Articles on Stock markets
News, Research and Analysis
How do Market “Bubbles” Burst?
Bubbles, while both intriguing and puzzling occurrences, have always been a part of market and economic cycles.
In short, a bubble forms when investors start bidding up the price of an asset well beyond its intrinsic value, based on speculation and euphoria surrounding potential gains.
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.
What is “Efficient Market Hypothesis”?
What is Market Psychology?
What Types of Life Insurance Exist?
There are more than a few types of life insurance, and more are introduced as time passes. Term life is the most common
What is Earnings Momentum?
Earnings momentum is an indicator that is computed by not just looking at the earnings performance and estimations of...
Who Created Ethereum?
Who would have thought that a 19 year-old from Toronto could write a whitepaper nearly as influential as Satoshi Nakamoto’s (Bitcoin founder)?
What is a Merger?
A merger is the voluntary melding of two companies into one, when the owners believe the change is mutually beneficial
What is Required Rate of Return?
Required Rate of Return is the return that investors will expect to earn on their money, given the risk and costs involved
What is a Limit Order?
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
What is delta hedging?
Delta hedging is bringing the delta of a portfolio to zero, or closer to it, by purchasing financial instruments like options
What is index investing?
The main idea behind index investing is that markets are efficient, and with the low fees, it can be a winning strategy
What is accommodation trading?
Accommodation Trading is when two traders enter into a non-competitive trade agreement which disregards the current price
What is beta in investing?
Beta is a measure of how closely an investment follows movements in the market as a whole, or when examining mutual funds