Climate change, gun violence and sexual misconduct.
The just released Intralinks Deal Flow Predictor (DFP) for Q2 2018 forecasts that the number of worldwide announced M&A deals in 1H 2018 is expected to increase by up to 10% YOY compared to 1H 2017.
Novice or beginning investors soon realize there are different techniques for buying and selling securities. Following a specific technique defines the type of trader you are. Of the many variations, 3 trader types stand out – fundamental, momentum and technical.
Both retail and institutional investors have borrowed a record $642 billion to buy securities on margin only to see their portfolios take a hit when the Dow dropped more than 1,000 points recently.
Demo trading is a very popular way for would-be investors to learn how to buy and sell securities without risking their own money before they “learn the ropes.” Demo accounts are free and provide a real-time learning experience that supersedes the old-fashioned paper trading system in which traders wrote down entries and exits to test their trading methodology without risking funds.
A recent poll of 500 institutional investors suggests that despite the rally, the market may very well see a decline of between 10% and 15% sometime this year. One reason for this bearish attitude has to do with the fact that large stock market selloffs tend to come in 3 waves. So far there have been two.
There’s conventional wisdom and then there’s conventional wisdom. JP Morgan recently reminded investors that as inflation rises, commodities tend to benefit, especially base and precious metals. Apple Inc. (NSDQ:AAPL C) has noticed and was in the news recently regarding its efforts to buy cobalt (you know, for phone batteries) directly from miners.
A stock that tends to trade lower than its fundamentals (dividends, earnings and sales) is considered a value stock or a “bargain.” To a value investor such a stock is considered undervalued. The characteristics of a value stock are high dividend yield, low price-to-book ratio and/or low price-to-earnings ratio.
Delta neutral is an options strategy in which you, the investor, take multiple positions with offsetting positive and negative deltas. With this strategy the overall delta of the assets totals zero.
We know stock prices change. They go up and they go down. But why? What causes the movement? Of course, prices are determined in the market based on supply and demand. When supply is lower than demand, prices go up.
Companies like General Electric Co. (NYSE:GE C) represent one aspect of the market that drives investors and analysts crazy. GE is what is known as a blue chip or highly reliable investment. Traditionally one could hardly do better than investing in a blue chip like GE.
When it’s a bull market, investors use a variety of strategies to make money. Some of these strategies are straight-forward examples of buying a stock at one price and selling it at a higher price. These strategies follow varying degrees of risk for investors.
While the rest of the world argues the pros and cons of the new U.S. tax law, many analysts and investors are concerned that a provision in the tax overhaul could complicate their efforts to compare a company’s earnings to its cash flow. This is important because this is how the traditional way analysts assess earnings quality.
The American Society of Civil Engineers issues a report card every 4 years on the condition of the nation's infrastructure. The most recent grade (2017) is D+. Monday President Trump proposed a new $1.5 trillion infrastructure plan including a $200 billion contribution from the federal government over the next decade designed to encourage $1.3 trillion in spending by cities, states and the private sector.
Economist, John Taylor, came up with an interest rate forecasting model that became known as the Taylor Rule in 1992. The Taylor Rule came about as a reaction to rational expectations theory models like the Phillips Curve that attempted to forecast the trade-off between inflation and employment.
The hourslong second government shutdown of the new year ended early Friday morning thanks to a coalition of moderate House Republicans and Democrats who combined to resolve a fiscal fight that has kept Congress from doing the one thing it is tasked with doing – passing a budget.
The stock market is filled with investing theories, each of which typically falls into one of two types – technical and fundamental. The Elliott Wave Theory is a form of technical analysis invented by Ralph Nelson Elliott in the late 1920s. Elliott believe the market was not chaotic but instead trades in cycles. The makeup of these cycles (or waves) and how they operate forms the basis for Elliott’s theory.
Volatility is a measure of the uncertainty or risk related to changes in the value of a security. High volatility suggests the value of the security will be wider (both positive and negative) and low volatility indicates the value will change at a steadier pace over time.
The recent stock selloff in the U.S., Europe and Asia resulted in all 3 regions giving up their 2018 gains after two days of trading. Hedging only slightly, Tim Anderson, managing director at TJM Investments said, “This is the first time in a while I’d say it feels like borderline panic-type selling.” That near panic, which led to yelling on the floor of the New York Stock Exchange, was something not seen since Brexit vote according to Anderson.
Monday the U.S. dollar traded slightly higher against the euro and the pound. This followed Friday’s news of a pickup in wage growth a possible signal of impending inflation. The inflation fears sent risky assets lower on the implication the Federal Reserve might raise interest rates making borrowing costlier for business.
The 3 main choices people have for investing include hiring a professional financial adviser, using an algorithm-based robo adviser and do-it-yourself. There are arguments for and against all 3 approaches as well as arguments in favor of a hybrid approach that utilizes 2 or 3 systems.
The idea of having a diversified investment portfolio, part of Harry Markowitz’ Nobel Prize winning modern portfolio theory (MPT), is so ingrained in the minds of investors today that sometimes even the most experienced people who play the market fail to consciously take diversification into account when making buy and sell decisions.
Government attempts to fix health care have been less than impressive. Now, Amazon.com Inc. (NSDQ:AMZN CB), Berkshire Hathaway Inc. BRKB, and JPMorgan Chase & Co. (NYSE:JPM C) are going to give it a try.