Zolio Market Commentary

Valuing Alibaba and Pricing Its Shares

Valuing Alibaba and Pricing Its Shares

| September 15, 2014

One of the most awaited IPOs in history is also its biggest: Alibaba Group is set to IPO on the NYSE after a tumultuous and eagerly anticipated run-up, which has already benefited one of its biggest investors, Yahoo (YHOO). Thanks to demand for the stock, YHOO has gained 23% in recent weeks, and began trading […]

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The Hidden Risk of Nasdaq’s Outperformers

The Hidden Risk of Nasdaq’s Outperformers

| September 11, 2014

In a recent Marketwatch article, columnist Philip Van Doorn pointed out the amazing triple-digit returns of the ten best Nasdaq (QQQ) stocks of the year. You can see them all in the following chart: COMPANY TICKER CLOSING PRICE – Sept. 9 TOTAL RETURN YTD TOTAL RETURN – 3 YEARS TOTAL RETURN – 5 YEARS BioFuel […]

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Anticipating the End of the Taper

Anticipating the End of the Taper

| September 9, 2014

Throughout 2014, the Federal Reserve has tapered its bond purchasing program as it sees a moderate rate of growth and overall economic health in the U.S. While fears of the taper caused a major correction in the middle of 2013, the actual taper has done little to stocks, which corrected heavily twice in 2014 on […]

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Changing Policies in Europe and Equity Markets

Changing Policies in Europe and Equity Markets

| September 4, 2014

The European Central Bank early Thursday morning announced that it would begin its own asset-backed purchasing program much like the quantitative easing programs that the Federal Reserve has embarked upon since the global financial crisis in 2008. Details are scant, but the program is likely to be small scale but could possibly expand in future […]

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The Exciting and the Dull: Who is Winning 2014?

The Exciting and the Dull: Who is Winning 2014?

| September 2, 2014

Speculative investors love looking for disruption. The idea of these hyper-growth seeking traders is to find companies that are radically disrupting an industry and invest in them early to secure an aggressive growth in the stock’s price before it happens. Then when the company has hit a point of stabilizing growth, it’s time to move […]

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GDP Expansion, S&P 2000, and Macro Bets

GDP Expansion, S&P 2000, and Macro Bets

| August 28, 2014

Portfolio allocations depend on fundamental value and macroeconomic conditions. While financial analysis can help analysts identify unique and undervalued assets from the bottom up, portfolio managers need to be aware of macroeconomic conditions that can impact investments from the top down. As we sit between earnings seasons, many analysts are looking at macroeconomic indicators to […]

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How the Passive Investing Trend Pressures Money Managers

How the Passive Investing Trend Pressures Money Managers

| August 26, 2014

Professional money management involves two sides. On the one side, you have the need to provide risk-adjusted returns to clients whose objectives are diverse: growth, asset protection, and risk management being top of the list. On the other side, there is the need to convince investors of the value of your active investing acumen. Whether […]

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