Search results

"Undervalued" is a very ambiguous term. But I'll help you understand value from a professionals point of view: - The value factor explains the returns of stocks that have low pe/, p/b, ev/ebitda ratios (usually lowest quintile rank, e.g. bottom 20%) - These stocks tend to perform better during...

Because of the way a stop loss order works. It submits a market order after a price at been touched. So instead of you thinking you will get out on a 2% drop, you end up with a much larger loss.

The key about trading is that returns are highly correlated to volatility. You can measure the intraday volatilty of a market by getting historical O-H-L-C data, calculating the true range, and then creating a distribution chart (in excel). By doing that, you'll find that intraday trading is not...

It's because real yields are negative and inflation expectations over the next decade are still low. A short-term pop in inflation expectations (12-24 months) is not enough to drive a sustained rally in gold. On the flipside, gold mining has become more efficient, and the supply dynamics have...

Stop losses are not a panacea from preventing or limiting risk. All you guarantee is that you're out of a position, but you still have uncertainty around what your total pnl will be on the trade. Most pro's use risk management techniques such as managing portfolio covariance and betas to...

Picking up nickels in front of a steamroller...

What kind of gibberish is this?

Growth scare out of China.

1. If you’re asking if there is a specific limit to how much the Fed can buy, the answer is tied to the availability of supply. The Feds strategy of asset purchases is to inject liquidity into the market. The Fed itself can add 0s to its balance sheet, so no limit on their end. 2. The Fed...

Arguably one of the most misinformed posts I’ve read in some time.

PCE. They also consider other items. You can read the beige book.

so do you still think we're going to experience hyperinflation?

The FOMC is showing its spine by keep rates low in the face of surprises in inflation prints. Whether they are right or wrong is a different story.

in his case, likely a combination of the two.

:banghead::banghead::banghead:

Investment banks are dealers -- which means they issue securities on behalf of other firms, bespoke contracts, and such. Their business is volume driven -- so if volatility creeps up, then their trading activities will rise. But if it's just inflation, net impact would be flat. For context, take...

Dalio has a primer on debt cycles through the years. It's a good read. I don't think we are there yet. Being in a debt cycle is not a bad thing unless it's poorly managed.

It's a ET thing. "Traders" here like to use charts and think they're smart, while the reddit crowd eats their lunch by posting long-form investment theses (check out the original GME and AMC posts-- they are pretty good). Going back to market crashes -- there's always a chance of a crash, but...

Echoing others — run a backtest.

Convexity meaning a non-linear payoff.