Investment Strategies

BNPP discussed portfolio diversification in the current market, “With high correlations across traditional asset classes and geopolitical and economic risks steepening, navigating market turbulence and protecting your portfolio from downside threats requires innovation and a careful approach. Correlations between asset classes are at an all-time high, and look likely to remain so for some time…

J Pan outlines the importance of implied volatility, “According to the CFA institute, implied volatility is a measure of the expected risk with regards to the underlying for an option. The measure reflects the market’s view on the likelihood of movements in prices for the underlying, having the tendency to increase when prices decline and…

Bower explains what currency hedging is, Put simply – currency hedging means taking exchange rate risk out of the equation. Exchange rate risk is the potential for an investment not priced in Australian dollars to lose value due to currency fluctuations. For example, say if you bought five shares of Apple Inc. from your broker…

Experts said that corporate buybacks are plummeting and suggested investing in high-dividend stocks, “Corporate buybacks are “plummeting” as companies tighten their purse strings, and it could have a big impact on the market, Goldman Sachs warned in a note to clients. In the second quarter, S&P 500 share buybacks totaled $161 billion, about 18% less…

Valuewalk reported that investment funds are investing in gold, “Gold bullion prices continued to rally in August, driving strong performance in gold stocks, although that strength wasn’t enough to pull Sturgeon Capital into the green for the month. The fund was down 3.09% for August, bringing its year-to-date returns to -5.1%. Difficult returns in Kazakhstan…

Gundlach believed that interest rates have bottomed for the year, Growing fears about a possible global economic slowdown prompted Treasury yields to hit their historic lows a few weeks ago. The so-called bond king said yields won’t go any lower this year. That was the bottom for the 10-year Treasury yield, he said. “It’s not…

CNBC recently reported a heavy loss by a hedge fund, “One of the better-performing hedge funds reportedly took a heavy loss last month, as a big bet on Argentina’s economy went sour. Autonomy Capital lost about $1 billion, or about 23%, in August after taking a large position in Argentina’s 100-year bonds, The Wall Street…

With the rising tension between the US and China, investors are plowing money into Gold and Bitcoin. “Investors appear to be treating bitcoin as a haven asset similar to gold, given the volume of cryptocurrency trading has increased during the conflict. There was a 284% surge in bitcoin trades between 19 May 2019 and 19…

Day trading has its risks, but also great rewards if you know how to take advantages of opportunities. Market turmoils are bringing in risks as well as opportunities. CNBC just highlighted some risks for day trading: “American small and medium-size companies that rely on China are scrambling to adjust their business plans in response to…

In this volatile market environment, Valuewalk provided a roadmap for online investing. “After you’ve made a list of all your investments and assets, it’s time to think about your risk tolerance. As the winds of the market shift around, risk sentiment will move as well. There is no such thing as an investment that is…