Blog Posts

Monthly dividends are prized because they provide reliable and consistent income. Dividends by and large are used to signal that a certain amount of corporate earnings are guaranteed. Stocks tend to be punished heavily when dividends are cut. And given most companies tend to grow their earnings over time and dividends become a more realistic […]

A current account in macroeconomics is a country’s net trade in goods and services, plus net earnings from rents, interest, profits, and dividends, and net current transfers such as foreign aid. It is the sum of the balance of trade (exports minus imports of goods and services), net primary income (earnings on foreign investments minus […]

What makes for successful trading? There are many different theories, strategies, tactics, opinions, and ideas on what successful trading looks like. The goal of this article is to boil it down to a handful of basic principles to help both enhance returns and reduce risk.   What’s to be learned (or reasserted) from recent events? […]

How do banks make money? From the outside, banks can seem like more of a mystery relative to other businesses. For most businesses, they make money by selling goods and services. On the other hand, banks don’t sell traditional goods and work more with money and credit and use it to make even more money. […]

In this article, we cover all things related to the forward markets and forward contracts. What is a forward contract? A forward contract – often simply called a forward – is a contract between two entities to buy or sell an asset at a time and price specified in the contract. This makes a forward contract a type of […]

What Is the Quick Ratio? The quick ratio, also known as the acid-test ratio, is a liquidity ratio that measures a company’s ability to pay its short-term obligations with its most liquid assets. This ratio is considered to be a more stringent measure of liquidity than the current ratio because it only includes assets that […]

In macroeconomic forecasting of financial markets, it start with inflation, which moves into interest rates, which then flows into every other market. Inflation There are various definitions of inflation and everyone’s opinion on the inflation rate might be different because their basket of goods and services is different; their exact basket may vary significantly depending […]

What Are Funds From Operations (FFO)? Funds from operations (FFO) is an accounting measure used by real estate investment trusts (REITs) to define the cash flow from a property or portfolio of properties. FFO excludes gains or losses from the sale of property and depreciation and amortization expense, which can make it a more accurate […]

When it comes to trading, many people fixate on their winning percentage as a measure of their success. However, it’s important to understand that a high winning percentage doesn’t necessarily mean you are making money, and a low winning percentage doesn’t necessarily mean you are losing money.   Key Takeaways – Good Trade Win Percentage […]

Immunization is a strategy used by portfolio managers to reduce interest rate risk. The goal of immunization is to generate a steady stream of income or keep the value of a portfolio constant over time. To do this, the manager chooses two bonds with different coupon rates and maturity dates; one provides income while the […]