#Fincabulary16 – Keynesian Put

Meaning – It is the expectation that markets and the economy will be supported by fiscal policy stimulus measures.

Fiscal policy stimulus, including reductions in taxes and increased government spending, are generally aimed at giving a direct boost to the real economy, although financial markets should also expect the indirect benefits of strengthening economic growth. A renewed support for Keynesian-style fiscal stimulus measures have lead to expectations that governments around the world will use their spending power to boost the economy, and in turn, help support asset prices.

 

#Fincabulary 15 – Coiled Market

Meaning – A market that is believed to have the potential to make a strong move in one direction after being pushed in the opposite direction.

Coiled markets often arise when the market has been held down artificially. The idea is that if a market should be headed in one direction based on its fundamentals but is pushed in the other direction, it will eventually make a strong move in the original fundamental direction. This coiled move will often be more substantial than what might have been the case if it had gone in the expected direction, to begin with. This happens in commodities markets, such as gold and silver.