The worse off the market is, the better the opportunities are to profit. That’s seemingly the credo for contrarian investing. Nathan Rothschild, a 19th-century British financier and member of the Rothschild banking family, is credited with saying that “the time to buy is when there’s blood in the streets.” Whether or not Rothschild actually uttered…
Global markets plunge as oil prices slide 30% U.S markets open down as low as 7% Circuit breakers triggered at NYSE as selloff intensifies Global markets plunged Monday morning as crude oil prices tumbled more than 30% on news that the OPEC+ alliance that had kept global oil production contained is falling apart. Russia, a key…
Banks and non-financial entities have similar financial statementsbut a few key differences due to the nature of their businesses. Banks operate on storing customer deposits and lending money out from those deposits. As such, they earn income from the difference between the interest they earn on lending and the cost of storing customer deposits. This…
What Is a Turnover Ratio? The definition of what constitutes a good turnover ratio—or turnover rate—for a mutual fund depends entirely on the type of fund you are considering and your goals for the investment. For passive mutual fund investments, a turnover ratio near zero is appropriate. If you are investing in a more actively…
The TJX Companies, Inc. (TJX) is the parent of discount retailers TJ Maxx, Home Goods, and Marshalls. These retailers offer quality items at discount prices. The company reported earnings before the opening on Feb. 26 and beat on both earnings per share (EPS) and on revenue. The stock set an all-time high of $64.95 on…
Companies and governments issue bonds to raise money, and they pay only as much interest as they have to pay to attract investors. A financially rock-solid company or government will attract investors with an interest rate that is only a little above the inflation rate. A financially troubled borrower has to offer a better deal….
Accountants consider works in progress (WIP)which are materials and partially-finished goods that await completion, to be current assets, because there’s a reasonable expectation that such items will become marketable products that can potentially convert into cash within one year’s time. Current assets contrast noncurrent assets like long-term notes receivable, and intangible assets like patents. Understanding…
What Is the International Bank of Reconstruction and Development (IBRD)? The International Bank of Reconstruction and Development (IBRD) is a development bank administered by the World Bank. The IBRD offers financial products and policy advice to countries aiming to reduce poverty and promote sustainable development. The International Bank of Reconstruction and Development is a cooperative…
Eliminating the U.S. government’s debt is a Herculean task that could take decades. In addition to obvious steps, such as simply hiking taxes and slashing spending, the government could take a number of other approaches, some of them unorthodox and even controversial. Below are some things it could do. Opening the Borders This would be…