BROADENING FALLING WEDGE FREE

Which strategy works best is always debated, and many volumes of textbooks have been written on both of these methods.Ī Technical Analyst would criticize Fundamental analysis as they consider it worthless because company numbers are frequently cooked and they only come out once a quarter. Earnings, expenses, assets and liabilities are all important characteristics to fundamental analysts, whereas technical analysts could not care less about these numbers and only focus on price and volume. In the world of stock analysis, fundamental and technical analysis are on completely opposite sides of the spectrum. Bond-to-Stock Shift Provokes Performance Anxiety.Bond Bubble Will Be Bigger Catastrophe than Real Estate Bust.Premium Bond – a bond which is currently trading for more than its par value.Discount Bond – a bond which is currently trading for less than its par value.It is what an investor paid for the bond when it was initially issued and what will be repaid to an investor when the bond matures. Par Value – the face amount of a bond.

When it does, the prices of the bonds in bond funds will fall and the fund values will go down. There is no argument that interest rates will be going up. Relationship between bond prices and interest rates: Why bond prices move inversely to changes in interest rateīond fund buyers need to be aware (or should they beware?). At some discounted price, the 5% bond is just as attractive as the 6% bond for $1000. If someone else is looking to buy a bond, they would obviously chose the 6% bond for their $1000 over your 5% bond… unless you were willing to sell your $1000 bond for less than $1000. Those bonds pay $60 every year until the face amount is returned to the investor. Tomorrow, the same bond issuer raises the interest rate on new bonds to 6%. In investment terms, you just purchased the bond at Par Value. Every year the bond will pay $50 until the bond matures and then you receive the $1000 back. Suppose you buy a $1000 bond today which pays 5% interest. When interest rates go up, bond prices go down. When that happens, bond investors may find their portfolios in trouble. What is important is that interest rates are as low as they will go and the next change in interest rates will be up. The accuracy of their estimation can be argued but it really isn’t they key issue. In their recent guidance, the Fed announced their intention to keep the rate at that low level until the unemployment rate falls below 6.5% which they predict will happen in 2015. In response the financial crisis, the Federal Reserve (the Fed) lowered the federal funds rate to a historic low of 0% – 0.25% and they have remained there ever since. The most logical explanation is an attempt to find income and safety, but are bonds truly safe? To explore that question we need to understand where interest rates are now, where they will be in the future, and how changes in the interest rates will affect bonds. Since 2007, there have been $1.39 trillion invested in Bond Funds versus $193 billion in stock funds. Since the bottom fell out of the stock market in 2008, investors have been shifting money from stocks into bond funds. This term is sometimes abbreviated as “DRP”. Definition of a Dividend Reinvestment Plan Most DRIPS don’t allow reinvestments much lower than $10.

BROADENING FALLING WEDGE FREE

Most DRIPs allow you to buy shares commission free and at a significant discount to the current share price. A DRIP is an excellent way to increase the value of your investment. If the net loss for the period is greater than the retained earnings at the beginning of the period, retained earnings will be negative, creating a deficit.Īdmin Definition of a Dividend Reinvestment PlanĪ plan offered by a corporation that allows investors to reinvest their cash dividends by purchasing additional shares or fractional shares on the dividend payment date. Examples of these type of investments would be buying machinery or research and development. This equation is also known as the “retention ratio” or “retained surplus”.Ĭompanies retain their earnings to invest in projects or plant improvements that will help the company grow. Retained earnings is calculated by adding net income to (or subtracting any net losses from) the beginning retained earnings and then subtracting the dividends that were paid to shareholders: Retained Earnings (RE) = Beginning RE + Net Income – Dividends

Broadening falling wedge