All tagged Investing

A Review of Price Expectations Prediction Methods

Making increasingly more accurate future stock market price predictions has long been a  master objective of portfolio managers, fundamental investors, exchanges, and traders alike. While many long-term investors and short-term traders have somewhat different goals for making price predictions and tend to prefer other analytical methods,  both have strategies and models that depend heavily on forecasting returns and making accurate price expectations predictions. Having good price information is essential, but it is less critical than some of the applications derived from price expectation information. No price expectations ever are perfect because markets are very complex adaptive, and evolutionary, chaotic systems that are by nature impossible to predict and have some perpetually novel, not repeatable forces at play.  

Pandemic Investors

The initial fear of Covid-19 in Wuhan, China and the first reported case in the United States of America marked a new day for investors worldwide. The fear of the pandemic had led us to halt everything, forcing our lives into an ultimate state of limbo, and financially damaging all sectors as lockdowns continued to be enforced. This catastrophic event led to one of the greatest and sharpest declines across all sectors in the market. Eclipsing the turmoil created during the 2008 recessions, “6 trillion USD in wealth was washed out from the global stock market in the week of 24th February” (Chowdhury). This unprecedented amount would lead the International Monetary Fund to declare that the world is facing the worst economic crisis since the Great Depression.

Is This As Good As It Is Going To Get?

As the year 2020 will live in infamy for the negative health implications it brought to the globe, 2020 will also be remembered for the most contradicting state of global capital markets which investors have ever seen. As 2021 begins, the S&P 500 Index hit an all-time high of 3,870.90 on January 26th, while the ensuing coronavirus has been exponentially increasing in cases per day (Yahoo Finance, 2021). Reactions from investors have been contradictory as they have been put into a dilemma on the basis of fundamental analysis, ethics, and capital allocation.