Inflation and investment

Inflation and investment

What is the relationship between inflation and investment? Conventional wisdom says that businesses adjust their investment spending according to changes to the cost of capital. Intuitively, that makes sense: more projects become worthwhile as funding costs go down, while few make the cut when capital is expensive. (In reality, it turns out that interest rates, spreads, and volatility are all irrelevant for capex decisions, but let’s put that aside for now.) If central bankers want to boost investment to encourage economic activity, conventional theory suggests they should lower interest rates. However,…

Scalping and Swing Trading

Scalping and Swing Trading

Differences between Scalping and Swing Trading strategies. Many people participate in the stock markets, some as investors; others as traders. Investing is done with a long term view in mind – years or even decades. Trading, meanwhile, is done to pocket gains on a regular basis. There are many sub categories of traders. One of the common ways to distinguish them is the “time period” for which traders hold a stock, which can vary from few seconds to months, even years. Some of the popular trading strategies are day trading, swing trading, scalping…

Consumer Staples Stocks

Consumer Staples Stocks

3 Volatile Consumer Staples Stocks for the Risk Taker (WFM, SFM, WMT) Due to its noncyclical nature, the consumer staples sector has shown strength against the U.S. equity market in 2016 and 2015, despite many global macroeconomic conflicts. The S&P 500 Consumer Staples Index fared well against the market turbulence and ended the year up 6.6% in 2015, while the S&P 500 Index was down 0.73%. As of Feb. 25, 2016, the S&P 500 Consumer Staples Index is up 2.38% year to date (YTD), whereas the S&P 500 Index is down nearly…

Great Buys In April

Great Buys In April

3 Boring Stocks That Are Great Buys In April Following a weak start to the year, markets have posted strong returns last month. Gains have come on the back of two major factors, a decline in rate hike fears and resurgence in oil prices. Stocks gained again on the first trading day of the month, raising hopes of better times ahead. However, concerns continue to linger just beneath the surface, even though they are being ignored at this point in time. This is why it is necessary to pick stocks…