Economics Articles

  1. The Enduring Importance Of The DJIA

    The Dow Jones Industrial Average (DJIA) continues to be an important indicator of the economy, though some say the DJIA doesn't ...
  2. The Top Reasons Behind The U.S. National Debt

    National debt, as with a business, is basically the difference between receipts and expenses--but in the U.S., the latter ...
  3. Main Characteristics of Capitalist Economies

    Commerce is based on the principles of capitalism, but there are few, if any, examples of pure capitalism except in theory.
  4. The World's Lowest Cost of Living for Retirement

    6 countries that offer a high quality of living at a low cost for retirees. Great healthcare, plenty of activities, warm ...
  5. Where Unemployment Hits Hardest

    A look at the demographics of unemployment, and what that means for workers around the nation.
  6. Why Did ETFs Become So Popular?

    How long should a buy-n-hold investor “hold?” If you held the Dow Jones Industrials Average from 1916 - 1981, would you have ...
  7. 6 Ways To Jump-Start Your Savings Account

    While Americans have succeeded at paying some of their debt over the past years, the median household's savings have declined ...
  8. TIPS Are Unloved And Under-Owned

    Do you use protection? Because based on the recent, wild action in the markets, it seems as though many people have been ...
  9. India Is Eclipsing China's Economy As Brightest BRIC Star

    It seems fitting that on the occasion of Diwali – the Hindu “festival of lights” – India should emerge as the brightest star ...
  10. China Will Continue To Dominate World Production

    Some may think the ubiquity of Chinese products is due to the abundance of cheap Chinese labor that brings down the production ...
  11. The Six Things Investors Should Do Now

    FOX Business Network’s Elizabeth MacDonald weighs on The Six Things Investors Should Do Now. Stocks are swinging up and down, ...
  12. A Guide To The Six Sigma Green Belt

    Curious about the Six Sigma Green Belt? Here's what you need to know.
  13. Lognormal and Normal Distribution

    When and why do you use lognormal distribution or normal distribution for analyzing securities? Lognormal for stocks, normal ...
  14. Saving Money Or Paying Off Debt?

    When choosing between blasting through debt and establishing precautionary funds in case of an emergency, the right course ...
  15. The Importance Of U.S. Treasury Rates

    U.S. Treasury bond interest rates affect more than just bondholders! It impacts the day to day lives of all consumers.
  16. Ebola's Economic Impacts on Liberia, Sierra Leone and Guinea

    A summary analysis of projections of how the Ebola outbreak will affect the economies of Liberia, Sierra Leone and Guinea.
  17. Why The 10 Year US Treasury Rates Matter

    You might think of Treasury bonds as boring investments, but their yields are important indicators of the economy as a whole.
  18. Using Normal Distribution Formula To Optimize Your Portfolio

    Normal or bell curve distribution can be used in portfolio theory to help portfolio managers maximize return and minimize ...
  19. The World Bank's All-Important World Development Indicators (WDI)

    The World Development Indicators are the world's economic scorecards: they evaluate where nearly every country stands and ...
  20. The Normal Distribution Table, Explained

    The normal distribution formula is based on two simple parameters - mean and standard deviation
  21. The Better Inflation Hedge: Gold or Treasuries?

    Owning gold may not be the best option for hedging against inflation. What else, then? Try treasuries or gold ETFs.
  22. How The Bureau Of Labor Statistics Works

    The Bureau of Labor Statistics (BLS) is the primary statistical agency for the U.S. federal government in labor economics ...
  23. Kaizen: An American Idea Gets A Japanese Makeover

    This manufacturing philosophy – made famous by the likes of Toyota – had its start in postwar Japan with an American statistician.
  24. Can Investors Trust Official Statistics?

    The official statistics in some countries need to be taken with a grain of salt. Find out why you should be skeptical.
  25. Hypothesis Testing in Finance: Concept & Examples

    When you're indecisive about an investment, the best way to keep a cool head might be test various hypotheses using the most ...
  26. Basics Of The Binomial Distribution

    Despite the fancy-sounding name, you already understand the Binomial Distribution, and you can use it to make money. Ready? ...
  27. The U.S. National Spending And Debt

    Just like any average American household, government overspending can carry on for extended periods by rolling over debt ...
  28. Successful Ways That Governments Reduce Federal Debt

    Governments have many options when trying to reduce debt, and throughout history some of them have actually worked.
  29. Using Historical Volatility To Gauge Future Risk

    Use these calculations to uncover the risk involved in your investments.
  30. Strategies And Secrets Of High Frequency Trading (HFT) Firms

    Secrecy, strategy and speed are the words that best define high-frequency trading (HFT) firms.
  31. How Influential Economists Changed Our History

    Find out how these five groundbreaking thinkers laid our financial foundations.
  32. The Dark Side Of The WTO

    The World Trade Organization has its share of detractors. Find out why this international entity has such harsh critics. ...
  33. Investment Misselling A Global Problem

    When banks and advisors focus on fees and commissions, it is investors and the market that take the hit.
  34. Coping With Inflation Risk

    Inflation is less dramatic than a crash, but it can be more devastating to your portfolio.
  35. How Fannie Mae And Freddie Mac Were Saved

