Spot opportunities for personal investment
When it comes to studying the financial markets, investors frequently have to sift through huge amounts of data and conflicting points of view. How can investors find their way through these waters cluttered with noise? The answer is to look at a few solid, simple-to-understand metrics. These signals aid in evaluating the health of the …
Continue reading “10 Indicators to Gauge Market Health Without Analysis Paralysis”
The terms “recession vs inflation” often dominate news headlines and economic discussions, yet many people struggle to fully understand what these terms mean and how they impact the broader economy. Inflation measures the rate at which prices for goods and services rise, eroding purchasing power over time. A recession, on the other hand, is a …
Continue reading “Recession vs Inflation: Understanding the Economic Impact and How They Intersect”
I would love to know how it all started. Still, we are between the world’s two biggest economies that dramatically influence local markets, consumers, political contexts, and the world. The trade war between China and the US, which saw tariffs as the first stage of the dispute, is now characterized by the playing around in …
Continue reading “Impact of the US-China Trade War on the Economy”
Rebalancing your portfolio is an important strategy that helps keep your investments aligned with your long-term financial goals and risk tolerance. As markets fluctuate, the value of different asset classes in your portfolio—like stocks, bonds, and real estate—will rise and fall. Over time, some assets may become overrepresented, while others might become underrepresented. Rebalancing is …
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Understanding the difference between “market capitalization” and “market valuation” is essential for investors and anyone analyzing the financial worth of a company. Although these terms may seem similar, they have distinct meanings and applications in the world of finance. Market capitalization, often referred to as market cap, is a straightforward calculation that reflects a company’s …
Continue reading “Is Market Capitalization the Same as Market Valuation?”
The market has been extremely boring and sideways-moving recently. There is a weekly forecast suggesting market correction. I am skeptical, but the future remains to be seen…
Since we earn money each month, it is extremely tempting to increase the investment amount monthly. Probably this should be done until a minimal qualifying investment amount (maybe 50,000 USD or 150,000 USD) is reached. The benefits of flexible amounts are clear: 1. Ability to use new opportunities each month 2. Natural growth of the …
This weekly forecast is a bit strange. Occasionally economical data makes no sense: good news cause sell-offs, sectors loved for safety underperform, low recession chance coincides with bear signals. It seams that occasionally semantic algorithms overtrade [using probability of rate hikes] based on keywords they recognize in the news – this could be a good …
While trend following is good for mid-term investment, fundamental analysis enables some long-term predictions. 1. The power of demographics. Young people generate inflation and growth, aging population is causing deflation and stagnation. By following nations’ demographic it is possible to predict roughly the long term growth trajectory. 2. Diffusion. In healthy economy there is diffusion …
This article shows that US accounts for 52% of total world stocks. With Japan at 7%, UK at 7% and EU at 7% trailing behind. Investing in any non-US market is of higher risk, especially monetary risk, but also growth of developed markets and market manipulation risks come to mind. With highly differentiated monetary politics, …
Continue reading “Is there a good reason to invest worldwide?”