Why the Federal Reserve is Digging an Ever-Deeper Hole
Apparently, policymakers at the Federal Reserve are having second thoughts about the wisdom of open-ended quantitative easing (QE). They should. Not only has this untested policy experiment failed to deliver an acceptable economic recovery; it has also heightened the risk of another crisis. The minutes of the January 29-30 meeting of the Fed’s Federal Open…
Using Divergence To Detect Bottoms and Tops
By Vito Henjoto, Technical Analyst, GFT Divergence is a fantastic tool to use if you can spot it – but for some people, they miss out and just can’t see the wood for the trees. Considering that the trading world is mostly sentiment driven, price itself does not filter out emotions, sentiments and bias of…
Dividend Stability in 5 Top Performing Income Stocks – page 2
JB HiFi (JBH) is a favorite stock for short sellers. The stock has 19.16% short interest and appears to permanently sit at the top of the list of the most shorted stocks on the ASX. Its share price is down 20% year over year but a ten year time horizon looks much better. Here…
A rebound in iron ore prices? Who knows?
By Jason West, Griffith University Forecasting commodity prices is like buying a second hand car. Only the car’s previous owner and perhaps the dealer really know what the car is actually like. In contrast you, the buyer, are an outsider with very limited insight and can only judge the car’s true value by what you…
The End Of The Third Industrial Revolution
Are we facing the end of the third industrial revolution and the beginning of a new transition? Wim Grommen’s paper titled ‘The Economic Crisis: Time For A Paradigm Shift’ describes the three transitions – the Neolithic, the first industrial revolution, the second industrial revolution and the third. He argues that today humanity is being confronted…
The Case of Indicator Overload – How Many Are Too Many?
By Expert Panel | By Vito Henjoto, Technical Analyst, GFT When it comes to technical analysis, the range of indicators available means there’s bound to be one to suit every trader. While this is true, most traders unfortunately take this to mean that more is better, which is not often the case. Technical traders are generally divided into two…
Is Rent Money, “Dead Money”?
By Wealth Foundations Rent is the price of housing accommodation The home building industry often promotes to potential young home buyers that rent money is “dead money” i.e. money down the drain. It encourages them to stop paying rent and, instead, use the money to pay off the mortgage on their own new home. I…
The Pros and Cons of Lifetime Annuities
By Wealth Foundations Lifetime Annuities and the quest for certainty Lifetime annuities offer you the opportunity to outsource a large slice of the uncertainty associated with managing your retirement capital. You get to exchange your capital for an annuity that will offer you a guaranteed income stream for life. And, for an additional cost, this…
Explainer: what is short selling?
By Carole Comerton-Forde, Australian National University Short sellers are often portrayed by the media to be the villains of the financial markets. They are usually presented as evil traders that drive down the prices of good companies. However, the academic research on short selling typically provides evidence more consistent with them being heroes. They identify…
The Big Movers – Why Index CFDs Are Proving Their Worth
At the height of the global financial crisis, CFD traders made a big migration. From individual stock CFDs, they moved to index CFDs; and later, to currency CFDs. The move to index CFDs came because “people could see that the indices traded 24 hours, instead of 10 am-4 pm for shares,” says Kara Ordway, senior…
