If you happen to be interested in asset management, chances are that you have heard about the concept of factor returns. It’s actually all about certain variables that have some statistical utility to explain stock returns. Scientists found out about these factors by doing a so-called regression, did a lot of testing and ended up with a list of characteristics that determine stock returns. The well-known factors are P/B-ratio, momentum and size. Taking the latter as an example, ceteris paribus, a stock is expected to perform the better the smaller its market capitalization is...[more]
This post is all about how to survive a bar conversation as a banker these days.
I happen to be a banker and my friends happen to know that I am a banker. As the global media has lately been “occupied” by demonstrations of how bankers know sure ways to make money, I have been entangled in bar conversations around the stock market and techniques how to make money in the stock market. So please let me share with you some content from a typical bar conversation I had as of recently. (Disclaimer: if you expect this post to become a little bit more quantitative and useful, keep on reading- if you actually think this post deals with how to survive a bar conversation as a banker, you might be well-advised to keep on reading here )
So my typical friend would ask me, with a gentle sub-tone of sarcasm: "as you are a banker and you work with the stock market, you can now tell me how to make money...[more]
52 weeks Price Range.
This new factor -together with the other momentum factors (price index 12 months and price index 6 months) -in our Value Screener grid indicates a truth about investing that is difficult to understand: the investor should buy into strength and sell into weakness. The factor measures the proximity of a stock to its 52-week high or 52 week low. The 52 weeks price range is calculated as (current price – 52 week low) / (52 week high – 52 week low).
The idea behind using momentum factors with valuation is to find the strongest stocks, or the ones that are going up the most in price...[more]
We just launched our affiliate program, more details on http://www.valuestockscreener.com/Affiliates. With this new innitiative we want to give you the opportunity to share in the success of our site.
In the affiliates area you can log in with your value-investing...[more]