10
votes
2answers
264 views

What is the “Bernanke Twist” and “Operation Twist”? What exactly does it do?

I was reading the article Bernanke’s Twist Sharpens Year-End Anxiety Over Stimulus and In the article it says The Fed on June 20 extended its Operation Twist program to swap $267 billion in ...
4
votes
3answers
241 views

Why does the stock market consistently overreact to the business cycle?

It's been shown time and time again (e.g. in Stocks for the Long Run) that the most profitable time to buy stocks is when sentiment is poor and that stocks usually recover very quickly at the end of a ...
8
votes
3answers
2k views

How much power does a CEO have over a public company?

I want to invest in a public company and I want to know: Exactly how much power does the CEO has over what the public company does? Can a CEO control a public company even though he doesn't own a ...
2
votes
3answers
160 views

What governs the shape of price history graphs?

I think the price history graphs of speculative investments such as housing and gold look like a series of linked "u"s, ie sharp peaks and rounded troughs, while the graphs of less speculative ...
4
votes
2answers
148 views

Why are both government and commercial bond prices rising?

For the last 2 months both Gilt (UK government bonds) and UK commercial bond prices have increased. Many commentators have said the flight to government debt is a response to stock market uncertainty, ...