Asset Allocation
What is Asset Allocation? Asset allocation refers to an investment strategy in which individuals divide their investment portfolios between different diverse asset classes to minimize investment risks. The asset classes fall into three broad categories: equities, fixed-income, and cash and equivalents. Anything outside these three categories (e.g., real estate, commodities, art) is often referred to...
Vortex Indicator (VI)
What is the Vortex Indicator (VI)? The vortex indicator (VI) is a technical indicator used to identify new or existing trends in the financial markets. Like other technical indicators, the vortex indicator uses historical price data to predict trends in the prices of stocks, commodities, or currencies. The vortex indicator is composed of two indicator...
Strategic Alliances
What are Strategic Alliances? Strategic alliances are agreements between two or more independent companies to cooperate in the manufacturing, development, or sale of products and services, or other business objectives. For example, in a strategic alliance, Company A and Company B combine their respective resources, capabilities, and core competencies to generate mutual interests in designing,...
Medium of Exchange
What is a Medium of Exchange? A medium of exchange is a transitional instrument used to settle the trade of products and services among market participants. It is a system used to enable the exchange of items. Currency is the most common medium of exchange accepted as a standard by all parties for settling economic transactions....
Minsky Moment
What is a Minsky Moment? A Minsky Moment is a sudden collapse of the market following a long period of unsustainable speculative activity involving high debt amounts taken by investors. The term is frequently used to discuss past and/or probable future financial crises. It is named after an American economist, Hyman Minsky, who claimed that...
