An investment bank is a financial institution that typically specializes in large, complex transactions, such as underwriting an Initial Public Offering (IPO), mergers and acquisitions, direct investment into start-up firms, or advising large institutional clients on investments/transactions. In short, investment banks help create the bridge between large enterprises and the investor. In that sense, IPOs are one way to accomplish this, but they also help businesses secure financing in other ways, such as through bond issues or derivative products. Continue reading...
Commodity indexes are also called commodity price indexes, and they are informational services which reflect the price action in a designated commodity or basket of commodities. Indexes are often tracked by mutual funds or ETFs, and these can be confused with the actual index. Indexes are computed and published by market research firms. They can serve as benchmarks against which the performance of a specific asset or an investment portfolio can be compared, or they can serve as the model that index funds seek to emulate. Continue reading...
The Golden Cross is a breakout candlestick pattern formed when the short term 50-day moving average for a security exceeds its long term 200-day average, backed by high trading volumes. Investors typically interpret this crossover as a harbinger of a bull market, and its impact can reverberate throughout index sectors. The longer time horizons tend to increase the predictive power of the Golden Cross. As seen in the chart in this example, a trader may view the moment when a 50-day moving average (blue line) crosses above a 100-day or 200-day moving average (red line) as a bullish sign for the stock or security. A trader may consider taking a long position in the security, or perhaps explore call options to take advantage of the potential upside. Continue reading...
Fibonacci numbers are part of the Fibonacci sequence, where the two previous numbers are added together to calculate the next number in the sequence. The ratio of two Fibonacci numbers is the Golden Ratio, or 1.61803398875, which has been used since ancient times as the perfect proportion in architecture and other design. The Golden Ratio is also known as Phi (pronounced “fee”). Because Fibonacci numbers are found throughout the natural world, they have been integrated into some traders’ strategies for market analysis. Continue reading...
In Fibonacci line analysis, chartists attempt to predict how far a trend will go in a single direction, despite some minor pullbacks that do not break the overall, stronger trend (behavior known as retracements). Trends can be upward or downward and still experience this phenomenon. Fibonacci extensions are estimations of the next high after an initial push and retracement, using Fibonacci sequences as guidelines. Some investors believe that, like many naturally occurring systems in nature, mark... Continue reading...
Fibonacci numbers are part of the Fibonacci sequence, where the two previous numbers are added together to calculate the next number in the sequence. The ratio of two Fibonacci numbers is the Golden Ratio, or 1.61803398875, which has been used since ancient times as the perfect proportion in architecture and other design. The Golden Ratio is also known as Phi (pronounced “fee”). Because Fibonacci numbers are found throughout the natural world, they have been integrated into some traders’ strategies for market analysis. Continue reading...
Fibonacci lines, retracements, and extensions are used by chartists to identify possible future support and resistance levels, as well as areas where there may be reversals. Investors can use this information to put hedges or speculative bets in place, if they believe that, like many naturally occurring systems in nature, the market behavior will exhibit some fractal-like forms that can be measured with Fibonacci sequence numbers and the Golden Ratio. Continue reading...
The Death Cross is the inverse of a Golden Cross: a chart pattern occurring when a security’s short-term moving average crosses underneath its long-term counterpart, typically followed by an increase in trading volume. A death cross, which like a golden cross most commonly uses long-term 50-day and 200-day moving averages to detect the pattern, usually signifies an incoming bear market to traders. Continue reading...
Employers can contribute to an employee’s 401(k) on a matching basis. Some employers will make additional contributions to your 401(k) based on the amount of your own contributions. Matching can be done on a dollar-for-dollar basis, meaning that for every dollar you contribute to your account, they will add a dollar as well. It can also be done using a factor, such as ½, meaning they will contribute a dollar every time you contribute two. Continue reading...
Dive deep into the world of BRICS, the powerful coalition of emerging economies that's reshaping the global landscape. Coined by Goldman Sachs in 2001, BRICS represents Brazil, Russia, India, China, and South Africa, nations poised to redefine global economic dominance. From its inception as an analytical concept to its current role as a formidable economic alliance, BRICS stands as a testament to the shifting dynamics of global power. Discover the history, ambitions, and challenges of this influential group, and understand why it's a force to be reckoned with in the 21st century. Continue reading...
Wall Street, an iconic symbol of financial prowess and economic influence, is home to some of the most powerful investment entities in the world. This article delves deep into the heart of Wall Street's elite group of investment banks, hedge funds, private equity firms, and broker-dealers, offering a comprehensive analysis of notable companies that shape global finance. From giants like JPMorgan Chase & Co and Goldman Sachs Group to less-known yet significant players like AMTD IDEA Group, we explore their market positions, financial health, and future prospects. Continue reading...
The asset management sector has long been a cornerstone of the financial industry, offering investors a wide range of opportunities beyond traditional banking services. In this article, we will delve into some of the most notable companies in this sector and explore why they are considered top picks for investors. Notable companies like JPMorgan Chase & Co (JPM), Goldman Sachs Group (GS), Charles Schwab Corp (The) (SCHW), and WisdomTree (WT) have caught the attention of investors for their impressive performance and growth prospects. Continue reading...
The internet is overflowing with the advice, analysis, and chest-pounding of millions of self-purported gurus and market commentary services. There are plenty of well-informed and trustworthy sources out there, too. There are literally millions of websites providing you with various kinds of financial information, advice, recommendations, opinions, rumors, get-rich-quick schemes, and “facts.” There is a short list of companies that are well-established with a reputation worthy of trust: Morningstar, Moody’s, Fidelity, Schwab, Goldman Sachs, etc. Continue reading...
In the ever-evolving world of finance, wealth management stands as a cornerstone, encompassing a wide array of financial products and services aimed at assisting individuals and institutions in managing their assets. This sector, known for its resilience and dynamic growth, offers investors myriad opportunities to engage with companies that are shaping the future of financial management. This article delves into the notable companies within this domain, focusing on juggernauts such as JPMorgan Chase & Co (JPM), Bank of America Corp (BAC), Morgan Stanley (MS), Goldman Sachs Group (GS), and Barclays PLC (BCS), alongside a broader look at the theme of wealth management and its market implications. Continue reading...
In the ever-evolving world of finance, certain companies stand out as beacons of stability and growth potential. Among these, a select group has distinguished itself, capturing the attention of investors worldwide. This article delves into the profiles of these financial giants, providing insights into what makes them the top picks in the stock market today. Continue reading...
Unlock the secrets to profitable investing with our guide on the golden rules of investing. From diversification to identifying undervalued stocks, we provide insights that can help you navigate your investment journey with confidence. Whether you're a novice or a seasoned investor, these principles are essential for achieving your financial goals Continue reading...
Investment banks are crucial players in the world of finance, specializing in facilitating complex financial transactions that drive economic growth and development. These institutions are often categorized into three primary types: boutique banks, middle-market banks, and bulge bracket banks, each with distinct characteristics and roles in the financial landscape. In this article, we will explore the differences between these investment bank categories, delving into regional boutiques, elite boutiques, middle-market banks, and bulge bracket banks. Continue reading...
In the wake of the 2007-2009 financial crisis, the term "Too Big to Fail" emerged as a defining phrase in the world of finance. It referred to institutions so massive and intertwined with the global economy that their failure posed a systemic risk. Today, the landscape of these financial behemoths has evolved, shaped by regulations like the Dodd-Frank Act and ongoing financial "stress tests" by the Treasury and the Federal Reserve. In this article, we'll delve into some of the top stocks within this group, assessing their market positions, financial health, and potential for future growth. Continue reading...