Risk and Return When Investing in the Market

As a serious investor, you regularly weigh risk and return as you consider what to invest in, what to divest, and how to react to market news and attempts to manage economic forces. In this article, you’ll get a taste of the market’s response to pain, higher short-term interest rates, and falling bond prices. >>…

Questioning Persistent High Inflation and Deep Recession

In the past week or so, the markets, I suggest, have begun to question the prevailing conventional wisdom that inflation will remain persistently high and that the economy is likely to fall into a deep recession. This article explores why. >> To subscribe to this monthly newsletter, click on Subscribe! Commodity Prices & Payroll Suggest Moderating…

Evaluating Price-to-Earnings (P/E) Ratios

How does the Price-to-Earnings (P/E) ratio help you evaluate whether a company is worth becoming part of your investment portfolio? Let’s explore this in this article. >> To subscribe to this monthly newsletter, click on Subscribe! The Relationship Between a Stock’s Price and its Earnings One of the benefits of entering into a bear market territory…

What to Expect During a Bear Market

How are you finding bargains and protecting your portfolio in this Bear Market? According to Investopedia, a Bear Market happens when, “… a market experiences prolonged price declines. It typically describes a condition in which securities prices fall 20% or more from recent highs amid widespread pessimism and negative investor sentiment.” In other words, investing during a…

Always Look for Investing Opportunities

Regardless of the market situation, are you always looking for investing opportunities? As you’ll read further below, you don’t want to be 100% in cash. >> To subscribe to this monthly newsletter, click on Subscribe! Don’t Let Current Events Scare You From Looking for Investing Opportunities Inflation and rising interest rates are still dominating the investment…

Global Conflict, Fed Normalization, and Stock Prices

War in Ukraine, sanctions, and more supply chain disruptions while the Fed works to transition from massive COVID accommodation to normalization are more than enough to spook investors. This article puts into perspective how global conflict affects stock prices, and offers guidance on how best to ride out the turmoil. >> To subscribe to this…

Inflation, Rising Interest Rates and Stock Prices

Inflation is in the news, as are rising interest rates. Can stock prices hold up against this backdrop of rising interest rates?  Read on to learn more. >> To subscribe to this monthly newsletter, click on Subscribe! Inflation Report Sends Interest Rates Up This week the markets got another hot inflation report.  This sent interest rates…

Financial Themes for 2022

This first newsletter of 2022 not only addresses four financial themes to watch in 2022 (including one about dogs of the market) but also explores COVID and inflationary pressures while reminding you of three determinants of stock prices. >> To subscribe to this monthly newsletter, click on Subscribe! COVID and Inflationary Pressures Unfortunately, COVID is still…

Investing in Times of 20+ P/Es

As a value investor, you must be asking yourself how best to go about investing in a time of 20+ P/Es. With over 90% of companies in the S&P500 reporting their 3rd quarter earnings, US corporate profits seem strong.  According to FactSet, about 80% reported better than expected earnings per share, and about 75% posted…

Processing Investment Advice, Predictions, and Risks

How seriously do you take market voices? By that, I mean advice, predictions, and risks not always grounded in common sense? This newsletter explores this conundrum. Market Commentators Have No Accountability for Advice, Predictions and Risks Realize that there’s an important disconnect between the “advice”, “predictions” and “risks” people hear from market commentators and actual…