Stock Trading News

Hedge fund strategies are generally placed into a few different buckets. The main overaching categories of hedge fund strategies include: global macro statistical arbitrage event-driven directional relative value distressed investing Each of these strategies employs a different approach to investing and comes with its own unique risks and reward profile. There are also numerous sub-strategies […]

When you buy an asset such as a stock, you’re putting up a lump sum payment in exchange for an expected income stream over time. These future payments you’ll receive are determined by four main things. The Big Four inflation growth (the sum of the growth in productivity plus the labor force) risk premiums, and […]

Cloud computing became a hot new industry in the 2010s, and its growth is continuing today as companies around the world shift their digital data and services to the cloud. Namely, these data, files, and services are being shifted to remote data centers and accessed via the internet. The move to remote work only accelerated […]

Short selling is not a widely understood phenomenon in markets. Some even attach moral or ethical implications to it. Various executives have come publicly complained about short selling, from Tesla’s Elon Musk to several high-profile frauds and business failures blaming their downfall on short selling, such as Enron, Worldcom, and Wirecard. We’ve covered short selling […]

The Jade Lizard is a mildly bullish options strategy that involves the following: Buying a Call (typically ITM or around ATM) Selling a Call (ITM) Selling a Put (OTM) The resulting payoff diagram is as follows:     (This example involves a current price of $100 for the underlying, buying a 95 call, selling a […]

Taxes are an important part of the conversation for risk asset markets, as they impact their valuations. They influence capital flows between countries, as lower forward returns in one country via tax changes impacts investment decisions. It’s an important consideration today, as countries and local governments face large revenue shortfalls. Policymakers will be forced to […]

Below is a list of stocks that pay monthly dividends (i.e., monthly dividend stocks). A lot of these are real estate investment trusts (REITs) and many are business development companies (BDCs). Excluded from the list are oil and gas royalty trusts because of their higher risk. Some O&G royalty trusts may pay a monthly dividend, […]

There’s a lot of confusion regarding quantitative easing, also known as QE, and the impact on bond yields (longer-term interest rates). Quantitative easing is the secondary form of monetary policy after interest rate-driven policy. Once interest rate policy has been exhausted – when short-term interest rates are at about zero – then the focus shifts […]

Certain individuals holding certain types of assets in certain currencies face the biggest risk of wealth destruction today. Markets provide the biggest opportunities – and the biggest risks – when there are unsustainable flows in liquidity in places where the prices discount earnings or economic scenarios that are not likely to transpire. The risk of […]

Monte Carlo simulation is common when doing financial forecasts in order to determine how profitable the return on a certain asset of a given period of time might be. Monte Carlo simulation also allows us to take the sample size that was generated and calculate a couple of useful things. For one, we can ascertain […]