Articles on Stock markets
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What is Earnings Momentum?
Earnings momentum is an indicator that is computed by not just looking at the earnings performance and estimations of a company, but looking at the positive or negative direction of earnings and the acceleration in that direction.
Momentum in securities is much like momentum in physics. Where there is momentum, it is hard to slow things down and charge direction. Instead of looking only at the growth of earnings, which could be the slope of the inclining line, momentum also looks for increases in change to the growth rate, making earnings growth more parabolic or exponential.
Earnings growth is the simple year over year earnings, expressed as an average rate over the recent years. Momentum and accelerating slope are about having exponential moving averages which snap the chart data to the most recent information and give it a bias toward the most recent information.
Momentum is not just the rate of change, it’s the rate of change of the rate of change.
What are Real Estate Funds?
Real estate mutual funds invest in publicly-traded companies in the real estate industry, and are slightly different...
What are General Market ETFs?
General market ETFs seek to capture the movements of the market as a whole by tracking major market indices
How do my IRA Withdrawals Get Taxed During Retirement?
Traditional IRAs, as well as SEPs, SIMPLEs, and 401(k)s are all taxed as income in retirement. Roth IRAs are not taxed
Can I Take a Lump-Sum Distribution From my Cash-Balance Plan?
Absolutely – this is what separates them from traditional pension plans. Many participants opt to take this lump sum
How Much Does (and Will) Social Security Pay?
Social Security uses a formula to apply your average monthly income from the 35 years in which you earned the most
How Much Money Will I Need to Get Started Investing?
First things first, accumulate six months’ of cash as emergency savings. Then you can start investing
What is an Income Bond?
Income bonds are issued by companies and they will only pay a coupon or interest if the company generates adequate earnings
What is a Mortgage Equity Withdrawal?
Mortgage Equity Withdrawals (MEWs) are loans that use the equity in a home as the collateral (a.k.a. home equity loan)
What is a Basis Point?
When percentages being used to describe a security are very small, basis points are often used to describe the numbers
What is the adaptive market hypothesis?
The Adaptive Market Hypothesis uses theories of behavioral economics to update the aging Efficient Market Hypothesis