Becoming an Investor
The US Federal Reserve announced on Friday, October 11, 2019, that it will buy $60 billion of treasury bills (T-Bills) each month to build its reserve. Jay Powell, the Federal Reserve Chairman, said that this decision was made to address…
Read More Repo Rate Spikes, And The Fed Starts Buying T-Bills. What Does That Mean?
On September 18, 2019, the Federal Reserve decided to cut the interest rate by 0.25%. This has been the second rate cut of the year. Let me illustrate what is going on with an analogy. You can think of this…
There has been a lot of action in the stock and the bond market recently. In this week's blog post, I will talk about my take on the current events. Let me briefly go over these current events: United States…
Read More Trade War, Federal Reserve, China, Interest Rates, Currencies, And More
Towards the end of the trading day on Friday, May 17th 2019, there was breaking news that trade talks between the United States and China had stalled. This news led to a market sell-off in the last hour of trading.…
This past week, the US Stock market was highly volatile. The markets had big fluctuations because of the trade tension between the United States and China. On May 10, 2019, President Trump tweeted that the United States has started levying…
Read More Tariffs on China Equate to Stagflation in the United States?
Dow Jones Industrial Average (DJIA) was down 460 points and S&P 500 was down 54 points when the market closed on Friday, March 22nd, 2019. This sell off was due to the presence of inverted bond yield curve. Last time…
Read More Bond Yield Curve Has Inverted. Is recession around the corner?
The Federal Reserve, who has been hiking interest rates, has been in the news recently. In this blog post, I will talk about the relationship between interest rates and inflation. Inflation is the increase in prices and the fall in…
On January 21 2019, China announced that its economy in 2018 grew at the slowest rate in 28 years. This news is concerning, but understandable. The US Stock Market turned negative over the concern of China's slowing economic growth. In…
In the past few weeks, the US Stock Market has had some crazy days. Although the market is well above its low of December 24th, 2018, it is important that we talk about safe haven investments. Safe haven investments are…
In second half of December 2018, the stock market experienced lots of uncertainty. With the market being up one day and down the next, speculators do not know how to position themselves. It looks like volatility is back and it…
Currencies have fascinated me ever since I was a little kid. I used to collect bills and coins of different countries. So, this topic is near and dear to my heart. How do currencies work in the world economy? Now…
If you are seeking thrill from the stock market, you do not care about the fundamentals of the company, you are solely focused on price action, or you like analyzing chart patterns, then technical trading might be for you. How…
It is said that history repeats itself. So, why don't we use historic data to figure out where we might be headed? Are we due for a recession? What does your gut say? Let's see if you are right. For…
While learning about value investing, one of the first concepts that I had to understand was the difference between price and value. This is the core concept that differentiates value investors from everyone else. Let's talk about this in detail.…
With the recent decline in the US stock market, I decided to do some research to figure out the health of the US Economy. Using the 4 indicators that I mention below, we can gauge how well the US Economy…
Imagine getting paid interest everyday for holding onto a trade. You don't need to be actively trading or constantly looking at the market - all you need to do is HOLD! When I was learning to trade Foreign Exchange, I…
Have you ever wondered how much influence can one country actually have on the world? Let's see how much influence the United States has on the workings of foreign countries. This influence gets stronger by the day due to globalization.…
Are you an emotional investor? Do you chase hot tips? Do you impulsively buy stocks? Well, no worries. I have 3 key financial ratios that can stop you from making any regretful decisions. Billionaire Warren Buffett pays close attention to…
You might have heard the phrase "strong dollar" and "weak dollar" thrown around by media outlets. What does that actually mean? We discussed in a previous blog post the implication of "strong dollar" and "weak dollar" on economies; if you…
I have traded Stocks, Options, and Foreign Exchange (Forex). I have scalped the EUR/USD pair, and I have spent numerous hours looking at chart patterns on various time frames for that perfect swing trade opportunity. I have made countless trading…
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