Private property
Private owners have an incentive to lower the chance that their property will cause damage to the property of others. Private ownership links responsibility with the right of control. Private owners can be held accountable for damage done to others through the misuse of their property. A car owner has a right to drive his [...]
DEVELOPMENTS IN THE FINANCE SECTOR
Risk is an everyday hazard that faces banks, funds and insurers. It can usually be mitigated, but it is rarely eliminated completely. There are some cases where a positive “hazard” is a very good thing to have – each business faces a risk or probability of making profits. Millions of people buy lottery tickets each [...]
Forensic accounting
Forensic accounting is a potentially rich source of value-added in financial environments. Part of forensic accountancy is an art, part science and the rest is detective work. There are three ways in which it can provide a valuable service in organisations:
1. Investigate a case post facto to see where a loss has occurred within the [...]
General Observations
The stock market is likely to be on firmer footing when strength in the daily- and, weekly-based advance-decline lines confirm strength in the various indices that reflect different sectors of the stock market. In other words, new highs in indice such as the Standard & Poor’s 500 Index should be confirmed by new highs in [...]
Pre-Bear Market Comparisons
It is interesting to compare the results of the 1971-2000 period to the 1971-2004 period, which includes the bear market of 2000-2002. Using the 90% (buy) and 80% (sell) parameters between 1971 and 2000 would have produced rates of return while invested of 34% and maximum drawdowns of only 8.6%, with 72% of trades profitable. [...]