Purchase Managers Index (PMI) as a Leading Indicator of Economic Growth
The Purchase Managers Index (PMI) is a great economics tool for investors to wrap their heads around as it can be watched as a leading indicator of changes in the economy. The changes in PMI data can indicate many things including changes in GDP, inflation, and employment which can all be used when making investment […]
What is a Stock Proxy? What’s a Voting Proxy? | Simple Guide for Beginners
A stock proxy is a document that public companies have to release every year. In it, investors will find details about management, the board of directors, and voting on major company matters. Investors should know how to look up a stock proxy and skim through the important parts. This guide will show you how, in […]
The Misery Index is at 12.7%, Highest Since 1970’s
The misery index in economics is used to describe the severity of the negative effects of inflation and unemployment on the population. The misery index is the combination of adding together the inflation rate and the unemployment rate. Let’s explore what the misery index means, its history, and how investors can mitigate the effect on […]
Hawkish vs. Dovish and Why Investors Should Watch For Cues
Monetary policy, and the people who decide on it, are often described as hawkish or dovish depending on whether the proposed policy is restrictive or stimulative, respectively. As we will touch on later, restrictive monetary policy and higher interest rates have a twofold effect on stock valuations and investors should learn to watch for cues. […]
The Basics of the Short Ratio, Short Selling, and Short Squeezes
The short ratio is a widely-used tool by short selling hedge funds and other portfolio managers in the stock market. The short ratio indicates the number of shares that investors sell short over the average daily volume of the stock, on the basis of 1 or 3 months. Short selling exploded to the scene in […]
Fiat Money vs. Commodity Money: A Breakdown of the Pros and Cons
“Money, it’s a crime.” Pink Floyd My grandparents used to say that money makes the world go around, but what do we know about the money we use today? We currently use fiat money but also deal with commodity money as well. And then, we add Bitcoin and other types of electronic currency, and we […]
The Top 8 Stock Market Secrets to Success That Investors MUST Know
To get to the secret of success in the stock market takes just a few easy to remember, short phrases which are mostly well-known by seasoned investors. Some of them can be easy to forget—that’s why it’s good to go back to the basics. If you’re struggling with your performance in the market, why not […]
Beginner’s Guide: 7 Steps to Understanding the Stock Market
This easy-to-follow beginner’s guide will help you learn how to invest in the stock market. We’ll be leaving out all the confusing Wall Street jargon and explaining things in simple terms. [10-minute read] Before we get started, here is a breakdown of the 7 categories for this guide (Click to Skip Ahead): 1. Stock Market […]
Beginner’s Guide to Finding High ROIC Stocks Anytime You Want
In general, long term investors should target high ROIC stocks for their portfolio because these tend to be the companies that can sustain higher long term growth. Companies with a high ROIC tend to be better investments than companies with a low ROIC, but not always. The price you pay matters, and ROIC can be […]
VOO vs. SPY – Which One Will Make You More MONEY?
One of the most common things that you will ever hear in the investing world is people using S&P 500 returns as a benchmark or basis for investing and even financial planning. Ok…that sounds great, but how exactly can you simply invest in the S&P 500? Well, it actually is as easy as finding an […]
