The stock market have been very generous towards investors during the recent years and the S&P 500 index is at its highest levels now. Unfortunately, good past returns do not guarantee good future returns and some market analysts, economists, and investors have started to worry about the yield curve movements.
Alpha (α) and beta (β) are two crucial coefficients that are used for measurement of success of a particular portfolio. Beta represents the volatility of a particular asset (or the whole portfolio) versus the volatility of the benchmark. In this article, we’ll explain what beta is and give a few simple examples to demonstrate how it can be used.
Candlestick price chart in trading and technical analysis is a very common way to visualize price movements. It’s relatively easy to understand, it’s informative and this type of chart can give some additional helpful hints to a trader that a simple chart can’t provide.
Alpha (α) coefficient in investing is used for measurement of the success of a particular portfolio. Along with beta, the alpha coefficient helps portfolio managers to determine how certain picked assets performed against the market average. In this article, we’ll explain how to use alpha and why is it important for investors.
Most of the people can read nowadays (the literacy level is close to 99%), yet reading an annual report of a company is a different story. It can be very confusing for an investor to figure out what are the key things to look after and what information is worth reading.
Stock market technical analysis has many tools, techniques, and indicators that are used for price forecasting but one of them is particularly important: the concept of support and resistance levels. In this article we’ll explain how are those support and resistance levels supposed to work and how can you find them and why are they important.
Elliott wave principle is a fundamental way of analyzing and predicting price trends in technical analysis. In this article, we’ll explain how the Elliott wave principle works in theory and explore why it has been criticized in recent years. What is the Elliott Wave Principle?
Today we are starting a new category on our website - stock forecasts. We’ll share an opinion on stocks’ future prices, analyze them from technical and fundamental points of view, and give our recommendation on whether we would consider buying, holding or selling a particular market security.
Recently some traditional economists were confused when they saw that more countries joined “the negative interest rates club”, so here is my opinion on this bizarre macroeconomic trend. We’ll try to explain why such a policy has occurred and why it can be a dangerous sign for the global economy.
When it comes to fundamental analysis of a company, there is one crucial metric that just can’t be ignored and it’s called EBITDA. It’s wildly used by investors, portfolio managers, and market analysts. Today we’ll try to explain what does this metric mean and we’ll also provide a few examples.
The Quick Ratio is one of the most basic liquidity ratios used in the company’s analysis. Some accountants call it the acid-test ratio or the working capital ratio. The Quick Ratio is easy to calculate and it has some advantages over similar ratios like the current ratio.
Return on Assets (ROA) is one of the key fundamental indicators used by financial analysts. ROA can give you a lot of hints on what’s going on with a particular company and how effective it’s managed. In this article, we’ll explain what ROA is with some simple examples, and show how this financial ratio can be used in the analysis of a business’ profitability.
In fundamental analysis, the current ratio plays an important role by expressing the liquidity of the firm in just one number. This is a basic financial indicator in accounting which is easy to calculate. Today we’ll have a look at this ratio and explain how it can be useful for an investor.
There are plenty of useful market indicators which attract the attention of many investors and one of the most popular indicators is price to earnings (P/E) ratio. It shows the relation between the current market price of a security and its earnings per share (EPS).
Volatility of a security or an index means the magnitude of changes in its value (price) over time. In more scientific terms, it can be called ‘dispersion’. High volatility usually indicates higher potential returns because investors can make more money with each deal but, at the same time, it implies higher risks because the direction of future price changes is unknown.