When a CEO sells company stock, it can happen for various reasons, not all of which are negative or related to the company’s performance. Here are some common reasons: 1. Diversification: CEOs often have a significant portion of their wealth tied up in their company’s stock. Selling some shares allows […]
Market Education
Market Reaction And Interest Rate
As of August 8, 2024 the Federal Reserve’s interest rate is 5.33 %. The Federal Open Market Committee (FOMC) set the rate at 5.25%–5.50% in July 2024 and kept it unchanged from the previous rate increase on July 26, 2023. However, the U.S. market (S&P 500) plummeted and lost trillions […]
Reliable Recession Indicators
Accurately predicting recessions is a complex task, and no single indicator can provide a foolproof forecast. However, several indicators are considered reliable for signaling potential recessions in the U.S. economy. Here are some of the most accurate and commonly watched indicators:1. Yield Curve Inversion: Description: The yield curve plots interest […]
The Relationship Between Interest Rate and Market Price
The relationship between U.S. interest rates and market prices is complex and multifaceted, affecting various aspects of the economy and financial markets. Here’s an in-depth look at how changes in U.S. interest rates can influence market prices: 1. Stock Market Prices: Valuation: -Lower interest rates generally lead to higher stock […]