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Thanks to hedging, trading volume and volatility are now bigger earnings drivers than the level or direction of markets.
But Mr. Porter was not optimistic about the future direction of markets — or the ability of policy makers to address economic problems.
Hence the interest in funds that typically aim to make money regardless of the direction of markets, often by borrowing money to place leveraged bets and by selling securities they do not own in anticipation of price falls.
If you must make aggressive bets on the direction of markets, do it in a separate part of your portfolio, never with long-term money.
During times when the direction of markets has been almost straight up (the last 37 months), or a downward plunge (2008-2009), many of us forget that straight up or down is NOT the natural state of the markets.
Similar(54)
IMLA research earlier this year suggested that homeownership levels will permanently suffer unless the direction of market policy and regulation is checked.
And the interests of EDF, a state-owned giant that is Europe's biggest electricity supplier, now point in the direction of market-opening.That is because EDF has ambitious goals for international expansion.
As these companies try to seize the opportunity created by Enron's demise, they must weigh the potential effect of the collapse on the pace and direction of market deregulation.
Analysts generally sat on a floor of their own, well away from the firm's big money-makers: the traders, who place bets on the direction of market movements; and the investment bankers, who manage stock and bond issues for corporations, as well as advising them on mergers and acquisitions.
But politics and the direction of market reforms sometimes rise to the top.
These two developments point in the direction of market-oriented, reasonably sized, functionally organized manufacturing units.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com