Macroeconomics
What is a Recession?
A recession is a period when the economy shrinks for several months, with lower production and spending, and higher unemployment.
What is diversificaiton?
Spreading investments across different assets or sectors to reduce risk.
Loan.
___ and chill?
Netflix.
Worst time to be an American in the 20th century.
Great Depression.
What is the Federal Reserve?
Is the central bank of the United States, responsible for managing the money supply, setting interest rates, and promoting stable prices and employment in the economy.
What does ROI stand for?
Return on Investment
Is someone who lives in the property you own.
Tenant
Originally put cocaine in their drink and is a consumer defensive stock.
Coca-Cola.
If I buy 285 shares of a stock at $100 and sell at $256 dollars, how much did I make?
$44,460
What happens to bonds when interest rates go down?
Bond prices rise when interest rates go down, because existing bonds with higher rates become more valuable.
What is the S@P 500?
A stock market index that tracks 500 of the largest publicly traded companies in the United States.
What is cap rate?
The money you have after expenses besides the loan.
A leading semiconductor company specializing in GPUs for gaming, AI, and data centers and biggest company in the world.
Nvidia.
This man got us off the Bretton Wood System. (Watergate)
Richard Nixon
Why did bonds and equities fall during Covid?
Because investors panicked and sold assets to raise cash during the uncertainty of COVID-19.
This asset helps with stability, drawdown, and capital preservation.
Bond.
A property cost 400,000, you put down 50%, the property brings in a cap rate of 7%. Your loan is 6%. How much positive cash flow are you getting a year.
16,000.
2020, short squeeze where tons of retail traders made a lot of money.
Game Stop.
Overvaluation of these tech companies led to a market crash and recession in the early 2000s.
Dot-com Bubble.
A strong USD does what?
Makes imports cheaper and exports more expensive.
This man is the definition of long-term investing.
Warren Buffet.
You own a commercial property, and the banks want you to either refinance or sell property, what is this called.
Balloon payment.
Private company that may make the world biggest IPO at 1.5 trillion dollars.
SpaceX
What year did the New York Stock Exchange open?
1792.