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Markets

How to Set and Reach Your Financial Goals

How to Set and Reach Your Financial Goals Each financial objective can be achieved if we set reasonable goals and use correct budgeting techniques. A comprehensive individual financial planning generally includes; investment planning, retirement planning, insurance planning, tax planning, and estate planning. Financial advisers prepare an extensive financial plan that fits the intentions and financial

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How are Market Indexes Calculated? – Definition & Examples

How are market indexes calculated? How are price return and total return measured in market indexes? What are index weighting methods? How is each index weighting scheme calculated? What are the terms of rebalancing and reconstitution? If you’re looking for answers to these questions, this article will help you understand market indices. Investors need to

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Economic Indicators

An economic indicator presents information on the phase of the overall economy. Economic indicators consist of data on an economy’s recent past activity or its current or future position in the business cycle. Leading indicators have pivotal moments that lead those of the overall economy. Leading indicators often used for forecasting short-term future trends. This

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One Commodity with No Futures

Which futures contracts are investors banned from trading? Well, some of you may know that the answer is future contracts of onions. The Chicago Mercantile Exchange, which was established as the Chicago Butter and Egg Board, started onion futures trading in 1942 to recover losses of its terminated butter futures. Vincent Kosuga In 1955, Vincent Kosuga,

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Short-Term Perspective and Quarterly Reporting – Any Correlation?

President Trump on August 17, 2018, suggested that public companies release their financial statements semi-annually instead of quarterly. He also asked the Securities and Exchange Commission to assess the quarterly reporting. Some business leaders support the proposal, but some investors worry about its effect of deteriorating transparency in financial markets.   In the President’s tweet,

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Naïve Diversification and Regret When Investing

Nearly all finance and investing books, writers, and academics mention diversification, periodic portfolio updates, rebalance illiquid holdings, and risk-adjusted-performance evaluations. Do you think these finance professionals consistently implement these strategies to own their lives? As you may guess from the beginning of the article they don’t. Jason Zweig, the writer of “Your Money & Your

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Stock Volatility and Beta Coefficient: BIST 30 Index

Beta coefficient The beta coefficient indicates the risk according to the stock market index. In other words, it is the numerical expression of the market risk of the stock. The beta of the stock represents the index’s volatility. Beta Coefficient Signals The beta coefficient: =1, the stock movement is the same as the index (average

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Investors Should Beware the Shortcomings of the Sharpe Ratio

One of the most pronounced developments in the finance field is the Sharpe ratio. Nobel Laureate William Sharpe developed this risk-adjusted measure in 1966. The ratio is computed by dividing excess return by the standard deviation to calculate return per unit of deviation. The Sharpe Ratio The Sharpe ratio was structured as forward-looking for determining

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