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Showing posts with the label Lessons Learned

What is the Consumer Price Index (CPI)?

What is the Consumer Price Index(CPI)? The Consumer Price Index (CPI) is a measure of the change in prices paid by consumers for a basket of goods and services. It is one of the most widely followed economic indicators, and it is used by investors to gauge inflation and make investment decisions. How is the CPI calculated? The CPI is calculated by the Bureau of Labor Statistics (BLS). The BLS surveys households across the United States to collect data on the prices they pay for goods and services. This data is then used to create a "basket" of goods and services that represents the spending habits of the average American household. The BLS calculates the CPI by comparing the prices in the basket of goods and services in a given month to the prices in the same basket of goods and services in a base year. The base year is usually 2000. How does the CPI affect investing? The CPI is an important indicator of inflation. When the CPI rises, it means that the cost of living is incre
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Middle East Conflict and Financial Markets: Lessons Learned and Future Prospects

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1. Geopolitical Issues in the Middle East and the Rise in Oil Prices Instability in the Middle East is a major factor affecting international oil prices. If we look at cases such as the Arab Spring and the Gulf War, we can see that political instability in the Middle East has caused international oil prices to rise. In particular, during the Arab Spring, oil prices rose from $70 per barrel of WTI in early 2010 to more than $110 per barrel in April 2011. In addition, after the Gulf War, international oil prices continued to show an upward trend. However, over time, the influence of political and military issues in the Middle East on oil prices has gradually decreased. In other words, the relationship between "geopolitical risk" and "oil prices" is weakening. 2. Learning effect: Market reaction based on past experience The current market reaction, which is showing more moderate changes instead of sharp swings in oil prices, can be considered a "learning effect&qu
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