increasing, overall beer sales are increasing even more. Beer sales in retailers have increased by 27.5 percent compared to the same period last year. As a result, while lower-cost beer
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Futures are financial derivatives that bind the parties to trade an item at a fixed price and date in the future. Regardless of the prevailing market price at the expiration date, the buyer or seller must purchase or sell the underlying asset at the predetermined price. What happens if I purchase a futures contract? Futures
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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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Investing is one of the most effective ways to beat inflation: The S&P 500, for example, has an average yearly return of nearly 10%, according to data. That’s why Stephen Carrigg, a certified financial planner and private wealth adviser at Integrated Partners, recommends putting money into your company’s 401(k) plan and “opening a brokerage account
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“At this point in time, history suggests that a US recession in 2024 or 2025 is a reasonable expectation.” In a report, Reid informed clients. “It could arrive sooner, but that would imply the historical template’s earlier termination.” Is a recession in 2022 expected? To listen to the podcast, press play on the player above
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However, our real-world experience indicates that the official inflation rate does not accurately represent actual cost rises in everything from burritos to healthcare. What would happen if the real rate of inflation became public knowledge? The entire status quo would disintegrate in an instant. Consider the impact on Social Security, interest rates, and the cost
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A recession is a period of falling economic performance that lasts several months and affects the entire economy. Businesses, investors, and government officials monitor a variety of economic indicators that can help anticipate or confirm the onset of recessions, but the National Bureau of Economic Research (NBER) is the one who officially declares them. To
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According to the Bank of Korea’s (BoK) forecast released at the end of July, North Korea’s real GDP will fall by 4.5 percent in 2020. (Figure 1). It was the steepest drop since the “Arduous March” of 1997, when North Korea was afflicted by starvation. Measures to contain COVID-19, including as blocking borders, quarantining persons
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