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 …

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 …

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 …

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. …