Capital Market Investments Overview Essay

Exclusively available on Available only on IvyPanda® Made by Human No AI

Following a scrutinizing analysis on the articles, a connection with Common underlying ideas relates to form complex information about Investment and precisely in the capital markets. This paper brings various ideas from three authors of the articles together and tries to unveil their relationship as far as capital investment is concerned. Capital investment refers to the markets in which investors purchase or sell securities. Bearing in mind the existence of the two types of capital markets, bond and stock market, Kimes, Bair, and Revell & Cassidy discuss in details the mentioned market securities.

It is through the analysis of information from these four sources that this paper derives significant facts and opinions from the authors (Kimes et al). The objective of the analysis is to bring forth reliable information from the financial analysis through various dimensions that converge to our topic of capital investment. According to Kimes analysis, “in the late September the emerging markets index dropped by 6% in one day after declining for a couple of months emerging markets stock Could have achieved 12% annualized returns” (64). Therefore, it is possible to benefit from the growing emerging markets and rise to demand. David Herro believes that the next quarter’s earnings do not determine the value of a company but some of the defaults in the stock markets, which are challenges to investors.

On the other hand, it seems that macroeconomic forces dominate market these days. According to Kimes, “when all stock is going up or down together, Individual stock picking is not going to be effective.” (64) This can affect the investors who have already invested or the potential investors. Nevertheless, Revell has outlined some of the ways to tell, “Whether the stock market is headed for a complete meltdown or poised for a roaring rally.” (68) First, watch the TED spread, which measures the difference between the rates of the USA for three months, Treasury bills and the three-months for London Interbank offered rate, or LIBOR. The wider it is, the more skittish are the banks about lending. Secondly, watch the difference between the yields on U.S. for 10 years government bonds. It reflects the premium that investors demand taking on the extra risk of default which has lately widened significantly. Finally, watch the spread for credit default swaps (CDS), contracts that insure a buyer of debt against the possibility of default…the higher the spread, the more skeptical the market of the debtor’s ability to repay (68). Conclusively, after gathering ideas from the four articles this paper depicts the prevailing conditions in the capital markets and shows the ways to deal with the arising challenges to the investors. “Most Americans do not begrudge great riches to anybody who works hard, takes real risk and create things of value” (Cassidy 80). In fact in one of the source articles Bair implies that investment in the U.S treasuries carries a lower risk than an unsecured credit card line (79). Therefore, it is true that we take the risk after understanding that it is linked to reward (profits/ returns).

Therefore, this paper brings different ideas from three authors of the articles together and tries to unveil their relationship as far as capital investment is concerned. Bair implies that investment in the U.S treasuries carries a lower risk than an unsecured credit card line.

Works Cited

Bair, Sheila. The Eurozone crisis will not go away until the banks face up to reality. New York: Fortune, 2011. Print.

Cassidy, John. Memo to the one percenters: Wake up and look out of your limos. New York: Fortune, 2011. Print.

Mina, Kimes. Personal Interview. New York, 2011. Print

Revell, Janice. Three ways to gauge a scary market. New York: Fortune, 2011. Print

More related papers Related Essay Examples
Cite This paper
You're welcome to use this sample in your assignment. Be sure to cite it correctly

Reference

IvyPanda. (2022, April 25). Capital Market Investments Overview. https://ivypanda.com/essays/capital-market-investments-overview/

Work Cited

"Capital Market Investments Overview." IvyPanda, 25 Apr. 2022, ivypanda.com/essays/capital-market-investments-overview/.

References

IvyPanda. (2022) 'Capital Market Investments Overview'. 25 April.

References

IvyPanda. 2022. "Capital Market Investments Overview." April 25, 2022. https://ivypanda.com/essays/capital-market-investments-overview/.

1. IvyPanda. "Capital Market Investments Overview." April 25, 2022. https://ivypanda.com/essays/capital-market-investments-overview/.


Bibliography


IvyPanda. "Capital Market Investments Overview." April 25, 2022. https://ivypanda.com/essays/capital-market-investments-overview/.

If, for any reason, you believe that this content should not be published on our website, please request its removal.
Updated:
This academic paper example has been carefully picked, checked and refined by our editorial team.
No AI was involved: only quilified experts contributed.
You are free to use it for the following purposes:
  • To find inspiration for your paper and overcome writer’s block
  • As a source of information (ensure proper referencing)
  • As a template for you assignment
Privacy Settings

IvyPanda uses cookies and similar technologies to enhance your experience, enabling functionalities such as:

  • Basic site functions
  • Ensuring secure, safe transactions
  • Secure account login
  • Remembering account, browser, and regional preferences
  • Remembering privacy and security settings
  • Analyzing site traffic and usage
  • Personalized search, content, and recommendations
  • Displaying relevant, targeted ads on and off IvyPanda

Please refer to IvyPanda's Cookies Policy and Privacy Policy for detailed information.

Required Cookies & Technologies
Always active

Certain technologies we use are essential for critical functions such as security and site integrity, account authentication, security and privacy preferences, internal site usage and maintenance data, and ensuring the site operates correctly for browsing and transactions.

Site Customization

Cookies and similar technologies are used to enhance your experience by:

  • Remembering general and regional preferences
  • Personalizing content, search, recommendations, and offers

Some functions, such as personalized recommendations, account preferences, or localization, may not work correctly without these technologies. For more details, please refer to IvyPanda's Cookies Policy.

Personalized Advertising

To enable personalized advertising (such as interest-based ads), we may share your data with our marketing and advertising partners using cookies and other technologies. These partners may have their own information collected about you. Turning off the personalized advertising setting won't stop you from seeing IvyPanda ads, but it may make the ads you see less relevant or more repetitive.

Personalized advertising may be considered a "sale" or "sharing" of the information under California and other state privacy laws, and you may have the right to opt out. Turning off personalized advertising allows you to exercise your right to opt out. Learn more in IvyPanda's Cookies Policy and Privacy Policy.

1 / 1