Articles on Stock markets
News, Research and Analysis
What is “efficient market hypothesis”?
The Efficient Market Hypothesis (EMH) states that it is impossible to beat the market consistently over time, since all available information is priced efficiently into stock prices.
But what the EMH misses is the impact that sentiment can have on price discrepancies in the short-term. Emotions can lead to gross mis-valuations (as we saw with the tech bubble in 2000), and market corrections can see stocks selling off dramatically for no fundamental reason.
Over time, the market moves back to fair value based on available information, but many factors can throw it off course along the way. Investors that can consistently capitalize on price mismatching can add value over the market in the long-term.
That being said, it is quite rare for someone to have a very long-term track record of beating the market.
What are the Withdrawal Rules From My Self-Employed 401(k)?
The withdrawal rules for a Self-Employed 401(k) are identical to the rules for a traditional 401(k). To avoid a 10% early
How to use the Broadening Wedge Descending (Bullish) Pattern in trading
The Broadening Wedge Descending pattern forms when a stock price makes lower lows and lower highs, forming a downtrend
BB-/Ba3 — credit rating
The BB-/Ba3 rating is given to bonds and companies who have a moderate risk of default
How Do I Invest Money in My Pension?
Employees are not able to control investments in a Pension Fund, but you can control a few variables
What is the Federal Employee Retirement System (FERS)?
FERS is essentially comprised of the Thrift Savings Plan (TSP), which is a 401(k)-type plan for federal employees
What is a market-on-close order?
A market-on-close order is used to execute a trade at the last possible moment before the market closes for the day
What are currency warrants?
Investors can use currency warrants as hedges against unfavorable movements in the exchange rate or public speculation
What are Consolidated Financial Statements?
Consolidated financial statements are required when one company owns a controlling interest in another company
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What is market saturation?
Market Saturation is the point at which there are few consumers that are still interested in buying a product