Investors who still track and favor the Dow can trade the value of the index Headline writers love describing the daily movement of the Dow Jones Industrial Average in melodramatic terms. Classics like “Dow surges 600 Points” and “Dow tumbles more than 1,000” dominate newspaper financial pages, scroll across the screen on cable news or … Continued
Options on futures contracts offer possible tax advantages and precise definition of risk While stock market downfalls and soaring interest rates have dominated the financial headlines in 2022, it’s also been quite a year for the currency markets. The U.S. dollar saw a relentless rally as capital fled other currencies around the world into the … Continued
Futures enable active investors to hedge against higher fuel prices
Cryptocurrency may seem less attractive these days as the invasion of Ukraine increases the volatility of crude oil As war rages in Ukraine, crude oil is impersonating a cryptocurrency. The price for West Texas Intermediate contracts (WTI) jumped nearly 7% in one day—the commodity’s biggest rise since record keeping began. The relationship between bitcoin … Continued
Predicting the future price of black gold isn’t easy The economy has apparently withstood this year’s 45% rise in the price of oil, but monetary policymakers remain concerned about the commodity’s future. Higher oil prices can dampen demand in general, as consumers and businesses spend a larger portion of their budgets on oil-related products and … Continued
The repeated highs of recent years don’t guarantee stock prices will never again dip, crash or go sideways Some investors prefer to buy a stock or option that’s up 100%, while others grab up a security that’s down on the year. It’s the classic debate between following the trend or taking the contrarian view, and … Continued
The repeated highs of recent years don’t guarantee stock prices will never again dip, crash or go sideways In old Wall Street adage says that the stock market “climbs a wall of worry” into bullish territory, and that “bear markets slide down a slope of hope.” Mad Magazine’s Alfred E. Neuman is known for having … Continued
Even corn and soybeans are not immune to the perils of social media. According to online chatter, grain prices in 2022 will hit $18 to $19 per bushel of corn, $30 for soybeans and $42 to $45 for wheat. While those price forecasts may seem far-fetched, anything is possible and the 2020 price action on … Continued
Believe it or not, the market for U.S. dollars bears some similarity to GameStop (GME) stock. How? Both rallied from historical lows to start 2021, fell back to those lows in February and woke up again in March. So where does that leave them? In an awkward position that has often brought traders consternation: a … Continued
Think of foreign exchange, or FX, as the “cult classic” of asset classes. Compared with investors in mainstream markets—like stocks and commodities—FX traders are fewer in number but certainly more passionate. Whether volatility runs high or low, foreign exchange trading groups buzz with talk of currency crosses and interest rate comparisons. But traders don’t need … Continued
