by NelsonCorp Wealth Management | Jul 20, 2023 | Indicator Insights
This week’s featured indicator highlights a concept known as the stock market’s rolling drawdown. The rolling drawdown—or trailing loss—is a measure used to assess the maximum loss an investment has experienced over time. In this case, we’re looking at the...
by NelsonCorp Wealth Management | Jul 13, 2023 | Indicator Insights
This week I want to introduce a technical indicator called a moving average cross. The basic idea is that you take two moving averages—one shorter-term and the other longer-term—and generate buy/sell signals for an asset based on whether the shorter-term moving...
by NelsonCorp Wealth Management | Jul 6, 2023 | Indicator Insights
Liquidity, or easily accessible money, is an important driver of stock market returns. A simple metric commonly used to measure liquidity is the M2 money supply, a broad measure of the money in the economy available for spending and investment. When it’s...
by NelsonCorp Wealth Management | Jun 29, 2023 | Indicator Insights
This week’s featured indicator looks at the relative valuation of the stock market based on the money supply. The idea is that if we compare stock prices to some economic gauge—like the money supply—we can determine whether prices are competitively valued or...
by NelsonCorp Wealth Management | Jun 22, 2023 | Indicator Insights
This week’s indicator is called the Risk-On/Risk-Off Indicator, or RO/RO indicator for short. It’s designed to gauge the relative risk tolerance in the investments landscape. In other words, it is a gauge of economic confidence. The Risk-On Index, shown in the...
by NelsonCorp Wealth Management | Jun 15, 2023 | Indicator Insights
The unemployment rate is the one economic indicator most people are likely familiar with. To state the obvious, we don’t like a high unemployment rate; it means people are out of a job, and that’s not good for anyone. But this week’s featured indicator shows...