Your Money University

The Buy Now Pay Later Move We consumers have an important job. Our spending accounts for roughly two-thirds of the $23.3 trillion U.S. economy, which is by far the largest in the world. We cut back some in November and December, but consumer spending in January increased a solid 1.8%. Consumer behavior has been both fascinating and critical in the past year. Even with the pain of higher prices, spending has held up well, which is a big reason the economy has also held up well in the face rising interest rates. In what’s been a tough year, consumer-related stocks even outperformed the broader market rather easily the last 12 months, as shown by the  Consumer Discretionary SPDR ETF (XLY)  and the  Consumer Staples SPDR ETF (XLP) . If we’re going to spend all that money on stuff, wouldn’t it be nice to make some of it back by “owning” the stores you shop in?

  Post Earnings Announcement Drift (PEAD) Post Earnings Announcement Drift (PEAD) is a phenomenon that has been observed in the stock market. PEAD refers to the tendency of stock prices to continue to drift in the direction of an earnings surprise (either positive or negative) for a period of time after the earnings announcement. For example, if a company reports higher than expected earnings, its stock price may increase immediately after the announcement. However, research has shown that the stock price may continue to increase for a period of time after the announcement, as more investors become aware of the positive earnings surprise and adjust their investment strategies accordingly. Conversely, if a company reports lower-than-expected earnings, its stock price may initially drop. But the price may keep declining for a while as more investors learn about the negative news. How to trade Post Earnings Announcement Drift (PEAD)? In the strategy, we won't have to judge whether ear...

 Investing Types