Investors need to consider various factors when making decisions about their investments. While some of these factors may relate to a specific investment, others may also apply to all assets. One of these includes economic indicators. These may further include leading, lagging, or coincident economic indicators. These classifications exist due …

A country’s economy dictates many factors, including how businesses or investments perform. Therefore, it is crucial for investors to consider these factors to make well-informed decisions. For that, they need to identify some economic indicators. However, it is crucial to understand what economic indicators first. What are Economic Indicators? Economic …

We have previously presented the application of econometric techniques such as ARIMA and GARCH for estimating volatility, time series analysis for identifying trending/mean-reverting properties of stock indices. In this article, we are going to look into what econometrics is and its importance. Several theories or models explain how economics works. …

Gross Domestic Product (GDP) represents an estimate of a country’s total value of finished goods and services. It considers these goods and services over a specific period, usually every year. Overall, GDP is an indicator of a country’s total economic activity. High GDPs represent higher production of goods and services. …

Interest rate defines the rate at which a borrower pays interest on a loan’s principal amount from a lender. Every loan transaction will include an interest rate. For borrowers, lower interest rates are preferable as it means they have to bear lower expenses. On the other hand, lenders will prefer …

A country’s monetary policy defines the policies its central bank employs to control its money supply. Usually, the bank does so to achieve macroeconomic goals. In this process, the central bank manages the growth and volume rate of the money supply in the economy. There are several steps involved in …

Inflation is a term used in economics to represent increasing goods and services prices. Similarly, it signifies a decline in a currency’s purchasing power. Inflation can be good or bad, depending on various factors. There are two terms associated with inflation that people often confuse. These include deflation and disinflation. …

A nation or region’s economy may go through many fluctuations over a defined period. Usually, countries experience positive changes, which increases employment, production, demand, etc. Sometimes, however, some countries may also go through adverse changes. These changes have the opposite effect. These fluctuations represent the country or nation’s business cycle. …

Investors need a diversified portfolio to mitigate any systematic or unsystematic risks. For that reason, they will include a variety of investments in their portfolio. While investing in the stock and bond market is common for most investors, they may also look towards the housing market. The housing market, however, …

Investors have to consider various factors when contemplating the decision related to an investment. Usually, the main aspects they take into account are the risks and returns they get from it. However, other factors also play a role in their decision-making process. One of these includes the timing of the …