1) Identify several economic trends that will affect U.S. equity and U.S. fixed income markets. Economic growth will boost employment opportunities which in turn will create increased economic activities that will result in higher GDP and increased stock prices. As economic growth improves, flat commodity price and a moderate increase in wages and consumer spending will generate a small gain in global inflation. Job gains in the USA are expected to continue at a moderate pace. This, however, will have a negative effect on corporate earnings. However, increase in household cash flow due to low-interest rates helped consumers to reduce their mortgage payments and consumer debts. This reduces the fear of a recession in next 12 months. The combination of steady economic growth and restrained inflation will prompt central banks to remove their monetary stimulus. Federal Reserve Bank may go ahead with future rate hikes which will impact bonds negatively. 2) …show more content…
Overall positive outlook on commodities reflects our sector-specific views, which range from an underweight for precious metals to a modestly positive view on oil and a more sanguine outlook for natural gas. Although I expect prices for oil to remain range-bound, I believe positive returns from oil are still likely given investors’ ability to roll higher-priced short-term contracts into lower-priced longer-term contracts. I see the greatest potential for price gains in natural gas, given low inventories and the need for strong production growth to provide adequate supplies in 2018. Commodity prices have already shown signs of stabilization. The outlook for economic growth has improved in the US emerging markets, increasing the demand for commodities. Meanwhile, The US commodity markets have gradually moved towards a better balance of supply and demand, evidenced by 2018 strong rally in base metals and stabilization of global energy
Currently, the most important factor in the rise of gas prices is the increasing cost of crude oil. Unfortunately, the United States has three percent of the world’s oil reserves. (Horsley) In 2009, the United States was third in crude oil production as well as the world’s largest petroleum consumer. (e. I. Administration) Such consumption required and still requires the United States to import petroleum/crude oil from other countries.
Every few years, countries experience an economic decline which is commonly referred to as a recession. In recent years the U.S. has been faced with overcoming the most devastating global economic hardships since the Great Depression. This period “a period of declining GDP, accompanied by lower real income and higher unemployment” has been referred to as the Great Recession (McConnell, 2012 p.G-30). This paper will cover the issues which led to the recession, discuss the strategies taken by the Government and Federal Reserve to alleviate the crisis, and look at the future outlook of the U.S. economy. By examining the nation’s economic struggles during this time period (2007-2009), it will conclude that the current macroeconomic situation deals with unemployment, which is a direct result of the recession.
...l feedstock. If ANWR drilling is allowed, our domestic crude oil production can reach a feasible rate of 10 million barrels per day by 2020. Additionally, with innovations in technology and better consumption habits are implemented, factors like: fuel efficient vehicles can be produced, electric battery created, and natural gas in freight transportation can be extended.
Economic: As seen recently, recessions can come along effecting markets for coming months or years. The emerging markets in China, India and Brazil, may boost sales for whoever gains those market shares. While the United States continues to experience a growing market its important to pay attention to the
In this sub-section, I will look at how changes in oil prices affect stock market returns with reference to academic papers
When evaluating the propane shortage from an economic point of view, one would notice that the price increase reflects the law of supply and demand in action. Regrettably, propane consumers need more propane due to the weather, despite the decreased supply to the Midwest due to pipeline maintenance and increased propane use to dry crops during the fall harvest.
For a goal to be the most efficient it can be, it has to be S.M.A.R.T. as Siegel and Yacht (2009) explain in our textbook, Personal Finance. Personal finance is the way we conduct and work with our own household finances and how we make the best of what we have. Goals we make in doing that have to be specific, measurable, attainable, realistic and timely. Let me explain these five individually. We have to make our goals specific which means nothing general such as, "my goal is to succeed in life.” Those kinds of goals won 't work. Your goal has to be measurable and should be tracked in the process of accomplishing it. It should be attainable, shouldn 't be anything that you as a human being cannot accomplish and it also has to be realistic
barrel and per gallon has gone up significantly worldwide. The price of oil has already passed
I became an enthusiast of finance ever since I was at high school. At the political economy class, my teacher asked us: if you have a million RMB, how would you use it? She then introduced us the concept of investment, and I was intrigued specifically by the stock. For the latter two years of my high school, I have been reading books and articles regarding the stock market in the U.S. and in China. As one of the outstanding students ranked top 1% in College Entrance Exam in Hainan Province, China, I was accepted by the City University of Hong Kong with a full scholarship. With the strong interest in finance, I chose quantitative finance and risk management as my major.
Since I can remember my family has always struggled with money. My parents’ financial experience is like a box of assorted chocolate. Sometimes they make ends meet, sometimes they do not. My mother used to work for the state of Tennessee. She worked on computers and was married to my dad who was in a rock band that took tours overseas a lot. Momma worked full time and came home to do the exact same thing. They soon got a divorce and my mother was working her tail off for my sister and I to be able to live. Since then my mother has gotten remarried, has not been paid child support since I was seven years old or so, and is now trying to make ends meet and pay off a bunch of debt.
As a result of this economic growth families will begin to feel more confident and will begin to spend more of their money instead of saving it because they believe that will receive a pay raise or will find a better job. (Amadeo, 2016) Borrowing also increases when economic activity is high people begin to borrow from banks and other places because they feel that the government has been doing a great job managing the economy. (Amadeo, 2016) As we have seen in 2008 people should never get to confident in the economy because our economic bubbles are used to crashing when they are doing very well and it’s never really the people’s fault it’s the governments. Although inflation begins to rise when the economy is doing great one of the things that is known to bring prices down is competition among businesses. Competition is great because one company will attempt to sell a product for a cheaper price than another company which results in lower prices the same as you see with cell phones and automobiles. Higher prices can also be caused by technological innovations when people are expecting a new product the producer can sell it for a higher price because they know that consumers will spend almost any amont of money to obtain that product. (Amadeo, 2016) Higher demand for new products will increase employment to meet those demands and inflation will rise which will benefit the economy tremendously. Whenever the price level increases, spending must also increase to be able to buy the same amount of goods and
According to Douglas, (2015) low oil prices place strain to African oil exporting countries such as Nigeria while net oil importing countries stand to benefit as costs decline the fuel prices also decline. Although in South Africa it’s much helpful considering Eskom increasing importance of diesel as it struggles to generate enough power to meet demand (Douglas, 2015).
Managing personal finances is an important skill to acquire. However, no where in school is this subject taught. As a result of a lack of preparation, our society is subject to a high percentage of people who lack financial success. Those who are successful at managing their personal finances will find that they are successful in many other areas as well. To learn how to manage personal finances there are books and web sites that provide a step by step guide to successfully managing personal finances. Those who lack financial success often possess many of the same traits.
Personal Finance is a class I’ve wanted to take for a while now. My major is Finance not because I want a career in finance but more to learn about finance for my own personal situation. This class taught me so much! During this class I was able to evaluate my financial situation and set financial goals for myself. The four topics that helped me the most were emergency savings, buying a car, purchasing a home, retirement, and estate planning. After completing this class I have a better understanding of these topics and how to achieve my financial goals.
Likewise, the monetary measures aimed at controlling the over money supply could reduce the inflation. So there is a need for improving monetary policy with the help of credit contraction, increasing reserve ratio of commercial banks, increasing bank rates, open market operation and other monetary