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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The bond market has had an incredible run as of 2Q2020, with TLT now exceeding the S&P 500 year-to-date. Don’t dismiss bonds the next time you see them. It’s wonderful to have better rewards with less risk. Go Long Gold Gold is a hard asset that performs well during economic downturns. Gold is a commodity
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GDP only counts final output of goods and services, not the production of intermediate commodities or the value of labor in the supply chain, to avoid double counting (adding the value of output to the GDP more than once). What are the two methods for not counting twice? What is the difference between market-priced national
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Interest payments and increases in the principal of Treasury Inflation-Protected Securities (TIPS) are subject to federal taxation, but are exempt from state and local income taxes. The sum of the semiannual interest payments paid in a given year is shown on Form 1099-INT. The amount by which the principal of your TIPS rose or decreased
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Last year, the Chicago Mercantile Exchange launched the world’s first water futures market, allowing farmers, investors, governments, and hedge funds to purchase a legal agreement known as a “futures contract” that locks in a predetermined price for water to be used in the future. If a natural disaster, such as a drought, raises the price,
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With unemployment at levels not seen since the Great Depression the greatest economic slump in the history of the industrialized world some may be asking if the country will fall into a depression, and if so, what it will take to do so. What is the state of the economy in 2021? Indeed, the year
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Maintaining cash in a CD or savings account is akin to keeping money in short-term bonds. Your funds are secure and easily accessible. In addition, if rising inflation leads to increased interest rates, short-term bonds will fare better than long-term bonds. As a result, Lassus advises sticking to short- to intermediate-term bonds and avoiding anything
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Who is in charge of calculating GDP? Economists at the Bureau of Economic Analysis in the United States Thousands of data points acquired by different federal agencies and some commercial data collectors were used to estimate GDP. BEA is a non-profit, non-political statistical organization. On bea.gov, all of its data is available for free. Who
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You would most likely lose access to loans if the US economy collapsed. Banks would be forced to close. Food, gas, and other needs would be in short supply. Water and power may be unavailable if local governments and utilities are affected by the collapse. What is the state of the US economy in 2021?
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WASHINGTON, D.C. (AP) Consumer inflation surged 7.9% last year, the highest level since 1982, fueled by rising petrol, food, and housing expenses. This is likely merely a foreshadowing of more higher prices to come. What is the definition of a high inflation rate? A healthy inflation rate in the United States is between 1 and
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