In the bustling intersections of economics and policy-making, the role of the Federal Reserve (Fed) is paramount. The central banking system of the United States not only stands as a vigilant sentinel protecting the economy from fluctuations, but also as an active orchestrator shaping the monetary policy. The key instrument in controlling these policies is … Read more
Government shutdowns, albeit uncommon, have profound impacts on the operational functionality of a nation, as well as upon its populace. The very mechanics that allow a government to cease operation pose intriguing queries with respect to the pillars of democracy. Given the recurring nature of shutdowns throughout American history, it becomes increasingly vital to understand … Read more
As we stand on the precipice of a new blockchain-driven era, the allure of cryptocurrency has taken the world by storm. Representing a revolution in how we perceive financial transactions and wealth storage, cryptocurrency’s promise is palpable. Yet, as with all seismic shifts, it carries potential risks and challenges along with its many opportunities. To … Read more
Investing in the stock market is an exercise punctuated by bouts of uncertainty. Parameters such as market volatility, psychological challenges, and risk management come into play, muddling the outcomes. This discourse aims to shed light on these aspects to empower traders with the insights and strategies needed to brave the unpredictability inherent in stock trading. … Read more
Money market investing involves lending and borrowing money or assets on a short-term basis. Maturities usually last less than a year or up to 13 months maximum. Because of this nature, money market is considerably stable, safe and very liquid. Its core is made up of banks borrowing and lending with each other through various … Read more
As an entrepreneur, you surely understand that owning and operating your own business can be burdened with risks and financial losses. Generating a profit is not easy, while turning a profit is a real task. Asset protection is necessary to secure your business from lawsuits and claims. Claims for damages due to employee negligence, mortgages … Read more
Investing in the stock market is burdened with worry, for a good reason. Stock market risks are everywhere. If you mislay half of your investment, you must be able to double your returns to breakeven or earn some. While you don’t want to lose money, regrettably, the risks involved in the stock market are at … Read more
Once you have a sense of the money you can spare for investing, you’ll need to decide just how much risk to take with those funds. Unfortunately, all too often people skip this step and don’t follow proper investment advice. They think of investing money like gambling money. Once they decide how much they’re willing to play … Read more
Investment planning is almost impossible without a thorough understanding of risk. There is a risk/return trade-off. That is, the greater risk accepted, the greater must be the potential return as reward for committing one’s funds to an uncertain outcome. Generally, as the level of risk rises, the rate of return should also rise, and vice … Read more
Anyone who has spent much time reading about personal finance knows the value of diversification in a portfolio. If you put all your money into just one or two investments – stocks, bonds, or anything else – you run the risk that something will go wrong and wipe out a big chunk of your nest … Read more
Once your risk tolerance, intrinsic and time value of risk have been derived you are able to use asset allocation in order to establish what are the best investments for you. Asset allocation is the process of deciding how to distribute your wealth among both different countries and asset classes for investment purposes. The asset … Read more
Diversification is one of the fundamental tools in our arsenal of reducing risk and is the arguably the most important. Diversification is used in a portfolio (group) of investments in order to reduce the unsystematic risk level that was introduced previously. It is achieved by combining a series of investments together, such as those in … Read more
What are the different types of risks? There a number of differing types of risk that can affect your investments. While some of these risks can be reduced through a number of avenues – some of them simply have to be accepted and planned for in any investment decision. Macro Risk Levels On a macro … Read more
