Investors often find it difficult to decide on the right time to invest. There is a tendency to invest when everyone else is investing. Mutual funds have devised a very sensible solution for investors to deal with the issue of timing – The Systematic Investment Plan. In SIP the investor buys units every month for [...]
Posts on ‘October 13th, 2006’
Credit Problems? Tackle Them Head On!
Hate opening the post? Dread receiving the bill and Bank Statements? Sounds like your finances are becoming a problem.
The ostrich solution never works when it comes to debts – they just don’t go away that easily. Take a tip - there’s never a better time like the present to tackle a debt problem – as [...]
Sector Rotation - The Fundamentals of Business Cycles and Hot Stocks
Through the life of the business cycle different sectors perform better than others. The different phases of the economy favour different sectors here is an overview:
RECESSION
Hot Stocks
- Consumer staples (food, forestry)
- Utilities (gas, electricity, energy)
- Large company stocks outperform Monetary Indicators
- Short term interest rates falling
- Long term interest [...]
How Does Collar Strategy Work in Different Scenarios?
Let’s take a look at how the strategy works with this position.For the sake of our illustration and to make our calculationseasy let’s establish the collar using the December 27.5 put andthe December 30 call, with both trading at $1.00.
Remember our stock price was $28.50. The cost of the collar willbe $0 because you paid [...]