The S&P 500 created a Death Cross today. The S&P 500 index representing the U.S. economy started dropping since it topped on February 19, 2025, and hit its lowest bottom at $4,820 and bounced back rapidly. This drop was recorded as 21% dropping from the all-time high of $6,120. A […]
Market Education
Bloomberg US Corporate High Yield Spread on S&P 500
In late February, the Bloomberg High Yield Index Option Adjusted Spread (OAS) over U.S. Treasuries stood at 2.56%, hitting the narrowest level in history. The narrowest level seems to have been witnessed before the notorious recessions occurred in 1999, 2007, and 2019. The early 2000s recession, which ended in November […]
SPAC Merger vs IPO
A SPAC merger (Special Purpose Acquisition Company) and an IPO (Initial Public Offering) are two different methods for a company to go public. Here are the key differences and why a SPAC merger can sometimes be more attractive than an IPO: Why SPAC Mergers Can Be More Attractive Than IPOs Speed to Market SPAC […]
The Edge : The Discrepancy of Inefficiencies From Efficiencies
The market is efficient based on the efficient market hypothesis (EMH), which is described as follows: “Asset prices in financial markets fully reflect all available information at any given time, thus, it is impossible to consistently achieve higher-than-average returns through stock picking or market timing, as prices adjust almost instantly […]
Bloomberg U.S. Corporate High Yield
The Bloomberg U.S. Corporate High Yield Index (also known as the Bloomberg High Yield Bond Index) is a widely followed benchmark that tracks the performance of below-investment-grade (junk) corporate bonds issued in the U.S. dollar-denominated market. What It Consists Of: Eligible Bonds: Credit Rating: Bonds rated Ba1/BB+ or lower by Moody’s, S&P, or Fitch (i.e., non-investment grade). Currency: U.S. […]
Alpha & Beta
What investor are you? This is a simple question, however, it is the most important question to ask before you even start investing in stocks. Many investors do not care about the style or type of investment, however, by defining what type of investor you should become and sticking with […]
Good Technical Analysis
1. Fibonacci Retracement • Overview: Based on the Fibonacci sequence, this theory involves drawing horizontal lines on a chart at key Fibonacci levels (23.6%, 38.2%, 50%, 61.8%, and 100%) to identify potential levels of support and resistance. • Application: Traders use Fibonacci retracement levels to predict where the price might […]
Market Theories and Analysis
Several theories and analysis have been developed over the years to predict stock market movements. These theories range from fundamental analysis to technical analysis and quantitative models. Here are some of the most popular stock market prediction theories: 1. Efficient Market Hypothesis (EMH) • Overview: Proposed by Eugene Fama, the […]
Benner’s Cycle 100 Years Of Market Prediction
The Benner Cycle is a theory developed by Samuel Benner in the late 19th century that predicts cycles of economic activity, specifically in commodity prices and financial markets. Benner was a farmer who turned to analyzing economic patterns after experiencing the effects of economic booms and busts in agriculture. His […]
Reason Why CEO Sells Shares
When a CEO sells company stock, it can happen for various reasons, not all of which are negative or related to the company’s performance. Here are some common reasons: 1. Diversification: CEOs often have a significant portion of their wealth tied up in their company’s stock. Selling some shares allows […]