Commentary on the U.S. Fed

On 08/12/2011, in Economics, by Jordan Wilson

United States Federal Reserve Chairman Ben Bernanke recently pledged to “hold its benchmark interest rate near zero for at least through mid 2013”.

The statement was made to try and calm global markets as to Fed intentions, thus stabilizing investment markets.

Will this pledge work? 

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(Lack of) Credit Ratings by Country

On 05/20/2011, in Economics, by Jordan Wilson

Countries continue to finance their activities through deficit spending, resulting in substantial accumulated debt.

This devalues the worth of a country.

As with individuals, high debt results in poor credit ratings as the risk of default increases. This can have a significantly negative effect on a country and its residents. 

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Systematic Risk

On 06/01/2010, in Investment Concepts, by Jordan Wilson

The complement of nonsystematic risk is systematic risk.

Systematic risks affect an entire market or a specific segment of that market.

Systematic risk factors are far reaching and impact all companies to some extent. These factors are not unique to the investment under consideration. They will harm a company regardless of how the company operates or manages its risks.

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