Best Hedges For An Uncertain Market

Best Hedges For An Uncertain Market

The S&P 500 has swung down -10% and swung up 6% in a little bit of a rollercoaster ride over the past couple of weeks and volatility as measured by the CBOE VIX Index peaked above 25 over a week ago as investors scrambled for some kind of direction. The ongoing geopolitical concerns, depressed commodity prices, Ebola scares, and economic slowdowns appear to have finally halted the bull market’s advance. It’s not yet certain if the recent reversal back up will reverse course again and go back down or continue to jump up on positive earnings and bullish Fed sentiments… Read full article at Seeking...
The Secret Junk Bond Bomb That Could Sink The Market

The Secret Junk Bond Bomb That Could Sink The Market

The long bull market has finally begun to crack if October is any indicator. The S&P 500 over the last week has swung between -10% and -3.5% down from its September highs, succumbing to multiple fears including falling oil prices, geopolitical events, downgraded global growth predictions and the Ebola scare… Read full article at Seeking...
Keep It Small: Analyzing Bill Ackman’s Approach

Keep It Small: Analyzing Bill Ackman’s Approach

There’s no such thing as the perfect investor. No one exists who knows with absolute certainty which companies are good, which are bad, and when to buy or sell them. Perfection may not be possible, but we attempt to get as close as possible by never resting on our laurels and studying different investment styles to get a better idea of what works and what doesn’t… Read full article at Seeking...
Higher Market Volatility Could Be A Buying Opportunity

Higher Market Volatility Could Be A Buying Opportunity

Volatility is back. The market is beginning to falter under the barrage of geopolitical turmoil, depressed commodity prices, muted earnings, and now a drop in consumer confidence.The gauge that measures consumer sentiment fell from 93.4 to 86 from last month to September – an 8% drop that brings a sudden end to a 4-month increase in expectations. A look at the CBOE VIX Index, colloquially known as the “fear gauge,” reveals a sharp rise in the past two weeks of trading. Since September 19th, the VIX has climbed nearly 35% from 12.11 to 16.31 as of September 30th.Many investors look at the sudden increase in volatility as a warning sign, but it could be seen as a trading opportunity for those willing to take a little more risk.Volatility In StocksVolatility is one of the fundamental forces of the stock market universe. Much like gravity is responsible for maintaining the orbits of the planets, volatility keeps the market functioning and allows trading to occur.The standard definition of volatility is that it is a measurement of the dispersion of returns in a given security or market. In other words, if the dispersion is more erratic, then the security would be more volatile and therefore garner a higher rate of return to compensate an investor for the perceived risk in owning it.Volatility can be thought of as a roller coaster. You may be more of a thrill-seeker who chooses to ride the tallest, fastest roller coaster around because you enjoy the exhilaration associated with it and you feel comfortable with taking a risk and feeling fear.Other riders tend to be more cautious...