The Hemline Index:
It is an economic principle that posits a correlation between the length of women’s skirts and economic health. The fundamental idea is that in times of economic boom, skirts are…
Read moreAlpha Beta check for Stocks:
Alpha and beta are utilized in finance to analyze investment performance and risk. Alpha is a measure of an investment’s excess return over a benchmark, which reflects its capacity to…
Read moreEarly Mover Advantage:
Early mover advantage, or first-mover advantage, is a competitive advantage that comes to a company when it becomes the first to penetrate a new market or launch a new product…
Read moreMoney Illusion effect:
Money illusion, as used in economics, means the act of people paying attention to the nominal value of money (its face value) and not to its real value, adjusted for…
Read moreJohn Bull can take anything but not less than 2%” by economist and journalist Walter Bagehot:
The phrase “John Bull can take anything but not less than 2%” points to a pivotal element of investor psychology: the intolerance to very low returns on safe assets. “John…
Read moreGolden Crossover:
A “golden crossover” is a technical analysis buy signal that, in finance markets, happens when a short-term moving average crosses over a long-term moving average. The most frequent example is…
Read moreRestaurant business in not profitable overall due to turnaround time per customer.
while selecting a restaurant business it should be enquired about all these, other factors customer loyalty, location advantage, further expansion may assist. Note: Rise in the revenue per Qtr is…
Read moreDavid Ricardo’s comparative advantage theory:
It states that nations ought to specialize in their production of those commodities in which they possess a relative advantage, even if they may not possess an absolute advantage in…
Read moreThe “greater fool theory”:
It states that investors can make money out of overpriced assets by selling to another person who will pay a still higher price, in hopes of finding a “greater fool”…
Read moreWealth effect:
The wealth effect describes the tendency for people to spend more when they perceive their wealth increasing, and less when they perceive it decreasing. This perception of increased wealth is…
Read moreWhat Fuels a Stock Market Bull Run?
A bull run in a stock, whereby its price keeps rising, is generally propelled by a mix of drivers that reflect robust underlying business performance and investor confidence. The breakdown…
Read moreMicrofinance and Economic Well-being:
Microfinance institutions are especially responsive to the general economic well-being of a nation. An increase in their NPAs can be a good predictor of a declining GDP.Growth in Lending and…
Read moreThe dynamics between NBFCs and banks, and hence cautious investors:
NBFCs and Banks: An OverviewNon-Banking Finance Companies (NBFCs) tend to have their shares perform better than those of regular banks, particularly with market uptrends. This is mostly due to the…
Read moreUnderstanding PE:
A bull market is marked by a rise in the Price-to-Earnings (P/E) ratio, whereas a bear market records a fall in the P/E ratio. The P/E ratio, obtained by the…
Read moreKarl Marx’s Economic Theory:
It is also called Marxian economics, is a critical commentary on capitalism and historical materialism theory stressing class conflict and labor exploitation. It contends that capitalism, as defined by private…
Read moreCredit Default Swap (CDS):
A Credit Default Swap, or CDS, is a financial instrument that acts as an insurance policy against default on a debt, such as a loan or bond. It enables investors…
Read moreThomas Piketty and his data on income and wealth disparity:
It speaks of his position that the rate of return on capital (r) will be greater than the rate of economic growth (g), and as such will result in rising…
Read moreSales growth doesn’t guarantee EPS growth:
Although growth in sales is usually a good thing, it does not necessarily translate to EPS growth. Here’s why: Sales are only half the story. While growing sales can most…
Read moreRelationship between Bonds and interest rate is inverse:
Bond yields and interest rates are inversely related. When interest rates go up, bond yields and prices go down, and conversely. This is due to the fact that when interest…
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