• 30 Nov
    Think You’re Comparing Apples To Apples? Think Again.

    Think You’re Comparing Apples To Apples? Think Again.

    • This article is a warning for novice investors and a reminder for experts.
    • When investing, nothing can be taken as a certainty as all are moving parts, especially financial metrics and prices.
    • Comparing current prices to past prices doesn’t help much, while understanding the fundamentals does.

    Introduction

    Investing shouldn’t be a comparative profession, but that is exactly what we do. We try to find the best stocks by comparing one to others, the best financial vehicle for our investments by comparing the options available, or we compare current prices with those of the past.

    Unfortunately, comparative analysis more often than not gives us poor risk-reward assessments. In this article, we’ll discuss the pitfalls of comparative investing and what can be done to avoid making unnecessary mistakes. More →

  • 29 Nov
    Consider This Before Jumping Into Education Stocks

    Consider This Before Jumping Into Education Stocks

    • Investing in education stocks falls under the umbrella of political investing which is more like betting.
    • However, the trends in for-profit education aren’t great as a result of a bad, and long-lasting, reputation.
    • Don’t invest in the sector as a whole. Instead, find the healthiest individual companies with positive brands.

    Introduction

    If you’d have run a value screen of the stock market this June, education stocks would have sprung up like mushrooms after a rain. Since then, much has changed with many education names up more than 50%. More →

  • 28 Nov
    The FED Being Hesitant Isn’t Good News…

    The FED Being Hesitant Isn’t Good News…

    • The FED is telling us stressful times are on their way, why not position yourself in a win-win situation?
    • We’ll summarize the good, neutral, and bad news.
    • The reason why the FED is hesitant in raising rates is of global concern.

    Introduction

    In our article on Friday, we discussed how important interest rates are for the stock market as higher interest rates pull stocks down while lower interest rates push stocks higher because people have lower required return rates. More →

  • 27 Nov
    Sunday Edition: Extreme Investor Sentiment Indicates A Tradable Bottom In Gold

    Sunday Edition: Extreme Investor Sentiment Indicates A Tradable Bottom In Gold

    The longer you’ve invested in, or traded financial markets, the more you probably realize just how difficult it is to accurately time financial markets. Pundits and talking heads will tell you it’s impossible. However, after 20 years of trading and investing, including stocks, bonds, currencies, futures, and options, I do believe it’s possible to identify key characteristics that are present at or near every major turning point in virtually every market. More →

  • 25 Nov
    Want To Know What Your Returns Will Look Like In 17 Years? Buffett Has Some Insights

    Want To Know What Your Returns Will Look Like In 17 Years? Buffett Has Some Insights

    • We’ll discuss the primary reasons behind long term returns on investments.
    • With interest rates being close to zero, we have to exclude lower interest rates benefiting future returns.
    • General market conditions create a negative asymmetric risk reward situation, but there is a better option.

    Introduction 

    With the Dow passing 19,000 and the S&P 500 passing 2,200 points, it’s time to take a look at the markets, investors’ expectations, and the real possibilities that those expectations will be met. More →

  • 24 Nov
    Vacation In Europe? Definitely. Invest There? Not So Fast…

    Vacation In Europe? Definitely. Invest There? Not So Fast…

    • The situation in Europe is getting better and will improve further due to its weak currency.
    • The stock market is, however, still risky due to high valuations. But as inflation picks up and required returns increase, stocks should become cheaper.
    • As Europe is very segmented, many risks can arise, so waiting for better risk reward opportunities will pay off.

    Introduction

    In the last two years, the dollar has moved strongly against the Euro while the European stock indexes practically haven’t gone anywhere despite the BREXIT, the Deutsche Bank crisis, and the upcoming Italian referendum.

    Today we’ll analyze the current risk reward situation for U.S. investors wanting to diversify into Europe by analyzing currencies, valuations, and the general politic and economic risks Europe holds. More →

  • 23 Nov
    How To Make Activist Investors Work For You

    How To Make Activist Investors Work For You

    • We’ll analyze the scientific data that explains how activists effect returns.
    • Activism increases returns, but you can increase your returns without paying the 2/20 fees.
    • There is enough time from the first activist announcement to actual fundamentals improving to carefully analyze the investment and make an appropriate decision.

    Activist Investors

    Activists open a position in a company that is large enough to enable putting pressure on management, more often than not in a public way. They put pressure on management because they believe that the company is mismanaged and value can be unlocked through changes in corporate policies, acquisitions, divestments, better use of cash, larger dividends, cost-cutting, better financing options, etc. More →

  • 22 Nov
    Things Are Finally Changing – Are You Ready To Seize The Opportunities?

    Things Are Finally Changing – Are You Ready To Seize The Opportunities?

    • Economic growth has been fueled by credit in the last 30 years with increasingly lower interest rates.
    • A reversal is inevitable and will lower consumption and investments as credit tightens.
    • A 100-basis point increase in corporate debt costs would lower S&P 500 pretax earnings by 6.3%.

    Introduction

    In her latest speech, FED Chair Janet Yellen clearly stated that she expects global economic growth to firm up, supported by accommodative monetary policies abroad, U.S. inflation to reach the targeted 2% level, and the FED to raise interest rates relatively soon.

    After seven years of low interest rates and low inflation, the impact of the above mentioned changes has to be assessed very carefully as there is no recent historical precedent. More →

  • 21 Nov
    Asymmetrical Risk Reward – What It Means For You

    Asymmetrical Risk Reward – What It Means For You

    • “The essence of portfolio management is the management of risks, not returns.” – Benjamin Graham
    • You should rethink your stocks and bond holdings as most have negative asymmetric risk reward.

    Introduction

    Asymmetrical risk reward is the essence of investing in stocks, and is also essential for those who want to beat the market.

    In today’s article, we’ll discuss what it is, what investment vehicle has the best asymmetrical risk reward opportunities, and how you can apply its benefits to your investments. More →

  • 20 Nov
    Sunday Edition: Time To Buy E. Coli

    Sunday Edition: Time To Buy E. Coli

    Last week we discussed what it means to be a contrarian investor. And why, when done successfully, it can lead to substantial market outperformance.

    Today we are going to discuss a specific contrarian opportunity in the chain restaurant business. More →

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