Basis Point One basis point is equal to one-hundredth of 1 percent, or 0.01%.
Capital Expenditure (Capex) refers to investment by a company to acquire or upgrade physical assets, such as a building, IT hardware or a new business.
Citigroup World Government Bond Index The WGBI is a widely used benchmark that currently comprises sovereign debt from over 20 countries, denominated in a variety of currencies.
Consumer Price Inflation (CPI) A widely used measure of inflation at the consumer level that helps to evaluate changes in cost of living.
Deflation A decrease in the general price level of goods and services over a given period.
GFC The global financial crisis, or GFC, refers to the period of extreme stress in financial markets and banking systems between mid-2007 and early 2009.
Goldman Sachs Commodities Index GSCI is the first major investable commodity index and includes the most liquid commodity futures.
Gross Domestic Product (GDP) The monetary value of all the finished goods and services produced within a country’s borders in a specific time period. Economic growth is typically expressed in terms of changes in GDP.
Group of Seven (G7) A group consisting of Canada, France, Germany, Italy, Japan, the United Kingdom and the United States.
MSCI EAFE Index An equities benchmark that captures large- and mid-cap representation across 22 developed market countries around the world, excluding the US and Canada.
MSCI Emerging Markets Index The MSCI Emerging Markets Index captures large and mid-cap representation across 23 emerging markets countries. With 834 constituents, the index covers approximately 85% of the free float-adjusted market capitalization in each country.
MSCI World Index The MSCI World Index is a free-float weighted equity index. It includes about 1,600 stocks from developed world markets, and does not include emerging markets.
Organisation of Petroleum Exporting Countries (OPEC) 13-member group of oil exporting nations founded to manage global supply and coordinate pricing.
Personal Consumption Expenditures (PCE) is the value of the goods and services purchased by US residents.
Phillips Curve a graphic representation of the relation between inflation and unemployment which indicates that as the rate of either increases the rate of the other declines.
Purchasing Managers’ Index An indicator of the economic health of the manufacturing and services sectors compiled from a survey of purchasing executives.
Quantitative Easing (QE) An extraordinary monetary policy measure in which a central bank buys government fixed-income securities to lower interest rates, encourage borrowing and stimulate economic activity.
Russell 2000 Index A benchmark that measures the performance of the small-capitalization segment of the US equity universe.
S&P 500 Total Return Index The benchmark that reflects returns after reinvestment of dividends of the 500 large cap stocks in the S&P 500 Index.
The US Dollar Index Measures the performance of the US Dollar against a basket of major currencies.
Value Added Tax (VAT) is a broadly-based consumption tax assessed on the value added to goods and services.
Yield Curve A graph or line that plots the yields of bonds with similar credit quality, typically from shortest to longest duration.