Monday , 23 December 2024

Investing

Take Note: A Bubble Isn’t Necessary To Have A Sharp Decline In Stocks

With valuations stretched, investors seem to be justifying their stock purchases here with the argument that we have yet to reach the mania of 1999-2000 but history has shown us that there doesn't have to be a bubble for there to be a sharp decline in stocks. As we saw in 2007, it doesn't mean there is no risk of a significant market decline or that valuations are compelling and that investors should be expecting above average long-term returns from here. They should not.

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It’s Imperative That You Know ALL About Interest Rates! Here’s Why & How To Do So

I read hundreds of financial articles every week and most are nothing more than "financial entertainment" - unfounded forecasts, fear mongering or cheer-leading. That being said, there are a number of articles that are absolutely MUST READS if you are to become an informed investor and be in position to understand what is evolving in the financial environment and act accordingly. Introductory paragraphs and links to a number of them are provided in this post.

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What Role Do Oscillators, Standard Deviation & Mean Reversion Play In YOUR Investment Management Process? (+3K Views)

In the investment management process...[it is important to] actively monitor both short- and long-term cycles...in order to manage expectations based on historical patterns...[as well as] oscillators - diagnostic tools that help us measure a security’s upward and downward price volatility - but to understand how oscillators work, though, you first need to become familiar with standard deviation and mean reversion. In this article, we do just that.

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Interest Rates Play A MAJOR Role In the Behavior Of the Stock Market – Here’s Why

To understand how the stock market behaves it is imperative to realize that the stock market is overwhelmingly influenced by interest rates. It’s difficult to overstate this key fact. Interest rates are the bone and marrow of the stock market. More specifically, the stock market is ruled by long-term and short-term interest rates creating an overriding framework for what drives the market in which different sectors do better or worse at different points in the economic cycle. This article explains the behavior more fully.

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