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In Part I, we covered the circumstances governing a healthy bull market and the unhealthy bull market associated with a bubble. In Part II, we covered the characteristics of the top, which leads us into part III, or the downturn phase. Recessions vs. Depressions The market dynamic is normal recessions is different from the one […]

In Part I, we covered the early stage of the bull market and the bubble phase. Here in Part II, we are covering the characteristics of a market top. Market top Markets that become driven from a lot of leveraged buying are prone to reversals. This reflects the general idea that when things are so […]

What is a Null Hypothesis? The null hypothesis is a hypothesis that states there is no difference between two groups, two investments, two economies, or two of anything. It is usually denoted by H0. For example, let’s say you are testing the effect of a new medication on blood pressure. The null hypothesis would be […]

What is private equity? Private equity is a type of investment that involves the funding of a company or enterprise by private investors, rather than through public markets. These private investors can be either individuals (known as “angel investors”) or institutional investors, such as traditional leveraged buyout investors or venture capitalists.   What is a […]

Finance has traditionally attracted the top talent with its higher pay and the broad applicability of finance throughout all industries. Jobs in finance are also seen as having good long-term prospects, making them a desirable choice for many job seekers. There are many different types of jobs in finance, from investment banking and asset management […]

What Is FIFO? FIFO is an acronym for First In, First Out. It is a method used for organizing and managing data so that the first piece of data to be inputted is also the first to be outputted. For example, let’s say you have a FIFO queue of tasks to do. The first task […]

What Are Retained Earnings? Retained earnings are the portion of a company’s net income that is not paid out as dividends, but is instead reinvested back into the business. This can be used to finance new growth initiatives, pay down debt, or for other purposes. Retained earnings belong to the shareholders of a company, and […]

What Are Basis Points (BPS)? Basis points (BPS) refer to a unit of measurement used in finance to describe the percentage change in value of a financial instrument. One basis point is equal to 0.01 percent or 1/100th of one percent. For example, let’s say that the interest rate on a loan increases from five […]

What Is the Asset Turnover Ratio? The asset turnover ratio is a financial metric that measures the efficiency of a company’s use of its assets. The asset turnover ratio can be used to evaluate how well a company is using its assets to generate revenue. The asset turnover ratio is calculated by dividing a company’s […]

In this article you will learn what a mega backdoor Roth 401(k) conversion strategy is and how to best use it to your advantage. What Is a Mega Backdoor Roth 401(k) Conversion? A mega backdoor Roth 401(k) conversion is a strategy that allows high-income earners to make after-tax contributions to their 401(k) plan and then […]