The term housing starts refers to the number of new residential construction projects that begin during any particular month. As such, it’s a key economic indicator. Housing start statistics are released on or around the 17th of each month by the U.S. Commerce Department. The report includes building permits, housing starts, and housing completions data—all of which are compiled from surveys of homebuilders across the country.
Overlay refers to a management style that harmonizes an investor’s separately managed accounts. Overlay management uses software to track an investor’s combined position from separate accounts. The overlay system analyzes any portfolio adjustments to ensure the overall portfolio remains in balance and to prevent any inefficient transactions from occurring. Overlay portfolio management makes sure the investor’s strategies are implemented and coordinated successfully.
A product portfolio is the collection of all the products or services offered by a company. Product portfolio analysis can provide nuanced views on a stock type, company growth prospects, profit margin drivers, income contributions, market leadership, and operational risk. This is essential for investors conducting equity research by investors or analysts supporting internal corporate financial planning.
An overfunded pension plan is a company retirement plan that has more assets than liabilities. In other words, there is a surplus amount of money needed to cover current and future retirements. Although accounting standards allow the company to record the surplus as net income,1 it cannot be paid out to corporation shareholders like other income as it is reserved for current and future retirees.
Land is real estate or property, minus buildings and equipment, that is designated by fixed spatial boundaries. Land ownership may offer the titleholder the right to natural resources on the land. The traditional school of economics dictates that land is a factor of production, along with capital and labor. The sale of land results in capital gain or loss; under IRS tax laws, land is not a depreciable asset, and qualifies as a fixed asset instead of a current asset.
A proxy vote is a ballot cast by one person or firm on behalf of a shareholder of a corporation who may not be able to attend a shareholder meeting, or who otherwise desires not to vote on an issue. Shareholders receive a proxy ballot in the mail along with an information booklet called a proxy statement, which describes the issues to be voted on during the shareholder meeting. In a shareholder meeting, shareholders may be casting votes about who to elect as directors of the board, approving a merger or acquisition, or approving a stock compensation plan.
Keynesian economics is an economic theory of total spending in the economy and its effects on output and inflation. Keynesian economics was developed by the British economist John Maynard Keynes during the 1930s in an attempt to understand the Great Depression. Keynes advocated for increased government expenditures and lower taxes to stimulate demand and pull the global economy out of the depression.
A holding company depository receipt (HOLDR) is a security that allows investors to buy and sell a basket of stocks in a single transaction. HOLDRs allow investors to trade stocks in a specific industry, sector, or group.
The last trading day is the final day that a futures contract, or other derivatives with an expiry date, may trade or be closed out before the delivery of the underlying asset or cash settlement must occur. At the end of the last trading day, the contract holder must be prepared to accept delivery of the commodity or settle in cash if the position is not closed. The same concept applies to options contracts. The last trading day is the final chance to close the position, otherwise the underlying will be delivered if applicable. If the option is worthless, then it does not need to be closed, it will simply expire.
Buy the dips refers to purchasing an asset after it has declined in price. Buying the dips has different contexts, and different odds of working out, depending on the situation in which it is utilized. Some traders may say they are buying the dips if an asset is in a long-term strong uptrend. They hope the uptrend continues after the dip or drop. Others may use the phrase when no uptrend is present, but they believe an uptrend may occur in the future. Therefore, they are buying when the price drops in order to profit from a potential future price rise.