Fin Loom

Coverage

Markets & Stocks

Markets turn millions of individual expectations into prices, and those prices can move faster than the businesses underneath them.

Fin Loom examines the link between company performance, market expectations, valuation, risk, and the economic forces acting on stocks.

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A desk with four market monitors in an office overlooking a city and river

What You Will Find Here

  • Individual stocks
  • Earnings and company performance
  • Market trends
  • Valuation
  • Stock screening
  • Volatility and risk
  • Trading
  • Options
  • Market structure
  • Sectors
  • Market statistics

Follow the Business Behind the Price

A rising share price does not mean the business is improving, and a falling one does not make the stock inexpensive. We look at financial performance and market pricing separately, then connect the two.

From Financial Statements to Market Expectations

Revenue, margins, cash flow, capital spending, debt, and return on capital tell one side of the story. Valuation and expectations tell the other. Fin Loom reads both, so the question is not only what a company has done but what the market appears to expect next.

In numbers

The Arithmetic of a Drawdown

Losses and gains are not symmetrical. A fall is measured from the top and the recovery from the bottom, so the percentage needed to get back is always larger.

Illustration

The Gain Needed to Recover a Loss

A 50% loss needs a 100% gain to return to the starting value. The deeper the fall, the steeper the climb.

0%50%100%+11.1%-10%+25%-20%+42.9%-30%+66.7%-40%+100%-50%

Assumptions: Gain needed equals the loss divided by one minus the loss. This applies to any price series. Arithmetic illustration: not a forecast, not advice, and not the return of any product.

View the numbers
LossGain needed to recover
10%11.1%
20%25%
30%42.9%
40%66.7%
50%100%

Markets & Stocks Research

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