Stock trading – Sweet As A Biscuit http://sweetasabiscuit.com/ Thu, 19 May 2022 10:14:43 +0000 en-US hourly 1 https://wordpress.org/?v=5.9.3 https://sweetasabiscuit.com/wp-content/uploads/2021/10/icon-14-120x120.png Stock trading – Sweet As A Biscuit http://sweetasabiscuit.com/ 32 32 PaydayNow: Stock trading is the American activity of choice in the case of a pandemic. What happens to the market if they lose interest? https://sweetasabiscuit.com/paydaynow-stock-trading-is-the-american-activity-of-choice-in-the-case-of-a-pandemic-what-happens-to-the-market-if-they-lose-interest/ Thu, 19 May 2022 10:14:39 +0000 https://sweetasabiscuit.com/?p=2050 Online stock trading became quite popular in the United States in March of last year, when hundreds of millions of dollars were invested, causing the stock market to reach record highs. When the economy reopens, many experts worry about what would happen if prices fall or these newcomers become bored. Will clients have the time […]]]>

Online stock trading became quite popular in the United States in March of last year, when hundreds of millions of dollars were invested, causing the stock market to reach record highs. When the economy reopens, many experts worry about what would happen if prices fall or these newcomers become bored.

Will clients have the time to purchase up to $5000 once things return to “normal”? If not, what does this indicate for the industry?

Pauline Bell, a CFRA Research stock analyst, agrees.

Fewer than 10 percent of the stock market’s overall trading activity was done by individual investors a few years ago. More than a third of the call will be made up of individual investors by 2020, according to Citadel Securities and Themis Trading.

According to a new analysis released in February by Goldman Sachs, retail trading (transactions in small lots under $2,000) would see an 85 percent growth in dollar value by 2020. They also caution that the good times won’t continue forever. Charles Schwab said in February that “pandemic-level trading volumes are not sustainable.”

Even the merchants are unsure: According to an E*Trade Financial study in April, stock investors think the market is overvalued.

Mr. Shiller believes that some market sectors display “hallmarks of a speculation bubble.” Yale professor Robert Shiller, a leading authority on the subject, wrote “Irrational Exuberance” at the height of the dot-com boom. It is not as well-founded as the stock market’s current excessive euphoria, he tells Money, as it was in the late 1990s, when the Internet-fueled genuine enthusiasm for investing in stock shares.

Even though he doesn’t know when the bubble will burst, Shiller knows it will be a harrowing event. According to the adage, “it’s impossible to predict how public sentiment will change.”

Chain reactions may occur at any time.

Optimism in the stock market seems to be holding firm for the time being. For the first time since 1929, an American Association of Individual Investors (AAII) mood poll indicated that individual investors who expected stock prices would grow in six months hit a pandemic-era high of around 57% in April.

This optimism is backed up by significant financial investment. ETFs received a record high of over $250 billion in the first three months of 2019 compared to the same period in 2022.

Fortunately, investors rushed into the market at the perfect time, as both the S&P 500 and Dow Jones Industrial Average have made several new highs this year.

According to the bell, a sell-off that turns into a stampede for the exits presents a hazard to the whole market. To avoid temptations, some traders may choose not to trade because of their incapacity to manage volatility.

Bell adds that people want to seem clever by investing in a rising market. What will happen if it loses 20%?”

If volatility can be controlled, is it worth it?

According to Baird’s managing director and market analyst Michael Antonelli, it’s feasible to overstate the market influence of everyday traders. Nobody could have predicted what this new breed of traders would accomplish when they first arose. According to him, this is the case for many individuals.

According to Antonelli, customers at retail are like partygoers who don’t necessarily show up at the same time and depart at the same time. Long-term investors are more likely to stick with their strategy if they’ve learned about it during the last year.

Investment in meme stocks, cryptocurrencies, SPACs, and NFTs, is sought after by Verdence Capital Advisors portfolio strategy director Megan Horneman. She dismisses speculation of a market change as little more than “noise.” Some names and subsectors may be more volatile because of speculative trading interest.

What occurs in one part of the market might impact the whole ecosystem. Academics have cautioned that ETFs pose a systemic danger to the market and might quickly be phased out this year. Even though these funds experienced net withdrawals in March 2020, ETF investors were not frightened.

The characteristics of the market may limit the influence of retail sellers. If the S&P 500 drops 88% from its 2020 bottom, it will not be responsible for subsequent losses. 20% of the S&P 500’s value is attributed to the FAAMG group, including Facebook. According to Antonelli, institutional investors control most of the market’s assets and hence its direction.

