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...