But if I knew how to manage my portfolio safer and smarter than most hedge fund managers, I could realistically grow my wealth.
Why the Ebola scare led to a 16% drop in the Airline Index
The share prices for major airline companies in the U.S. dropped substantially after the news of the first Ebola case in U.S. on September 30, 2014.
During fatal disease outbreaks, rules and restrictions are imposed—especially on air transportation. This includes canceling flights to the affected areas.
In the past few months, the number of flights reduced by ~37%. 216 of the 590 monthly flights scheduled to Guinea, Sierra Leone, and Liberia were canceled as of August 2014.
The Ebola Impact Index was constructed to measure Ebola’s impact based on the size of the potential Ebola outbreak. The GDP is the proxy for the quality of the country’s healthcare system.
Concerns about Ebola increased in the U.S. after September 30, 2014. Thomas Eric Duncan was the first person to be diagnosed with Ebola in the U.S.
With globalization and the growth of international trade, there’s a fear of infection during disease outbreaks. A shock in one economy spreads to other economies.
SARS was another disease outbreak in 2003. SARS caused a panic similar to the current Ebola outbreak. SARS was a viral respiratory illness.
The World Bank estimated Ebola’s impact by analyzing two scenarios—low Ebola and high Ebola. The scenarios are based on the probability of the disease spreading internationally.
According to the WHO, in this year’s Ebola outbreak there have been more cases and deaths than the combined reports from all the previous outbreaks.
Mortgage rates Mortgage rates are the lifeblood of the housing market. This is why the Fed began quantitative easing in the first place. Lower rates allow homeowners to refinance. Refinancing increases homeowners’…
Households with a Netflix or Hulu subscription were three times more likely not to have a cable subscription than the average household in 2013.
The stock declined by 26% in the after-market hours on the day the earnings were announced. However, after this decline, Netflix stock has become much cheaper than before.
Netflix signed a number of agreements with ISPs In the previous part of this series, we discussed how huge amounts of traffic travel from Netflix (NFLX) to Internet service providers (or…
Netflix has vehemently opposed this practice of charging interconnectivity fees and asked for strong net neutrality rules.
Netflix expects 2.15 million net subscriber additions in the fourth quarter. This growth is faster than what Netflix experienced in the U.S.
Millennials—consumers between age 18 and 34 years—spend one-third of their time watching original TV series through digital platforms such as tablets, smartphones, and laptops.
32% of total households subscribed to Netflix, while 19% subscribed to Amazon (AMZN) Instant Video. Hulu Plus saw subscriptions from 9% of households.
Major channels—which include Walt Disney’s (DIS) ESPN, Time Warner’s (TWX) TNT, and Viacom’s (VIAB) Nickelodeon—lost about 4% to 5% of subscribers since 2010.
“Cord-cutting” means viewers have stopped subscribing to traditional TV packages and are shifting to online video streaming providers like Netflix (NFLX) to save costs.
Netflix has always maintained that itself and other Internet TV players complement each other. Netflix claims these companies are participating in a transformation from linear video to Internet video.