Sources: Investopedia.com, Dictionary.com, Investorwords.com
Headwind
Wind blowing from the front, Slowing, Negative.
Tailwind
Wind blowing from the back, Supportive, Positive.
Consumer Cyclicals
Consumer cyclicals is a category of stocks that rely heavily on the business cycle and economic conditions. Consumer cyclicals include industries such as automotive, housing, entertainment and retail. The category can be further divided into durable and non-durable sections. Durable cyclicals include physical goods such as hardware or vehicles while non-durables represent items that people consume quickly such as cleaning supplies, clothing or food.
Consumer Non-Cyclicals
Non-cyclical stocks, or defensive stocks, comprise businesses that do well during economic downturns. Essential goods such as Utilities (water, electricity and gas). Consumer staples like food, beverages, hygiene products, tobacco and certain household items. Healthcare like hospitals, medicines and medical supplies.
Consumer Staples
Consumer staples are essential products, such as food, beverages, tobacco and household items. Consumer staples are goods that people are unable or unwilling to cut out of their budgets regardless of their financial situation. Consumer staples are considered to be non-cyclical, meaning that they are always in demand, no matter how well the economy is performing. People tend to demand consumer staples at a relatively constant level, regardless of their price.
Consensus Estimates
A consensus estimate is a figure based on the combined estimates of analysts covering a public company. Generally, analysts give a consensus for a company's earnings per share (EPS) and revenue; these figures are most often made for the quarter, fiscal year, and next fiscal year. The size of the company and the number of analysts covering it will dictate the size of the pool from which the estimate is derived.
Growth Stocks
A growth stock is a share in a company whose earnings are expected to grow at an above-average rate relative to the market. A growth stock usually does not pay a dividend, as the company would prefer to reinvest retained earnings in capital projects. Growth investors choose stocks based on the potential for capital gains, not dividend income, so they can be risky.
Underpin
Support, Strengthen.
Durable Goods
Durables is a category of consumer goods that do not have to be purchased frequently. Some examples of durables are appliances, home and office furnishings, lawn and garden equipment, consumer electronics, toys, small tools, sporting goods, photographic equipment, jewelry, motor vehicles and motor vehicle parts, turbines and semiconductors. They tend to last for at least three years.
Non-Farm Payroll
The non-farm payroll (NFP) report is a key economic indicator for the United States. It is intended to represent the total number of paid workers in the U.S. minus farm employees, government employees, private household employees and employees of nonprofit organizations.
Basis Points
Basis point (BPS) refers to a common unit of measure for interest rates and other percentages in finance. One basis point is equal to 1/100th of 1%, or 0.01%, or 0.0001, and is used to denote the percentage change in a financial instrument. The relationship between percentage changes and basis points can be summarized as follows: 1% change = 100 basis points, and 0.01% = 1 basis point.
Resilient
springing back, rebounding, recovering, returning back.
Rally
A rally is a period of sustained increases in the prices of stocks, bonds or indexes. This type of price movement can happen during either a bull or a bear market, when it is known as either a bull market rally or a bear market rally, respectively. However, a rally will typically follow a period of flat or declining prices.
Supported
A price level which a security has had difficulty falling below.
Moderating
Not excessive, mild, less volatile.
Soft Market
A market which has more sellers than buyers. Low prices result from this excess of supply over demand. also called buyer's market. opposite of seller's market.
Upside
Upside is the forecasted dollar amount or percentage increase in the price of an investment, and it can be determined using several forms of analysis. Analysts used either technical analysis or fundamental analysis techniques to predict the future price of an investment, particularly stock prices. A higher upside means that the stock has more value than is currently reflected in the stock price.
Downside
The negative movement in the price of a security, sector or market. Downside can also refer to economic conditions and it describes periods when an economy has either stopped growing or is shrinking. Movement to the downside is often expressed in terms of risk, as in there is a downside risk in a particular country's economy; or, stock ABC has downside risk because of changing consumer trends. Downside risk can be evaluated by fundamental and technical factors.
Rebound
In financial terms, a rebound means a recovery from prior negative activity. For a security, a rebound means that it has moved higher from a lower price. For the general economy, a rebound means that economic activity has increased from lower levels, such as the bounce back following a recession. A recession is defined by economists as two consecutive quarters without economic growth. Recessions are part of the business cycle which consists of expansion, peak, recession, trough and recovery. A rebound from a recession would occur in the recovery stage.
Resistance
Resistance (resistance level) is a price point on a bar chart for a security in which upward price movement is impeded by an overwhelming level of supply for the security that accumulates at a particular price level. Resistance levels are characteristically found at the upper levels of range bound markets. They may be very short lived, or may remain a resistance level over an extended period of time.
Monetary Policy
Monetary policy consists of the actions of a central bank, currency board or other regulatory committee that determine the size and rate of growth of the money supply, which in turn affects interest rates. Monetary policy is maintained through actions such as modifying the interest rate, buying or selling government bonds, and changing the amount of money banks are required to keep in the vault (bank reserves).
Fiscal Policy
Fiscal policy refers to the use of government spending and tax policies to influence macroeconomic conditions, including aggregate demand, employment, inflation and economic growth.
Dividend Yield
A financial ratio that indicates how much a company pays out in dividends each year relative to its share price. Dividend yield is represented as a percentage and can be calculated by dividing the dollar value of dividends paid in a given year per share of stock held by the dollar value of one share of stock.
The formula for calculating dividend yield may be represented as follows:
Distribution Yield
A distribution yield is a measurement of cash flow paid by a fund, divided by the net asset value (NAV) of the fund at the time of the payment.
Strengthening Ringgit
The Ringgit exchange rate is getting better compared to another currency. Eg. RM4.00 per USD1.00, becoming stronger when you need to pay less (eg RM3.50) to get USD1.00.
Weakening Ringgit
The Ringgit exchange rate is getting worse compared to another currency. Eg.RM4.00 per USD1.00, becoming weaker when you need to pay more (eg RM4.50) to get USD1.00.
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