Financial Theory Articles

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  1. Why Leveraged ETFs Are Not a Long-Term Bet

    Leveraged ETFs aren't for the average investor. They can, however, present significant upside potential for the right type ...
  2. Haunting Wall Street: The Halloween Terminology Of Investing

    Beware of zombies and Jekyll and Hyde companies! Read about the spooky terms circulating Wall Street.
  3. 6 Basic Financial Ratios And What They Reveal

    These formulas can help you pick better stocks for your portfolio once you learn how to use them.
  4. 5 Ways To Measure Mutual Fund Risk

    These statistical measurements highlight how to mitigate risk and increase rewards.
  5. 5 Economic Concepts Consumers Need To Know

    A solid understanding of economics helps build a strong foundation in almost every area of life.
  6. 4 Biases That Can Make You A Bad Investor

    Find out how to spot these four biases, and start making more logical investing decisions.
  7. How To Avoid Emotional Investing

    Most investors buy high and sell low, but you can avoid this trap by using some simple strategies.
  8. The Biggest Trend in Investing May be Wrong for You

    3 reasons why you may want to think twice before allocating Smart Beta to your portfolio.
  9. What You Should Know About Smart Beta ETFs

    What you need to know about smart beta ETFs and the strategies behind them.
  10. A Guide on the Risk-Adjusted Discount Rate

    When a project or investment faces higher amounts of risk or uncertainty, it may be appropriate to utilize the risk-adjusted ...
  11. The Uptick Rule: Does It Keep Bear Markets Ticking?

    This rule prevents traders from driving stocks down, but its effect on market volatility is debatable.
  12. The Importance of a Client's Risk Assessment

    Financial advisors and money managers must do a detailed risk assessment regarding each client before they can recommend ...
  13. Behind the Law of Large Numbers in the Insurance Industry

    Discover how the law of large numbers helps insurance companies cope with risk, and why the theory does not always live up ...
  14. Tips for Boosting Your Retirement Income

    Here are some best practices on how to generate as much retirement income as possible.
  15. With Bond Yields So Low, Where Should Advisors Go?

    Historically low bond yields mean that it's harder than ever to find a safe source of returns. Here are a few alternatives.
  16. Some Thoughts on the Gender Gap in Financial Services

    We speak about the impact of the recession on job prospects in the financial services industry, and what it takes for women ...
  17. Investing: How to Make Fast Money in Your 20s

    In your 20s and want to maximize returns on your investments? Here's how. But be careful.
  18. Understanding Investor Behavior

    Discover how some human tendencies can play out in the market, posing the question: are we really rational?
  19. Create Your Own Trading Strategies

    Do-it-yourself trading can be very rewarding - both psychologically and for your wallet.
  20. 3 Top International Mutual Funds

    If you want to invest outside of the United States, here are three international mutual funds to consider.
  21. Market Timing Tips & Rules You Should Know

    Market timing rules benefit investments by finding the best prices and times to take exposure and book profits.
  22. How to Get Your Portfolio to Eat Its Duration

    Learn why while most investors realize that traditional bonds dampen portfolio volatility, it’s hard to commit to an asset ...
  23. CAPM vs. Arbitrage Pricing Theory: How They Differ

    Both project the expected rate of return given the level of risk assumed, but they consider different variables.
  24. 5 Top Ways to Double Your Investment

    From risky maneuvers to slow-and-steady strategies, we look at five methods to double your money.
  25. Social Security: Saving vs. Delaying Benefits

    If you are turning 66 and still working, does it make sense to put Social Security benefits in a savings account or CD or ...
  26. Top 10 Must-Read Books for Finance Professionals

    Interested in the financial world? Here are some books that provide keen insight into its history and how it works.
  27. Should Investors Care that Stocks are Expensive?

    Coincident to the latest string of market records, another milestone was recently hit.
  28. Investment Risks You Should Take in Your 20s

    You can take more risks when investing in your 20s, but not until you do this first.
  29. FREEX: Risk Statistics Case Study for Real Estate Mutual Fund

    Analyze risk statistics to determine how FREEX fits into a portfolio designed to optimize expected return based on a given ...
  30. Behavioral Finance: How Bias Can Hurt Investing

    Here are three cognitive biases from behavioral finance that investors would do well to be aware of to avoid making poor ...
  31. Investing Strategies to Avoid and Embrace

    For most, having a diversified portfolio and a strategy that is both short-term boring and long-term rewarding is the best ...
  32. Rainfall in Ethiopia and Other Stock Market Advice

    No one knows how events will impact financial markets. So what investment advice should you focus on? Start by considering ...
  33. What Makes An M&A Deal Work?

    Do you know why companies merge? Here we'll take a look at three successful company acquisitions and why they succeeded. ...
  34. How Your Tax Rate Is Determined

    Feel like the government always has its hand in your pocket? Learn the theory behind how it decides how much to take.
  35. Unemployment and Economic Growth: Okun's Law

    Unemployment and economic growth? Okun has a law for that.
  36. What’s the US Yield Curve Signaling?

