Zolio Market Commentary

Apple’s Results by the Numbers

Apple’s Results by the Numbers

| October 21, 2014

Apple reported strong earnings on Monday afternoon, helping the stock to rise modestly after hours and causing some analysts to raise their price targets for the company. To profit in a highly efficient market, investors need to do more than read the headline and agree that a company had a good or bad quarter. We […]

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Why the Bear Market Turned, and Turned Again

Why the Bear Market Turned, and Turned Again

| October 20, 2014

Last week saw some turmoil and a sharp spike in the VIX, which led to some rare backwardation in VIX short-term futures (VXX, UVXY). The increase in volatility and sudden decline in stocks, including a fall below the 200-day DMA which some traders saw as an indication of a full-blow bear market, was attributed to […]

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Market Corrections and P/E Ratios: How it Helps Growth Investors

Market Corrections and P/E Ratios: How it Helps Growth Investors

| October 14, 2014

In the popular press, the recent decline in equities has become an opportunity to stoke fear and anxiety. Whether it’s saying that “This is the most dangerous stock market since 2008” or pointing to ebola, crashing oil prices, income inequality, or some other cause of the market collapse, this is a great time for financial […]

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Screening High Beta Stocks and Tracking Performance

Screening High Beta Stocks and Tracking Performance

| October 9, 2014

Hedge funds, originally called “hedged funds”, had a very simple premise: find stocks to invest in, find stocks to bet against, and put money on both. If the market as a whole goes up or down, you should be sufficiently hedged against major losses, over time outperforming anyone who just went long an index fund. […]

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The Beginning of Earnings Season: What It Means for Analysts

The Beginning of Earnings Season: What It Means for Analysts

| October 7, 2014

Earnings season traditionally begins with Alcoa (AA), which has announced its quarterly earnings call will be on October 8th. The aluminum producer is sometimes seen as an indicator of demand more broadly, but competition and supply issues in its sector make that correlation looser at some times. In 2014, the stock has soared for a […]

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What’s Happening to Volatility

What’s Happening to Volatility

| October 3, 2014

The S&P 500 Volatility Index, or VIX, is a measurement of the market’s combined expectations for price changes in the S&P 500 (SPY) in the short term. While controversial as a measurement, it is valuable for traders and risk managers for one reason: it reverts to its mean in a very short time after temporary […]

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Ebay’s Spinoff and Shareholder Value

Ebay’s Spinoff and Shareholder Value

| September 30, 2014

Ebay rose and faded in early morning trading on news that management would take Carl Icahn’s ball and run with it. As the activist investor suggested, the online retail giant will be spinning off PayPal in a move that may “unlock” Paypal’s value. But what does this mean exactly, and how does it impact investors? […]

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