Tuesday, March 30, 2021

Forbes: Massive Margin Call Strikes Again In The Stock Market

 By SIMON CONSTABLE

Too much leverage strikes again in the stock market!

It’s at least the second time in 2021 that investors using leverage to enhance their returns has sent the market into turmoil. Read more here.


Tuesday, March 9, 2021

Darden: Government Debt During Crisis -- The Pandemic and Credit Risk

 By SIMON CONSTABLE

Over the past decade, economists such as Nobel laureate Paul Krugman have increasingly urged countries to embrace more government borrowing. But recent experience from the COVID-19 pandemic shows that too much debt can be a significant problem. New research shows that specifically during periods of crisis, nations with stretched finances will more than likely be penalized by financial markets and see their borrowing costs rise. The findings have significant implications for global policy. Read more here.

Monday, March 8, 2021

WSJ: How Margin Debt Works

 By SIMON CONSTABLE

Margin debt is a sometimes-overlooked but key part of the stock market that is particularly pertinent right now. Read more here.

Forbes: High Frequency Trading Helps Stabilize The Stockmarket, New Research Shows

 By SIMON CONSTABLE

No, high-frequency algorithmic traders are not messing up the stock market.

The reality is that HFT (high-frequency trading) is helping to stabilize the exchange-traded fund (ETF) market by ensuring that the price of the funds stays close to the net asset value (NAV) of the holdings, new research finds. That should benefit all investors not just Wall Street professionals. Read more here.


  Photo by Tech Daily on Unsplash



Friday, February 19, 2021

Forbes: U.K. Courts Deal Blow To Uber And Gig Workers

By SIMON CONSTABLE

It’s official. In Britain, Uber Technologies drivers are now employees and not gig workers.

The deal is a (minor) blow to the ride share company, but could become a major hit to the broader economy if policy makers don’t show restraint. Read more here.

Photo by Viktor Avdeev on Unsplash

Wednesday, February 17, 2021

Korn Ferry: The Flip Side of Lockdowns

By SIMON CONSTABLE

A new study suggests that the rate of patent filings shoots up as high as 20% during pandemic-related lockdowns. Read more here.

Forbes: The Real Reason Gold Prices Tumbled This Year Isn’t What You Think

 By SIMON CONSTABLE

Gold investors are having a rough time so far this year. But the reasons for the asset’s poor performance are likely not what you think. Read more here.