Overview of economic cycles and their phases- Economic cycles is a natural fluctuation of economic activity during a period of time that is measured from the beginning of one recession to the beginning of the next. Economic cycles goes through various phases: expansion, peak, contraction, and trough. Many factors like gross domestic product, consumer spending, […]
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“Diversification is the only free lunch in investing.” – Dr. Harry Markowitz, Nobel Prize-winning economist What is Diversification? As Dr. Markowitz stated, diversification is a crucial strategy for managing risk in your investment portfolio. By spreading your money across various asset classes, sectors, and geographies, you can minimize the impact of any single investment’s performance
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In recent months, the financial world has been abuzz with discussions of an impending recession, largely due to the appearance of an inverse yield curve. An inverse yield curve, also known as an inverted yield curve, occurs when short-term government bonds offer higher yields than long-term bonds. For instance, the 2-year interest rate is currently
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Fear has gripped Wall Street as the stock market experienced its worst three-day decline in recent years. The Dow plunged 5.24%, the Nasdaq dropped 7.95%, and the S&P 500 fell 6.08%. Japan’s Nikkei 225 also suffered its worst crash in decades. Concerns about a looming recession, Federal Reserve policies, and AI investments have fueled extreme
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Q2 2024 concluded on a positive note in the financial markets, driven by strong corporate earnings and anticipation of imminent interest rate cuts. The S&P 500 index surged 3.3% in June, bringing its year-to-date gains to 14.4%. The second quarter started off rocky for both stocks and bonds amid concerns that the Federal Reserve might
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May was a positive month for both equity and fixed-income markets. The S&P 500 index rose by 4.8%, while 10-year Treasury yields fell by 18 basis points, ending at 4.51%. This dual movement in equities and bonds highlighted a notable shift in investor sentiment. The economic data released during May was softer than anticipated. This
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Introduction In the world of semiconductors and technology, few names resonate as strongly as Intel. For decades, Intel remained a crown jewel of America, pioneering the microprocessor that powered the digital era. Nevertheless, history has demonstrated that even giants like Intel can falter, and their descent can be as striking as their ascent. Rise of
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Given that inflation is a key factor in nearly every decision made by the Federal Reserve, it’s crucial to understand its composition and how it impacts fiscal and monetary policy. CPI (Consumer Price Index) and PCE (Personal Consumption Expenditures) are both measures of inflation, but they have some differences in composition, coverage, and usage. Coverage
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Why does Roth 401(k) make more sense for a young professional, especially in a current low-tax environment? Both traditional 401(k)s and Roth 401(k)s serve as tax-advantaged savings plans aimed at motivating employees to save for retirement by allowing them to allocate funds now and withdraw them later. Additionally, employers frequently offer matching contributions to augment
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If the economy is going strong then why do we need interest rate cuts so desperately? In these intriguing times, the landscape of the US economy ventures into uncharted territory. Who could have envisioned a scenario where the United States finds itself nearing full employment, while inflation hovers around 3%, all amidst a government engaging
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