Tag: Bear
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Should You Pay Equal Rent When Your Partner Earns More?
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Introduction: You and your friend are considering moving in together this year. Your friend makes a lot more money compared to you (three times more). Should you try to find an apartment you can both afford half of, but that isn’t as nice? Or should you look for a better…
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Your Guide to the 2020 Recession: Why It Won’t Turn into a Depression
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By: Kimberly Amadeo What Caused the 2020 Recession? The 2020 recession began in the first quarter of the year when the economy contracted by 5% due to the COVID-19 pandemic. The government shutdowns intended to curb the virus’s spread ended the longest economic expansion in U.S. history. The National Bureau…
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Investing in Bonds 101 – What Are Bonds and How Do They Work
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Why Invest in Bonds? Bonds are considered, alongside stocks and real estate, one of the three major investment categories that make up most family portfolios. Understanding the basics is very important. How Are Bonds Issued? Bonds can be issued by all types of companies, institutions, and governments. These include national…
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Bonds vs. Savings Account: Which Should I Choose?
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What are the differences between bonds and savings accounts? The differences between bonds and savings accounts relate to financial returns, source or provider, liquidity, taxes, and risks. Which one is right for you? A savings account is a good option if you are looking for a safe place to keep…
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Contribution Limits for 403b Plan from 2009 to 2022 by the Internal Revenue Service
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Historical Increases in Limits for 403(b) Plans These limits apply to any 403(b) and 401(k) accounts the taxpayer may have during the year. You may need to take some time to track your contributions to your 401(k) and 403(b) plans to ensure you do not contribute more than allowed if…
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What is a mutual fund prospectus?
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Definition: A mutual fund prospectus is a document that provides investors with important details about the fund, such as the investment strategy, fees, risks, and the fund company. The prospectus can be a great tool for investors to analyze whether investing in a particular fund is suitable for them. How…
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Top 8 Options Trading Books for 2023
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Options trading can be confusing for many, but it can be an essential part of a well-diversified portfolio. First, an option gives the investor the opportunity to purchase an asset at an agreed-upon price and date without requiring it. Options can be appealing because they carry relatively low risk (if…
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Inverse Leveraged ETFs: What You Need to Know
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Introduction Many well-known exchange-traded funds (ETFs) aim to replicate the performance of a specific index, but there are other types of ETFs that differ in structure. Two of these types include leveraged ETFs and inverse ETFs. Some investors are looking for funds that use both leveraged and inverse trading strategies.…
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moral hazard
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Definition of Moral Hazard “Moral hazard” is a term used in the insurance industry to describe situations where individuals may be inclined to take on greater risks if they are insured rather than uninsured. This arises when a person has limited responsibility for the risks they undertake and the costs…
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The Best Ways to Allocate Your Money in a 401(k) Account
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There is no need to be a professional investor to allocate money in your 401(k) account in a way that meets your long-term goals. Three simple methods can work for distributing money in your 401(k) in addition to two extra strategies if the first three options are not available or…
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Learn About Options for Selling Futures Contracts
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Introduction Put options on futures contracts are one of the derivatives financial instruments that grant the buyer the right, but not the obligation, to sell a particular underlying asset or security at a specified strike price before the contract’s expiration. Put options on futures are an effective way to take…
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How to Increase Returns with Mutual Funds
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Using Fee-Free Funds Costs matter when setting up your portfolio to achieve better returns from your investments. When it comes to reducing costs, it should be clear that fee-free funds are better than funds with fees. Since you are not paying any fees, you have more money working for you,…
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What is the long and short stock strategy?
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The long/short equity strategy is a type of portfolio management strategy where the manager attempts to reduce market risk by taking both long and short positions. Investing in long/short equities aims to mitigate market risk and maximize returns in the portfolio. By selling and buying stocks simultaneously, the portfolio can…
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The Impact of Bear Markets on Investments
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What Drives Bear Markets? A sustained decline in stock prices can happen for various reasons, such as investor panic due to economic news including: The occurrence of an unexpected or catastrophic event A decline in corporate profits A correction from a previous bubble in stock valuations A financial crisis in…
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Hedging in Commodities and How It Works
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Introduction Commodity markets are primarily composed of speculators and hedgers. It is easy to understand the role of speculators; they take risks in the markets to make money. Hedgers, on the other hand, are here for a completely opposite reason: to reduce the risk of losing money. Key Takeaways Individuals…
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39% of American investors are buying more cryptocurrencies amid volatility.
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A new study from The Balance indicates that 39% of investors are buying more cryptocurrencies amid market volatility, as Americans change their investment and saving habits in light of poor economic forecasts. Key Takeaways – 40% of investors are increasing their investments amid market fluctuations. – Three in five are…
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Will you have to pay state taxes on your inheritance?
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The inheritance tax is the tax imposed on heirs when they receive assets from the estate of a deceased person. The inheritance tax does not depend on the total value of the estate; that is the estate tax. Instead, it depends on the relationship between the beneficiary and the deceased,…
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35% of adults in the United States blame Biden more than anyone else for rising inflation.
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The rising prices of almost everything have posed a challenge to the wallets and budgets of Americans for several months. While economists continue to debate the root causes of the recent inflation surge, more than a third of adults in the United States agree on who bears the most blame:…
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Do deferred retirement credits increase social security benefits?
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Introduction Delayed retirement credits increase social security benefits by up to 25%. If you simply wait to file for benefits, delayed retirement credits will accumulate, resulting in a permanent increase in your benefits of about five to eight percent per year. Research into social security indicates that postponing the start…
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Bond Opportunities in a Bear Market
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In this article, we will discuss investment opportunities in bonds in a bear market and how to protect against market declines. We will review some investments to consider and some investments to avoid in the event of a market downturn. Active Investment Funds Many investors prefer index funds due to…
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What is the theory of the presidential election cycle?
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The presidential election cycle theory refers to a stock market theory that claims that the performance of the stock market during the second half of a presidential term outperforms the stock market in the first half of a presidential term. Definition and Example of the Presidential Election Cycle Theory The…
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What to Know Before Buying Exchange-Traded Funds (ETFs)
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Before you decide to purchase Exchange Traded Funds (ETFs), here are some things to consider: 1. What is your investment strategy? Why do you want to buy an Exchange Traded Fund (ETF)? Are you looking for exposure to the general market? Do you want to invest in a specific industry?…