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Showing posts from September, 2021

Misery Index & Definition - Alpha Architect

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Misery Index Tool is a single statistical tool that explains a country's unemployment and inflation structure . Misery Index helps in measuring the impact of fluctuating economic conditions. The index was quite known in the year 1970 when the United States was experiencing high inflation rate. It is used to conduct the measurement level of the economic status. So, let's understand  the misery index  in detail and understand that how it can be beneficial to the masses? All about Misery Index The misery index was first introduced as a discomfort index in 1970 by the most popular economist Arthur Okun. He was a senior fellow at the Brookings Institution and a chairman of the Economic Advisory Council.  The misery index was generally based on unemployment and the inflation rate. Therefore, the index value was directly proportional to the voter's misery. It was also used to give insights into the presidential approval rating of the election outcome. Therefore, the misery ...

What Is Value Investing? Alpha Architect

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Value Investing is an investment approach where an investor chooses stocks that are undervalued in the market. Value investors identify stocks that are traded less than their actual value and earn profit based on the market’s un-productivity. Yes, you heard that right! But how does value investing work? How does it benefit investors? Read on to know. How Does Value Investing Work? The main principle behind  value investing  is, keep an eye on the stock market, buy stocks when they are un-valued, and sell them when they reach their intrinsic value. The investors also allow for a margin of safety while trading in value investing.    Suppose there is a company that is believed to perform extremely well in the future as per the market. In that case, it is possible that its share price will increase from $100 to $120. It will also influence the market into increasing its demand and price even from $120.    Later, it is found that the company has an a...

ESG Investing and Analysis - Alpha Architect

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  ESG or Environment Social and Governance is a sustainable investing that calculates the impact of a particular company's ethical contribution to the stakeholders.  ESG Investing and Analysis  have become an increasingly significant part of the investment process. Investors are carrying out ESG data into the investment process to get a complete understanding of the companies in which they invest. Let’s understand its main objective further. What Is ESG Investing? ESG Investing indicates the investing which includes optimal environmental, social, and governance factors or outcomes. Investment here is made according to the environment, human well-being, and the economy. It is based on the organization's financial performance, which is affected by the environment and social factors. What are the ESG Investing Trends 2021? Looking at the COVID 19 crisis, there will be new technologies emerging with new approaches. It is estimated that there will be a larger generatio...