Reward-Risk Ratio Investing

And, Volkswagen's Porsche IPO.

Steven Lerner
Steven Lerner

Today is Monday, September 19, 2022.

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Reward-Risk Ratio Investing

Surviving the volatile stock market in 2022 can be achieved through the reward-risk ratio, according to Sid Bhattacharjee, the co-founder and chief strategist for Sapphire Capitals in a new episode of the Early Bird podcast.

Definition: The reward-risk ratio is essentially determining a reward based on a certain size of risk you are taking, according to Bhattacharjee.

Pros and Cons: Bhattacharjee said that the benefit of the reward-risk ratio strategy is that it helps with risk management, but it is not a get-rich-overnight strategy.

Current: With the current state of inflation and fear wreaking havoc in the market, Bhattacharjee said that using the reward-risk ratio is more important now than ever.

Final Thoughts: What advice does Bhattacharjee have for getting started with the reward-risk ratio? Find out by listening to a new episode of the Early Bird podcast.


Notable Earnings Today: AutoZone (NYSE: AZO).

Notable IPOs Today: Lichen China Ltd (Nasdaq: LICN).

Notable Equity Crowdfunding Campaigns Ending Today: TraxMethod (SMBX), TargaZyme (StartEngine), Formulation Compounding Center (Honeycomb).

Notable Economic Events Today: N/A.

Volkswagen Prices Porsche IPO

Photo by Hunter Newton / Unsplash

Automotive giant Volkswagen (OTCMKTS: VWAPY) has priced the initial public offering for its Porsche spinoff.

Details: The company is seeking an IPO of over $70 billion for Porsche. Volkswagen’s supervisory board met on Sunday to price the IPO.

Background: It was announced in August that Volkswagen was going to take Volkswagen public on the Frankfurt Stock Exchange.

Stock Price: Volkswagen’s stock is down 28% this year. The hope is that the Porsche IPO can generate positive press for the company.

Final Thoughts: The Porsche IPO is expected to occur at the end of September.

ApeCoin Jumps on Special Unlocking

The price of the cryptocurrency ApeCoin grew about 7% on Sunday before dropping down later in the night.

Catalyst: The reason for the price increase is because 25 million ApeCoins, which are worth about $115 million, were unlocked over the weekend for the backers who helped with the launch of the digital currency, according to Decrypt.

Background: ApeCoin is a cryptocurrency created by and affiliated with the Bored Ape Yacht Club. It was established in the spring.

Challenge: While the unlocking of the extra ApeCoins is good for those initial backers, there are concerns that they might try to sell them quickly to profit. This could lower the price of ApeCoin. There are also issues about flooding the market with too many ApeCoins.

Numbers: Since launching in the spring, the price of ApeCoin has lost most of its value. Obviously, it’s been a bad year for nearly all crypto prices.

Final Thoughts: Members of the ApeCoin community will also vote on new proposals to improve the utility of the token.

Everybody’s Losing for the Weekend: Ethereum, Bitcoin Slide Further Through The Weekend (Decrypt)

Secret Asset Class: Overlooked by Investors, Royalties Are Fetching Princely Sums (The Wall Street Journal)

Slow Acceptance: Institutions Are Still 'Wait-And-See' With Ethereum (CoinDesk)

Going Alts: Fund managers pitch ‘alts’ to retail investors as institutions max out (Financial Times)

Hacked: Grand Theft Auto VI Leak Is a Shock to Video Game Studio Rockstar (Bloomberg)

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