Not gambling, just hedging your bets

Article Abstract:

United Kingdom investors are likely to become increasingly interested in derivatives, according to stockbrokers. Equity traded options have become especially popular in the US. Derivatives have been represented as risky, but brokers argue that private investors should not be greedy and should be patient and seek to understand derivatives. The best known derivatives are options which give rights to buy stocks at set prices within time limits. Investing in futures involves buying contracts, and a loss or profit may be made when the contract is sold.

United Kingdom, Personal finance, Derivatives (Financial instruments)

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Pacific Basin: Basin bets

Article Abstract:

Stock markets in the Pacific Basin performed well during the early 1990s, but have underperformed since Dec 1993. Monetary policy is starting to loosen as the interest rate cycle peaks. Corporate earnings look set to recover in 1996 and economic recovery should be aided by a reduction in interest rates in the US. Lower US rates could also mean that US funds return to the area though prices are not likely to rise by as much as they did in 1993.

Economic aspects, Stock-exchange, Stock exchanges, Pacific Area

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Why the Footsie's party might not be over

Article Abstract:

The net dividend yield of the All-Share index is 2.5% and with the long-run dividend growth at about 5% a year, gives prospective returns of 7.5% a year. Equities offer lower prospective real returns than previously, but prospective returns on other assets are also low. Some feel that the equity risk premium is too high and that they are good value, and that it is worth remaining in the equity market for a while longer.

Evaluation, Securities

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