Tag Info

New answers tagged

0

I think it's apt to remind that there's no shortcuts, if someone thinks about doing FX fx: - negative sum game (big spread or commissions) - chaos theory description is apt - hard to understand costs (options are insurance and for every trade there is equivalent option position - so unless you understand how those are priced, there's a good chance you're ...


1

One key to trading is recognizing expectations. What you see in the market is not always a reflection of fundamentals; sometimes, it's a reflection of what people expect to occur, whether that actually happens or not, is debatable. When a currency experiences inflation, such as the CPI being higher today for the USD, it may see an increase because people ...


0

If inflation is high then one of the mechanisms a country's Central Bank can use to curb inflation is to raise interest rates. There is usually lag time between when interest rates are raised and when inflation starts to reduce.


0

I get what you mean by the word 'real' My answer is better suited as a comment but I can't comment yet. In any financial activity, be it a personal savings or business investment, in my opinion, it always good to calculate inflation rate yourself. For example your business may be saving for future construction or renovation thus goods from CPI such as ...


2

Despite the name, IPBs as you call them are not very good inflation protection. That is why many that work in the field will call them Inflation-Linked Bonds (ILBs) and avoid the word "protection". The reason is that inflation-linked part of the ILBs only applies to the principal (the amount that you are paid at the end) and not the interest. For longer ...



Top 50 recent answers are included