You wouldn’t want to be caught dead in a shoe store not knowing the essentials of the latest brands and styles. Then to have the salesperson politely explain that Jimmy Choo has nothing to do with trains or the noise they make.
Market correction: sometimes referred to as “mini-bear” market. It is used when markets are dropping by 10% – 20% as measured by the Dow Jones Industrial Average and S&P 500. These indices measure how well the best companies in America are performing financially.
Double-dip: This term is thrown around a lot in the financial news and even on the local news, especially when they are discussing the US economy and the current volatility occurring in the stock market. A double dip occurs when the economy emerges from a recession, then goes on to a brief surge of growth but then falls back into a recession.
Bear market: a declining stock market equating to 20% or more over at least two months. The 21st century bear market, otherwise known as the Great Recession, started October 9, 2007 and ended March 5, 2009. As many of you know, it resulted in high unemployment and a major reduction in our home values.
A Recession is a long period of falling economic activity as measured by the gross domestic product (GDP). Actually, a recession is a normal, although unpleasant, part of the normal business cycle.
Gross Domestic Product The dollar value of all the finished goods and services produced within a country during a specific time period, generally annually.
Bull run: when you think of a “bull market” our minds often go back to the “Clinton Years” in office. The stock market was rising, everyone was optimistic, jobs were plentiful, house prices rose in value, and no one appeared to be concerned with inflation.
Non-farm payroll report: (Job’s report) is released by the Department of Labor the 1st Friday of the month and provides the previous month employment information. After its release, this report can and often do affect the markets.