An inverted yield curve is one of the market's most reliable recession indicators, and has predicted seven of the last recessions in the United States. We'll explain in this article the yield curve, and discuss why it inverts. Most importantly, we'll discuss what to do when the yield curve inverts. Inverted yield curves look a lot like this road What is a Yield … [Read more...] about What Does an Inverted Yield Curve Mean?
Investing
Why You Should Avoid Penny Stocks at All Costs
If only the secret to getting rich was to buy penny stocks. That would be a lot easier than working hard and maximizing your savings. So what are penny stocks, and why do people invest in them? We'll explain what a penny stock is, why the "get rich quick" logic is flawed, and break down all of the risks that come with penny stocks. What is a Penny Stock? Penny … [Read more...] about Why You Should Avoid Penny Stocks at All Costs
Options Trading – What’s a Box Spread?
Many people amplify their gains with options, which is popularized with YOLO bets on Reddit's Wall Street Bets. Others use options as a hedge to limit their downside risk. A box spread is a hybrid of these. Box spreads are an arbitrage strategy created by buying bull call spreads along with corresponding bear put spreads. Both spreads need to have the same strike prices and … [Read more...] about Options Trading – What’s a Box Spread?
Reddit Wall Street Bets User Turns $5k into -$58k
Reddit users on Wall Street Bets are famous for turning a lot of money into nothing, and 1RONYMAN upped the ante by realizing a -1,833% loss, turning his $5k investment into -$58k. His loss has been memorialized here, and a summary of his losses are in the image below: u/1R0NYMAN turned $5k into -$58k What is a Box Spread? When trading options, a box spread is a … [Read more...] about Reddit Wall Street Bets User Turns $5k into -$58k
How to Make Money During the Next Bear Market
Bear markets can be a nightmare for investors, and can be an incredible opportunity to build your wealth. As long as you have the right mindset, you can make an incredible amount of money during the next bear market. Bear markets occur when stock prices go down by 20% over at least 2 months. Imagine your net worth dropping by 20% tomorrow, and you can see why investors worry … [Read more...] about How to Make Money During the Next Bear Market