What is it about rushing that is so critical?

Despite their reputation for poor timing and market catastrophes, individual investors may nevertheless earn money. According to Barclays, during last year’s short downturn, most ordinary investors sold their shares.

This group may decide to sell again in the summer when the markets are less volatile.

Horneman expects investors to “take some chips off the table” this summer after a significant year-to-date advance. Bell expresses concern that the stock market’s value might be jeopardized if the number of retail investors declines.

A psychological element is also at work here, as is a sociological one. Warren Buffett’s warning: “Be greedy while others are afraid.” In Antonelli’s opinion, investors need to stay with what they’ve got because of its importance in the previous year.

In a selloff, it’s difficult to know how new investors will respond, so staying away from the herd is critical. There is no such thing as a bit of fish in this world, as the GameStop situation has shown us.

Bell claims that nothing like this has ever occurred before. Market movements were tremendous because of the ability to combine their resources.

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The Dow drops 1,160 points in the worst trading day since June 2020 https://sweetasabiscuit.com/the-dow-drops-1160-points-in-the-worst-trading-day-since-june-2020/ Wed, 18 May 2022 21:47:00 +0000 https://sweetasabiscuit.com/the-dow-drops-1160-points-in-the-worst-trading-day-since-june-2020/ Markets have fallen over the past month as the Federal Reserve telegraphed that it would steadily raise interest rates by half a percentage point for the foreseeable future to combat persistent inflation. Wednesday, the Dow (UNDUE) lost more than 1,164 points, or 3.6%, its biggest loss since 2020. The broader market lost 4%, putting the […]]]>
Markets have fallen over the past month as the Federal Reserve telegraphed that it would steadily raise interest rates by half a percentage point for the foreseeable future to combat persistent inflation. Wednesday, the Dow (UNDUE) lost more than 1,164 points, or 3.6%, its biggest loss since 2020. The broader market lost 4%, putting the S&P500 (SPX) on the precipice of bear market territory. The Nasdaq Composite lost 4.73%.
Today, investors are asking for more. They are calling for a three-quarter point rate hike at the end of the Fed’s June meeting, despite assurances from Fed Chairman Jerome Powell that such a large hike is not on the cards.

Bank of America analysts wrote in a note that they fear there will soon be a wage-price spiral in the United States due to the risks that “the Fed will raise too little”. The current market reaction, they said, suggests that “investors view the Fed moving too slowly in the fight against inflation”: a 75 [basis point] hike might have been dreaded but it seems like it would have been preferred.”

Nomura Securities predicted that the central bank will raise the federal funds rate by three-quarters of a point in June and July after the half-point hike in May.

“We recognize that Fedspeak has not yet approved a 75 basis point hike, but in this high inflation regime, we believe the nature of the Fed’s forward guidance has changed – it has become more data dependent and more agile,” said Rob Subbaraman, Global Head of Nomura. market studies, in a note.

The Fed could raise rates to 5% by the end of the current tightening period, said Deutsche Bank’s chief economist. It would be the highest level since 2006.

Fed funds futures traders see a 9% chance that the Federal Reserve will raise its main policy rate target by three-quarters of a point in June, to between 1.5% and 1.75%, according to the CME FedWatch Tool.
St. Louis Fed President James Bullard fanned the flames for a potential three-quarter point hike this year in public speeches and Cleveland Federal Reserve Chair Loretta Mester told the Japanese Nikkei that a rise of 0.75 percentage point could not be ruled out later. this year in an interview on Monday.
A screen shows a press conference with Jerome Powell, Chairman of the United States Federal Reserve, following the announcement of the Federal Reserve's decision to raise interest rates by half a percentage point on the floor of the New York Stock Exchange on May 4, 2022.

So why are markets fighting the Fed Chairman’s assurances that a bigger hike won’t happen in June – and hurting themselves predicting that it will?

“When a Fed official suggests a 50 basis point hike, markets immediately start trying to price in 75 basis point hikes,” said Jamie Cox, managing partner of Harris Financial Group. “It really is madness.”

The Dow Jones fell 5,095 points, or 14% in 2022. The S&P 500 fell more than 18% and the Nasdaq Composite lost about 28%.

“Powell tried to take the 75 basis point rise off the table at the last press conference,” said David Lebovitz, global market strategist at JP Morgan Asset Management.

