Stock Market Glossary
Return
Return on an investment, usually expressed as a percentage.
In brief: Return on an investment, usually expressed as a percentage.
Meaning in practice
Returns can be reported in nominal or real terms (after inflation), gross or net (after taxes and costs). For honest comparisons, the net return after all costs and taxes always counts.
Context for investors and traders
As a macroeconomic term, it describes an environment that can affect many companies and asset classes at once. The link to an individual price is rarely direct because expectations, valuations and the market phase also matter.
How to use this in practice
Macroeconomic data often work through expectations: the release matters alongside the forecast gap and the response of rates, currencies and risk premia. The same news can therefore be read differently in different market phases.
What to keep in mind
Do not derive a short-term portfolio shift from one economic data point. A long-term plan, sufficient liquidity and diversification are more robust than trying to time every economic or monetary-policy turning point.
