Science test tomorrow. STUDY
Financial Literacy
Factors that cause stocks to go up:
- lower interest rate
- government prints money (Quantitative Easing)
- higher profit
Factors that cause stocks to go down:
- higher interest rate
- higher tax rate
- lousy profit/ loss
% in stock = 100 – your age
(e.g. Danny is 7, and he should have 93% in stock
Grandma is 65, she should have 35% in stocks. The rest is in bonds, and cash)
- less exposure to stock markets as we age.
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