But the following week, the consumer price index, a key measure of inflation, jumped 8.3% for the year. The measure was lower than the 8.5% increase in March, but higher than the 8.1% increase expected by economists.
The Fed has a new plan to avoid the recession: party like it's 1994

The problems between the markets and the Fed may have less to do with an eye for self-flagellation and more to do with a growing mistrust of the institution. The old “don’t fight the Fed” mantra has turned into “don’t believe the Fed”.

“People are starting to lose faith in the idea that the Fed really has its arms around inflation,” Lebovitz said. “It’s about getting a handle on what the Fed is going to do and unfortunately, given the lack of clear guidance from the Fed and an inflation report that surprised on the upside, investors are feeling a bit uneasy. easy.”

Even former Fed Chairman Ben Bernanke cast doubt this week when he broke the unspoken edict of former Fed chairs not to speak ill of their successors. The Fed made a mistake in delaying its decision to raise rates, he said during an interview on CNBC’s Squawk Box on Monday.

“And I think they agree that was a mistake.”

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Disclosure of transactions in own shares in the context of a share buyback https://sweetasabiscuit.com/disclosure-of-transactions-in-own-shares-in-the-context-of-a-share-buyback/ Tue, 17 May 2022 16:26:33 +0000 https://sweetasabiscuit.com/disclosure-of-transactions-in-own-shares-in-the-context-of-a-share-buyback/ Disclosure of trading in own shares in the context of a share buyback program Period : Since ten for 13 May 2022 Company name of the issuer: Ipsos Transmitter identification code: 9695002OY2X35E9X8W87 Financial instrument reference: Ordinary shares – ISIN code FR0000073298 Reporting of transactions in aggregate form (per day and per trading platform) Transmitter name […]]]>

Disclosure of trading in own shares

in the context of a share buyback program

Period : Since ten for 13 May 2022

Company name of the issuer: Ipsos

Transmitter identification code: 9695002OY2X35E9X8W87

Financial instrument reference: Ordinary shares – ISIN code FR0000073298

Reporting of transactions in aggregate form (per day and per trading platform)

Transmitter name Transmitter Coded Transaction date ISIN code Total daily volume (in number of shares) Daily weighted average price of shares acquired Platform
ISIN code (ISO 6166) MIC code (ISO 10383)
IPSOS 9695002OY2X35E9X8W87 10-May-22 FR0000073298 11,000 42.9041 XPAR
IPSOS 9695002OY2X35E9X8W87 10-May-22 FR0000073298 7,000 42.9454 DXE
IPSOS 9695002OY2X35E9X8W87 10-May-22 FR0000073298 500 42.9519 TQE
IPSOS 9695002OY2X35E9X8W87 10-May-22 FR0000073298 1,500 42.9290 EQA
IPSOS 9695002OY2X35E9X8W87 11-May-22 FR0000073298 10,800 43.3409 XPAR
IPSOS 9695002OY2X35E9X8W87 11-May-22 FR0000073298 7,000 43.3497 DXE
IPSOS 9695002OY2X35E9X8W87 11-May-22 FR0000073298 500 43.2335 TQE
IPSOS 9695002OY2X35E9X8W87 11-May-22 FR0000073298 1,700 43.1817 EQA
IPSOS 9695002OY2X35E9X8W87 12-May-22 FR0000073298 10,732 43.0305 XPAR
IPSOS 9695002OY2X35E9X8W87 12-May-22 FR0000073298 6,840 43.0677 DXE
IPSOS 9695002OY2X35E9X8W87 12-May-22 FR0000073298 500 43.1748 TQE
IPSOS 9695002OY2X35E9X8W87 12-May-22 FR0000073298 1,928 42.9997 EQA
IPSOS 9695002OY2X35E9X8W87 13-May-22 FR0000073298 11,500 44.0896 XPAR
IPSOS 9695002OY2X35E9X8W87 13-May-22 FR0000073298 6,000 44.1185 DXE
IPSOS 9695002OY2X35E9X8W87 13-May-22 FR0000073298 500 44.3520 TQE
IPSOS 9695002OY2X35E9X8W87 13-May-22 FR0000073298 2,000 44.1035 EQA

Detailed presentation by transaction:

A detailed presentation by transaction is available on the Company’s website (www.ipsos.com), in the section relating to regulated information, in the chapter entitled: “Description of share buyback programs and buyback declarations shares”: https://www.ipsos .com/en/regulated-informations/en.

