Asymmetric risk is an investment scenario where the potential for profit or loss is imbalanced: the risk is not equal to the potential reward. As an example, if you were to risk $5 playing slots at the casino, but the potential return is $30, this would be considered an asymmetric risk. Conversely, symmetric risk is where risk and reward potential is balanced—profit potential is the same as profit loss. In a symmetric risk scenario, the casino slots would have a $5 risk for playing and $5 reward for winning.
Not to be confused with the oil and gas company of the same name, shell corporations are businesses—sometimes sketchy, other times not—that are not as established and function without solid operations and without large assets. Shell corporations are most commonly used for start-up businesses, companies looking to raise capital, and businesses interested in going public on the stock market. While not as common, shell corporations can be used to hide illegitimate companies’ suspicious business practices.
That’s what a Motley Fool headline blared this week as the markets ticked up to new highs. It’s typical of the mainstream financial media and it couldn’t be more worthless. Fundamentally, it’s just wrong. Crashes don’t come because stocks are overvalued. Bubbles and busts always run far higher and deeper than most ever expect. This time will not be any different. Worse yet, it’s distracting you from the real indicator that will signal a crash is coming and to get out of everything. That’s where we’re going to look at today. Because it will really determine how your portfolio performs for the rest of the year and how well your set up for 2021.
Have you ever tried eating at a high-class, celebrity-bustling restaurant and found that even after you’ve made a reservation, the likes of Justin Bieber or Kim Kardashian are escorted to the first available table? That’s preferential treatment at its finest. Retail and institutional financings are similar: Retail investors are newbies and institutional investors receive preferential treatment. Is it fair? Meh. But does it happen? You bet.
CPC (Capital Pool Companies) and SPAC (Special Purpose Acquisition Corporations) are two different formats of raising capital for business owners and investors alike. Because both CPCs and SPACs are publicly traded on the stock market yet vary in how they are formed, their rules, and what they include overall.
You will become a much better investor in the next 13 minutes. Your gains will be bigger. Your losses will be fewer. And you’ll make much better returns with less stress than you ever thought possible. It’s all because of the rules. Dear Retail Investors has compiled three basic, yet unconventional rules that will make you a better, more successful investor. Without them, the odds are stacked against you because most investors are terrible investors.
That’s how mining magnate Robert Friedland sized up the coming copper boom. He’s not alone either. Goldman Sachs recently said copper is its “favorite” commodity. Copper is already moving too. Copper posted its best quarterly price move in over a decade. Odds of a downturn are low. As Bloomberg recently noted, “[copper] supply worries mount.”
Worried a crash is coming? Most investors sure are. They see an untenable disconnect between stocks and the economy. And to be honest, they’re not wrong in what they see. Major stock indices are almost back to their pre-pandemic highs. And this week we got official economic data that shows the economy is well below 2008 levels of awful. So worries of a stock market crash do make sense. However, that’s not the case at all.
Investors, listen up. It’s time to see if the public companies you finance have first-class digital marketing strategies.
Public companies, listen up. It may be time to reconsider your digital shareholder communication efforts. These days, digital communication is the new reality in attracting shareholders and investors. And while you may think that your website (that may or may not be up to date) and a few scattered emails here and there is enough—it’s not. You need more, much more, and it starts with getting with the times.