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Property Versus Shares

Property Versus Shares Property has historically been a popular asset class for investors. However, it is becoming harder for first home buyers to enter then market as prices continue to head higher. In this article we discuss some major differences between shares and property and illustrate how share investors can make money in shares even in a recession. Gearing Property has been popular with investors as banks will allow property buyers to borrow 90% of the purchase price of the …

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Further upside in Fletcher Building shares

We recently researched Fletcher Building (ASX:FBU) after the Company provided a trading update and outlined targets to expand margin for each of its segments over the next two years. Investors appear divided over whether the targeted margin expansion can be achieved and are factoring in a slower earnings growth given that the New Zealand residential market appears to have matured. Accordingly, we assess whether there is validity in these investor concerns. However, the key consideration as to whether positive investment …

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What is a market index?

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 …

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What does growth at a reasonable price (GARP) mean?

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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What does the Relative Strength Index mean?

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 …

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