  • Disclosure of transactions in own shares under a share buyback program (from May 10 to 13, 2022)

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Plus500 raises earnings expectations after Q1 trading frenzy https://sweetasabiscuit.com/plus500-raises-earnings-expectations-after-q1-trading-frenzy/ Mon, 16 May 2022 09:08:50 +0000 https://sweetasabiscuit.com/plus500-raises-earnings-expectations-after-q1-trading-frenzy/ Monday, May 16, 2022 10:08 a.m. Shares of London-listed fintech group Plus500 surged this morning as bosses raised their profit and revenue forecasts for the year on the back of an exceptional run of first-quarter results. In a statement today, the company said performance for the second quarter of the year remained “very strong”, supported […]]]>

Monday, May 16, 2022 10:08 a.m.

Shares of London-listed fintech group Plus500 surged this morning as bosses raised their profit and revenue forecasts for the year on the back of an exceptional run of first-quarter results.

In a statement today, the company said performance for the second quarter of the year remained “very strong”, supported by “current market conditions”.

“As a result, the Board of Directors has growing confidence in the Group’s performance for the 2022 financial year, and therefore expects Plus500’s revenue and EBITDA for this year to be significantly above current market expectations.” said the company.

“Furthermore, Plus500 will continue to strengthen its strategic position as a multi-asset global fintech group, through organic investments and by actively targeting acquisitions, to contribute to medium to long-term sustainable growth. “

The update follows a stellar run of first-quarter results in which revenue and profit surged from a year ago, with EBITDA reaching $161.6 million, up 33% from at the same time in 2021.

Performance was bolstered by a push into new markets, with the company securing a new license in Estonia alongside an expansion into Japan, as well as the introduction of a host of new products.

Shares of the company are up nearly 13% this year and jumped around 3% this morning as bosses announced the higher revenue forecast.

Analysts at investment bank Liberum said its new products have caused it to raise its outlook for the business.

“The group’s strong performance is attributable to the development of new proprietary technologies and new product offerings, which will continue to drive growth and geographic diversification,” the analysts said.

“We are increasing our FY22 revenue and EBITDA by 8% and 16% to $675 million and $330 million, respectively, while maintaining our current guidance for FY23 and FY24.”

However, the bosses have faced a confrontation with investors over the past two weeks as investors rejected the pay report at its annual general meeting.

Nearly 55% of investors among those who voted rejected the company’s compensation report, which netted boss David Zruia nearly $2.5 million in salary and bonuses, while Elad Even-Chen , the chief financial officer, pocketed $2.6 million.

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The stock prices of these companies are trading at a discount https://sweetasabiscuit.com/the-stock-prices-of-these-companies-are-trading-at-a-discount/ Sat, 14 May 2022 21:38:08 +0000 https://sweetasabiscuit.com/the-stock-prices-of-these-companies-are-trading-at-a-discount/ With worries about inflation, a looming recession and war in Ukraine weighing heavily on markets, it can be difficult to know where to invest. One option may be to look for stocks in strong companies that for some reason are trading at a discount. This may be because they disappointed in the short term or […]]]>

With worries about inflation, a looming recession and war in Ukraine weighing heavily on markets, it can be difficult to know where to invest.

One option may be to look for stocks in strong companies that for some reason are trading at a discount. This may be because they disappointed in the short term or because outside pressures may have contributed to the stock’s downgrade.

Here are three stocks of companies that we think look undervalued right now.

Meta shares may be worth buying

Shares of Meta Platforms Inc (All Sessions) are down 36% this year to $198.62. The tech titan, which recently changed its name to Facebook’s Meta with great fanfare, has recently come under intense scrutiny from global regulators and lawmakers.

Last year’s whistleblower’s report that the company relied on research that showed its Instagram social media platform was harmful to teenage mental health – and that it had struggling to weed out hate speech – didn’t help matters.

Meta also faces a more hostile regulatory environment in Europe, which seeks to curb the power of big tech companies through its Digital Markets Act. February’s annual results were also disappointing, with Facebook losing daily active users for the first time. And, while first-quarter results were more upbeat, they still missed analysts’ earnings-per-share forecasts.

However, some fund managers believe that technology is the new refuge for investors in difficult times, as utilities and telecommunications once were.

And, while some commentators may be skeptical of the value placed on the Metaverse by boss Mark Zuckerberg, others strongly believe it’s the future and many companies and advertisers are already investing heavily in the space. Additionally, while Meta may face regulatory hurdles and competition from TikTok, it’s a behemoth and the current hurdles aren’t insurmountable for the company.

