Just two years ago, stocks were recording massive losses in a day, with 5% declines in indices becoming a regular thing. Now those big losses are back, and even the youngest investors can remember times this tough. What’s going on—is this the same fear-driven panic, or is something different? To answer that question, we need to dig a bit into fundamental analysis, macroeconomics, and behavior finance.
Always a lightning rod for attention, Elon Musk’s acquisition of Twitter has caused a storm of controversy, debate, and disagreement. Now some are suggesting Musk won’t buy the company, will pay a billion dollar fine, and is using the entire furor for some other end. But Twitter’s board of directors is still working on the sale as if it’s going to happen. And there’s a good reason why—but the reason may not be what you think it is.
You often hear Wall Street does horrible things and doesn’t get in trouble, but not this time. Now Archegos Capital Management ex-principal is in jail and awaiting trial for racketeering, market manipulation, and fraud. What did he do, why did he do it, and what is going to happen to him? The answers to all of those questions can be summarized as: nothing good at all.
When Netflix fell 35% in a day, it was one of the worst days of any S&P 500 stock in history. But it’s not that unprecedented—Facebook recently had over a 20% drop on a bad earnings call and several tech stocks have suffered losses as bad or worse over the last few months. What’s behind this really bad day for $NFLX, and what does it say about growth stocks, investors, and the market?
So many bankers break the law in so many ways around the world, but why does this happen? Are bankers more likely to be evil than other professionals? Are the temptations too great? Are the laws too lax? Join Zolio as we discuss why banks go bad—and how to stop it.
After a brief reprieve from falling, stock prices tumbled on Tuesday as the Federal Reserve indicated it was going to get more aggressive about raising interest rates. But why exactly do higher rates cause stocks to fall? The answer isn’t as simple as many think it is.