central banks

How Will Markets React To Central Bank Tapering In 2018?

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Reading Time: 5 minutes 2018 is expected to be the year of tighter central bank policies through shrinking balance sheets and rate hikes. It’s going to be interesting to see how central bank policies affect equity markets and the economy. The Fed’s QE policy is monetary stimulus, but most critics claim it just pumps…CONTINUE READING

Central Banks Prevented 2016 Recession

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Reading Time: 5 minutes The economy was on the brink of recession in early 2016 and global coordinated central bank action helped prevent a crisis. Every time the Fed ‘kicks the can down the road’ it makes the inevitable situation worse. The further asset prices get from their intrinsic value, the worse the correction…CONTINUE READING

What Role Does Gold Have in Today’s Markets?

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Reading Time: 3 minutes In modern financial markets, the list of securities you can place bets on is long indeed. In addition to traditional investments such as stocks and mutual funds, newer financial instruments such as derivatives and ETFs (electronically-traded funds) have become popular. There has even been an attempt recently to allow investors…CONTINUE READING

Fractional Reserve Banking: History & Risks

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Reading Time: 4 minutes The monetary system underlying economies in the West, and throughout much of the rest of the world as well, relies on what is known as fractional reserve banking. Understanding how this system works, its effects and tendencies, is important not only from an academic but also an investing perspective. This…CONTINUE READING