Why Is a Strong Dollar Considered Bad for The Stock Market?

strong US dollar

It is common knowledge that a strong currency reflects not only the strength of a nation but also the economic confidence and increased buying capacity of the consumer. This viewpoint is mostly true in various sections of the economy, as, for example, a powerful dollar gives Americans the opportunity to purchase cheaper foreign goods, travel …

Investing in Meme Stocks: Are Meme Stocks Real Investments?

Investing in Meme Stocks

Investing in Meme Stocks is a trend that has captivated retail traders, shaken hedge funds, and upended traditional notions of market fundamentals. What began as a digital joke evolved into a financial movement, blending pop culture, internet virality, and financial markets into a chaotic yet captivating spectacle. Meme stocks—stocks driven by social media hype rather …

Recession vs Inflation: Understanding the Economic Impact and How They Intersect

recession vs inflation

The terms “recession vs inflation” often dominate news headlines and economic discussions, yet many people struggle to fully understand what these terms mean and how they impact the broader economy. Inflation measures the rate at which prices for goods and services rise, eroding purchasing power over time. A recession, on the other hand, is a …

What Does It Mean to Rebalance Your Portfolio?

What does it mean to rebalance your portfolio

Rebalancing your portfolio is an important strategy that helps keep your investments aligned with your long-term financial goals and risk tolerance. As markets fluctuate, the value of different asset classes in your portfolio—like stocks, bonds, and real estate—will rise and fall. Over time, some assets may become overrepresented, while others might become underrepresented. Rebalancing is …

Is Market Capitalization the Same as Market Valuation?

market capitalization and market valuation

Understanding the difference between “market capitalization” and “market valuation” is essential for investors and anyone analyzing the financial worth of a company. Although these terms may seem similar, they have distinct meanings and applications in the world of finance. Market capitalization, often referred to as market cap, is a straightforward calculation that reflects a company’s …

Weekly forecast

This weekly forecast is a bit strange. Occasionally economical data makes no sense: good news cause sell-offs, sectors loved for safety underperform, low recession chance coincides with bear signals. It seams that occasionally semantic algorithms overtrade [using probability of rate hikes] based on keywords they recognize in the news – this could be a good …

Gold pros and cons

This article argues that global debts rising faster than GDP will cause defaults sooner or later. So while we are in deflationary zone, and some analysts see gold heading below 1230 towards 800, there is a monetary risk we should start hedging against.