Beytzahel: Economy

Will The Fed Keeping Rates Hike ?

One of the hot issues these days is about the interest rate of the US Federal Reserve. This is because it has a global impact. Every country and various large companies hold reserves of US dollars. In addition, they also hold bonds or debt securities denominated in US dollars. Countries around the world will also react if the US Federal Reserve lowers or raises interest rates. One of them is to maintain the value of the currency.

Why China Keep Buying US Bond ?

International politics has heated up recently. One of which is between China and the United States, which began with a trade war. Under the guidance of former President Donald Trump, the United States was ambitious to take over the global supply chain and bring it back to the United States. This is because 28% of the world's manufacturing output is in China. However, behind the scenes of this conflict, China still has a romantic relationship with the United States. China holds a significant amount of U.S. Treasury Bonds.

The Longer a Bond The Higher Risk It Is

The world today is very dynamic. Having static long-term commitments can be very risky if not managed correctly. Who would have thought that the pandemic would come in the last few years? No one expected that the economy would come to a standstill because of a virus. Not to mention the policies of the US Federal Reserve that most people cannot predict. During the pandemic, they printed a lot of money, which led to inflation. After that, the US Federal Reserve raised interest rates.

How Inflation Favors Turkey

Inflation is everyone's fear. It makes us get fewer goods with the same amount of money. Turkey's inflation, in particular, is the worst in Europe, reaching more than 60%. But apparently, inflation is not that simple. For example, how Turkey took advantage when the country was hit by a financial storm that caused its currency to experience high inflation.

What Happen When Stock Delisted ?

Those disasters certainly disrupt the supply chain, consumer behavior, and purchasing power of the society. Ultimately, investors encounter new challenges amidst this uncertain world. Certain sectors tend to benefit when an event occurs while others suffer losses or bankruptcy. The Stock Exchange is a place where people who have partial ownership of a particular company can trade it with each other.

Deposit ? Treasury Bond Is At 4,63%

The economy recently has become a tough year for companies to survive. The impact of Covid-19 is still being felt until now. The US Federal Reserve has been raising interest rates continuously since 2022 and is predicted to keep rising to tame inflation. The rise in central bank interest rates has the potential to bankrupt many companies. Therefore, when the economy is in a dark time due to the central bank's interest rate hike, those who have cash will benefit.

Why Emerging Market Called Emerging Market

Southeast Asia is one of the emerging markets. With consistent economic growth of 5% each year, stock growth will continue to rise. However, without proper management, the potential of emerging markets will not reach its maximum potential. There are many factors that affect the success of emerging markets, including competitive advantages. Countries with companies that have above-normal competitive advantages tend to bring high potential for future profits.

Which Side of Coin Will Be Next Coin ?

Money was first used as a medium of exchange around 5000 years ago by the Mesopotamian civilization who used the Shekel. Prior to that, humans used barter as a means of trade. Every country has a fear of a financial term called inflation. Inflation occurs when a currency loses its value in a financial calendar. The US Dollar gained its prominence due to the petrodollar system. Petrodollar means that every purchase of oil products must use the US Dollar as a payment tool. This has undoubtedly increased the demand for the US Dollar, thus increasing its value.

What In Earth a Derivative Is ?

One of the reasons why people engage in investment activities is due to the fear of inflation. Inflation occurs when the currency we hold experiences a weakening of purchasing power to the point of depreciation when exchanged with other currencies. However, it is important to understand the risks involved in investing. Each investment instrument carries its own risks. Derivatives are typically used for trading underlying securities rather than long-term investment.

What It Mean Of BPS in Interest Rate ?

Lately, the global economic condition has not been in a good state due to Covid-19 which hit at the beginning of this decade. Restrictions on people's mobility have caused the economy to start stagnating, resulting in many business plans being disrupted. Modern economy cannot be separated from the Central Bank as this institution controls the strength of the currency, the amount of money in circulation, and the provision of liquidity for domestic businesses including banks where you place your money.

Why Short-Selling Should Be Illegal ?

The capital market continues to grow from year to year. The top 500 companies on the world stock exchange, the S&P500, were valued at only 10 trillion USD in 2010, but now it has tripled. However, there are several companies that have gone bankrupt. Short-selling is a contract for a stock or commodity that we do not yet own, with the hope that we will buy it before the contract expires. However, unfortunately, we often lose time before the asset price drops.