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Showing posts from March, 2022

Learning the basics of investment

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It is similar to learning a new language when you learn the basics of investing. It’s easy to feel lost or overwhelmed. Once you understand them, you will be able to better plan for your future. For investment, you can read and learn from The Dividend Hunter,   Trends Journal , or The Momentum Alert. Here are a few of the common types you’ll encounter during your lifetime: stocks, bonds, mutual funds, and real estate. Stocks to Buy Buying stocks is the best possible way to build wealth, historically. Stocks can be described as shares of ownership in one corporation. A share of Apple is a small piece of ownership. Stock prices change with the fortunes of a company and with the economy as a whole. These investments can be valued or rated depending on their financial stability. Some stocks pay a regular return of company profits in the form of dividends, and others do not. Purchase of Bonds You are lending money to the institution or company that issued the bond when you purchase it. Bond

What is a supercycle in terms of economy?

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Supercycles in the wider economy drive  Commodity Supercycles . They are characterized by a sustained rise in demand for raw materials, manufactured materials, and other energy sources. The commodities sector is more cyclical than the wider economy because of the delay between supply shortages and the completion of new production capacity.  Many commodities producers who are struggling to meet demand respond by developing new mines and oil fields. This can take many years. If there is too much production capacity, it may lead to supply shortages. This can be caused by a slower pace of demand growth. When supply exceeds demand, the predictable outcome is that commodities prices crash. A Commodity Supercycles refers to a prolonged period of high commodity demand, often lasting more than a decade. Long periods of high commodity prices due to supply shortages can lead to a significant increase in cash reserves by commodities producers. This prompts many producers to invest money in increas