As COO Cheryl Sandberg recently told investors during first quarter earnings, while Meta believes “these are tough times, long term, we have a very strong competitive advantage when you look at opportunities. available to advertisers to advertise both offline and online.

Although it may take some time for Meta stocks to receive a new rating, the current drop could represent a buying opportunity for investors.

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Tech Futures Rally after a Brutal Week of Trading https://sweetasabiscuit.com/tech-futures-rally-after-a-brutal-week-of-trading/ Fri, 13 May 2022 08:52:00 +0000 https://sweetasabiscuit.com/tech-futures-rally-after-a-brutal-week-of-trading/ U.S. equity futures rose, suggesting markets could stage a relief rally at the end of a trying week of major index losses. Futures tied to the S&P 500 rose 1.2% on Friday, while those for the Dow Jones Industrial Average added 0.9%. Contracts for the tech-heavy Nasdaq-100 jumped 1.8%. Stocks ended mixed on Thursday after […]]]>

U.S. equity futures rose, suggesting markets could stage a relief rally at the end of a trying week of major index losses.

Futures tied to the S&P 500 rose 1.2% on Friday, while those for the Dow Jones Industrial Average added 0.9%. Contracts for the tech-heavy Nasdaq-100 jumped 1.8%. Stocks ended mixed on Thursday after major indices staged a late-session rally that ultimately pushed the Nasdaq Composite into positive territory.

Even with possible gains on the horizon when the market opens on Friday, US stocks are still on track to end the week down sharply. As of Thursday’s close, the S&P 500 and Nasdaq Composite were down 4.7% and 6.4% for the week, respectively, on pace with their worst weekly performance since late January. The Dow Jones, meanwhile, is poised to fall 3.6% and extend its losses for a seventh consecutive week – its longest losing streak since 2001.

The selloff in the US stock market this week came as investors had to reckon with the growing risk of a recession as the Federal Reserve tries to tame inflation. Many institutional and individual investors have begun to discount the idea that the Fed could stage a so-called soft landing, in which inflation falls but unemployment stays low and the economy continues to grow.

On Thursday, Fed Chairman Jerome Powell acknowledged that getting inflation under control could have a short-term impact on the economy, telling the Marketplace radio show that “the process of bringing inflation down at 2% will also lead to difficulties”. He repeated his view that further increases of half a percentage point would likely be appropriate in future meetings, but said the central bank could consider larger increases if economic data dictates.

This week’s inflation report provided little reassurance to investors, especially after data showed that price pressures were broad-based. Even as gasoline prices fell, prices for groceries as well as restaurants, air travel and other services rose, spooking investors who had hoped inflation had peaked.

This has forced many to sell riskier investments and pile into assets perceived to be safer. Growth and technology stocks, which are generally penalized by higher interest rates, were particularly penalized. But the risk sentiment spilled over elsewhere, leading to sharp drops in cryptocurrencies as well.

“This week has been like a pivot in the markets. The mood has changed from assessing whether we can live in an economy with higher rates to [investors] asking, “Are we on the verge of a recession? said Florian Ielpo, Head of Macro at Lombard Odier Investment Managers.

On Friday, however, tech stocks were among those leading the rebound. You’re here,

Nvidia and Netflix each jumped 2.6% or more pre-market.

Robinhood jumped 21% pre-market after Sam Bankman-Fried, the founder of cryptocurrency exchange FTX, revealed he had bought a 7.6% stake in the brokerage.

Bitcoin climbed 5.7% to around $30,205 on Friday, from its 5 p.m. ET level of $28,572.24 on Thursday. Yet elsewhere in the cryptocurrency markets, beleaguered stablecoin TerraUSD continued to spiral lower, trading at 11 cents as of 4 a.m. ET. A so-called stablecoin for its typical $1 peg, TerraUSD broke that level last weekend after a wave of selling in the token. Its sister token Luna also fell precipitously this week, trading at half a penny at 4 a.m. from over $60 on Monday.

Traders worked on the floor of the New York Stock Exchange on Thursday.


Photo:

John Minchillo/Associated Press

In the bond market, the yield on the benchmark 10-year U.S. Treasury rose to 2.915% from 2.815% on Thursday, reversing a four-day drop in yield that came as investors retreated into bonds. Yields rise when bond prices fall.

