Year after year, financial gurus announce forecasts regarding various segments in the financial industry. Some of these forecasts have proven to be helpful and true, but there are also forecasts that have been so far from what actually happened in the end. With all the mix-ups and all that has happened in the past, people would have learned better not to digest every financial prediction that they hear. In this article, we take a look at different forecasts in financial trends this year and again, we examine how each is faring in today’s economy.
The Truth about Hyperinflation
Ever since most people can remember, so-called financial gurus have been warning about the looming onset of hyperinflation. Year in and year out, you’ve heard this, but where is it? If you look at the rate of inflation, however, you will notice that the movement of inflation isn’t all that fast. Based on the status of inflation during the past years, there really is no indication that we are heading towards hyperinflation anytime soon.
The Slow Decline of Fees and Commissions
For a long time, companies have always relied on people skills, and they’ve been paying large sum of money for those skills. Today, though, companies are seeing a reduction in the need for these, due largely to the increasing availability of new and cheaper software that can mass produce results of high quality. Another factor is the growing market of online service providers, the services of which are very affordable. With all these, investors can expect higher profit and margin because of the reduction in operating costs.
The Growing Popularity of ETFs
ETFs or exchange-traded funds have continuously been growing in popularity, but some people are still unsure whether to go for this or to keep investing in mutual funds. The fact, though, is that ETFs are becoming strong alternatives because of several reasons. One, they’re cheaper—there’s no required minimum amount to invest, and they do away with the need to pay high fees to fund managers. Access to these is also easy, and transparency is guaranteed.
The Evolution of Financial News Sources
For a long time, investors have always relied on solid channels of communication—such as finance magazines and programs. At present, however, the market is seeing a decline in the number of people relying on these channels and a rise in the number of people relying on other sources. These sources can include social media avenues such as Twitter, as well as blogs specializing in the finance niche. Right now, news and views on finance are everywhere, and more and more people are getting the benefits.