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Showing posts from January, 2023

Why Will Ordinary Investors Be Hit Hard in 2023?

In 2023, if you were a stock market investor , it was one of the worst years for you. The market's decline was caused by high inflation, rising interest rates, and the Russia-Ukraine conflict, which drove oil prices. Now that the dust has cleared, we can consider what this bear market has taught us about investment. Here are some of the most important lessons we may take away from 2023: Inflation is defined as an increase in the overall price level of goods and services. This diminishes money's buying power and reduces the real worth of monetary holdings. In general, inflation is not harmful, but prolonged periods of high inflation can harm the economy. They can have negative consequences such as higher opportunity costs, concern about future inflation, and, in extreme circumstances, product scarcity. The inflation rate, a percentage rise in the Consumer Price Index or Personal Consumption Expenditures (PCE) index, is the most often used indicator of inflation. Central banks us...

Volatility Traders Are Validated by the Market Roller Coaster of 2022

If you have ever examined the Chaikin Volatility Indicator (CVX), you understand that it is a highly accurate indicator of future market circumstances. The CVX determines the market's degree of indecision and anxiety. When a market reaches its top, nervousness and indecision are at an all-time high. The "Whipsaw" pattern occurs at this time. The CBOE Eurekahedge Long Volatility Index evaluates hedge fund managers' performance. It is an equally weighted index comprised of thirteen component funds. By logging in to your Eurekahedge account, you may download the index. Rising inflation has destroyed the equity and bond markets' fundamentals this year. Despite this, volatility-focused funds outperformed other asset classes. Long-volatility hedge funds have achieved returns of 9.3% over the past year. However, the hedge fund industry as a whole has struggled. About $22 billion was raised in the third quarter, down from $26 billion in the second quarter. The period und...

The Disconnect Between Next-Gen and Family is Caused by Technology and Succession

Despite growing awareness that a new generation of high-net-worth individuals is entering the market, many feel that technology and succession will define the future of wealth. The generation gap between the family and the next generation may be exacerbated by the advent of artificial intelligence and the increasing complexity of the business. Communication and education are the keys to overcoming this. As more UHNWI (ultra-high net worth people) and HNW (high net worth individuals) families face the reality of succession planning, some are turning to the next generation as a savior. Among other things, the next generation faces unique challenges and needs. While this isn't inherently a terrible thing, it does portend a nasty awakening for the old guard. Fortunately, there are a few steps that may be taken to reduce these issues. First and first, you must get to know your millennials. Attending a few conferences and events is another option. You will be able to network with other ...