No investor looks forward to a bear market, but they are a part of the market cycle. So if you plan to be a long term investor in the stock market, it is better to plan how to survive the bear markets that you will encounter than to think you can avoid them. Here are some tips to get you through a bear market cycle with minimal losses.
Now, always remember that there are many things you can do to hedge your positions like buying and selling stock options, buying inverse ETF’s etc however for most investors, dollar cost averaging will be a safer play if you have other sources of income.
The most important point to remember is: don’t give in to the temptation to sell low thinking that you will cut your losses. More often than not, this results in a permanent loss rather than the temporary loss on paper that a bear market often represents. Unless you desperately need the cash, its usually better to leave your stocks alone and wait until the market rebounds.
Inflation has many causes according to the experts. Although experts can’t agree completely on what the exact causes of inflation really are, most of them agree that inflation is due to either quality and/or quantity. The quality theory of inflation says that a person who earns money will be able to use that money to buy the good he wants. The quantity theory of inflation says that money should be viewed in how much of it is supplied and exchanged.
At the end of the day, the increase of money supply, causes inflation.
The three most common forms of inflation are demand pull inflation, cost push inflation, and built in inflation. Demand pull inflation is a result of low unemployment rates and an increased consumer demand for items. Cost push inflation happens when something that people use a lot becomes harder to get. For instance when oil is hard to get gas prices go up. Built in inflation means that as the price of items increases, people try to increase the amount that they earn to keep up with the price of goods.
As a result of the increase in wages the employers pass along their own higher costs to the employees making it a no win situation. Some experts say that it is the amount of money that is in circulation that causes inflation by lowering the value of the money in general. Sometimes the result of having too much money in the economy can lead to such disasters as prices doubling in a short period of time. This is called hyper inflation and it usually happens during a war when a government might try to finance their own spending by printing more and more money. Another reason there might be too much money in the economy is when people stop spending money unexpectedly and drastically like what happened during the time of the black plague in Europe. Other experts insist that inflation and unemployment cannot ever be low at the same time. If unemployment is high inflation is low. And if inflation is high, unemployment is low. Therefore, some level of unemployment must be sacrificed in order to keep inflation down.
You have probably heard the words “supply and demand” a million times, specially if you trade stocks and crypto, however sometimes it is not easy to truly wrap your head around these forces and how you can use them to your benefit.
Here is the basic idea of how supply and demand affect asset prices and how you can find out what people are talking about and what is trending when it comes to the stock market and cryptocurrency.
So your credit score is not the greatest in the world, and you want to get it raised up. Well there are a number of different ways that you can go about doing just that. One of the most important things to think about when it comes to credit is getting your bills paid on time. If you are always late or behind on paying your bills, such as your electric bill or phone bill, this will all reflect badly on your credit report drastically dropping your score. If you get all of your bills paid on time for a month you will see a twenty point jump in your score. As long as you keep your bills paid then your score will slowly rise.
Do you want to learn how to save money? Here I have several tips to save a lot of money easily!
We all in one way or another want to live better and have better things. Sometimes buying a better car or having a better house is seen as something impossible to obtain. With these tips, you will learn to save money and be more efficient with your expenses, this will help you get the things you need or invest in the business you have always wanted! If you can save money!!!
Foreign exchange market is also known as Forex or FX market. To date, it is the world’s biggest market. FX produces an average of over $6 trillion daily volume. That is many times more than combining all the volumes of America’s equity markets. This currency market is where currencies are bought and sold.
One mistake many beginner investor makes is ignoring dividends. Sure, it may seem dividends are only a small part of any stock portfolio however everyone wants to see the price go up, up and up. But smart investors or those who want to be listen up. When it comes to long term investing, dividend stocks have a lot of advantages, after all, when was the last time someone paid you for owning something? When doing some stock market investing, it’s best to look to the future, and what dividend stocks can do for you. Dividend stocks allow you to own a part of a business and get a cash distribution each year.
The English dictionary defines ‘retirement’ as the act of retiring from one’s work, office, etc; the act of going away or retreating. Now what does this mean? Does it mean that you stop living your life and just while away your time till your call comes? Nope, there is lot more to retirement than what is commonly believed and that begs the question: should there be a retirement plan or not.