What Is Deflation – Definition, Causes & Effects

deflationMany people accept inflation as a fact of life. However, under certain economic situations, the opposite phenomenon actually takes place, and is known as “deflation.”

Deflation is the reduction of prices of goods, and although deflation may seem like a good thing when you’re standing at the checkout counter, it’s not. Rather, deflation is an indication that economic conditions are deteriorating. Deflation is usually associated with significant unemployment, which is only corrected after wages drop considerably. Furthermore, businesses’ profits drop significantly during periods of deflation, making it more difficult to raise additional capital to expand and develop new technologies.

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How to Get Affordable Dental Care Without Insurance

dentist officeCan’t afford a trip to the dentist? You’re not alone. The cost of dental care has consistently risen by nearly twice the average rate of inflation over the past half-century. In addition to rising dental costs, the number of consumers with access to dental insurance decreased 5.7% from 2009 to 2010 alone, leaving only about 45% of Americans with dental insurance.

The price may be high, and you may be among the majority who lack insurance. However, there are a number cost-saving measures you can attempt to save money on quality dental care.

Tips to Save Money on Dental Care

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What Is a Mutual Fund – Definition, Types, Pros & Cons

mutual fundsMany investors want to diversify their holdings in order to limit their exposure to risk. However, most individual investors cannot afford the fees and commissions necessary to take large positions in a number of individual securities. Fortunately, they can take advantage of mutual funds.

There are a number of benefits to mutual funds, though it is crucial to examine the downsides, as well as your own needs, goals, and risk comfort, to determine whether mutual fund investment is right for you.

Definition of Mutual Funds

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History of the Dot-Com Bubble Burst and How to Avoid Another

history of the dot-com bubbleIn less than two decades time, the Internet has changed our lives immeasurably. Among altering nearly every other aspect of our lives, from shopping, to communication, to receiving news, the Internet has affected the way business has evolved. Many established businesses and start-ups have made millions off of the Internet, and many more hope to do the same.

However, entrepreneurs’ overly optimistic expectations of the potential of the Internet created the infamous “dot-com bubble” (also known as the “Internet bubble”) of the latter half of the 1990s. Another bubble may be on the way if we are not careful.

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History of Credit Rating Agencies and How They Work

understanding credit rating agenciesCredit rating agencies have been around for the better part of the 20th century, and have played a key role in the financial world by providing ratings on the creditworthiness of bonds and other debt instruments. These ratings are invaluable tools for investors looking to get a better sense of whether a debt instrument is worth investing in. Therefore, when assessing the level of risk associated with a bond,  investors will typically look at its credit rating.

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What Is S&P? Understanding Standard & Poor’s Credit Ratings

standard and poor'sStandard and Poor’s (commonly known as S&P) is one of the most prominent financial intelligence companies in the world. S&P is a division of the McGraw-Hill Companies and has more than 150 years of experience providing financial services to investors worldwide.

Though the firm provides a number of financial research services, they are most widely known for their credit ratings.

History of S&P

S&P’s history can be traced back to 1860, when Henry Varnum Poor published “The History of Railroads and Canals in the United States.” Eight years later, Poor and his son founded H.V. and H.W. Poor Co, a firm dedicated to providing financial statistics on railroad companies. Within the next five years, Poor’s company became one of the leading firms on Wall Street. Later, in 1919, the firm was renamed Poor’s Publishing.

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How to Find the Right Business Partner – Pros & Cons

business partner handshakeWorking with a business partner drastically changes the dynamics of running a business. A great business partner can add a lot to a venture. On the other hand, entrepreneurs can also benefit from going solo when the alternative means an incompatible partnership or working with a partner who doesn’t have the right skill set or experiences necessary for success.

Having a business partner has advantages and disadvantages. Working with a partner may or may not benefit you and your business. Consider these points before you decide whether or not to work with a partner or to run your business on your own.

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What Is the Dow Jones Industrial Average (DJIA) – Stock Market Index

dow jones logoThe Dow Jones Industrial Average (DJIA) is an index of 30 of the largest publicly owned, U.S.-based companies and has been an economic force for over a century. It is also one of the most widely used indexes and plays a fundamental role in the stock market and the way people manage their income and investments.

Most investors use the DJIA to benchmark the performance of their holdings and they may even invest in the DJIA itself.

History of the Dow Jones

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The Real Reasons Why Companies & Business Startups Are Failing

darts business failureRunning a business is very risky. In fact, an estimated 49% of businesses fail within their first five years and approximately 30% of businesses don’t even make it through the first two years. Some industries are particularly risky and have even higher failure rates. For example, about 61% of independent restaurants don’t make it through their first three years, and the failure rate for technology startups is about three times higher than that of all other businesses.

These statistics may not be very encouraging to new entrepreneurs. But chance only plays a small role in a business’s fate. Most fail due to lack of direction, poor planning, or poor leadership, even if the idea, product, or service is a winner.

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Top 10 Recession Proof Jobs – Do They Exist?

psychologist jobLet’s face it. Recessions are difficult. You’ll know this best if you’re out of work and looking for a job.

But even if you’re employed, you may still feel anxiety about losing your job or you may have had to take a pay cut to keep it. Some professions are hit harder than others during a recession, such as jobs in construction and finance. This is because demand decreases for their products when the economy isn’t doing well.

However, for some professionals, demand stays constant in spite of a down economy, such as educators, health professionals, and law enforcement. In fact, such jobs may even appear to be “recession proof.”

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