There are different market indexes used all over the world and in this article we discuss the different market indexes used in different stocks markets and we also examine why a market index is used. Definition A market index reflects a portfolio of securities to represent a certain sector of the stock market. Reasons why market indexes are used Market indexes can be used as a benchmark so when a fund manager or adviser is managing money, they can refer …
Investors looking to obtain a balance of growth investing and value investing should consider the strategy known as Growth at a Reasonable Price (GARP) trading strategy. This strategy looks to combine both growth and value investing. Definition Growth at a reasonable price (GARP) is a strategy that combines growth investing with value investing. Stocks which have fall into this group are companies which demonstrate good growth potential in the future but they aren’t too expensive as these have low price/earnings …
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Technical analysts use various tools to gauge the sentiment of a particular stock or index. One momentum indicator they may use is Relative Strength Indicator (RSI). It was developed by J.Welles Wilders in his book in 1978 and it is still popular with current traders. What is a Relative Strength Index (RSI)? The RSI is a technical momentum indicator which identifies when a stock/index has been oversold or overbought. This indicator measures the speed and change of price movements. It …
Australian share markets have recently seen a spike in volatility due to fears over Coronavirus. No-one knows exactly how it can play out from here. Outside of complicated hedging strategies, there are some basic actions that the average investor can take to minimise their downside until the dust settles. 1.Get in to Cash When the stock breaks its uptrend and becomes volatile, it can be best to move a portion of your portfolio in cash. We wrote an article recently …
The Australian stock market is broken down into separate sectors developed by the GICS (Global Industrial Classification). This sector classification is important for portfolio management purposes as it can show investors where they may be overweight or underweight. 1.Energy This sector involves companies that are involved in producing energy. It contains oil, gas, and renewable energy companies which are in exploration and development. This sector also includes utility companies providing power to households. Energy stocks usually perform well in high …
Read MoreWhat are the different sectors of the market and what do they mean?