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Macro factors that affect the stock market

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Fundamental analysis of companies can give us insights into their financial health. Technical analysis can provide an insight into how a stock is trending. However, investors cannot ignore macro factors within the current economic environment.  Some of these factors include economic growth, unemployment, inflation, interest rates, and exchange rates. All of these can affect the stock market. If investors are aware of these factors, they can adjust their portfolio to lessen portfolio losses or maximize profits. Economic growth The economy’s …

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What does market volatility mean?

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Stock markets around the world have recently experienced some very turbulent activity. These large movements in the index sparked regular discussions about volatility in the market. So, what does volatility actually mean, and why is it examined in so much depth by market analysts and commentators? What is volatility? Volatility is the speed of price changes of a stock. A stock with high volatility is one where the price changes rapidly over time, it will rise and fall at an …

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Property Versus Shares

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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

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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?

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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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