Bonds may perform well in a downturn because they are in higher demand than stocks. The danger of owning a firm through stocks is higher than the risk of lending money through a bond. More investors will choose the fixed-income guarantees of bonds over the capital gain prospects of equities when times are uncertain. Do […]
Do Bonds Go Down In A Recession? Read More »
Another method to insulate your 401(k) from potential market volatility is to make consistent contributions. During a downturn, cutting back on your contributions may lose you the opportunity to invest in assets at a bargain. Maintaining your 401(k) contributions during a period of investment growth when your investments have outperformed expectations is also critical. It’s
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The cost of living rises when inflation rises, as the Office for National Statistics proved this year. What happens if inflation rises too quickly? If inflation continues to rise over an extended period of time, economists refer to this as hyperinflation. Expectations that prices will continue to rise fuel inflation, which lowers the real worth
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The World Bank has released the most recent official GDP data. The population figures are based on data from the United Nations. What is the GDP forecast for 2020? Retail and wholesale trade industries led the increase in private inventory investment. The largest contributor to retail was inventory investment by automobile dealers. Increases in both
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What proportion of the growth in GDP is due to inflation and what proportion is due to an increase in actual output? To answer this topic, we must first examine how economists compute Real Gross Domestic Product (RGDP) and how it differs from Nominal GDP (NGDP). The market value of output and, as a result,
How To Calculate Nominal GDP From A Table? Read More »
Under President Tayyip Erdogan’s urging, Turkey’s central bank lowered interest rates by 500 basis points last year, causing inflation to skyrocket in the last nine months. It’s projected to grow even more, owing to a spike in gas, oil, and grain prices triggered by the Ukraine conflict. Last year, the easing cycle resulted in a
Why Turkey Inflation Is High? Read More »
Interest rate hikes improve the motivation to save because the reward for saving has increased. As a result, saving in the economy is likely to rise, reducing consumption (assuming that people’s earnings remain constant). Interest rates rise, which raises the cost of borrowing and, as a result, the cost of investment. As a result, businesses
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The Phillips curve shows that historically, inflation and unemployment have had an inverse connection. High unemployment is associated with lower inflation or even deflation, whereas low unemployment is associated with lower inflation or even deflation. This relationship makes sense from a logical standpoint. When unemployment is low, more people have extra money to spend on
How To Reduce Inflation And Unemployment At The Same Time? Read More »
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
What Are Stock Futures Doing Right Now? Read More »
The fundamental reason for Ireland’s high GDP growth rates is that, in recent years, a number of large multinational firms have transferred their economic activities, and more especially their underlying intellectual property, to Ireland, largely due to low corporate tax rates. What makes up Ireland’s Gross Domestic Product? Agriculture generated 0.93 percent of Ireland’s GDP
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