High-growth equities have struggled throughout 2021 and this amazing start to 2022, owing to fears that the Fed may raise interest rates to battle inflation, putting pressure on their valuations. Professor Vittorio de Pedys criticizes all three pillars of the mainstream argument in this contribution based on his impact paper. The Fed is unquestionably behind […]
Is Inflation Good For Tech Stocks? Read More »
During a recession, you might be tempted to sell all of your investments, but experts advise against doing so. When the rest of the economy is fragile, there are usually a few sectors that continue to grow and provide investors with consistent returns. Consider investing in the healthcare, utilities, and consumer goods sectors if you
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The Great Recession, which ran from December 2007 to June 2009, was one of the worst economic downturns in US history. The economic crisis was precipitated by the collapse of the housing market, which was fueled by low interest rates, cheap lending, poor regulation, and hazardous subprime mortgages. New financial laws and an aggressive Federal
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When inflation is high, value stocks perform better, and when inflation is low, growth stocks perform better. Why are growth stocks harmful in an inflationary environment? Inflationary pressures, on the other hand, might be problematic for growth stocks. Because higher interest rates and bond yields are expected as a result of inflation, growth stocks’ promised
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When markets decline, many investors want to get out as soon as possible to avoid the anguish of losing money. The market is really improving future rewards for investors who buy in by discounting stocks at these times. Great companies are well positioned to grow in the next 10 to 20 years, so a drop
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Inflation is and has been a contentious topic in economics. Even the term “inflation” has diverse connotations depending on the situation. Many economists, businesspeople, and politicians believe that mild inflation is necessary to stimulate consumer spending, presuming that higher levels of expenditure are necessary for economic progress. How Can Inflation Be Good For The Economy?
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Assume that the rate of inflation over this time period is 2.5 percent. Divide 1 plus the after-tax return by 1 plus the inflation rate to get the real rate of return after taxes. Inflation is used to reflect the fact that a dollar now is worth more than a dollar tomorrow. To put it
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Tariffs are imposed between trading partners during a trade war. This will almost likely result in a decrease in economic welfare for all countries affected by higher tariffs and less trade. This decrease in economic well-being, however, is not the same as a recession (a fall in GDP). A trade war can be the external
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The monetary worth of all finished goods and services produced inside a country during a certain period is known as the gross domestic product (GDP). GDP is a measure of a country’s economic health that is used to estimate its size and rate of growth. GDP can be computed in three different ways: expenditures, production,
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Inflation is the rate at which the price of goods and services in a given economy rises. Inflation occurs when prices rise as manufacturing expenses, such as raw materials and wages, rise. Inflation can result from an increase in demand for products and services, as people are ready to pay more for them. Some businesses
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