Understanding Compound Growth Compound growth over time accelerates as interest continually builds on itself (exponential curve). One of the most powerful forces in investing is compound interest – the process of earning returns on your returns. It’s often called the “eighth wonder of the world” because of its almost magical ability to turn modest, steady gains into significant wealth over time. Compounding means that each month’s or year’s gains add to your principal, so the

The U.S. stock market enjoyed a strong rebound in the holiday-shortened week, with major indices climbing on optimism that the Federal Reserve may soon ease monetary policy. Despite low trading volume around the Thanksgiving holiday, stocks ended higher across the board as investors grew hopeful for a year-end rally. All three major indexes advanced during the week, buoyed by positive sentiment on the economy and interest rates: Major Index Gains:  The S&P 500 jumped approxim

Financial markets often behave in ways that can be described using physics analogies – especially when it comes to momentum and the tendency for prices to revert to a mean. In physics, momentum refers to an object’s tendency to keep moving in the same direction unless acted upon by an external force (Newton’s first law of motion). We see a similar effect in stocks: a strong price trend can develop its own momentum, with investors collectively driving the price higher or lower

When you invest in stocks, you’re buying a piece of a business – so understanding that business is crucial. One of the best sources of information is a company’s Form 10-K, which is the annual report filed with the SEC (Securities and Exchange Commission). If you’re a beginner investor, the 10-K might seem daunting (often 100+ pages of text and numbers), but it’s truly a treasure trove of authoritative information about a company’s operations, financial health, and risks. Lea

Moving averages (MAs) are one of the simplest technical indicators that beginners can use to identify market trends. A moving average calculates the average price of a security over a set period (like 20 days or 50 days), smoothing out day-to-day price fluctuations. When plotted on a chart, a moving average appears as a line following the price. If the moving average line is rising, it signals the stock is in an uptrend; if it’s falling, it signals a downtrend. This helps tra