When you buy a new car, you look for insurance on the car. Most states require some form of coverage, but it is usually worthwhile to have it. When you buy a home, lenders will require you to purchase homeowner’s insurance. While it doesn’t cover everything, it gives you some peace of mind. While many […]
Since the beginning of September we have seen the main U.S. indices drop. There are a number of possible reasons for the decline, but more importantly I expect the increased volatility will be with us through the next few months. Between the uncertainty about the virus and the impending election in November, I don’t see […]
Experienced investors have heard of now-bankrupt companies such as WorldCom and Enron. Both participated in scandalous accounting schemes. Neither company exists today, but each left a trail of losses that are still keenly felt. Many employees had their life savings in company stock quickly made worthless. The scandals involved tricks that these companies used and […]
When you hear talk of markets trending, people think of uptrends or downtrends. However, markets often get stuck in a trading range. This is the condition where there is no definitive direction. But, eventually, one direction or the other reasserts itself. The problem is knowing which direction will prevail. A few strategies can help in […]
How would you like to have an “edge” in the stock market? The vast majority of investors would love to find one, of course, and many constantly seek advantages to exploit. We are led, however, to believe that markets are efficient. This means that the price of stocks is determined by the current information available. […]
Options are nothing more than a contract with a specified premium, strike price and expiration date. Unlike buying and selling stocks or funds of stocks, options provide almost an endless number of strategies. Nevertheless, all options trading has two sides — calls and puts. Both are “sold” by an options trader. You sell a call […]
An interesting report caught my eye this past week regarding the economy and markets under Democratic versus Republican presidents. One would intuitively think that under the latter, economic growth and financial market performance would be orders of magnitude higher versus under the former. After all, Republicans are always thought to be more pro-capitalist, espouse less […]
The consensus on options trading is that it is risky for the average investor. You’ll likely hear stories about people losing large sums of money in the options market. This sentiment about options being risky can be warranted. However, it often comes from a lack of understanding about how the options markets work. This article […]
When you begin trading options you’ll spend part of your research scanning for the right options to buy. When you find a list of options, then you’ll need to learn how to read the quotes to pick the right one. Quotes on stocks are simple. They involve entering the ticker symbol of the stock into […]
We seek value in many aspects of our lives. It is no different with the stock market. However, many seem to be declaring a moratorium on value investing. The good news is value investing is not dead. Here are three reasons why investors can succeed with value investing today. The first reason is that value […]
