Last week’s correction of 1% caused a whole bunch of anxiety and hindsight analysis, but the simple fact is, from time to time, market’s simply correct.
Today’s update is about managing risk. I’m going to show you how trade size — and the number of stocks in your portfolio — can affect performance.
The other trend to consider when looking at secular bull and bear markets is the share price to earnings (PE) ratio.
There are a lot of opinions about Snapchat. Rather than to listen to opinions, let the chart build up some history, then let the weight of money guide you.
It’s been a while, but overnight saw the first good old-fashioned sell-off in stock markets for some time. A 1% decline in the S&P 500 overnight.
It seems to us that we may have the financial-market equivalent of the ‘Stockholm Syndrome’. Perhaps investors in Tesla have become hostages, and now feel sympathy with the company — in the face of what seem to be severe financial problems.
The fact that markets rise and fall seems to escape the investment industry’s attention. Why? The investment industry sells ‘performance’.
Is the current market a bubble? Or will that line on the right-hand side keep soaring higher and higher? Booms always bust. Credit crises end badly.
The stock market is exhibiting a small-scale bubble formation ready to burst at the first sign of stress. This is not the ‘mother of all bubbles’.
Options are often described as having both ‘limited risk’ and ‘unlimited reward’. It’s these characteristics that are often used to promote buying options.