Fundamental analysis is the tool investors use to determine the true value of a financial security. Investors use fundamental analysis to answer questions like profitability, viability, the strength of a business model, and more. Fundamental analysis is essentially the opposite of technical analysis. However, they can go hand in hand when it comes to finding investing and …
Investing
Inverted Yield Curve Explained
An inverted yield curve is when yields on short-term bonds are higher than the yields on long-term bonds. When U.S. Treasury bonds invert, it usually indicates a recession is coming. Normally, short-term bonds have a lower yield than long-term bonds. Having your money held for a shorter amount of time brings a lower return. Buying long-term …
4 Swing Trading Strategies
Swing trading is a style of trading that centers around changing price trends throughout short to medium timeframes. Swing traders try to profit from big downswings or upswings in prices. There are several swing trading strategies and technical indicators available. The best approach depends on personal preference and trading style. Swing Trading Strategies That Work …
A Beginners Guide to Options Trading
What are Options? An option is a contract between a buyer and a seller. They are a popular derivative instrument used in financial markets. Their value is based on an underlying stock or security. The buyer of an option has the right, but not the obligation to buy or sell the underlying security at a …
Value Investing Is Ready for a Comeback
Value stocks have taken a beating over the past decade. This has made most value investing a losing strategy for quite some time now. Growth stocks have outperformed year after year while value is currently trading at historical discounts. Made famous by Graham and Buffett, value investing involves using fundamental analysis to buy underpriced stocks. It requires …
The Corporate Debt Bubble Continues to Grow
Stocks aren’t the only thing breaking record highs. The corporate debt bubble that looms over the economy is breaking records too. But should that worry you? Several analysts are saying yes it should, citing similarities to the subprime mortgage crisis of 2008. How Much Corporate Debt is There? According to S&P Global, the dollar amount of …
Bitcoin vs. Gold: Pros and Cons
Bitcoin was formed in 2009 in reaction to the inflated supply of fiat money that was created to save the banking system during the 2008 financial crisis. The anonymous creator or creators with the pseudonym name of “Satoshi Nakamoto” envisioned bitcoin to be a decentralized currency incapable of being inflated. Bitcoin is often compared to …
Penny Stocks – The Risks and Rewards
Penny stocks are known for being high-risk investments that have the potential to quickly produce significant gains. The appeal of buying many shares with a small amount of cash attracts many beginner traders. And owning more shares allows for more profits if the share price does increase. However, buying penny stocks is more similar to playing …