Cash is trash: Inflation is burning through your hard-earned money — Like most things in life, the economy moves in cycles. When the economy is growing and credit is expanding, businesses and consumers feel optimistic and increase their spending, thus pushing prices for goods and services higher. The opposite happens when the economy is contracting, and everyone turns into a pessimist…

Inflation is still far from the Fed’s target but panicking is not justified — Inflation has turned out to be more persistent than the Federal Reserve and other global central banks admitted to only a few months ago. The Ukraine war, ongoing supply-chain disruptions, and some renewed Covid lockdowns in China were some of the factors which have added fuel to the real cause…

The uglier it gets, the nearer we get towards the end of the tunnel — What is a recession? According to the official definition provided by the National Bureau of Economic Research (NBER) “… a recession involves a significant decline in economic activity that is spread across the economy and lasts more than a few months. In our interpretation of this definition, we treat the three criteria — depth…

Diversifying into overseas markets might help — “World stocks on Friday closed out their steepest weekly slide since the pandemic meltdown of March 2020, as investors worried that tighter monetary policy by inflation-fighting central banks could damage economic growth.” The aforementioned quote is from a very recent news story by Reuters. How would you know it’s recent…

Say goodbye to the traditional 9–5, and say hello to the Digital Freelancer era. — Even before the Covid-19 pandemic hit the world, you could read plenty of stories about how ordinary people, without any special ‘conventional’ skills, other than their vision to make money out of a hobby they enjoy doing anyway, actually turned into a self-made multi-millionaire. In the post-pandemic era, the so-called…

Overreliance on seasonality for deciding on your stock investments can be tricky — Sell in May and go away is a popular Wall Street adage which refers to an observed seasonal tendency for equity markets to underperform between May and October each year, when compared to the six month period between November and April. In fact, according to some research, since 1990, the…

Leaders should focus on finding long-term solutions — In this article, I discuss the key facts surrounding the European energy crisis and the associated risks for the environment while also arguing that the current situation presents an opportunity to take bold steps toward reaching net-zero faster and more sustainably. The origin of the latest energy crisis Russia, a major global oil and gas exporter, began…

Spreading bets can reduce risks while increasing returns in the long term — Introduction — What is investment diversification? In short, it is a risk management strategy where you avoid ‘putting all your eggs in the same basket’, with the ultimate goal of ‘remaining-in-business’ for longer while also achieving better results. Billionaire investor and philanthropist Ray Dalio, describes his ‘fundamental investment principle’ as follows:

The yield curve and the 2-year/10-year spread inversion as a recession forecasting tool — What is a yield curve? According to Fidelity, “ A yield curve is…a graphical representation of the yields available for bonds of equal credit quality and different maturity dates. A yield curve is a way to measure bond investors’ feelings about risk, and can have a tremendous impact on the returns you receive on your…