    These mortgage giants had to be put under government conservatorship, driving home the gravity of the subprime crisis.
  36. The Economics Of Labor Mobility

    Loosening labor restrictions has both good and bad effects for a country and its workers.
  37. Examining The Phillips Curve

    This model depicts an inverse relationship between unemployment and wage inflation, but is it accurate?
  38. Leveraging Leverage For Bigger Profits

    Leverage is like fire. Find out how to use it to heat up your investing without burning your portfolio.
  39. The Causes And Effects Of Credit Shocks

    These shocks cycle through history. Find out what you need to know to avoid the alarm bells.
  40. Combating Retirement's Silent Killer: Inflation

    Inflation can devour a once secure nest egg. Learn how to protect yours.
  41. How To Lie With Financial Statistics

    Can you really trust what the financial services industry puts out? We tell about some tricks that hide the truth.
  42. What Is Opportunity Cost And Why Does It Matter?

    Economists suggest that the "opportunity cost" of any decision, the value of the next-best alternative, is crucial to making ...
  43. The Treasury And The Federal Reserve

    Find out how these two agencies create policies to stimulate the economy in tough economic times.
  44. Competitive Advantage Counts

    What's the best indicator of a company's future success? Its ability to succeed when others fail.
  45. What Are The Odds Of Scoring A Winning Trade?

    Just because you're on a winning streak doesn't mean you're a skilled trader. Find out why.
  46. Countries With The Highest Fracking Potential

    Is fracking a "necessary evil," as some believe? Here are some countries with huge fracking potential--and what they stand ...
  47. 5 Lessons From The Recession

    The bear market of 2008 was a game-changer for many investors. Find out what lessons you can take away from it.
  48. Adam Smith And "The Wealth Of Nations"

    Adam Smith's 1776 classic may have had the largest global impact on economic thought.
  49. The Austrian School Of Economics

    Investopedia explains: If you think economists are only concerned with numbers, check out the Austrian School, who are more ...
  50. 10 Common Financial Terms Every Newbie Needs To Know

    In order to get a better understanding of what you read in markets news, we’ll briefly explore the terms you commonly encounter.
  51. Boom or Bust? The End of China's One-Child Policy

    China's easing of its one-child policy has demographers speculating whether it'll lead to a baby boom. Here's why it might ...
  52. A Primer On Reserve Currencies

    For nearly a century, the U.S. dollar has served as the world's premier reserve currency, but the future is uncertain.
  53. A Review Of Past Recessions

    Here we look at the biggest economic declines in the U.S. since the Great Depression.
  54. Is Growth Always A Good Thing?

    Getting big quickly looks good, but companies can get into trouble when they do it too fast. Find out how to spot this trouble. ...
  55. Top Ranking Nations By HNWI

    The United States, Japan and Germany together make up 53.3% of the total worldwide high net worth individual population. ...
  56. Is Your Stock Headed South?

    Don't let your portfolio go with it! Find out which signs to watch out for.
  57. What The National Debt Means To You

    The U.S. deficit seems to grow every year. But how does it actually affect you?
  58. As Boomers Slow Down, Will The Economy Follow?

    Many baby boomers are working past 65. Yet as they inevitably retire, effects on workforce participation and consumer spending ...
  59. The Gini Index: Measuring Income Distribution

    A country with $100 billion in assets and four residents sounds good - unless three of them have $0.
  60. The World's Top Financial Cities

    These cities are the heart of the world's financial activity.
  61. Introduction To Remittances

    Remittances are an important factor in the global economy, and help drive growth both at home and abroad.
  62. Muriel Siebert: Female Finance Pioneer

    Muriel Siebert has blazed many paths for investors, but is especially relevant as the first woman to sit on the NYSE.
  63. Alan Greenspan: 19 Years In The Federal Reserve

    Follow the economic glories and bumbles in the career of the previous Fed chair.
  64. The GDP And Its Importance

    GDP is an accurate indication of an economy's size. In terms of its ability to convey information about the economy in one ...
  65. Why And When Do Countries Default?

    Countries can, and periodically do, default on their debt. This happens when the government is either unable or unwilling ...
  66. The Evolution Of Banking

    Banks are a part of ancient history. Find out how this system of money management developed into what we know today.
  67. The Federal Reserve System Affects You More Than You Might Think

    How does the Federal Reserve System affect ordinary citizens? In more ways than you might realize.
  68. S&P 500 ETFs: What Every Investor Should Know

    Before you invest in that SPDR S&P 500 ETF (or any other ETF based on that index) here are a few things to consider.
  69. The S&P 500: The Index You Need To Know

    Just how are companies added to and dropped from the S&P 500, and how is its value calculated? Curious? Read on.
  70. The Companies That Headline The S&P 500

    These companies are the creme de la creme of the S&P 500. Here's how they got there.
  71. Top Indicators From The Bureau of Labor Statistics

    Of the BLS indicators, the change in nonfarm payrolls and unemployment rate, as well as the CPI and PPI, are the ones most ...
  72. An Analysis Of Social Security Benefits And Their Future

    Social Security is a significant driver of the US economy--as good a reason as any to make sure you understand it!
  73. How the Cost of Living Affects Your Income

    Do you know all the ways cost of living increases can affect your income?
  74. What Exactly is a Socialist Economy?

    Socialism's role in the world has changed dramatically in the last several decades.
  75. How Countries Deal With Debt

    For many emerging economies, issuing sovereign debt is the only way to raise funds, but things can go sour quickly.
  76. Great Company Or Growing Industry?

    Look at the big picture when choosing a company - what you see may really be a stage in its industry's growth.
  77. The Rise And Fall Of The Shadow Banking System

    We look at the evolution, failure and fallout from the shadow banking system.
  78. Socialist Economies: How China, Cuba And North Korea Work

    What is socialist economics in the context of Cuba, China and North Korea?
  79. The Taylor Rule: An Economic Model For Monetary Policy

    This interest rate forecasting model has helped central banks around the world adjust their rates to balance out inflation. ...
  80. This is What the Fed’s Monetary Policy Means To You

    It’s a good thing for everyone concerned with their finances to take five minutes or so to find out what the Federal Reserve ...
  81. Why You Should Invest In This Vibrant Asian Nation

    Other than tourism and a recent military coup, what's there for investors to know about Thailand? Plenty.
  82. Is it Time to Prepare for Inflation?

    While U.S. inflation remains at historic lows, it has ticked up recently, leaving many investors fearing rising prices.
  83. Why Inflation Is Still A Threat To Your Retirement

    One reason people tend to underestimate their retirement saving needs is that they fail to properly account for the impact ...
  84. What is the OIS LIBOR Spread And What Is It For?

    When the LIBOR-OIS spread rises significantly, it represents the worry that banks might not be able to pay down even their ...
  85. What Is The Relationship Between The Federal Funds, Prime And LIBOR Rates?

    The prime rate and LIBOR rate, two of the most prominent benchmark rates, tend to track the federal funds rate closely over ...
  86. Will OIS Replace LIBOR?

    LIBOR manipulation by large banks during the financial crisis has raised serious doubts about the interest rate's reliability. ...
  87. Why a Rise In the National Debt Is Good for You

    In the first quarter of the year, the household national debt for Americans was $129 billion. Yet contrary to popular belief, ...
  88. These Sectors Benefit From Rising Interest Rates (BAC, GS)

    You've adjusted your debt portfolio to prepare for rising interest rates; now what about your equity holdings? Here are some ...
  89. What Is ICE LIBOR And What Is It Used For?

    In the case of ICE LIBOR, an innocent-sounding set of letters has a profound bearing on every loan you make.
  90. How To Protect Yourself From Rising Interest Rates

    Today's historically low interest rates have just one way to go. How should you prepare for their inevitable rise?
  91. Millennials: Let’s Grab A Beer, Burger and a Movie In 2064

    Asking a 25-year old to save money for his 75-year old future self is like asking him to give money to a stranger. But if ...
  92. Why Stick With Energy Stocks? (Hint: Geopolitical Risk)

    By most fundamental measures, oil prices should be declining. Russ explains why they’re on the rise instead, how this has ...
  93. Are We Setting Ourselves Up For Another Financial Crisis?

    “More money has been lost because of four words than at the point of a gun. Those words are, ‘This time is different.’”
  94. The Insiders Who Fix Rates for Gold, Currencies And Libor

    The system by which benchmark rates are fixed for interest rates, currencies and gold is archaic - and, many would argue, ...
  95. Quantitative Easing: Does It Work?

    This controversial monetary policy has been used by some of the world's most powerful economies. But does it work?
  96. What Will Happen To Treasury Yields With Yellen And Tapering?

    Janet Yellen was sworn in as Federal Reserve chair Feb. 3, 2014, ending Ben Bernanke's eight-year tenure. Yellen assumes ...
  97. Introduction To Supply And Demand

    Find out all about supply and demand and how it relates to your daily purchases.
  98. Accelerating Returns With Continuous Compounding

    Investopedia explains the natural log and exponential functions used to calculate this value.
  99. A Study On The Wealth Effect And The Economy

    The notion that the wealth effect spurs personal consumption makes sense intuitively. After all, wouldn’t you be more inclined ...
  100. How To Profit During High Inflation

    Some companies are better than others at pivoting their strategies to overcome inflation or other cost-increasing concerns. ...
Hot Definitions
  1. Diversification

    A risk management technique that mixes a wide variety of investments within a portfolio. The rationale behind this technique ...
  2. European Union - EU

    A group of European countries that participates in the world economy as one economic unit and operates under one official ...
  3. Sell-Off

    The rapid selling of securities, such as stocks, bonds and commodities. The increase in supply leads to a decline in the ...
  4. Brazil, Russia, India And China - BRIC

    An acronym for the economies of Brazil, Russia, India and China combined. It has been speculated that by 2050 these four ...
  5. Brexit

    The Brexit, an abbreviation of "British exit" that mirrors the term Grexit, refers to the possibility of Britain's withdrawal ...
  6. Underweight

    1. A situation where a portfolio does not hold a sufficient amount of a particular security when compared to the security's ...
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