People make money by selling their labor on the labor market as a contribution to the economy’s creation of goods and services, according to this argument. Increases in income that aren’t directly tied to increases in production tend to lead to higher pricing, balancing the two sides of the equation. As a result, many claim […]
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The Gross Domestic Product (GDP) is one of the most closely studied basic indicators by forex traders. Economists frequently use GDP data to gauge the amount of growth and economic health in the US economy. It stands to reason that while it is significant for economists, it is also crucial for financial markets, especially FX
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During a recession, a solid investing approach is to look for companies that are retaining strong balance sheets or stable business models despite the economic downturn. Utilities, basic consumer products conglomerates, and defense stocks are examples of these types of businesses. Investors frequently increase exposure to these groups in their portfolios in anticipation of declining
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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?
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The US Inflation Rate is the percentage increase in the price of a selected basket of goods and services purchased in the US over a year. The US Federal Reserve uses inflation as one of the indicators to assess the economy’s health. The Federal Reserve has set a target of 2% inflation for the US
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The Federal Reserve Bank’s researchers feel China’s GDP statistics is “overstated,” but for a different reason. They explained that this is due to the fact that the country’s economic data system is still a “work in progress.” “The reality is that China’s economic growth is more difficult to capture as efficiently as growth in industrialized
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The income approach to calculating GDP is based on the accounting truth that an economy’s entire expenditures should match the total revenue earned by the production of all economic goods and services. It also presupposes that an economy has four major factors of production and that all earnings must come from one of them. How
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Inflation isn’t going away anytime soon. In fact, prices are rising faster than they have been since the early 1980s. According to the most current Consumer Price Index (CPI) report, prices increased 7.9% in February compared to the previous year. Since January 1982, this is the largest annualized increase in CPI inflation. Even when volatile
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Only products and services generated in a certain year are counted. Because the car and house were already included in a prior count, when you acquire a secondhand car or house, they are not counted in GDP. Since no goods or services were produced, any financial transaction or transfer payment is not included in GDP.
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A spike in gold prices could indicate that the economy is in trouble. As a result, many investors flock to gold to protect their capital during times of crisis or inflation. Is gold more valuable during a recession? Investors in gold and silver choose to buy precious metals to protect their money during recessions and
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