Beta Factor as Risk Measurement Tool
If you buy any asset, you get the asset and a risk. If you want to evaluate this risk you need a risk measurement tool. A widely used tool to compare risk in financial markets is the BETA-factor. This article explains the construction of this risk coefficient, its use and limitations. Anchor Points for BETA [...]
Read moreThe Use of Asset Classes
Financial service companies structure their business activities around asset classes. Seasoned investors do the same with their portfolio. Why and how? If you build an estate to have funds available for your retirement, for an investment or for the education of your children you have to decide where to put your money. You could buy [...]
Read moreFundamental and Technical Analysis of Financial Markets
There are two general approaches to analyze and understand financial markets: Fundamental and technical analysis. Prices on financial market are moving up and down, day by day. It is very hard to predict the next movement. After reading this article you should understand the core concepts of fundamental and technical analysis and appreciate their mutual [...]
Read moreFinancial Assets and Risks
Financial assets and risks are closely related. Every asset carries a value and a risk. The value of an asset is the price the owner can get by selling it. In liquid markets, e.g. for shares of big corporations, government bonds or commodities, where many standardized units are traded, the price of an asset is [...]
Read moreWhat ETF Investors Can Learn from the May 6 Flash Crash
If you had any doubt that today’s markets aren’t what they used to be, it should be gone after last Thursday. U.S. stocks were already having a bad day thanks to riots in Greece, elections in the U.K., freezing credit markets in Europe and a growing oil spill in the Gulf of Mexico. Within a [...]
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