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What is Debt Deflation

Debt deflation, a chilling term that evokes images of economic turmoil, describes a vicious cycle where falling asset prices amplify financial distress, ultimately exacerbating deflationary pressures. This phenomenon, first coined by economist Irving Fisher, underscores the dangerous interplay between debt burdens, asset values, and deflationary forces. Downward Spiral: How Debt

What is the Optimal Interest Rate for the Federal Reserve to Target?

There's no single "optimal" interest rate that fits all economic situations. The Federal Reserve (the Fed) targets an interest rate (specifically, the federal funds rate) that aims to achieve a balance among several economic goals, and there's no magic number that fits every situation.

How Does Inflation Affect the Stock Market?

Inflation and the stock market have a complex, intertwined relationship. Understanding this dynamic is crucial for investors seeking to navigate changing economic conditions. This article explores how inflation affects stock prices, the role of interest rates, typical investor responses, and historical examples to provide a comprehensive overview. Impact of Inflation
How Does Inflation Affect the Stock Market?

What Is Multi Asset Class Investing

Multi-asset class investing involves combining different asset classes, such as stocks, bonds, real estate, commodities, and alternative investments, within a single portfolio. This approach aims to enhance diversification, potentially improve risk-adjusted returns, and provide greater flexibility in navigating varying market conditions. Key Aspects of Multi-Asset Class Investing What sets multi-asset
What Is Multi Asset Class Investing

Why Is It Challenging to Match Your Investing Decisions With How the Stock Market Is Performing?

Did you know the average investor underperforms the market? It's true. According to the 2023 Dalbar Quantitative Analysis of Investor study, while the S&P 500 returned an average of 12.56% annually over the past decade, the average equity fund investor only managed 9.33%. This

The Evolution of Short-Term Funding: Who's Borrowing and Lending in Eurodollar and Selected Deposit Markets?

The financial world relies on complex mechanisms to facilitate the movement of money. One crucial aspect is the short-term lending market, where banks and institutions borrow and lend overnight funds to meet their immediate needs. While the Federal Funds market, where banks lend directly through the Federal Reserve, is well-known,