New answers tagged investing
0
votes
NPV in trade projects
First, you haven't indicated that you've considered the actual time value of money, which is a critical component of NPV analysis. Actually, it seems that you have only considered a 'cash payback ...
- 41.9k
0
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NPV in trade projects
I may not fully understand the scenario, but ALL cashflows are included when you are doing an NPV analysis. IF the timing between the purchase and sale is very short, you could possibly just count the ...
- 130k
3
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Why doesn't my bond ETF provide a hedge against stock indexes in the way I thought it would?
The concept of using bonds as a hedge against stock market declines is based on observations during periods where interest rates are relatively stable. A common theory is that when the market turns ...
- 3,719
2
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How could the percentage exceed 100 here?
Lets say that during the Spring of a typical year the net cash flow is $1 Trillion. That number represents all the money that flowed into funds, minus the money that flowed out of mutual funds. Some ...
- 136k
5
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How could the percentage exceed 100 here?
It says 150% of net investor cash flow. So investors both put money into funds and sell funds to get cash back. The difference between these two quantities is the net investor cash flow. The amount ...
- 1,185
37
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Why doesn't my bond ETF provide a hedge against stock indexes in the way I thought it would?
I read an article about this very issue in January 2023, and I saved the graphic that illustrates the historical relationship between the S&P 500 as an indicator for equities and the 10-year U.S. ...
- 1,481
2
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Why doesn't my bond ETF provide a hedge against stock indexes in the way I thought it would?
Is the advice I've followed antiquated? Is there any point in holding a bond ETF or mutual fund these days?
Find or create a long term chart of your two securities and eyeball the correlation or lack ...
- 75.7k
10
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Why doesn't my bond ETF provide a hedge against stock indexes in the way I thought it would?
For perfectly hedged investments the investments would be perfectly anti-correlated, i.e. if the value of investment A goes down, the value of investment B goes up an equivalent amount, and visa versa....
- 12.5k
3
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Is Limit Order classified as Trading rather than Investing?
As others mentioned before, the order type (Market, Limit, whatever) is a technicality and has nothing to do with the very subjective question if your trades would be considered "active trading&...
- 31
0
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Is Limit Order classified as Trading rather than Investing?
The term trading is not precisely defined. It is not a precise term. The way I think of it is that any time you place an order to buy or sell a security that is trading. As such, if you want to do ...
- 1,540
0
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How do you calculate the proportion of shares required to formulate a minimum risk portfolio?
Referring back to old notes this looks ok. r is the mean return, x & y are the proportions of E & B respectively, s is the risk
r = 0.20*(0.12 x + 0.16 y) +
0.25*(0.14 x + 0.10 y) +
0....
- 9,677
4
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Acquisition/Share holding question
Your shares will be valued based on the agreed sale value of your company, divided by the total number of shares outstanding. ie: If the purchaser agrees to a price of $1M, and there are 100,000 ...
- 41.9k
10
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Acquisition/Share holding question
If/When your company gets acquired, your 10,000 shares will either be bought outright at some fixed price based on the terms of the acquisition and you will receive cash, or they will be converted to ...
- 130k
-4
votes
Do CFD brokers ban profitable clients from trading on their platform, since these clients make them lose money?
I agree with Stanley
Brokers has no interest to hold profitable traders , they put all your positions monitored for 3 months .
They try all to get rid of you if you are very profitable trader.
- 1
0
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Why should I use ROIC instead of P/E given that that is the price I'm paying to buy stock?
ROIC provides the necessary context for other metrics such as the price-to-earnings (P/E) ratio. Viewed in isolation, the P/E ratio might suggest a company is oversold, but the decline could be ...
1
vote
Where can I look up total returns of stocks, ETFs, and mutual funds?
You can view performance of a list of holdings with a free account at seekingalpha.com I do this regularly, but have not actually tried to automate downloading the information. My list includes ...
- 11
1
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Why should I use ROIC instead of P/E given that that is the price I'm paying to buy stock?
Since these two metrics are closely related in the sense that a high ROIC will tend to mean a high P/E (and conversely) you cannot really consider one in preference to the other. Also, keep in mind ...
- 6,400
1
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Why should I use ROIC instead of P/E given that that is the price I'm paying to buy stock?
ROIC is a measure of how well a company has used its capital to generate returns. It can be used to compare the efficiency or effectiveness of similar companies, or to see if a company is making ...
- 130k
0
votes
risks when using diversification with leveraged ETFs
Yes, leverage has risk, regardless of the underlying asset in question. With leverage, the returns per $ of your equity are magnified, and the added debt obligation creates both an ongoing cashflow ...
- 41.9k
3
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What is the correct Formula for calculating fund growth with fees
The results in the article quoted can be calculated as follows.
With
s = future value
a = periodic deposit
n = number of periods
r = periodic rate
Setting the future value s equal to the sum of the ...
- 9,677
4
votes
Accepted
What is the correct Formula for calculating fund growth with fees
In simplest terms, if the fee is a percentage, you can subtract it directly from the percentage yield. That is, a fund with a 1% fee and 8% yield will be no better for you as an investor than a fund ...
- 42.9k
3
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Use HSA for medical expenses or save it for investment?
The US Health Savings Account is tax-free both when the money goes in, and when money is taken out for medical purposes. In between, the investments behave like an IRA or 401(k); growth/earnings are ...
- 42.9k
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