Social lending: benefits and risks

Everyone can lend money to individuals or businesses, without an official financial institution participating as an intermediary in the deal, by using online platforms that match lenders with potential borrowers. This practice is called social lending or peer to peer lending and is gaining traction and seems certain to become more popular. There are social lenders in several countries, including Italy, the Netherlands, China, and Japan, with startup operations in many other countries. Social lending offers both secured and unsecured loans. However, most of the loans in P2P lending are unsecured personal loans. Secured loans are rare for the industry… Continue reading

Social trading: benefits and risks

Nowadays everyone has the possibility to invest in the financial markets from everywhere in the world, just using a laptop or a smartphone. Before investing in stocks, bond, mutual funds or other financial products, it is important to study and increase the knowledge about financial markets, financial analysis, risk management etc., because investing and trading in the financial markets can be an extremely rewarding and profitable activity, but it does come with varying degrees of risk. There is also another way to invest in the financial markets, which requires little or no knowledge. It is the social trading, which is… Continue reading

How to start trading online

Online trading is the process of buying and selling financial instruments using the Internet, so there is basically no human interaction. Nowadays everyone can trade stocks, ETFs, mutual funds, options, bonds or other instruments from everywhere in the world, just using a laptop or a smartphone, but there are a lot of things you have to prepare to start trading, if you don’t want to lose part or all your money by investing in the financial markets. Certainly, the most important thing is to educate yourself before you consider any type of investment or investment strategy. So, you need to… Continue reading

10 Macroeconomic indicators to watch

Macroeconomic indicators are a key part of fundamental analysis for traders, as they provide insight into the state of a country’s economy. These statistics allow analysis of economic performance and predictions of future performance and they vary in frequency, impact, and meaning. So, this mean that these indicators are important to any trader because they can have a significant influence on market movements There a lot of macroeconomic indicators, but they have not the same importance so, it has no sense to waste the time and watch every possible indicator. In this post we are going to introduce some of… Continue reading

The Black Litterman model: how to use it

The Black Litterman model was developed in 1990 at Goldman Sachs by Fischer Black and Robert Litterman and published in 1992. It is a sophisticated portfolio construction method that overcomes the problem of unintuitive, highly-concentrated portfolios, input-sensitivity, and estimation error maximization, in applying modern portfolio theory in practice. The model uses a Bayesian approach to combine the subjective views of an investor regarding the expected returns of one or more assets with the market equilibrium vector of expected returns to form a new, mixed estimate of expected returns. The resulting new vector of returns leads to intuitive portfolios with sensible… Continue reading