Strategies

When it comes to valuing stocks, the price-to-earnings (P/E) ratio is the number one metric for investors that want an instant fix on what the market thinks of a company. [That being said]...there are health warnings to heed if you don’t want to be left exposed by its limitations. [Let me explain.] Words: 1101

Today’s infographic details the basics around the discipline of growth investing, including the differences the school has with value investing and, more importantly, it also provides a framework for choosing growth stocks used by elite investors.

There are many risks within the market that leads an investor to making or losing money but being proactive and reducing all of the risks you can will lead to less volatility and more growth over the long term. Let’s look at 5 risks of the stock market.

Remember, the trend is your friend and now you have an arsenal of such indicators to make an extensive and in-depth assessment of whether you should be buying or selling. If ever there was a “cut and save” investment advisory this article is it. Words: 1579

If a strategy, model, or indicator can’t even beat brain-dead buy and hold, then it doesn’t have much value [and that is the case with the 200 day moving average]. For every one time it does work, there are two times it doesn’t work. In other words, technical analysis gives you too many false signals that causes you to underperform buy and hold. Here's proof.

The weight of the evidence today suggests that stocks are overvalued irrespective of the number of years over which you are smoothing earnings. Historically, that has meant below average forward returns with lower odds of a positive return BUT, while today’s high valuation levels may tilt the odds, but the wide range of possible outcomes remains. Let me explain.

New investors are often intimidated because of their lack of knowledge. They see well-dressed men and women in the financial media using jargon they don’t understand, so they believe that investing is a great mystery. They think there are magic formulas to memorize, mystical ratios to learn and complex accounting rules to comprehend and they fear that there’s no way they could master the skills required to be a successful investor. In reality, investors need to understand only two simple concepts to be successful, no matter their skill level. [Here they are!]

Most people today know at least some things about cryptocurrencies and understand that there is a huge earning potential associated with them. The truth is that we might very well be looking at the future of money. Since the potential is so high, buying cryptocurrency does seem to be a very lucrative long-term investment but there are many things that should be known about this before a purchase is made. If you are a beginner crypto investor and you want to buy, here are some things you absolutely have to do.

There must be a death cross at some point before every bear market, but it’s such an erratic signal that one could get 10 false signals before a meaningful one arrives. If something only works 1 out of 10 times is it really worth monitoring?

Dollar cost averaging is a simple and effective strategy of investing fixed amounts of cash at predetermined times. If you invest $1,000 every month, then you are dollar cost averaging. The strategy is easy to understand, but many of the benefits are not so obvious. Here are 4 such benefits: