Bloomberg’s coverage this week includes the launch of an ETF designed to beat stagflation and the ECB and the Fed insisting that stagflation is not the base case in the future. However, weekend coverage is putting the question of stagflation to economics experts like Ray Dalio, with responses that assume stagflation is the base case and includes a base inflation rate above 4% for the foreseeable future.
A dead cat bounce, also known as a “cat bounce,” is a brief recovery in the price of a stock or other security following a sharp decline. This type of recovery is typically short-lived, and is often followed by an even larger drop in price. The name of this phenomenon comes from a common belief that even dead cats will bounce once they land on the ground after falling – though this idea has been shown to be false in numerous scientific experiments. Overall, the term “dead cat bounce” is used to describe any transient uptick in the price of an asset following a steep decline.
For many investors, the phrase “buy the dip” is more than just a motto – it’s a way of life. Put simply, buying the dip refers to the practice of buying assets when they are experiencing a short-term drop in price. The logic behind this strategy is that prices will eventually rebound, at which point the investor can sell the asset for a profit.
Buy now, pay later (BNPL) has swept the industry, drawing major players such as PayPal and CommBank. How do you know which service is suitable for you when there are so many to choose from? This article is aimed at comparing the 2 major services in this line; Klarna and Afterpay.