Author: John

Longevity Risk in Pension Funds

Pension funds refer to investment pools that include funds for retirees. These funds primarily come from an employee who saves for their future. In some cases, employers may also contribute on the employee’s behalf. A fund manager then manages these funds and invests them to achieve a specific goal. During …

Goals-Based Investing

When investing, every investor has an objective in mind. Usually, this objective differs for each investor based on several factors. These factors may include an investor’s time horizon, funds available, risk tolerance, etc. Based on each investor’s objective, the investment strategy will differ. One of the strategies that investors can …

Liability Driven Investing (LDI)

An investment strategy includes a set of rules or principles that investors use to achieve their goals. Usually, investors have investment strategies for their portfolios to help them maximize returns while also minimizing risks. There are several factors that an investment strategy may consider. These include the investor’s goals, risk …

Cyclically Adjusted P/E Ratio (CAPE)

The P/E ratio is one of the most critical ratios for investors. It represents the ratio between a stock’s price and the underlying company’s earnings per share. This way, it helps investors can make decisions about their investments. However, the traditional P/E ratio may not provide information about a company’s …

Does Government Spending Cause Inflation?

Inflation is an increase in the price of goods and services in a nation over time. It also represents the decrease in the purchasing power of a nation’s currency. Inflation can have a positive impact on economic activity. However, there are some cases in which it can also be detrimental. …

What are Defensive Stocks?

Investors face various risks when investing in the stock market. Some of these risks may be inherent to the stock in which they invest. Others may apply to the stock market as a whole or even the economy. These risks can significantly impact the returns they can get. While stock-specific …

How Does Consumer Spending Stimulate Economic Growth?

The increase in the inflation-adjusted market value of goods and services produced in a nation over a specific time is known as economic growth. Gross Domestic Product (GDP) is the measure of a nation’s economic growth over time. This growth may occur due to several economic factors which stimulate the …

What are Cyclical Stocks?

A country’s economy dictates the prices of products and services within it. For investors, keeping an eye out for any economic indicators that affect investment prices is crucial. Specifically for stocks, any changes in a nation’s economic activity can be highly detrimental. It can introduce volatility to stock prices, which …

What are Leading Economic Indicators?

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 …

What are Lagging Economic Indicators?

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 …