Month: June 2020

There is no alternative, often abbreviated to TINA, is a phrase that originated with the Victorian philosopher Herbert Spencer and became a slogan of British Prime Minister Margaret Thatcher in the 1980s. Today, it is often used by investors to explain a less-than-ideal portfolio allocation, usually of stocks, because other asset classes offer even worse returns. This situation and the subsequent decisions of investors can lead to the Tina Effect whereby stocks rise only because investors have no viable alternative. read more

The nominal effective exchange rate (NEER) is an unadjusted weighted average rate at which one country’s currency exchanges for a basket of multiple foreign currencies. The nominal exchange rate is the amount of domestic currency needed to purchase foreign currency.

A breakout refers to when the price of an asset moves above a resistance area, or moves below a support area. Breakouts indicate the potential for the price to start trending in the breakout direction. For example, a breakout to the upside from a chart pattern could indicate the price will start trending higher. Breakouts that occur on high volume (relative to normal volume) show greater conviction which means the price is more likely to trend in that direction.

Value averaging is an investing strategy that works like dollar cost averaging (DCA) in terms of steady monthly contributions, but differs in its approach to the amount of each monthly contribution. In value averaging, the investor sets a target growth rate or amount on his or her asset base or portfolio each month, and then adjusts the next month’s contribution according to the relative gain or shortfall made on the original asset base.

An investment fund is a supply of capital belonging to numerous investors used to collectively purchase securities while each investor retains ownership and control of his own shares. An investment fund provides a broader selection of investment opportunities, greater management expertise, and lower investment fees than investors might be able to obtain on their own. Types of investment funds include mutual funds, exchange-traded funds, money market funds, and hedge funds.

The Equal Credit Opportunity Act (ECOA) is a regulation created by the U.S. government that aims to give all legal individuals an equal opportunity to apply for loans from financial institutions and other loan granting organizations. The Equal Credit Opportunity Act states that individuals cannot be discriminated upon by factors that are not directly related to their creditworthiness. It prohibits creditors and lenders from considering a consumer’s race, color, national origin, sex, religion, or marital status in deciding whether to approve their credit application. Financial institutions also cannot deny credit based on age. Nor can they deny credit because the applicant is receiving public assistance. read more

Novation is the act of substituting a valid existing contract with a replacement contract, where all concerned parties mutually agree to make the switch. In most novation scenarios, one of the two initial contracting parties is replaced outright by an entirely new party, where the original party willingly agrees to forgo any rights originally afforded to them. Novations are most frequently used in corporate takeovers and the sales of businesses.

The London Interbank Offered Rate (LIBOR) is a benchmark interest rate at which major global banks lend to one another in the international interbank market for short-term loans.

Outside sales refer to the sales of products or services by sales personnel that physically go out into the field to meet with prospective customers. Outside sales professionals tend to work autonomously outside of a formal office setting or a formal team environment. They often travel to meet customers face-to-face, as well as to maintain relationships with existing customers.

The Indian rupee (INR) is the currency of India. INR is the International Organization for Standardization currency code for the Indian rupee, for which the currency symbol is ₹.