Rising food prices that come on when demand exceeds supply (agricultural inflation). Occurs when food products (such as corn or soy) are diverted for another use such as alternative fuels instead of for food.
See also: Inflation
The rising demand for ethanol createdagflationwithin the corn sector.
A belief that the stock market and aspirin production move in opposite directions; i.e., when the market goes up, aspirin production goes down. Based on the idea that people take more aspirin when the market is in decline.
See also: Stock market
Due to theaspirin count theory, pharmaceutical companies expected higher
sales as the economy started to slow.
When a failing business receives emergency funding from an outside source (often the government) in order to prevent a full business failure.
See also: Bankruptcy, Insolvency
Congress debated the pros and cons of giving the airline industry another
bailoutbefore finally deciding to do so.
When individual investors follow and imitate the trades of the masses, i.e., sell because “everyone else” is selling.
See also: Panic buying, Panic selling
When word hit the street that the philanthropist was selling his shares of Lion
Joe Ltd., it created abandwagon effectthat nearly sunk the stock.
A time period during which securities prices consistently drop, typically accompanied by an economic recession and rising inflation.
See also: Bull market
When stock prices start declining, abear marketmay be right around the