Stock Trading News

Comparable company analysis – also called “trading comps” or “comps” in finance lingo – is another business valuation method to choose from among discounted cash flow and precedent transactions modeling. (A leveraged buyout is also technically a valuation method as well but is more specialized toward private equity firms rather than investment banking.) It is […]

Inflation dynamics aren’t likely to hold the trends that were prevalent in the 2010s, which has implications for bonds and other types of assets.  Why inflation is important and the impact on the bond market To understand how inflation is relevant to the investor or trader we must first understand what inflation means and its […]

Companies buy back shares for a number of reasons. One key reason is to return value to shareholders. By reducing the number of shares outstanding, each remaining share becomes more valuable as earnings are spread over fewer shares. By reducing the amount of outstanding common stock, companies can improve their return on equity (ROE), making […]

In this article, we’re going to look at cases of countries in the 20th century where there were full wipeouts, and near-wipeouts, of financial wealth. This is based on 60/40 portfolios (i.e., 60 percent stocks, 40 percent government bonds) and based on real (inflation-adjusted returns). A 60/40 stock-bond mix is often taken as a fairly […]

Emerging technologies are those which are new and haven’t yet been widely adopted among the public. But these trends and new markets that will be developed out of them can lead to outsized gains for traders and investors. Emerging Tech and Trading Many traders believe the future will be a slightly modified version of the […]

The 3-fund portfolio – often called the Boglehead 3-fund portfolio after Vanguard’s late founder John C. Bogle – is a simple, low-cost portfolio that consists of just three index funds. The Boglehead 3-fund portfolio has become one of the most popular investment portfolios among DIY investors because it is easy to understand and implementation is […]

Mutual funds and ETFs are similar and different in various ways. Both of them are investment vehicles that pool money from various investors to purchase a set of investments. In this article, we explore those differences and similarities.   Mutual Fund vs. ETF – Key Takeaways Mutual funds are actively managed by professional fund managers […]

What Is Proxy Trading? Proxy trading is the act of using certain securities or instruments to express a particular view in an inexact way. Examples of Proxy Trading Below are some examples of proxy trading: Energy stocks and oil One example would be buying energy stocks to express a bullish view on oil prices. They […]

Portable alpha is an investment strategy that involves separating the alpha and beta components of an investment portfolio. The alpha component is the portion of the portfolio that seeks to generate returns through active management, while the beta component is the portion that tracks a benchmark index. Portable alpha and generating higher returns Portable alpha […]

Copper, and therefore copper stocks, are a hot item of interest. With the rise of commodities as an asset class of interest in a more inflationary world, copper stocks are being more heavily considered by traders and investors. Moreover, with climate protocols and greater global sensitivity to the use of hydrocarbons, if we do see […]