Business Concept in the news

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Edmonds Community College *

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101

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Business

Date

Feb 20, 2024

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docx

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2

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Muntasin Karim Carl Adams BUS 101 28 January 2024 Business Concept in the News Source: Title : "Record-high US stocks grow more expensive versus global peers" Source : Reuters. Link to the article: https://www.reuters.com/markets/us/record-high-us-stocks-grow-more- expensive-versus-global-peers-2024-01-25/ Relevant Background : The article highlights the excellent success of the US stock market, with the S& P 500 reaching all-time highs in 2023 and maintaining its strong momentum in 2024. Despite this, the valuation gap between the S&P 500 and the MSCI index of equities in over 40 other nations is approaching its biggest point in over 20 years. Given the premium valuation of the US market, some investors are looking outside of the country for possibly outsized gains. Business concept : This business idea focuses on the valuation of stock markets, specifically comparing the US stock market to worldwide stocks. The essay discusses the expanding valuation difference and its influence on investor behavior. While US equities command a large valuation premium, some investors see possibilities in inexpensive overseas markets. The business idea of supply and demand, as well as market value, has an impact on investment decisions and portfolio allocation. Analysis : Investors are more interested in overseas stocks as they assess the economic and profitability prospects of the US market against its valuation premium. According to the report, the value disparity is causing a shift in investing tactics, with some investors diversifying their portfolios to benefit from possible international profits. The emphasis on valuation measurements and possible returns demonstrates how investors evaluate risk and reward in various markets, which influences their total investment decisions. Source: Title : " 2022 had the lowest total unemployment rate ever" Source : CNN.
Link to the article: https://www.cnn.com/2023/12/20/economy/lowest-unemployment-rate-year- 2022/index.html Relevant Background : The article emphasizes a record-breaking labor market in 2022, with the "work-experience unemployment rate" reaching a record low of 7.6%. Despite the problems caused by the epidemic, job vacancies increased and the labor market recovered. The Great Resignation was distinguished by more job openings than job-seeking Americans. Business concept : This business idea focuses on labor market dynamics, specifically the influence of unemployment on the economy. The record-low unemployment rate in 2022 signals a solid labor market since fewer individuals are unemployed than the previous year. The article highlights how the tight labor market helped the economy recover through higher wages and greater consumer spending. However, it also mentions the double-edged sword impact, in which a strong employment market may have led to rising inflation. Analysis : The paper highlights the labor market's resiliency in 2022 and its beneficial influence on demography and the economy. The Great Resignation movement encouraged workers to demand better working conditions and salaries. While the booming employment market helped the economy recover, it also fueled inflation. The Federal Reserve's efforts to control inflation, such as raising interest rates, are highlighted, demonstrating the continual interplay between the labor market and broader economic conditions.
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