Because of coronavirus fears, the only seats filled these days are the ones in front of TVs. With very few people traveling, airline stock prices have declined an average of 50% during the past few months, prompting long-term investing maven Warren Buffet to make the unusual announcement that he was exiting his positions in the … Continued
Many commodity ETFs represent bad long-term investments Investors often want part of the action when commodities start to move around, especially when prices decline. It’s logical then that they often head to exchange-traded funds (ETFs). What’s not to love? They’re easy trading vehicles that don’t require special trading permissions, and the prices are affordable for … Continued
The fast and furious COVID-19 downturn provides the perfect prelude for this options strategy What made the 2020 COVID-19 market downturn unusual wasn’t the magnitude—the markets have been down more than 30% before. Instead, it was the speed. The plunge occurred in two months, while previous declines have occurred over several months or even more … Continued
Perhaps some traders are looking to “tiptoe” back into the market and make some cautious purchases. Anyone seeking lower-volatility assets could consider two exchange-traded fund (ETF) sectors: Consumer Staples (XLP) and Healthcare (XLV). Both currently have lower volatility than the S&P 500. The options market’s volatility—a statistical measure based on an option’s price—is ranked … Continued
Many stocks tend to move in tandem, so pairs trading enables investors to mitigate directional exposure Investors might consider using pairs trading when they feel bullish or bearish on a stock but want to reduce exposure to the daily movement within the market. In other words, it’s well known that stocks tend to move in … Continued
Investors often tout gold as a strategy during market declines. It sounds ideal because a precious metal like gold should withstand shocks to the economic cycle, right? Well, not always. Think about the decline of the S&P 500 at the end of February. The market dropped and so did gold. Yes, it did provide some … Continued
Some stocks offer more exposure in Chinese markets than their names suggest. Here’s a sampling of opportunites. Alibaba A Chinese holding company with a range of products and companies, Alibaba (BABA) invests mostly in independent firms that expose investors to only small amounts of industry risk. Takae a look at some of the companies under … Continued
Investing in China remains notoriously difficult, but here are some liquid options With the second-highest gross domestic product (GDP) in the world—and a close second to the GDP of the entire European Union—China is indisputably a major player in the global economy. Even though some Chinese stocks don’t have great liquidity (ease with which investors … Continued
Protective puts are popular, but traders have more cost-efficient ways of hedging their positions Losses hurt. Experiments indicate that avoiding a $5 loss carries twice as much psychological power as experiencing a $5 gain. Traders who overstress about loss avoidance actually create the loss they so much want to avoid. A simple online search … Continued
RIPE AND JUICY TRADE IDEAS Traders think of Biotech as the most volatile sector, but it wasn’t in 2019. Last year, the most volatile sector by far was Oil Services, followed by Oil and Gas Exploration and Gold Miners. The least volatile sectors were Consumer Staples, Utilities and Health Care. Why does that matter? Volatility … Continued
