Investopedia, a giant online finance dictionary, has picked the 10 biggest new finance buzzwords for 2015.
“With instability in the EU, the continued disruption of traditional finance by fintech companies, and a retirement crisis looming, these terms are an incredibly strong reflection of the state of the financial industry this year,” said David Siegel, CEO of Investopedia.
Some may be familiar to a finance novice, while others are a bit more niche.
Investopedia shared the top words with Business Insider. Check out the top terms of 2015, along with an explanation for why they were chosen.
This story was originally published by Investopedia.
Fintech has been a buzzword for a few years now and has taken center stage as robo-advisors and mobile apps for trading stocks threaten to bring down the legacy of the traditional financial world. The trend will only continue as millennials look for new ways to save money while predominantly using their mobile devices.
The strategy of active traders, particularly hedge fund traders. Again, as technology disrupts the space, many investors are becoming more actively involved in these alternative investing strategies.
A technical indicator used by day traders to signal when a stock is trending up or down. High volatility is good for day traders, and many traders were looking for ways to capitalize on the high volatility in the market this year and, in particular, over the recent summer months.
As fees increase and returns languish for traditional mutual funds, investors are researching new products, like ETMFs, that combine the advantages of investment strategies of an actively managed mutual fund and the performance and tax efficiencies of an ETF.
The European Central Bank experimented with unconventional monetary policy in 2015, including negative interest rates where savers pay to save, to pull Europe’s economy out of the doldrums. With US interest rates at zero for so long, many finance experts discussed the possibility of a negative interest rate coming to the States.
In 2015, the global economy was shaken by the possibility of a Greek default on sovereign debt and the failure of the Eurozone as a common currency union. The discussion of Great Britain and Greece exiting the EU led to the formation of these terms.
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