    In recent weeks, the difference in yields between 10-year and 2-year U.S. Treasuries has hit post financial crisis lows, ...
  37. Ten Worst Mistakes Beginner Investors Make

    Here are the ten worst mistakes beginning investors make.
  38. The Importance Of Diversification

    Without this risk-reduction technique, your chance of loss will be unnecessarily high.
  39. How Inflation and Unemployment Are Related

    How can inflation affect unemployment, and vice versa? Here we examine wage inflation, stagflation and the Phillips Curve.
  40. The Emerging Market Opportunity in a Yield Drought

    Learn why investors face the choice of either accepting lower income or increasing risk in their bond portfolios in the search ...
  41. 5 ETFs Flaws You Shouldn't Overlook

    Despite their popularity, exchange traded funds have some drawbacks that investors should know about.
  42. High Beta Stocks: Risks to Consider Over a Long Horizon

    Learn the risks of high-beta stocks if you are considering them for your portfolio. These stocks can provide strong returns ...
  43. Learn Simple And Compound Interest

    Interest is defined as the cost of borrowing money, and depending on how it is calculated, can be classified as simple interest ...
  44. 5 Ways New Investors Can Reduce Stress

    Learn five ways to reduce stress prior to investing, involving budgeting, diversification and risk tolerance.
  45. Why Include Convertible Securities in Your Portfolio

    What are convertible securities and why you should include them in your portfolio.
  46. Non-Traded BDCs: Worth the Risks?

    Non-traded BDCs, which lend to high-risk companies, have become a popular investment choice. But they also carry cost and ...
  47. Negative Interest Rates Require Flexibility in Fixed Income

    Here’s a quick look at four charts showing just a few of the interrelated ways the global fixed income markets have dramatically ...
  48. How Are Collectibles Taxed?

    If you plan to sell collectibles, it's imperative that you know the tax implications.
  49. Top 3 Stocks to Invest in If You Can't Stand Risk

    Don't have the appetite for risk? Consider these 3 stocks.
  50. What Happens to Bond ETFs in Stressed Markets?

    We are going to dive a little deeper today at how bond exchange traded funds (ETFs) fare when the markets are stressed.
  51. 3 Themes That Will Shape Markets This Quarter

    Fears of a global recession hit markets hard at the start of the year. Yet the anxiety has waned.
  52. Smart Beta ETFs: Understanding the Risks

    Smart Beta ETFs have grown in popularity in recent years. These are the risks that advisors and their clients need to understand. ...
  53. Junk Bonds’ Performance After the Financial Crisis

    How did higher-yielding bonds perform during and after the financial crisis of 2007-2009?
  54. DPPs: What Advisors and Investors Need to Know

    Direct participation programs, a new alternative investment class, are gaining steam. Here's what advisors and investors ...
  55. Internal Rate Of Return: An Inside Look

    Use this method to choose which project or investment is right for you.
  56. High-yield Bond Investing: Information Is Key

    Access to and analysis of relevant information are the key to success in the high-yield bond market.
  57. How Globalization Affects Developed Countries

    The increase in communications technology has companies competing in a global market.
  58. The Difference Between Finance And Economics

    Learn the differences between these closely related disciplines and how they inform and influence each other.
  59. Market Value Versus Book Value

    Understanding the difference between book value and market value is a simple yet fundamentally critical component to analyze ...
  60. Penny Stocks Vs. Venture Capital: Which Carries the Highest Risk?

    Learn how the challenges of venture capital investing and buying penny stocks differ and which type of investment carries ...
  61. 3 Investments With the Best Long Term Track Records

    Take a look at the three asset classes with the best risk-adjusted performance since 1990, and find out why the Sharpe ratio ...
  62. What Is the Quantity Theory of Money?

    Take a look at the tenets, assumptions and challenges of monetarism's principal theory.
  63. How to Calculate Required Rate of Return

    The required rate of return is used by investors and corporations to evaluate investments. Find out how to calculate it. ...
  64. Dollar Cost Averaging Case Study: Emerging Markets Stocks (GS, EEM)

    Take a look at how a hypothetical dollar-cost average investment of $100 per month into the MSCI Emerging Markets Index would ...
  65. Common Sense Strategies For Adverse Markets

    Adverse markets require skillful adjustments to reduce risk and find new profit opportunities.
  66. Strategies for Trading Volatility With Options (NFLX)

    These five strategies are used by traders to capitalize on stocks or securities that exhibit high volatility.
  67. Globalization and the Butterfly Effect

    Discover how the butterfly effect applies to global capital markets and witness how chaos theory can describe market volatility.
  68. Should You Be Betting with Buffett Right Now?

