Bubbles, while both intriguing and puzzling occurrences, have always been a part of market and economic cycles.
Eventually demand will dry up when valuations are too high, as investors start shunning the risk premium associated with investing. Investors will then race to be the first out of the position, and it ultimately brings all the sellers to the table at once. The bubble then pops.
The most famous sentence describing bubbles belongs to the former chairman of the Federal Reserve Board, Alan Greenspan, who coined the phrase “irrational exuberance” during the stock market rise of the 1990’s.
The main idea behind index investing is that markets are efficient, and with the low fees, it can be a winning strategy
There are more than a few types of life insurance, and more are introduced as time passes. Term life is the most common
A Limit Order is a type of order to buy or sell a security, where the trader wants to set a specific price for the trade
Beta is a measure of how closely an investment follows movements in the market as a whole, or when examining mutual funds
Delta hedging is bringing the delta of a portfolio to zero, or closer to it, by purchasing financial instruments like options
A merger is the voluntary melding of two companies into one, when the owners believe the change is mutually beneficial
Accommodation Trading is when two traders enter into a non-competitive trade agreement which disregards the current price
Required Rate of Return is the return that investors will expect to earn on their money, given the risk and costs involved
Earnings momentum is an indicator that is computed by not just looking at the earnings performance and estimations of...
Who would have thought that a 19 year-old from Toronto could write a whitepaper nearly as influential as Satoshi Nakamoto’s (Bitcoin founder)?