If you’ve been following the market lately, there is no doubt that you have encountered the term “earnings season.” In this article I will explain what earnings season is, as well as dissect the important terms that accompany this time of year. Additionally, I will examine how analysts and investors react to financial information released during this period, and the way in which stock prices are influenced by these data.
Read More
Beating The Odds
In my previous article, Getting Back To Basics, I explained why long-term investing is a viable strategy for new investors and provided numerous examples of basic investment fundamentals. This week, I aim to build upon those fundamentals by introducing two more investment concepts, diversification and index investing, while also describing how exchange traded funds (ETFs) help investors mitigate risk.
Read More
Getting Back To Basics
Last Friday concluded one of the worst weeks for the stock market in recent memory. The Nasdaq took the largest hit, losing 3.1% for the week (its biggest single week loss since 2001). The S&P 500 finished down 2.6%, while the Dow Jones Industrial Average slumped 2.3%. Inspired by this sharp turn in the market, panicked investors went on a selling spree, specifically towards the end of the week.
Read More
Raise The Bar, Raise The Flag
It's a curious thing... the impact of economics on societal progress. For instance, understanding macro models allows the masses to understand economic growth, and how to facilitate or stymie it. Likewise, microeconomics provides the populace with insight into how people make seemingly rational choices at the individual level.
Read More
Recognizing Reality
Recently there has been what some investors believe are “corrections” to major stock markets. However, the reality is that these major corrections may instead be extreme turning points – the result of major economies, like America, trading long-term growth for short-term stability.
Read More
The Golden Hoax
The value of gold has taken a tremendous hit over the past few months and has had an extremely tumultuous 2013. This precious metal, touted as a hedge against market instability, has proven extremely volatile since 2011. Yet, gold remains at the forefront of news with many critics and supporters. Given the mixed signals investors receive from analysts, what are we to conclude about the value of gold? How are we to determine its worth?
Read More