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NEW YEAR MAY BE THE YEAR OF RECESSION 2023.

According to IMF Global Forecast for this year is unchanged at 3.2 Percent and for next year projection is 2.7 percent which is down by 0.2 points from July expectations. The three largest economies i.e., the United States, China and the Euro area will continue to stall. In United States, the growth rate will slow by 1 percent due to tightening of monetary and financial conditions. China has a continued lockdown and a weaking property due to which the growth forecast will be expected to around 4.4 percent. In Euro area the energy crisis caused by the ongoing war and the growth forecast would be around 0.5 percent in 2023. In India, around 66% of CEOs feels that recession could happen in the next 12 months as compared to 86 percent CEOs globally. Bloomberg economists Anna Wong and Eliza Winger forecast a higher recession probability across all timeframes, with the 12-month estimate of a downturn by October 2023 hitting 100%, up from 65% for the comparable period in the previous upda...

WHAT IS TECHNICAL ANALYSIS

WHAT IS TECHNICAL ANALYSIS: Technical analysis is the study of Price and Volume. It uses historical price charts and market statistics. Technical analysis is based on the concept that previous market patterns help traders predict future price trajectories. TECHNICAL ANALYSIS TOOLS: Ø   Moving Averages: Moving averages is a dynamic trend line. Ø   Support and Resistance Level: Support level indicates a stock’s low level whereas resistance level indicates the stock’s price is on upward trend. Support is a buy call whereas the resistance is a sell call. Ø   Bollinger Bands: Bollinger bands are a combination of three line. (1) Daily Moving Average (2) Upper limit line and (3) Lower limit line. The upper limit line is a line drawn above DMA and lower limit line is drawn below DMA. These two lines tells traders that how much and in which direction the stock moved away from its moving averages. IMPORTANCE OF TECHNICAL ANALYSIS: Identifying the best entry and exit poi...

UNDERSTANDING FUNDAMENTAL ANALYSIS

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  Fundamental Analysis: Fundamental Analysis is a method of measuring the intrinsic value of the stock. It includes study of macroeconomics, microeconomics, competition in the market, particular company health such as study of assets, liabilities, earnings etc. Fundamental analysis is performed on historical and present data, but with the goal of making financial forecasts. It primarily relies on public data, such as a company’s historical earnings and profit margins, to project future growth. in accounting and finance, Fundamental analysis is the analysis of a business's  financial statements  , competitors  and  markets . It also considers the overall state of the economy and factors including interest rates, production, earnings, employment, GDP, housing, manufacturing and management. There are two basic approaches that can be used: bottom-up analysis and top-down analysis. Top-Down Approach: Top down approach starts investment analysis from larg...

Cryptocurrency-Advantages and Disadvantages

Crypto  is a  digital currency . It is not governed by any bank or central authority agency. Many  Cryptocurrencies  are based on blockchain technology which is distributed ledger. Cryptocurrency uses cryptography techniques to secure digital transactions.  In cryptocurrency, a unit has created through a mining process. Users can also buy a cryptocurrency from a broker. Cryptocurrency is an intangible asset. Example of Cryptocurrency: •              Bitcoin •             Ethereum •             Avalanche •             USD Coin •             Binance Coin •             Ripple •     ...

What is Investment. Understanding the Basic

What is Investment: Investment is sacrificing your money, time, effort at present, in order to purchase assets, with the purpose to sell at a higher price than the purchase price over the period of time. Assets can be Land, Commodity, Stocks, etc. Assets can be any resource that has an economic value that can be generated future benefits. Further assets can be tangible, intangible. Tangible Assets: which can be touched Intangible Assets: Which cannot be touched. Example of Tangible Assets: ·          Inventory ·          Land ·          Building ·          Machinery ·          Equipment ·          Accounts Receivable Example of Intangible Assets: ·          Goodwill ·        ...