Posts

Showing posts with the label investing stress

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
Read more

How to overcome stock investing stress

Image
The stock market is constantly fluctuating, which can be very stressful for investors. However, you can effectively manage this stress by using a few strategies. 1. Change the time frame of your chart Daily volatility in the stock market can be quite high. This is especially true if you're using a daily chart. Seeing the ups and downs throughout the day can make many investors nervous. However, things change when you change the timeframe of your chart to weekly or monthly. Over the long term, the daily volatility of stock prices becomes relatively small. For example, if you look at a chart of the KOSPI over the course of a month, it might seem like there are big swings on each day, but on a monthly chart, the swings are smoothed out. 2. Focus on other activities If you find yourself staring at the stock market all day because you're obsessed with its fluctuations, try focusing on other activities. Take your mind off the stock exchange for a while by diverting your attention to
Read more