The WSJ Dollar Index, which measures the greenback against a basket of other currencies, slipped 0.2%, on pace to break a six-day winning streak.

Overseas stock markets also traded higher on Friday. In Europe, the pancontinental Stoxx Europe 600 index climbed 1.1%. In Asia, Hong Kong’s Hang Seng gained 2.7%, while Japan’s Nikkei 225 jumped 2.6%. The Shanghai Composite gained 1%.

—Caitlin Ostroff contributed to this article.

Write to Caitlin McCabe at caitlin.mccabe@wsj.com

Copyright ©2022 Dow Jones & Company, Inc. All rights reserved. 87990cbe856818d5eddac44c7b1cdeb8

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Hanover Bancorp stock has made its stock market debut. What investors need to know. https://sweetasabiscuit.com/hanover-bancorp-stock-has-made-its-stock-market-debut-what-investors-need-to-know/ Wed, 11 May 2022 15:38:00 +0000 https://sweetasabiscuit.com/hanover-bancorp-stock-has-made-its-stock-market-debut-what-investors-need-to-know/ Text size The market for new issues remains slow. The time of dreams Hanover Bancorp, the parent company of Hanover Community Bank, saw its share rise about 4% on its first day of trading as a public company. Hannover (ticker: HNVR) is one of the few initial public offerings expected to launch this week. ProFrac […]]]>

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How to manage risks in momentum trading? Consider a multi-factor approach for sustainable returns https://sweetasabiscuit.com/how-to-manage-risks-in-momentum-trading-consider-a-multi-factor-approach-for-sustainable-returns/ Tue, 10 May 2022 08:07:00 +0000 https://sweetasabiscuit.com/how-to-manage-risks-in-momentum-trading-consider-a-multi-factor-approach-for-sustainable-returns/ Following the trend and keeping pace with it is the basic nature of being human. Doing the same with the stock market is also a fascinating activity. When we follow the market trend, the strategy is known as momentum investing. This is a strategy where you invest in a rising stock hoping that it will […]]]>
Following the trend and keeping pace with it is the basic nature of being human. Doing the same with the stock market is also a fascinating activity. When we follow the market trend, the strategy is known as momentum investing. This is a strategy where you invest in a rising stock hoping that it will continue to rise.

Financial advisors have also surfed the trend by offering momentum portfolios. While this strategy may seem tempting at first glance, one must also consider the risks associated with dynamic investing and how to manage those risks.

This article will guide you on the risks of momentum investing, how you can manage these risks with a multi-factor sustainable approach and analyzing data from various momentum funds.



What is momentum investing?
Dynamic investing involves buying stocks that have shown upward price movements over the past six to twelve months. The basic phenomenon behind momentum investing is that the trend will continue whether it is bullish or bearish.

Dynamic Investing Risks
One of the biggest risks associated with momentum is that of high volatility.

Volatility refers to the rate at which the price changes. You put all your eggs in one basket every time you invest in a focused strategy. In momentum investing, you risk your money on the success of stocks by considering only one factor, namely momentum.

A famous quote from Warren Buffet, “It’s not until the tide goes out that you find out who’s been swimming naked.” This quote is perfect for dynamic investing.

For example, you buy a dynamic fund that invests in companies showing upward price movements over the last 6 months. Here you expect the uptrend to continue for longer.

After the investment, if the price continues to rise, you are likely to enjoy higher returns. However, if stock prices are stable, this fund will perform poorly.

In the worst case scenario, if stock prices fall, you are likely to suffer huge losses due to your reliance on momentum.

In a downtrend period, investors are skeptical of the stocks they have invested in, only considering price movements. If equities underperform for longer, contrary to expectations, investors will wash their hands of a tidy sum of money.

How to deal with the risks?
To deal with the risks associated with dynamic investing, you can diversify your holdings.

A) One way to diversify your holdings is to select a fund that takes into account several factors.

This type of multifactor fund will choose stocks based on factors such as momentum, low volatility, quality, value,

. The performance of a multifactor fund is not based solely on momentum, thus ensuring sustainable returns over the long term.

Mainly, there are two ways to build a multifactor strategy. One is to assign equal weight to all factors considered.

B) The second way is to identify the current market regime and assign more weight to factors that are likely to work in the current market regime.

Our proprietary AI/ML-based algorithms come into play taking into account key macroeconomic factors such as the exchange rate, inflation, interest rates, and commodity prices, and more to identify the current market conditions and focus on factors that are important given the current market conditions.

