Why US inflation remains painfully high | markets macro

share

Security representing a share in the capital of a public company. It assures the owner membership rights (voting and election rights at the general meeting) and property rights (right to share in the profits, share in capital increases or in the liquidation result).

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stock index

Measures the development of a stock market. Comprises a portfolio of selected stocks from a country, a region or an industry, the prices of which, taking certain calculation criteria into account, result in the respective, continuously calculated index level.

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Basic effect

statistical phenomenon. Rates of change are distorted if the base value was unusually high or low, for example as a result of an increase in tobacco tax in the case of cigarette prices.

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balance sheet

Periodic comparison of all assets and liabilities on a key date. The assets side provides information about the use of the funds, while the liabilities side provides information about the procurement of the funds (financing). part of the annual report.

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Fed

US central banking system to which the twelve Federal Reserve Banks are attached. At the top is the Governing Board (Board) in Washington, which also provides the majority in the Open Market Committee, in which monetary policy is decided.

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monetary policy

Measures with which the central banks control the interest rates on the money market (key interest rates) and thus the money supply of a country or currency area. Most central banks, including the Swiss National Bank , aim to keep prices stable (cf. inflation , deflation ) and allow the economy to grow (cf. quantitative easing ).

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Inflation

Price increase or currency depreciation. The change is given as the inflation rate. Often causes central banks to adopt a restrictive monetary policy (high key interest rates), which weighs on stocks and bonds. Opposite: disinflation, deflation.

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inflation expectation

Crucial variable for the assessment of the monetary policy situation by central banks and for the market yield of (government) bonds. It is not the current rate of inflation that influences the actions of consumers and investors, but their opinion of how inflation will develop in the future. However, inflation expectations can only be determined approximately, based among other things on forecasts and the yield difference between nominal and inflation-linked bonds of the same term (so-called break-even inflation rate).

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Kerninflation

Rate corrected for temporary distortions, which gives a more accurate statement of the inflation trend than headline inflation. The Swiss National Bank publishes a trimmed mean rate in which the goods with the strongest upward and downward price fluctuations are excluded from the national consumer price index. The Federal Statistical Office publishes core rate 1 (consumer prices excluding food, beverages, tobacco, seasonal products, energy and fuel) and 2 (core rate 1 excluding products with administered prices).

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Nasdaq

US stock exchange for the stocks of technology companies that are not listed on the NYSE. In February 2008, Nasdaq merged with the Scandinavian joint stock exchange OMX.

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central bank

Economic institution that is responsible for supplying the economy with money. At the same time, it should create monetary stability and, depending on the statute, full employment and appropriate economic growth. In Switzerland, this is the SNB.

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Performance

1. Development of the price of a security. 2. Performance of a portfolio, usually expressed as a percentage, including distributions (reinvested). 3. Investment policy performance of the management of an investment fund, an investment company, a hedge fund or a pension fund with a view to the investment goal.

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Research

Systematic security assessment as a basis for the investment policy. It is divided into fundamental analysis and technical analysis.

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government bond

Bond issued by a government to meet its domestic or foreign financing needs. Government bond yields serve as a benchmark for other issuers in the same country. Unlike other countries, Switzerland does not issue any Confederation bonds abroad.

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security

A document to which a right is attached in such a way that it cannot be asserted or transferred to others without the document. Securities include stocks, bonds, participation and profit-sharing certificates, shares in investment funds, warrants and structured products.

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