The concept of leverage is used by both investors and companies. Investors use leverage to significantly increase the returns that can be provided on an investment. They lever their investments by using various instruments that include options, futures and margin accounts. Companies can use leverage to finance their assets. In other words, instead of issuing stock to raise capital, companies can use debt financing to invest in business operations in an attempt to increase shareholder value. (For more insight, see What do people mean when they say that debt is a relatively cheaper form of finance than equity?) Read the rest of this entry »
How The Leverage Game Works
Aug 23
Starting Forex
Aug 19
The foreign exchange market (Forex) offers many advantages to investors. But you need to know where to begin. This short guide will give you the Forex basics, so you can quickly start participating in this fast growing market. In the past, foreign exchange trading was limited to large players such as national banks and multi-national corporations. In the 1980’s the rules were changed to allow smaller investors to participate using margin accounts. Margin accounts are the reason why Forex trading has become so popular. With a 100:1 margin account, you can control $100,000 with a $1,000 investment. Read the rest of this entry »
Euro Loss Again
Aug 16
The euro extended its losses Friday, hitting a fresh three-week low as persistent concerns about slowing economic growth reduced demand for riskier assets. The common currency dipped to $1.2757 in New York trading, its worst level since July 22, with investors filing into the dollar and yen, the traditional safe harbors in times of financial doubt. The euro also fell to a six-week low against the pound at GBP81.84. The day’s currency movements were a continuation of the week’s flight from risk, driven by weak data from the U.S., Asia and Europe, and losses in global equity markets, said Amelia Bourdeau, senior G10 currency strategist at UBS in Stamford, Conn. That was unlikely to change as investors adjusted their end-of-week positions, Bourdeau said. “People don’t like to take on risk ahead of the weekend,” she said. Read the rest of this entry »
USD/JPY Above 86.20
Aug 5
Bouncing strongly up today on better than expected US data, the USD/JPY holds firmly above the 86.20 area, barely 10 pips away from its daily high at 86.38 reached during current American session. The pair that set a fresh yearly low at 85.32 past Tuesday, remains quite close to historical lows, and despite recent recovery, far from losing its dominant long term bearish trend. Comments from Federal Reserve Chairman Ben Bernanke and St. Louis Fed’s James Bullard have stoked market expectations that the Fed may consider resuming quantitative easing efforts as soon as next week’s meeting. Read the rest of this entry »
New orders for long-lasting manufactured goods fell unexpectedly for a second straight month in June, posting the largest drop since August in a sign economic recovery cooled in the second quarter. However, the Commerce Department report on Wednesday showed cash-flush businesses continued to invest in equipment. That implied underlying demand remained intact with firms exhibiting confidence in the moderate economic recovery. Read the rest of this entry »
The US dollar was mixed on Monday, hovering near two-month lows against the euro as investors weighed another disappointing report on housing and awaited a flood of earnings reports later this week. Markets are also anticipating the publication of European bank “stress tests” due on Friday. The euro rose to $1.2960 in late New York trading from $1.2947 late Friday, when it topped $1.30 for the first time since May 10.
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Shares of Nike (NKE) are off $1.47, or 2%, at $71.05 after the company this afternoon reported fiscal Q4 revenue rose 8.5% to $5.1 billion, just a hair under the $5.15 billion projected by analysts, and met earnings expectations with $1.06 per share. CEO Mark Parker remarked, “We finished strong with a great quarter and accelerating momentum across the business.” Read the rest of this entry »
The toughness for the euro’s rebound from its recent four-year low is paramount issue facing foreign currencies over the coming sessions. China’s promise to permit the yuan more flexibility to understand, announced Saturday through the Individuals Bank associated with China, may offer the most popular foreign currency a few assistance whenever promotes available Mon. “It is favorable with regard to risky assets as the statement meant China is becoming much more positive about the growth view as well as did not the actual see euro-zone [debt] turmoil getting substance results on exports,” mentioned Rick O’Neill, main economist from Goldman Sachs. Read the rest of this entry »
BEIJING, June 14 — Faster-than-expected export growth in May is unlikely to prompt the government to have a major rethink of its current policies on trade and the currency. Yao Jian, spokesman for the Ministry of Commerce, said the “stability” of China’s trading policy is “paramount”, given the murky economic situation in Europe, which is China’s biggest trade partner. Read the rest of this entry »
