Global Market Reacts Positively Amid Reduced U.S Inflation Rate Compared to June, the annual rate of inflation reduced marginally to 8.5%. Bitcoin is trading at $24,003 with a 4% increase in the last 24 hours. After a long period of stagnation, U.S inflation has fallen for the first time since April. Compared to June, the annual rate of inflation reduced...
For the past few months, we’ve heard a lot in the news about increasing living costs. The cost of our essential goods and services – from our food to our electricity bills, housing, and electronics – is constantly rising. And our salary increases (if any) aren’t enough to cover the increasing cost of our basic expenses. I wanted to write this article for several...
Another Market Myth Exposed The Nasdaq index has now declined by 10% from its November high , prompting the mainstream financial media to call it a “ correction ” whatever that means. I think they call it a bear market when it is down by 20% . Many stocks have already fallen by at least that amount, and realistically, it’s all semantics anyway. It’s early...
The goal of this article is to understand what really moves the markets. 1. Central Bank Decisions These organizations manage the countries monetary system and policy. They control the countries money supply and operate through specific mandates. Stable inflation is a common mandate applicable to the majority of central banks. Interest rates are a crucial tool...
In order for inflation to occur, people need to have more money to spend on goods.
Evolution of Fed's QE- Treasury/municipal bonds-> corporate bond ETF-> individual corporate bond-> Yield curve control (in potential development)-> Maybe... Individual stocks in the future... As Fed adds more debts to its balance sheet, it hampers its ability to effectively intervene the market in the future. It will need progressively more and more stimulus...
In the following content i will explain how you can forecast the market with CPI (inflation) and Financials: If we look at our figure we can say a few things, i will assume them below: 1. ABN AMRO (a dutch Financial) is highly correlated to the NIKKEI225 index. 2. Since nearly May 2016 we can see that the CPI (inflation)-chart has change 5 times. If we look at...