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Broker Aegis Corporate Financial Services on the impact of inflation on the mark

Started by Admin, Oct 24, 2023, 07:36 PM

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Inflation is an integral part of the modern economy. It causes the value of goods to rise and the value of money to fall. Because of the sharp rise in the price of goods, they become harder to buy. If you have savings, they lose their value. In addition, inflation also affects the global financial market and can change the situation of cryptocurrencies. Forex broker Aegis Corporate Financial Services experts talk about how inflation affects different markets.

How inflation affects stock prices – answers Forex-broker Aegis Corporate Financial Services


The relationship between inflation and the stock market involves many factors. These include the rate of inflation, interest rates and other factors. The experts at Aegis Corporate Financial Services Forex Broker cite several key effects of inflation on the stock market:

  • Moderate inflation can reduce the real value of financial assets. To calculate the real rate of return, stock returns must be adjusted for inflation. If stock returns are 10% and inflation is 3%, the real rate of return is closer to 7%.
  • Higher inflation usually means higher interest rates. Higher interest rates increase the cost of capital for companies, which can lead to lower profits and falling stock prices.
  • Inflation reduces the purchasing power of consumers, which can lead to lower sales for companies and, consequently, lower stock prices.
  • Not all industries are affected by inflation to the same extent. Companies in the technology sector may be less susceptible to inflation than the utility or consumer staples sectors.

Also, a higher percentage of inflation may make trading stocks less attractive. Since the real value of dividends paid may decrease.

Broker Aegis Corporate Financial Services on the impact of inflation on bonds


Inflation can significantly affect the value of bonds. Bonds are fixed income securities. They pay a predetermined interest rate over a certain period of time. Inflation affects bonds in two main ways: through their yield and their purchasing power.

A bond's yield is the income you get from owning it, usually expressed as an annual percentage. When inflation rises, central banks can raise interest rates to combat it. Higher interest rates in the market make existing bonds with lower yields less attractive. As a result, the price of these bonds usually falls, causing their yields to increase to attract buyers. This is a market mechanism that ensures that the yields of older bonds remain competitive with newer bonds offering higher yields.

The second way inflation affects bonds is by reducing their purchasing power. The interest rate on a bond may be fixed, but the real value of interest payments may decline in the face of inflation. For example, if a bond pays 3% interest and inflation is 4%, the real yield is actually negative. The cash flows from the bond will have less purchasing power in the future. This makes bonds less attractive during periods of high inflation.

Forex broker Aegis Corporate Financial Services experts identify several key features of bonds:

  • Some investors make the mistake of thinking that prices will rise in the future. Bond prices can fall before inflation occurs.
  • Central banks can change interest rates to combat inflation or deflation. This also affects bond interest rates.
  • Bonds with longer maturities are affected by expected price changes.
  • Higher inflation can make traders worry about the economy. This can affect riskier bonds.

If you trade or invest in the financial markets – it is critical to know how rising or falling prices affect bonds. Broker Aegis Corporate Financial Services notes the importance of this knowledge in making smart investment choices.

Why Forex Broker Aegis Corporate Financial Services is not a scam?


Many investors can attest – at some point they have encountered scammers. In order to preserve your investment and ensure a positive trading experience you need to thoroughly research and evaluate a Forex broker.

When choosing a FOREX broker, reading reviews is an invaluable first step. They allow you to get a real idea of other traders' experience and understand how the broker works. Unscrupulous brokers often have no reviews or they are negative. Forex broker Aegis Corporate Financial Services is not a scammer. Unlike scammers, broker Aegis Corporate Financial Services has positive reviews on major platforms such as Trustpilot and Sitejabber.

Also, unlike scammers, Aegis Corporate Financial Services notifies its clients about possible risks. The company warns traders honestly and openly. It does not charge hidden commissions. Representatives of the broker Aegis Corporate Financial Services do not pressure traders and do not impose services. The support service is always ready to help the broker's clients. All this proves that Aegis Corporate Financial Services broker is not a scammer.

In conclusion, it should be noted that in the world of trading it is always recommended to be cautious. However, broker Aegis Corporate Financial Services has established itself as a reliable and effective partner for traders.