Articles on Stock markets
News, Research and Analysis
What is market neutral?
Market neutral is a term used to describe strategies of investing that are poised to benefit whether the market goes up or down, or even if it stays stagnant. Some professionally managed funds might take a market-neutral stance in their entirety, or investors might employ market-neutral strategies for specific parts of their portfolio.
Market Neutral means that your position as an investor is neither bearish nor bullish, and you may be able to profit whether the market moves up or down, or even if it doesn’t move at all. Options traders, for instance, have a wide variety of market-neutral positions that they can take, since profiting may depend more on the presence of volatility rather than price movement in one direction or another.
Options traders may also be neutral and collect premiums from selling options that will never be exercised if the market stays the same. Stock investors may take a market-neutral stance by combining long and short positions, known as pair trading.
Being neutral could be a hedging strategy aimed to keep your portfolio’s total value within a certain range while seeking gains above the risk-free rate, or it could be a strategy to take advantage of future price movements that are pretty sure to happen, such as after an upcoming news event, but you are unsure of which direction they will go.
Should I buy gold coins?
The value of gold coins is twofold: the price of the gold in the coin, and the numismatic value of the coin
Am I Eligible for Social Security Benefits?
In general, Social Security Benefits will only be paid in cases where individuals paid into the system
Should I Notarize my Will?
In general, a will must be signed in the presence of two witnesses, each of whom must also sign your will. Whether or...
What is Form 1099-Q?
Distributions from qualified educational accounts such as 529s will be reported on a 1099-Q
What is the Dead Cat Bounce (Bearish) Pattern?
The Dead Cat Bounce pattern appears when a currency pair's price falls quickly but has a temporary “v-shaped” recovery
Who is a Bond Trustee?
A bond trustee is an institution which has the fiduciary responsibility of administering and enforcing the terms of...
B/B2 — credit rating
B2/B ratings are the 15th ratings down the scale from the top. A bond in the B range has about a 20% chance of defaulting
What is the foreign credit insurance association?
The Foreign Credit Insurance Association protects American businesses from non-payment in international trade deals
What is the Difference Between a Growth and Value Stock?
Growth stocks tend to be younger companies focused on using capital to fuel more growth, whereas Value stocks have...
Who is an activist investor?
Activist investors buy enough voting shares to influence the decisions of a company, sometimes for political reasons