What Is a Revolver? A revolver refers to a borrower—either an individual or a company—who carries a balance from month to month, via a revolving credit line. Borrowers are only obligated to make minimum monthly payments, which go toward paying interest and reducing principal debt. Revolvers are used in finance by corporations to fund working…
Is Walmart’s Biggest Liability Labor Costs? In a company as large as Walmart Stores Inc (WMT), it can be hard to increase profit by a measurable degree. Increasing margins on soap won’t affect the bottom, nor will saving on nominal expenses like plastic bags. What Walmart can control though, is its labor force. Walmart’s biggest…
Dr. Alexander Elder cleverly named his first indicator Elder ray because of its function, which is designed to see through the market like an X-ray machine. Developed in 1989, the Elder-ray indicator can be applied to the chart of any security and helps traders determine the strength of competing groups of bulls and bears by…
What Is Capacity Requirements Planning (CRP)? Capacity requirements planning (CRP) is the process of discerning a firm’s available production capacity and whether it can meet its production goals. The CRP method first assesses the company’s planned manufacturing schedule. Then, capacity requirements planning weighs this schedule against the company’s actual production capabilities to see if the…
Additional knowledge accumulation is not always beneficial when trading financial markets because some information can make us more ardent in our views and opinions, so we make bold predictions that turn out wrong. Incorrect predictions can be costly when real money is on the line, especially when we take positions against the prevailing price movement…
Capital One Financial Corporation (COF) shares soared more than 15% during Thursday’s session after Oppenheimer upgraded the stock to Outperform with a $66 price targetwhich represents a roughly 9% premium over the current market price. Analyst Dominick Gabriele believes that Capital One is well positioned to weather the storm and is likely to increase market…
What Is a Liquidity Trap? A liquidity trap is a contradictory economic situation in which interest rates are very low (e.g., close to 0%) and savings rates are high, rendering monetary policy ineffective. First described by economist John Maynard Keynes, during a liquidity trap consumers choose to avoid bonds and keep their funds in cash savings because…
What Is a Negative Interest Rate Policy (NIRP)? A negative interest rate policy (NIRP) is an unconventional monetary policy tool employed by a central bank whereby nominal target interest rates are set with a negative value, below the theoretical lower bound of zero percent. A NIRP is a relatively new development (since the 1990s) in…
The Dow Jones Industrial Average rose 2,113 points on Monday, the biggest one-day gain since March 1933, prompting a boatload of armchair analysts to declare that the market had “bottomed out.” Gains in the past two sessions have added to this impression, underpinned by V-shaped rallies that saved the day throughout the 10-year bull market….