As counter-intuitive as it may seem, the luxury industry and iconic companies such as LVMH, Hermes and the Richemont group recorded strong performance during the 2007-08 financial crisis. To simplify their activities – and perhaps strip them out of their hard earned experience, know-how, glamorous appeal and subsequent prestige- these groups sell goods at a…
The year: 2010. The place: Mountain View. The company: Google. These are the space/time coordinates of one of the most glorious failure of the recent economic history. In 2010 Google was on a rampage, introducing the first of six (till May 2015) Nexus smartphones, launching “Google Instant”, creating “Google eBookstore”, the first and most believable…
Macroeconomic indicators are the key factors in making investment decision. Political parties and central banks evaluate countries’ performance based on them concentrating on some in particular, for instance employment and inflation, and setting the targets. These targets are usually connected with countries’ specific weaknesses appeared in the past. Macroeconomic indicators determine business climate and, therefore,…
WEEKLY REVIEW
One of the most employed tools in technical analysis are Bollinger bands. Commonly used as volatility indicators, Bollinger Bands provide a quick glance of market conditions and trading opportunities. Starting from a simple moving average calculation, this analysis tool incorporates two outer bands parallel to the central line in order to represent the volatility in…
One of the best way to assess if the company in which you are investing is on the way of profitability, is to calculate its Working Capital. Generally, Long-term investments and financing decisions determine the future cash flows of a firm. When we discount these cash flows by an appropriate cost of capital, we can…
Illiquidity and Ang’s model of illiquid security trading Finance professionals have face huge problems with liquidity during the crisis. Liquidity risk, the cost to transform your investment into cash, has been really present in many finance portfolios and it is a nightmare for some of them. One good measure for the illiquidity is the turnover…
When you decide how to invest your money, you substantially have two different options: active investment strategies and passive investment strategies. In the case of active investment, the investment manager will try to outperform some given benchmark by over/under weighting some assets/asset classes in order to increase more than proportionally the value of assets under…
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