Personal Finances and Loans Solutions » stock exchange http://www.personal-finances-advisor.com Make your financial advice personalized Fri, 14 May 2010 13:47:04 +0000 en hourly 1 http://wordpress.org/?v=3.0 The flows of pension funds and payday loans /the-flows-of-pension-funds-and-payday-loans/ /the-flows-of-pension-funds-and-payday-loans/#comments Wed, 11 Nov 2009 11:17:34 +0000 admin http://www.personal-finances-advisor.com/?p=61 98Fund flows measure the amount of money that comes into or leaves the open-ended mutual funds during a given period. Coupon payments are not included. The flows of pension funds, hedge funds and insurance companies are not tracked in this number. Nevertheless, there is a high correlation between high-yield market total returns and mutual fund flows. The reason is that mutual funds account for a big part of secondary trading.

During a period of high market uncertainty and increasing negative event risks the correlation with equity markets tends to rise. Fund flows in the high-yield market are directly related to the developments in the equity market.

Fund Flows are a function of:

  • Expected risk
  • Interest rates
  • Inflation
  • Default rates
  • Economic outlook
  • Event risk
]]> /the-flows-of-pension-funds-and-payday-loans/feed/ 0 Picking stocks by the numbers /picking-stocks-by-the-numbers/ /picking-stocks-by-the-numbers/#comments Mon, 07 Sep 2009 13:02:09 +0000 admin http://www.personal-finances-advisor.com/?p=54 Most managers pick stocks by the numbers: P/E ratios, earning growth rate, EBITDA to enterprise value, and so on. Hundreds of studies have shown that you cannot outperform the market looking solely at numbers. Insight is required. But insight can cost a manager his job and a $500,000 annual salary. Picking stocks by the numbers as does everyone else, keeps those paychecks rolling in. In interviews and slick marketing brochures, mutual fund managers boast that they have one-on-one contact with company managers. Unfortunately for you, every mutual fund manager talks to the same company managers at your expense. Trips to New York, Boston, Silicon Valley, and Los Angeles are paid for by you. Investment conferences in Las Vegas, Honolulu, and Hong Kong cost you even more money. Because all the fund families talk to all the companies and go to all the conferences, no one gains any insight and all return home to the same numbers.

Fund gathering, job security, and indexing has resulted in most funds, index and non-index, owning the same stocks. Overowned stocks have huge market capitalization. It requires larger and larger purchases of stock to move prices up. In essence, $100 million in new money will increase the value of a $1 billion stock by 10 percent; a $100 billion stock will only increase in value by 0.1 percent.

]]> /picking-stocks-by-the-numbers/feed/ 0 Introduction to Personal Finances Advisor Blog /introduction/ /introduction/#comments Sat, 06 Sep 2008 13:18:31 +0000 admin http://personal-finances-advisor.com/?p=3 Wlecome to the personal finances advisor blog! Visitors to our site should be happy to know that this blog was established by people dealing with finances of daily basis, who would like to share their knowledge on subjects such as credit cards, mortgage, debt consolidation or loans. All information presented here should be comprehensible to common users with no experience in the field of finances. If you are willing to participate in personal-finances-advisor team’s work and activities please let us know by email.

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