Stocks for the Long Run : the Definitive Guide to Financial Market Returns and Long-term Investment Strategies

seems so sedate. It reminds me of the halcyon days on Wall Street before the program traders took hold.”^5 Who are these program ...

Futures trading goes back hundreds of years. The term futureswas derived from the promise to buy or deliver a commodity at some ...

makes money when the index falls. In the previous example, the seller of the S&P 500 futures contract at 1,400 will lose $2, ...

today, buy the futures contract, and take delivery of the commodity later at a lower price—in essence, earning a return on goods ...

index futures at 4:30 in an electronic market called Globex. Globex has no centralized floor, and traders post their bids and of ...

dividend yield on stocks and be guaranteed a return on his or her stocks that is the difference between the futures price and th ...

more time to seek out balancing bids and offers, and it has greatly mod- erated the movements in stock prices on triple witching ...

But by using ETFs (or futures), a good solution is available. The in- vestor sells enough ETFs to cover the value of the portfol ...

vestors, restricting the frequency of trades and reducing leverage is ben- eficial to their total returns. On the cost side, all ...

The bottom line is that unless you like to speculate and leverage your cash, you will want to avoid index futures. However, if y ...

of $100 per point of index value—cheaper than the $250-per-point mul- tiple on the popular S&P 500 Index futures. An index a ...

mula to price options. The Black-Scholes formulawas an instant success. It gave traders a benchmark for valuation where previous ...

the direction of the market but also their timing must be nearly perfect, and their selection of the strike price must be approp ...

miliarity of stocks but, like index futures, much higher liquidity and su- perior tax efficiency. Today when investors want to t ...

16 CHAPTER MARKET VOLATILITY The word crisis in Chinese is composed of two characters: the first, the symbol of danger,... the s ...

270 FIGURE 16–1 1929 and 1987 Stock Crashes 1922 – 1932 50 100 150 200 250 300 350 400 1922 1924 1926 1928 Aug Sep Oct Nov Dec 1 ...

What was different? Why did the eerie similarities between these two events eventually diverge so dramatically? The simple answe ...

Wednesday, the Department of Commerce reported that the United States suffered a $15.7 billion merchandise trade deficit, which ...

it has become known—that the market almost failed. After opening up over 10 percent from Monday’s low, the market began to plung ...

Exchange-Rate Policies The roots of the surge in interest rates that preceded the October 1987 stock market crash are found in t ...