about 11 months ago - 1 comment
I have been trading commodity contracts for about a year and have done good for myself. However, I have been considering trading forex as well. I know that interest rates affect the forex markets depeding on the pairs traded. Additionally, I know that interest rates affect weather you receive/payout on certain pairs, however, im not More >
about 11 months ago - 1 comment
about 11 months ago - 1 comment
The required returns on all stocks are the same, and the required returns on stocks are higher than the required returns on bonds. The required returns on stocks equal the required returns on bonds. A trading strategy in which you buy stocks that have recently fallen in price is likely to provide you with a More >
about 11 months ago - 1 comment
1. Investors purchase corporate bonds for: a. interest income. b. possible increases in value. c. repayment of the face value at maturity. d. All of the above are correct. 2. Which one of the following statements is true? a. A bond sold for less than its face value is said to be sold at a More >
about 11 months ago - 3 comments
I mean banks charge interest at maximum 15% per annum. But some of these guys promise returns of 25% and more! So why do they lose out that 10%? Why not simply borrow as much as is required from the bank?
about 11 months ago - 5 comments
Hedge fund manger? How they work? How to open one?
about 11 months ago - 3 comments
Arent there any kind of investments you can do online besides the 3 mentioned? They all perform lousy-anything other than markets as long as you can trade it online and make profits.
about 11 months ago - 3 comments
Some of these stocks were given 30 years ago ,some 10 yrs ago. sometimes it was 10 shares ,sometimes it was 50 shares.
about 11 months ago - 1 comment
The markets around the world have gone dramatically up today and Friday on news that the U.S Gov. will continue to bail out distressed financial institutions (ie Citibank) and will consider bailing out non-financial institutions (ie Ford and GM). Needless to say, the Gov. doesn’t really have this money to lend, so it’s raising same More >
about 11 months ago - 1 comment
about 1 year ago
Bad for business. Businesses have to pay more to borrow money. Anything bad for business makes the stock market go down.
about 1 year ago
When interest rates go up it cost businesses more money to borrow money, which decreases their ‘bottom line’, which decreases their earnings per share, so the perceived value of the stocks drop.
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about 1 year ago
bad for buisnezz
about 1 year ago
very simple, higher interest rates makes you borrow money for higher interest, or your cost of borrowing increases,so your disposable income will reduce to that extent, which could have been possibly invested in the stock markets.
so whenever there is a fedcut or fed rise there is a big impact on the stockmarkets, which you might have observed & mind well its not only individuals but coporates & giant organisations too are all part of the markets.
about 1 year ago
Higher interest rates make savings more attractive and borrowing more expensive. If money flows into savings rather than stocks, the stock market goes down. If consumers and businesses hold back on borrowing activities, including credits, business transactions will go down which impacts company earnings. Therefore, higher rates are not favorable for the stock market. You can short financials and real estates- related stocks.
about 1 year ago
There are two reasons. The most obvious is that businesses need to borrow money, and higher interest rates means a higher cost of borrowing that eats into corporate profits.
But there is a second reason. When you buy a stock you are buying a piece of the company for the purpose of capturing a piece of its future profits. If you pay alot for a compay because it profits are growing rapidly, then you are effectively paying today for profits that will be earned 5, 10 or even 20 years from now.
If med. or long term intestest rates go up, then the market is saying that it expects inflation to be higher in the future. If they are correct, that also means that the future profits of the company will be worth less after adjusting for inflation. So that P/E ratio of 22 listed on Yahoo Finance may really be a P/E ratio of 30 in terms in terms of inflation adjusted long term profits.