The shares of the funds are included after analyzing all these essential factors.

Advantages of the multifactor approach
Among more than thousands of organized portfolios listed on the different platforms, we analyzed 30 funds classified as dynamic funds.

If you look at the performance of the four most popular dynamic portfolios, they generated returns in the range of -5.7% to a maximum of 4.47%.

Let’s look at the maximum, minimum and average returns of the 30 momentum portfolios.

Maximum return – 11.3%

Minimum return – 21.7%

Average return – 1.72%

In addition, 16 of the 30 dynamic portfolios gave negative returns. And 4 momentum portfolios returned below the 10% mark. There were only two dynamic portfolios that gave returns above 10%.

The 3 most popular dynamic portfolios have given an average return of 4.7% over the last 6 months. By comparison, the top 3 multifactor portfolios have averaged returns of 12% over the past 6 months. These numbers illustrate the lasting advantage created by multifactor portfolios.

Funds based on a single factor like momentum can outperform when the factor works. However, it is likely to end up underperforming in the long run.

The multi-factor approach helps you diversify your holdings and ultimately produce sustainable returns over the long term.

Conclusion
The performance of momentum funds depends on a single factor. The main disadvantage of dynamic funds is the lack of diversification and the volatility of returns.

If you want to generate sustainable returns over a longer period, the best idea is to consider multifactor funds.

(Disclaimer: The recommendations, suggestions, views and opinions given by the experts belong to them. These do not represent the views of Economic Times)

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NGX Roundup: Holidays slow trading as investors split from N19.60b for stocks https://sweetasabiscuit.com/ngx-roundup-holidays-slow-trading-as-investors-split-from-n19-60b-for-stocks/ Sun, 08 May 2022 18:25:11 +0000 https://sweetasabiscuit.com/ngx-roundup-holidays-slow-trading-as-investors-split-from-n19-60b-for-stocks/ The Nigerian stock exchange saw less trading activity this week due to public holidays on Monday and Tuesday, May 2 and May 3, for the celebration of Workers’ Day and Eid-al-Fitri respectively. As a result, trading volume was low, with investors trading a total of 1.598 billion shares, worth 19.603 billion naira in 21,494 trades, […]]]>

The Nigerian stock exchange saw less trading activity this week due to public holidays on Monday and Tuesday, May 2 and May 3, for the celebration of Workers’ Day and Eid-al-Fitri respectively.

As a result, trading volume was low, with investors trading a total of 1.598 billion shares, worth 19.603 billion naira in 21,494 trades, in three days.

It is below the 8.205 billion shares valued at 49.145 billion naira, traded last week in 28,622 transactions, according to market data from the capital market authority, Nigerian Exchange Limited (NGX).

Best Performing NGX Sector

The best performing sectors for the week were the financial services industry, followed by the conglomerate industry and the consumer goods industry.

Financial services recorded the largest deals with 1.057 billion shares valued at N7.727 billion traded in 8,670 deals, while investors parted with N250.567 million in 852 deals to trade 148.174 million shares .

The consumer goods industry saw 145.471 million shares traded in the hands of investors in 4,557 transactions, valued at N5.226 billion.

The first three actions

As of the end of trading this week, Union Bank Of Nigeria Plc, FCMB Group Plc and Transnational Corporation Plc were the top three stocks traded by volume, contributing 34.26% and 11.89% to volume and share respectively. total stock turnover value.

This represents an exchange of 547.576 million shares worth N2.330 billion in 957 trades on the floor of Union Bank, FCMB Group and Transcorp.

Top Five NGX Winners of the Week

Champion stock value gained N0.82kobo as the stock price ended the week with N3.34kobo per share against the N2.52kobo it opened with.

READ ALSO: Investors gain N262.7 billion as Nigerian stock market hits new milestone

International Breweries closed the week with N6.75kobo per share, rising N1.65kobo to surpass its opening of N5.10kobo per share.

Cadbury was on the list of winners as its share price gained 3.30 Nkobos to rise from its opening of 10.25 Nkobos to end the week at 13.55 Nkobos per share.

Fidson stock rose by N1.88kobo during the week as its stock reached N10.03 per share against the N8.15kobo it started with this week.

Nigerian Breweries stock rose N12.90kobo from N57.10kobo per share to N70 per share.

Top Five NGX Losers of the Week

Oando topped the list of losers following a loss of N0.74kobo, which reduced its share value to N5.56kobo at the end of trading, down from N6.30kobo.

