A bear market refers to a financial market that sees extended price drops, typically by 20% or more. It often happens alongside a general sense of pessimism among investors, significant selling off of securities and other assets, and a slowing economy. Bear markets usually refer to a drop in the overall market or an index
A dead cat bounce (DcB) refers to a brief and temporary rise in asset prices after a long decline or bear market, only to be followed by a return to the downward trend. Often, these downtrends experience short bursts of recovery or small rallies where prices go up for a little while. The term ‘dead
Dually employed with kids (DEWKs) are families where both parents work and have children. These families are prime targets for marketing toys, kids’ clothing, breakfast cereals, and other child-related products and services. DEWKS can be compared to households where both partners work but don’t have kids, often referred to as ‘DINK‘ Learn more about DEWKs
Double income, no kids (DINK) refers to a household where two adults are working and there are no kids to support. Couples in a DINK setup usually enjoy more extra cash since they don’t have the costs associated with raising children. Having this extra cash gives you more freedom to save, invest, and splurge a
Household income usually means the total yearly earnings of everyone in a home. This can come from various sources, including salaries, self-employment, investments, and benefits like Social Security. It calculations can differ. For instance, the U.S. Census Bureau doesn’t include earnings from people under 15, and the IRS ignores income from dependents if they earn
Real income (Ri) refers to the money someone earns after factoring in inflation, often referred to as real wage. It’s important to keep an eye on the gap between nominal and real income to grasp how purchasing power shifts. Learn more about Real Income Real income is a way to gauge how much buying power
Dollar duration tells you how much a bond’s value will change in dollars when market interest rates shift. Bond fund managers use it to gauge how much interest rate risk their portfolio has. It’s one of the ways to measure a bond’s duration, focusing on how sensitive the bond’s price is to interest rate changes,
Bill Gates, who has over $100 billion to his name, intends to leave his three kids with less than 1% of his enormous wealth. While that still means millions for each of them, it’s a surprisingly small portion of what the Microsoft cofounder could pass on. Gates explains his choice simply: ‘It wouldn’t be a
Macaulay duration is basically the average time it takes for a bond’s cash flows to pay off, weighted by how much each cash flow is worth today compared to the bond’s price. Portfolio managers often rely on this concept when they want to protect their investments. Formula of Macaulay Duration You can figure out Macaulay
Duration tells you how many years it takes for an investor to get back the price of a bond through its cash flows. It also shows how much a bond’s price or a fixed-income portfolio reacts to interest rate changes. People often mix up a bond’s duration with its term or time to maturity since