Friday, May 17, 2024
Last week, the forced unwinding of the Archegos Capital Management hedge fund put fears of a market collapse into investors’ minds. While it appears to have been an isolated case, the fund’s collapse vividly points out the dangers of using leverage to boost investment returns. Let’s discuss how excess leverage can turn declines in security […]
Covered calls are one of the most popular investment strategies used by both retail and institutional traders. For retail traders, covered calls are easily accessible and don’t require a substantial amount of maintenance. For institutions, covered calls are beneficial both because they can scale into the billions of dollars and because they have long-term portfolio […]
When it comes to money, humans primarily react to the emotions of fear and greed. The effect of greed is to push investors to buy when prices are high, and fear triggers selling when investment prices are low. For most stock market investors, the goal is to buy low and sell high, yet the emotions […]
If investing in options seems daunting, this guide will help. We’ll explain call vs. put options and how they can guard against changes in the market.
There is a wide range of stock market investing experience among the subscribers to my Dividend Hunter service. From the emails I receive, I know that it is easy for both beginners and more experienced investors to have trouble keeping up with how companies announce dividends and when you actually see the cash in your […]
I have been watching with great interest the successes and failures of different state and local coronavirus vaccination plans. I am struck by the inability to adjust to changing conditions brought on by a bureaucratic mindset. It varies greatly from the “flexibility is the key to air power” mindset that I formed in my days […]
Every earnings season, I check the results from hundreds of publicly traded companies. In the past, for most companies, a quick scan of the earnings results would show whether or not a company remained on its expected trajectory. The 2020 fourth-quarter earnings results will be very different. They will tell the tale of a very […]
I make stock and options recommendations based on what the charts—not the talking heads and suit-and-ties on financial TV networks—tell me. I spend many hours every week analyzing stock charts, support and resistance levels, moving averages, and numerous other technical indicators of the major indices and stocks to ensure that I’m bringing you recommendations that […]
Last week one of my Dividend Hunter recommended stocks received a buyout offer. It was interesting to watch what I call the Robinhood Effect, grab the share price, and push it much higher than the buyout offer’s intrinsic value. Investors with long-term outlooks should understand the potential short-term disruptions caused by the Robinhood Effect. If […]
Stock market volatility is arguably one of the most misunderstood concepts in investing but can be an extremely important technical tool when it is used to analyze the stock market. To start, volatility is often referred to as the fear gauge, and the range of price change the stock market can experience over a given […]
