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

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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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