THE IMPACT OF DIVIDENDS

Greed; Giving Nothing For Something After last week’s initiation to the world of the bloggers I decided it was time to write my second one. Each week we are going to have a magic word. This week it’s all about corruption. We are going to discuss about one of the most prevalent economic bubbles in the modern history; Lehman Brothers’ collapse and the bubble that was pertained to it. Let’s get into action, shall we? The following info is based on the documentary ‘’the last days of Lehman Brothers’’ (2009) directed by Mr. Michael Samuels. The bankruptcy of the fourth biggest investment bank took place on the second weekend of September. Why on the weekend? Well, because the stock markets are closed then so no turmoil can be caused by speculation. After months of unprecedented loss-over 75% plan in the stock value- Lehman brothers had reached a crucial point. The bank, owning as much as 600,000,000,000$ worth of assets, was on the verge of the cliff because it was both under-co...

Ophelia storm is on the way: Time to sale some stocks? It was Monday night and as we were urged to stay home due to bad weather conditions, I decided to write a blog .I had the motive but not the topic though. After a while, I came across an article on the Financial Times called ‘’Financial models are no excuse for resting your brain ‘’ which triggered me to start writing. The article written by Mr. John Vay mainly discusses the fact that passive strategies are not as effective as they used to be .To be more precise, the use of historic data does not show the correlation of many assets and recommend investing in well established companies rather than small growth orientated ones. “Diversification is a matter of judgement not statistics”. But on what extent is that true? Should we rely on passive strategies and obsolete -as they call them- theories like Modern Portfolio Theory?   In order to seek for the answer have to look at some theory first… Active management refers ...