FACTS On average, hedge funds contribute more to stock market efficiency than most other institutional investors such as mutual funds, banks and insurance companies. Hedge Funds improve efficiency by exploiting mispricing Hedge funds exploit different of areas of the markets, which include price, dividends, or even regulation. The most common form of profit is arbitrage/ … Read more
FACTS Ignore the never ending stories and emails offering up stock picks. Understand that the real money is made from the sources that are offering it up and how effectively the publishers of these articles can influence investors on key market days. Common practice in most all articles and other Most all the articles and … Read more
FACTS Headline “So what Nancy Pelosi Arrives in Taiwan as China-U.S. Tensions Escalate”. Price Discovery, When Breaking News Comes Indexes React – markets react within 10 seconds and that the major price adjustment occurs within 1 minute of the scheduled news releases. Interest-rate and foreign-exchange markets react faster to public announcements than the equity markets. On … Read more
FACTS Research shows that headlines using negative words such as never and worst perform much better than those using positive words such as always and best. In fact they perform significantly better, with negative headlines performing 30% better than neutral ones and 60% better than positive headlines. The clearer the headline the better the conversion … Read more
FACTS In summary, the “Media Effect” is the result of people acting on advice of paid newsletters, network programs and other. Our 5 and 10 year studies indicate they don’t beat the Market unless you sell them in 24 hours following recommendation. Beware the bearer of stock pick advice An investor who bought a … Read more
FACTS The future success of companies is going to depend on their ability to engage radically on the world around them. Companies that tend to think the way to engage with people is to engage via the company agenda get in wrong – as it’s always best to inquire what other people have on their … Read more
FACT Analysts price target is a guess linked to their estimates of future performance. Most statistacal backed studies indicate that their overall accuracy rate is around 30% for price 12-18 month targets. As they tend to make long term projections to derive a target price, with a linear exponential thinking and they focus on fundamentals … Read more