INVESTOR SERIES With a 9.1% rise in consumer prices in June that beat economist’s predictions; Oil futures pulled back below $100 late last week however crude traders are paying the most since 2008 to get hold of any oil right now. The futures market will need address the physical market this week. Brent crude pricing … Read more
INVESTOR SERIES Volatile times these days with a 9.1% consumer price index (CPI) inflation number released in June and the Federal Reserve’s hawkish commitment to bring down inflation. Many investors have liquidated their portfolios and are waiting for market recovery with their cash. Investors should resist attempting to time the market Volatility creates investment opportunities! … Read more
INVESTOR SERIES The consensus view is that the June CPI should rise +8.5% from year ago, about 1.0% on monthly basis, which would make its largest gain since 1981. FACT: the most well-known indicator of inflation is the Consumer Price Index (CPI). It is the index most closely followed by policymakers, financial markets, businesses, and … Read more
INVESTOR SERIES S&P 500 sales and earnings per share are seen hitting record highs in the second quarter. But growth on both lines is expected to slow and profit margins are expected to narrow. Consensus Estimate for S&P 500 Wall Street analysts’ consensus estimate is for S&P 500 revenue to come in 10.4% higher … Read more
INVESTORS SERIES The “night effect” references the strategy of buying the S&P 500 at the close and selling it at the next day’s open every single day. From 1991 through 2021, the S&P 500’s overnight session delivered a cumulative return of more than 1,700%, while the intraday sessions delivered a negative cumulative return. Backtests of … Read more
INVESTOR SERIES Proper financial analysis will not only help you understand your company’s financial condition, helping you determine its creditworthiness, profitability and ability to generate wealth, but will also provide you with a more in-depth look at how well it operates internally. Different types of financial analysis Several techniques are commonly used as part of … Read more
INVESTOR SERIES Algorithmic trading accounts for around 60-73% of the overall US equity trading (source: Wall Street). Benefits of Algorithmic Trading Benefits: Trades are executed at the best possible prices. Trade order placement is instant and accurate (there is a high chance of execution at the desired levels). Trades are timed correctly and instantly to avoid … Read more
INVESTOR SERIES The Answer: Trend Chasing and Momentum Trading Bonus: Arbitrage Trend chasing and Momentum Trading The most popular quant strategies involve trend chasing and momentum trading. Traders who design trend-chasing algorithms use the technical indicators of moving averages and strength indicators. Trades are executed based on trends that follow set parameters. This is a … Read more
INVESTOR SERIES In June 2022, the S&P 500 entered a bear market for the first time since March 2020. Question: What defines a bear market? Fact: Wall Street uses the “bear market” term to describe a sustained period when the equity markets are down at least 20% from their recent peaks. Question: When was last … Read more
INVESTOR SERIES Question: What do hedge funds actually do? Fact: A hedge fund is an investment vehicle for high-net-worth individuals, institutional investors, and other accredited investors. The term “hedge” is used because these funds historically focused on hedging risk by simultaneously buying and shorting assets in a long-short equity strategy. Question: Are Mutual funds considered … Read more