The value of Trans-Nationwide Express stock fell to N0.73kobo per share at the end of trading this week, having lost 9.88% from its opening price of N0.81kobo per share.

Ax Mansard lost N0.24kobo from him to end the week with N2.20kobo per share, below the N2.40kobo per share he started trading with.

LivingTrust stock lost N0.12kobo to end the week at N1.12kobo per share, down from the N1.24kobo per share it started the week with.

Transcorp’s share value also fell during the week, losing N0.45kobo from its opening price of N4.95kobo to end trading at N4.50kobo per share.

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Trading volume on financial exchanges in April strengthened as investors jostle (NASDAQ:CME) https://sweetasabiscuit.com/trading-volume-on-financial-exchanges-in-april-strengthened-as-investors-jostle-nasdaqcme/ Sat, 07 May 2022 15:13:00 +0000 https://sweetasabiscuit.com/trading-volume-on-financial-exchanges-in-april-strengthened-as-investors-jostle-nasdaqcme/ Diego Thomazini/iStock via Getty Images Financial exchanges like CME Group (NASDAQ: CME), intercontinental exchange (NYSE: ICE) and MarketAxess (NASDAQ:MKTX) released strong trading volume statistics in April at a time when high volatility ripped through financial markets in the wake of tighter monetary policy and looming recession risks, highlighting the conundrum of the “search for yield” […]]]>

Diego Thomazini/iStock via Getty Images

Financial exchanges like CME Group (NASDAQ: CME), intercontinental exchange (NYSE: ICE) and MarketAxess (NASDAQ:MKTX) released strong trading volume statistics in April at a time when high volatility ripped through financial markets in the wake of tighter monetary policy and looming recession risks, highlighting the conundrum of the “search for yield” of investors.

In some contexts, S&P volatility (VIX), which is negatively correlated to the S&P 500 index (SP500), jumped more than 70% in April and the shares fell 9.1%. Financials (XLF) -9.7% also passed out. The bond market (TLT) -9.8% also faced immense selling pressure as the Federal Reserve further embraces its aggressive pivot to hawkish policy. On May 4, Fed Chairman Jerome Powell assured the United States that 50 basis point hikes “would be on the table” for the next two meetings and that the runoff from the balance sheet should begin in June. It’s no surprise that stocks on financial exchanges also fell significantly in April, with MarketAxess (MKTX) -22.3% and Nasdaq (NDAQ) -13.5% the most, as shown in the table below.

Looking at how trading volumes on individual financial exchanges fared last month, MarketAxess (MKTX) hit the ball out of the park as its average daily trading volume of $38.1 billion soared 56 % year on year in April, helped by “large market share gains across all product areas,” said CEO and Chairman Rick McVey. “We are encouraged by the growing momentum we are seeing in new product areas like US Treasuries and municipal bonds,” he added. However, MKTX -22.3% stocks in April saw a pronounced sell-off. SA’s quantitative rating in March warned MKTX investors of the high risk of poor performance due to its overvalued status and slowdown.

For CME Group (CME), average daily volume of 20.8 million contracts in April was up 26% from the prior year period, helped by growth in ADV interest rates.

Tradeweb Markets (NASDAQ: TW) reported ADV of $1.09T in April, a 22.1% YoY increase. Separately, the quantitative rating screens TW stocks at high risk of performing poorly given negative EPS revisions. For the coming quarter, five analysts have revised its EPS estimates upwards, but there are also five downward revisions. And five analysts revised earnings up, while three revised earnings down.

Intercontinental Exchange (ICE) ADV climbed 16% YoY in April and open interest rose 6%. The increase was driven by growth in ADV in equity options, financials and energy. On May 4, ICE agreed to buy Black Knight for $13 billion in a move that “will expand the addressable market for our mortgage business to $14 billion and better position us to penetrate our existing TAM of 10 billion,” CEO Jeff Sprecher said during his company’s first-quarter earnings call.

Meanwhile, the Quant Rating ranks CME Group (CME) as the top performer in the financial trading and data industry. FactSet Research Systems (FDS) is in second place, followed by Deutsche Böerse AG (OTCPK:DBOEY) (OTCPK:DBOEF) and the London Stock Exchange (OTCPK:LDNXF) (OTCPK:LNSTY).

Earlier this week (May 6), the US economy added 428,000 jobs in April, while the unemployment rate remained at 3.6%.

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