Stem The Tide Definition and everything you need to know
Stem The Tide Definition and everything you need to know are discussed in this article. You will find this helpful and informative.
Stem The Tide Origin
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Stem the tide is an idiom that simply means terminating a current drift. The term Stem the tide refers to an effort to discontinue a usual drift. When it comes to the setting of speculation, trade, and assets,
Stem the Tide connotes the positioning of the value for instance if the worth of that position fails the value drops. When this occurs, the position can be signified or referred to as stemming the tide because the assumption is that there has been discontinuity or a cut-off in the declining value of money.
Stemming the tide can be viewed as the process of creating an alternation. To this view, most businessmen believe that the term can be related not only to the alternation of functioning of the business from a failing value but precaution should be indicated and prospects that will promote the value of money from failing.
It is important to note that the term does not automatically mean the ending or total termination of the adverse drift totally rather it entails diminishing any bad drift.
The term stemming from the tide is macroeconomic drifts that revere to long-term market trends over a period of 10 to 20 years or more depending on the long-run scenario. In the case of the short-term, there is merely a slight alternation within a fiscal year.
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In addition to this, the macroeconomic context of the term can lead to certain economic disarrays which include high-interest rates, inflation, and high unemployment.
Let’s quickly explain these economic disarrays:
The company stemming the tide is bound to experience a High-interest rate on its stock when the company’s asset falls at a point in time.
When inflation occurs where there will be a persistent rise in the prices of the stock. Oftentimes, labor can be laid off leading to High unemployment due to the negative alternation of the company’s worth.
To this view, a particularized stock was examined based on the concept of stemming the tide. It was discovered that there was a stop in the share’s price with the long-term goal of an alternation.
Stem the tide is mainly applicable to the model of ocean metaphors. The model was invested in by Robert Rhea. Due to his interest in market trends, Robert discovered a model called the Dow Theory and was awarded the market’s first technical analyst.
He believed that a dealer employs a longer-term chart otherwise called the market for transaction decisions like trading.
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Application and Illustration on the subject matter: Stem the Tide
As earlier explained, Stem the tide is cited to express the significance of a retreating bad trend and avert the situation from becoming regretful.
Such trends can include the deceased of effective workers from a given geographical area, a rise in the crime rate, declining demographic trends, the effect of pollution, unenthusiastic public opinion concerning a company, etc.
- Governmental restrictions on a capital flight can decide to stem the tide of outflows by encouraging the banking system especially commercial banks from crumpling in many monetary policies.
- In the world of business, a company may also decide to stem the tide of increasing the health care budget for its workers knowing that the health of the labor force is a determinant of business productivity.
- An effective and competitive worker may stem the tide by leaving a less job and an unpaid job for another high-paying job.
- In the year when the Great Recession was experienced globally, professionals used to stem the tide in the weakening of upcoming businesses. Due to the magnitude of the size, of an upcoming business, experiencing inventory reduction may require stemming the tide to examine its profit and loss.
- Stemming the Tide was also applicable in Nigeria on the issue of Insecurity by the Boko Haram Insurgency which was extremely inflicted on North-East Nigeria.
- Stemming the tide is also applicable to political ferocity among youths and women in rural areas of Ebonyi State across the employment initiative services offered by agencies and government programs which entail workforce development.
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In conclusion, stemming the tide is not just a business concept but can be applied to any issue of life provided the course of a trend is terminated.