Home Education What do your investment and retirement reports actually say?

What do your investment and retirement reports actually say?

What do your investment and retirement reports actually say?

Jargon can make people feel alienated from the media, their banks and other financial institutions, depriving them of the ability to make decisions about their own future. In an attempt to decipher economic updates of things like retirement and investment reports, and help you understand your capabilities, Capital of the Black Swan offers you this guide on fashion words for business.

The more uncertainties in global financial markets and the volatility of asset prices, the more voices use a lot of complex language and jargon to try to predict the future and explain the past. You can see this in traditional media and on social networking platforms.

But it’s not just the media, new and old; you can also see this in messages from your bank and other financial institutions. Sometimes we can all fall into this trap in our own field of knowledge, but it is important to try as much as possible to avoid buzzwords and industry jargon.

The problem with jargon is that it tends to prevent people from receiving information, reading their investment and pension reports, and can prevent them from making the most appropriate decisions. It’s hard to understand your options when everything is in coded language.

But transparency and clarity are better. Expots should have access to plain language and clear explanations when it comes to finances. In this article, we will look at some general financial terms and explain how they are used when people talk about financial markets.

General conditions and market

These are the deadlines you may encounter in media reports, pension and investment updates and the like.

Stocks / stocks / stocks / stocks

These are all different ways to talk about a small part of a large company that you can buy or sell. When you invest in this asset class, you most often hold “shares” – that is, a stake or a stake – of the company. A public company is a company that has its shares on the stock exchange, where shares are traded. You can also own private company shares. This is a place where a company is not publicly traded (listed) on a stock exchange. A share is a part of property.

You can hear about different classifications of stocks or stocks: stock growth, stock price, defense stock, cyclical and so on. They tend to refer to their attributes, such as whether or not they will pay dividends (stocks purchased for growth are less likely than those considered defensive), their current price compared to their estimates and their growth potential. Most portfolios benefit from a combination of classifications (diversification) to prevent concentration in any one area.


Stocks are traded here. Stock markets are reported in news and reports as an increase or decrease in their index. This means a change in the sample price of the stock collection on the stock exchange. See below for “index trackers” who passively monitor these indexes.

Bonds / debt instruments / fixed interest

These terms are different ways to say that you are borrowing money in exchange for pre-agreed profits. Government bonds are where you borrow money from the government, and they promise to pay you a fixed rate of return each month or year, and at the end of a set period of time you will get back your initial investment. Corporate bonds are the same format, but you lend to a corporation.

Typically, when interest rates are higher and falling, bond prices are stronger, and vice versa when interest rates are low and rising. This is what is happening now that interest rates are starting to rise.

In this thread you can hear comments about the “inverted yield curve”. What is it? Usually, when you invest in bonds, you get a higher interest rate for keeping your money for longer. A 10-year bond will pay a higher interest rate than one set for one year. If we have an inverted yield curve, it means that the short-term interest rate is higher than the long-term one. This could be a sign of inflation and a slowdown in the economy.

Funds / teams

Funds or collectives are investments that consist of a choice of different combinations of investment assets, including stocks, bonds and other types of assets. You can buy and sell shares in these funds at a price often called the unit price.


“Exchange-traded funds” hold a number of assets, such as a fund, but are traded on an exchange as stocks. There are certain ETFs for different parts of the financial markets.

Index funds

Also called index trackers, they are configured to monitor the performance of a particular stock market or sector index without active decision-making. They can be in the form of a fund or an ETF.


This is another way to describe your access to instant cash. If your investment is liquid, it means you have access to the cash that is in your investment, in a timely manner and with no restrictions on exit or penalties.


This is the probability of rising and falling prices over a period of time. An asset whose value fluctuates more than another asset is considered more volatile. Cash in the bank is less volatile than stocks in the stock market.

Consider your long-term goals

Finally, we would like to state that markets always follow cycles; they rise and fall in the short term, but increase in value over time. When you consider your investments, look at them in the context of your goals, not just considering their short-term effectiveness.

If you are unsure when viewing your investment reports, you can always ask an expert. Capital of the Black Swan offers a meeting with an investment report review to evaluate your assets, help you understand what you have, and offer tips and tricks to optimize your position. Contact [email protected] and they will be happy to see if they can help.

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