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How Does Consumer Price Index Affect Stock Market

The Consumer Price Index (CPI) has a significant impact on the stock market. It is a widely followed economic indicator that measures the average change in prices of a basket of goods and services consumed by households. The CPI is used to track inflation, which is a critical factor in

What Are US Equities

US equities refer to stocks and equity securities traded on US stock exchanges. The main US equities markets are: * The New York Stock Exchange (NYSE), which operates five equities exchanges using the NYSE Pillar trading technology platform. The NYSE offers multiple trading models to provide a superior trading environment. * Cboe

What Is an Example of a Global Macro Trade?

Global macro is a trading strategy where investors capitalize on broad economic trends and events impacting markets worldwide. This approach involves analyzing macroeconomic factors – like interest rates, inflation, and economic growth – to make informed decisions on diverse assets, including currencies, bonds, commodities, and equity indices. One prominent example of a

Why is the Japanese Yen so Weak?

The Japanese Yen has been making headlines for all the wrong reasons, hitting multi-decade lows against the US dollar and other major currencies. This persistent weakness has sparked concerns about its impact on the Japanese economy, prompting questions about the underlying causes and potential consequences. This article delves into the

Fed Funds Market: A Primer

In this post, we'll look at the Fed Funds market, how it impacts the US economy, and the key players that are driving the Fed Funds market. What is the Fed Funds Market? The Fed Funds market is essentially an overnight lending market where banks with excess reserves

Eurodollar: A Primer

The Eurodollar market, a cornerstone of global finance, often remains shrouded in mystery. What exactly are Eurodollars? Who participates in this market and why? How do Eurodollars influence international trade? This article delves into these questions, shedding light on the inner workings of this crucial financial instrument. What is a

Headline, Core and Supercore Inflation: Which Is the Fed’s Favorite?

Maintaining stable prices is a vital goal for any economy. When inflation, the general rise in price levels, spirals out of control, it throws economic decisions into disarray and makes life harder for everyone. To combat this, central banks rely on various measures to track and understand how prices are

How Have World Economies Changed During the Modern Era

The world economies have undergone significant transformations during the modern era, particularly since the mid-20th century. Here are some key ways in which world economies have changed: * Unprecedented economic growth: The six decades following World War II until the 2008 financial crisis were a "golden age" of economic

Asset Management vs Investment Management

Asset management and investment management are closely related but distinct concepts. Here are the key differences: Asset management refers to the professional management of various securities and assets (such as stocks, bonds, real estate, etc.) to meet specified investment goals for the benefit of investors. Asset managers make decisions about

Year To Date Meaning and Examples

Year to Date (YTD) refers to the period from the beginning of the current year (either calendar year or fiscal year) up to the present date. Specifically: * For a calendar year, YTD means from January 1st until the current date. * For a fiscal year that differs from the calendar year,