A recession is when your neighbor loses his work; a depression is when you lose your job, according to economists. The joke’s premise is that neither “recession” nor “depression” are well defined terms, hence the distinction between them is blurry to the point of disappearance. (Economists enjoy making jokes about depressions and recessions since they […]
When Is A Recession Over? Read More »
Rates on CDs should begin to rise in 2022, but don’t get too excited just yet: Yields aren’t expected to rise considerably and will likely remain below the rate of inflation. Inflation is expected to decline in 2022, but remain around 3% annually, according to McBride. Despite the fact that the Federal Reserve is expected
Do CD Rates Go Up In A Recession? Read More »
The GDP deflator (implicit price deflator for GDP) is a measure of the level of prices in an economy for all new, domestically produced final goods and services. It is a price index that is calculated using nominal GDP and real GDP to measure price inflation or deflation. Nominal GDP versus Real GDP The market
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Governments can fight inflation by imposing wage and price limits, but this can lead to a recession and job losses. Governments can also use a contractionary monetary policy to combat inflation by limiting the money supply in an economy by raising interest rates and lowering bond prices. Another measure used by governments to limit inflation
How To Prevent Inflation? Read More »
Since 1991, U.S. REITs have outperformed the S&P 500 by more than 7% annually in late-cycle periods and have provided considerable downside protection in recessions, highlighting the potential value of conservative, lease-based revenues and high dividend yields in an uncertain environment (see chart below). Is it a good time to invest in REITs in 2021?
Are REITs A Good Investment In A Recession? Read More »
When inflation is high, value stocks perform better, and when inflation is low, growth stocks perform better. What effect does inflation have on bank stocks? 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
Is Inflation Good Or Bad For Bank Stocks? Read More »
All of these countries have one thing in common: they’re all trying to recover from a once-in-a-lifetime pandemic that’s still wreaking havoc on the economy’s supply chain, making it difficult for businesses, workers, and the global supply chain to operate at full capacity and meet soaring consumer demand. It’s probably more appropriate to state “COVID
Did Biden Cause The Inflation? Read More »
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. Should
Are Bonds A Good Investment During A Recession? Read More »
There are two things that stand out. The Indian economy began to revive in March 2013 more than a year before the current government took office after a period of contraction following the Global Financial Crisis. But, more importantly, since the third quarter of 2016-17 (October to December), this recovery has transformed into a secular
Why Is India’s GDP Going Down? Read More »
Some countries have had such high inflation rates that their currency has lost its value. Imagine going to the store with boxes full of cash and being unable to purchase anything because prices have skyrocketed! The economy tends to break down with such high inflation rates. The Federal Reserve was formed, like other central banks,
Does Raising Interest Rates Lower Inflation? Read More »
