Stock Trading News

Business models can take many different shapes depending on the way the products and services are delivered to the market. Asset-lite and asset-heavy businesses can largely be viewed through a “pipes” (pipelines) vs. “platforms” framework. Recognizing the two and their differences is important as it will ultimately help determine the nature of a stock‘s upside […]

AQR recently published its report on its expectations for asset class returns over the medium-term – i.e., next 5-10 years. This covers the following asset classes: – US equities – Non-US developed market equities – Emerging market equities – US high-yield credit – US investment-grade (IG) credit – US 10-year Treasuries – Non-US 10-year government […]

GameStop (GME) and AMC Entertainment (AMC) made a notable run, ignited by a social media frenzy that took on a life its own. We discussed more of the backstory in other articles, such as here. There was a pop and that eventually faded. This was inevitable, as these companies – and other widely shorted small caps […]

In short, GameStop (GME) mania began when some smart retail traders started hyping up a stock on social media with some peculiar characteristics: 1. It had a low valuation. Its price reached a low of $2.57 per share. That valued the once-popular video game and consumer electronics retailer at only a couple hundred million dollars. […]

Consumer staples are among the most stable types of stocks that return fairly consistently. The volatility of stocks is one of the main reasons why many traders and investors are hesitant to commit to them. What are consumer staples and what makes them attractive? Certain businesses involve selling products people need to physically live. This […]

US-China relations, and the capital war conflict within it, is and will be a big driver of markets going forward and is important to understand even for those with shorter-term trading orientations. The same things tend to happen over and over again for the same reasons historically. By studying what happened in other societies and […]

‘Risk-adjusted returns’ is a common term used in trading and investing, even to the point of being a buzzword. It’s what every institutional investor strives for in order to add value to their clients. And what every individual trader wants to get more bang for their buck. Risk-adjusted returns normally refers to the idea of […]

A covered call strategy is a type of implementation where a trader will sell a call option while at the same time owning the corresponding amount of the underlying security or instrument. Fundamentally, options are a form of financial insurance. The volatility risk premium associated with options is compensation paid by option buyers to the option […]

Elections are always a time when traders and investors think about the implications of the results on their portfolios. However, in general, market participants tend to spend too much time thinking about the outcome and effect on their allocations. Elections create another set of probabilities to deal with and represent opportunity. But timing them and […]

In a previous article, we covered liquid alternative trading/investing, a type of long/short, typically market neutral(-ish) strategy that provides liquid, uncorrelated returns to traditional asset classes. These types of strategies, because of the market neutral character of them, are a good stepping stone into covering a bit on trader psychology. Even despite how much evidence […]