EXPECTED: Breakeven Inflation Rate

Posted on December 16, 2024 by Dr. David Edward Marcinko MBA MEd CMP™

Measure of Expected Inflation

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SPONSOR: http://www.MarcinkoAssociates.com

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The breakeven inflation rate is the difference between the nominal yield (usually the market yield, which includes an inflation premium) on a fixed-income investment and the real yield (with no inflation premium) on an inflation-linked investment of similar maturity and credit quality.

So, if inflation averages more than the breakeven rate, the inflation-linked investment will outperform the investment with the nominal yield.

Conversely, if inflation averages below the breakeven rate, the investment with the nominal yield will outperform the inflation-linked investment.

Breakeven inflation rates are also considered useful measures of inflation expectations—higher breakeven rates represent higher inflation expectations (and higher relative prices for inflation-linked investments), while lower breakeven rates represent lower inflation expectations (and lower relative prices for inflation-linked investments).

Therefore, ideally, investors want to purchase inflation-linked investments when breakeven rates are relatively low because that’s typically when prices are also relatively low.

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LIMERENCE Romantic Attachment Intensity

Posted on December 16, 2024 by Dr. David Edward Marcinko MBA MEd CMP™

VERSUS MERETRICIOUS RELATIONSHIPS

DEFINED

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Limerence is an intense romantic obsession that can feel all-consuming, marked by daydreaming and emotional highs. It’s often mistaken for love, though it may not lead to a lasting relationship.

Limerence is a state of mind resulting from romantic feelings for another person. It typically involves intrustive and melancholic thoughts, or tragic concerns for the object of one’s affection, along with a desire for the reciprocation of one’s feelings and to form a relationship with the object of love.

According to colleague Dan Ariely PhD, the focus in limerence is more on idealization than on genuine connection, making it feel overwhelming but often one-sided.

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Meretricious, on the other hand, describes a situation where two people live together in a relationship that resembles marriage but lacks the official legal status of marriage. This means they may share a home, finances, and a life together, but they haven’t gone through the legal process to be recognized as married. This concept is often discussed in family law and property law, especially when these “live-in-lover” relationships come to an end.

When a meretricious relationship ends, it can lead to disputes about how to divide shared property and whether one partner should provide financial support to the other. Courts look at several factors to help decide these issues. For instance, they consider how long the couple has been together, how they managed their finances, and whether they intended to be committed to each other like a married couple. These factors help the court understand the nature of the relationship and the expectations of both parties.

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COMMODITIES: Futures and Intensity Types

Posted on December 16, 2024 by Dr. David Edward Marcinko MBA MEd CMP™

By Staff Reporters

SPONSOR: http://www.MarcinkoAssociates.com

DEFINITIONS

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Commodities: Commodities are raw materials or primary agricultural products that can be bought or sold on an exchange or market. Examples include grains such as corn, foods such as coffee, and metals such as copper.

Commodity Futures: Agreements to buy or sell a specific amount of a commodity or financial instrument at a particular price on a stipulated future date related to basic raw materials such as precious metals and natural resources.

Commodity Intensity: Commodity intensity refers to commodity usage per unit of economic growth. An emerging, more manufacturing-based economy will usually be more commodity intensive in terms of its growth than will a more developed, service-oriented economy.

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