Understanding Volatility

One measure frequently used to to describe behavior of a stock is volatility. Volatility indicates the dispersion of returns for a particular security, usually in relation to returns from the same security or a broader market index. In simpler terms, volatility expresses how much risk or uncertainty is associated with a stock’s value. The higher […]

Inside the Dow

The Dow, or the Dow Jones Industrial Average (DJIA), is the most watched stock index on the planet. It is a price-weighted average  tabulated from 30 high profile stocks traded on the NYSE and NASDAQ, including those of the world’s most influential companies. The Dow is such an important measure of market performance that both […]

Investors sweat dets of DowDuPont deal

Some people are hard to please… Andrew Liveris, the CEO of Dow Chemical, has been busy… He is merging the company with DuPont, and then promptly splitting the company into three pieces, something activist investors have been advocating for years… But instead of being happy, the activists are carping about the details… David Benoit of […]

Macroeconomic Terms: Free Rider Problem

In economic policy, a free rider, is a type of market failure in which a person or entity takes advantage of a public good without paying for it, like a bus passenger that does not pay their ticket. The free rider problem only applies when supply is not significantly diminished by the number of people […]

Big challenge looms for Republicans

President Trump and the Republican Congress have failed to pass any significant legislation over the past six months… Kate Davidson of the Wall Street Journal asks the next logical question: What if they cannot pass the debt ceiling increase in September: Next Up for GOP Congress: Raising the Debt Ceiling…

Utility help their customers compete

There is a growing trend for local electricity utilities to encourage local and residential power… It takes pressure off the grid, and the utility can still earn a reasonable rate of return… Diane Cardwell of the New York Times has an example: Utility Helps Wean Vermonters From the Electric Grid

Spain re-emerges

Spain is starting to grow again, from a very low base… The country is once more competitive in the world economy… It’s a reasonable place to do business again for two reasons: A decade of recession has made skilled labor and rents competitive in price… And the low euro has made the prices affordable… Peter […]

Reorg whispers dog tech giant

How the mighty have fallen… Anonymous “people involved in talks over the workout” have told the Wall Street Journal that Toshiba may file for bankruptcy: Toshiba Bankruptcy Filing Pushed by Some Involved in Workout… Rumors like this can become self-fulfilling prophecies…

Twitter has a simple problem

Twitter continues to have the same issues, an inadequate revenue model… Miriam Gottfried of the Wall Street Journal has the story: Investors Don’t Believe in Twitter’s Turnaround…

SPECIAL: Lessons learned in direct lending

Reuters’ Lawrence Delevingne has a long, thoughtful piece about the new extremes of the direct lending market.  The business of lending to middle market companies which are too small to issue syndicated loans or high yield bonds has exploded since 2010, with numerous new entrants.  Some of them are too leveraged, and others are offering […]
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