The triple threat of high unemployment, high inflation and slow economic growth is called stagflation.
The crisis was felt doubly hard in Texas where at least half of the failed S&Ls were based. The collapse of the S&L industry pushed the state into a severe recession. Faulty land investments were auctioned off, causing real estate prices to plummet. Office vacancies rose significantly, and...
Emergency savings could give you a financial cushion in down markets brought by inflation and recessions. Diversifying your investments could help reduce your risk when inflation is high.Like the ocean, the economy naturally moves in waves—2 of which are inflation and recession. During inflation, ...
although some share triggers as with theGreat Depression. Oftentimes these factors are mixed with many of the macroeconomic factors that occur in contractions and recessions such as hyperinflation, stagflation, stock marketcrashes, extended bear markets, and unbalanced interest and inflation rates. Of ...
when inflation is high, wages and employment are often high as well. But that's not always the case. In the event of a critical supply constraint (like an oil crisis), stagflation can occur. That's what happened in the 1970s, and it can be a concern during periods when inflation is...
Instead of fearing job loss or significant declines in your investments now that the Fed has started cutting rates, you should fear making too much money! Absurd, you say! How can making too much money be a bad thing? More money sounds great! Being richer will relievefinancial stress, allow...
maximum employment and stable prices. Lower rates help boost household balance sheets and incentivize spending, bolstering economic growth and hiring. Higher interest rates, however, disincentivize big-ticket purchases or investments that require financing, weighing on consumer demand or business expansions...
harmful to short-term investors orday traders, they can actually help the health of the market in the long run by adjusting prices that are over-inflated. Plus, they can provide you the opportunity for trading high-value stocks and other investments you might not be able to afford otherwise...
It also encompasses saving rates, investments, employment and the public policies that affect it all. Macroeconomics issues someone might study include the factors that influence a country’s wealth, gross domestic product (GDP), trade imbalances and negotiations. Someone in the macroeconomics field ...
5 Source: “Expect Inflation to be Contained Long-Term—No Foolin’,” LPL Financial Research, (April 2022). 6 Source: LPL Research, Bloomberg, DALBAR, ClearBridge Investments 6/30/21Scott Krase Connect With Us Welcome Retirement Planning For Individuals Over Age 50 = Smarter Investing, Red...