    Following Warren Buffett's stock picks has historically been a good strategy. Is considering his biggest holdings in 2016 ...
  69. Cash vs. Stocks: How to Decide Which is Best

    Is it better to keep your money in cash or is a down market a good time to buy stocks at a lower cost?
  70. 3 Healthy Financial Habits for 2016

    ”Winning” investors don't just set it and forget it. They consistently take steps to adapt their investment plan in the face ...
  71. How to Ballast a Portfolio with Bonds

    If January and early February performance is any guide, there’s a new normal in financial markets today: Heightened volatility. ...
  72. The Truth about Productivity

    Why has labor market productivity slowed sharply around the world in recent years? One of the greatest economic mysteries ...
  73. Bank Stocks: Time to Buy or Avoid? (WFC, JPM, C)

    Bank stocks have been pounded. Is this the right time to buy or should they be avoided?
  74. A Guide to DIY Portfolio Management

    These are some of the pillars needed to build a DIY portfolio.
  75. What Investors Need to Know About Returns in 2016

    Last year wasn’t a great one for investors seeking solid returns, so here are three things we believe all investors need ...
  76. Icahn's Bet on Cheniere Energy: Should You Follow?

    Investing legend Carl Icahn continues to lose money on Cheniere Energy, but he's increasing his stake. Should you follow ...
  77. The Biggest Risks of Investing in Qualcomm Stock (QCOM, BRCM)

    Understand the long-term fundamental risks related to investing in Qualcomm stock, and how financial ratios also play into ...
  78. 4 Things That Make a Stock a Risky Bet

    Risk is everywhere and when it comes to stocks it can take many forms. From price risk to volatility risk, there’s a lot ...
  79. New Year, New Investing Strategy: Exploring ETFs

    Whether you’re a seasoned investor or new to the markets, you need to learn as much as you can about the present environment ...
  80. 3 Things That May Happen at FOMC Meeting

    We are keeping a close eye on what the Fed will say about economic outcomes and participants’ viewpoints at the FOMC meeting ...
  81. 3 Charts All Investors Should See

    Given the abysmal start to the year, the defining question is whether this is another painful but temporary correction, or ...
  82. Avoid These Stock at All Costs Right Now (TWTR)

    If you bet on these stocks to appreciate over the next year, then you're gambling. There are much easier (and safer) ways ...
  83. Rise of the Co-Investment in Hedge Funds

    Learn about the rise of co-investment deals among hedge funds. See how these high-risk and high-reward opportunities are ...
  84. Are These the Top Biotech Stocks of 2016?

    These three biotech stocks are likely hold up better than their peers in 2016.
  85. (XBI, FBT, IBB) 3 Bond ETFs in the Biotech Sector

    Learn about the top biotechnology ETFs, such as the SPDR S&P Biotech ETF, the First Trust NYSE Arca Biotech ETF and the iShares ...
  86. Consumer Defensive Stocks: Are These 2016's Best?

    These eight consumer defensive stocks meet strict objective parameters for top-tier investment potential in 2016.
  87. What Saudi-Iranian Tensions Mean for Oil Prices

    The recent break in diplomatic relations between Saudi Arabia and Iran adds complications to the already chaotic environment ...
  88. 4 Financial Fitness Tips for 30-Somethings

    When it comes to investing, your retirement plan could be considered the core of your financial well-being. Here we tell ...
  89. Top 3 Resilient Stocks for a Bear Market

    These three stocks offer resiliency and safe dividends in a bear market.
  90. Will Chinese Equities Continue to Slide in 2016? (FXP, YANG)

    Chinese equities started 2016 by plunging. Is this just the beginning?
  91. The Top 5 Large Cap Biotechnology Stocks for 2016 (AMGN, BIIB)

    Discover the top five biotechnology stocks for 2016. Learn each company's main revenue drivers and what factors cause their ...
  92. Why Junk Bonds Will Yield Extreme Risk in 2016

    A look at how the risks will outweigh the rewards of investing in high-yield bonds in 2016.
  93. How Advisors Can Make Sure Clients Diversify

    A look at how advisors can help clients build properly diversified portfolios to balance risk and return.
  94. What Are the Pros and Cons of Fixed-Income ETFs? (BND, AGG)

    Like all investments, fixed-income ETFs have their pros and cons. But do the advantages outweigh the disadvantages?
  95. VCIT: Vanguard Intermediate-Term Corp Bd ETF

    Learn about the Vanguard Intermediate-Term Corporate Bond ETF, and explore detailed analysis of the fund's characteristics, ...
  96. BND: Vanguard Total Bond Market ETF

    Learn about the Vanguard Total Bond Market exchange-traded fund, its primary portfolio holdings and risk/reward profile based ...
  97. FXI: iShares China Large-Cap ETF

    Learn about iShares FTSE/Xinhua China 25 and its asset allocation and how investing in this fund comes with heightened risks ...
  98. SCO: ProShares UltraShort Bloomberg Crude Oil ETF

    Find out about the ProShares UltraShort Bloomberg Crude Oil ETF, the characteristics of the inverse ETF and the suitability ...
  99. TZA: Direxion Small Cap Bear 3X ETF

    Find out more about the Direxion Daily Small Cap Bear 3X ETF, the characteristics of TZA and the suitability of the Direxion ...
  100. IHI: iShares US Medical Devices ETF

    Learn about the iShares U.S. Medical Devices exchange-traded fund, its characteristics, suitability and recommendations for ...
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