Ever stared at the stock market and thought, where on earth do I start? Picking individual stocks can feel like choosing a single chocolate from a box without knowing the flavours – exciting, but also slightly nerve-racking.
Here’s a curious thing about the US dollar: it tends to rise when the world is falling apart… but also when the US economy is roaring. Odd combination, right? If things are bad, you’d expect the dollar to drop. And if everything’s great, maybe people would diversify into other currencies. Yet history keeps showing the opposite. Economists call this the Dollar Smile Theory. And once you walk through the idea, it actually feels pretty intuitive.
Ever looked at a market chart and thought, what on earth just happened? Prices rise one day, drop the next, and investors are left confused. That’s volatility.
If you’ve ever booked a holiday months ahead just to lock in a flight price, you already understand the idea of derivatives. In markets, they work the same way.
Picture this. It’s early morning, coffee in hand, and traders everywhere are hovering over their screens. One number is about to drop. It might be the latest inflation figure. It might be the monthly jobs report. Either way, within seconds it’s across news tickers. And, just like that, markets could jump, stumble, or go haywire.
