Wall Street was in for some choppy trading sessions this week, as investors digested the latest developments in Europe and a mixed bag of economic reports. Though Cyprus managed to reach a last-minute deal, investors still remain cautious. Reflecting this sentiment, the European Commission’s economic-sentiment indicator fell in March for the first time since October. On the home front, U.S. durable goods orders and the Standard & Poor’s and Case-Shiller home-price index topped expectations, while the Conference Board’s U.S. Consumer Confidence metric took a significant tumble [see 101 ETF Lessons Every Financial Advisor Should Learn].
Below we outline seven insightful articles circulating around the financial space this week:
- Avoiding Trading Paralysis by Analysis at Futures Magazine
For active traders, reward-to-risk ratios and winning percentages are considered key metrics in evaluating a trader’s performance. In this article, however, Kevin J. Davey argues that these metrics are not as useful as many think.
- Tangible Benefits Are Conspicuously Absent at Alhambra Investment Partners
With central banks across the globe implementing unprecedented stimulus measures, many have come to speculate how exactly these policies will affect the economy. In this article, Jeffrey P. Snider addresses this issue, taking a closer look European policy measures.
- Buffett’s Career in Less Than 1000 Words at The Aleph Blog
In this “short” and insightful article, David Merkel outlines the life and work of the legendary investor Warren Buffett, highlighting how the guru’s investing has changed over the years.
- Hyperinflation? No. Inflation? Yes. at Financial Sense
Inflation has always been a hot topic among economists and investors alike, as this phenomenon can have a significant impact on bottom line returns. In this article, Steve Hanke discusses how inflation may soon become a bigger issue in the U.S..
- Love the Bank, Hate the Banker at Project Syndicate
Since the financial crisis of 2008, the public has become understandably leery of the banking world. In this piece, Raghuram Rajan shares his views on the subject, discussing both sides of the bank regulatory arguments.
- How To Trade Around Earnings Reports With Maximum Profits And Low Risk at Morpheus Trading Group
Every quarter, investors await the much anticipated earnings season and hope to position themselves favorably for the results. In this video, Deron Wagner walks views through his “Earnings Trading Technique,”
- Extreme Correlation Between Equity Returns and Implied Volatility at The Options Insider
In general, equity returns and implied volatility tend to exhibit negative correlations towards each other. In this article, however, Condor Options takes a closer look at this relationship, highlighting what happens when stock returns and implied volatility become too negatively correlated.
Follow me on Twitter @DPylypczak.
Disclosure: No positions at time of writing.