No Profit Until You Take a Profit
You may be already wondering what this question is doing
on a website that provides help with investing and investments. But, there is a
point at which transitioning your investments away from opportunity and risk to
reduced opportunity but safer investments makes sense. We wrote recently about
the silent warning from Warren Buffett in that he is finding
few attractive investments these days and as a result is stockpiling cash. In a
more-immediate timeframe, Jim Cramer, the former hedge fund manager-turned TV
investment personality, always notes that you do not have a profit when investing in stocks until you take a […]
An article on CNBC caught our attention. Nearly 1 in 5 Americans are stashing cash at home in fear of a recession according to the folks at CNBC. Perhaps they are trying to emulate Warren Buffett whose silent warning for investors is that his company is holding more than $100 billion in cash assets because he cannot find investments that he believes will be profitable over the long term at current prices. Or maybe they are thinking about the 1933 bank holiday when President Roosevelt suspended all banking transactions within 36 hours of taking […]
Shortsightedness is never a virtue in investing. Time and time again over the years too many investors jump into bull markets too late, stay too long, and lose their shirts. Along with the assessment of intrinsic stock value, what are the investing metrics you should pay attention to when investing in stocks today? Here are a few thoughts on the subject. Our treatment of this is in no way complete but rather intended to point investors in the right direction during a time of market uncertainty.
What Are Investing Metrics and Why Should You Care?
As noted […]
What Are Your Investment Alternatives?
As noted in a recent CNN business article, investors are “holding
their noses” and buying stocks because “there is no alternative.”
(There Is No Alternative) has become a popular mantra on Wall Street. It
explains why stocks are near record highs despite concerns about trade tensions
with China and what’s expected to be another round of lackluster corporate
earnings next month.
even a huge surge in crude prices Monday following an attack on Saudi oil
facilities over the weekend was enough to dampen investor enthusiasm all that
much. The Dow fell a little more than 150 points, or about 0.6%, Monday. That’s
a pretty tame […]
At the beginning of last year, we asked if you should be concerned about the inverted yield curve. The fact is that many previous market crashes and recessions have been preceded by “inversion” of rates on long term versus short term bonds. The timing of this “predictor” is such that it may be a year or two after bond rates change that the market crashes or the economy suffers. There are two questions here for investors. One is whether or not this episode of interest rate inversion will be followed by a collapse of […]
This question came to mind when we read an article by The Motley Fool, 3 Growth Stocks to Buy and Hold for the Next 50 Years. First of all, we give you their thoughts on the subject and then ours.
In today’s world of high-speed trading and short attention spans, it might seem unfathomable to hold any given stock for years, let alone decades. But the world’s best investors know all too well the best way to consistently beat the market is to buy high-quality stocks and hold them for extended periods.
To that end, we asked three Motley Fool contributors to […]
The stock market is falling in response to a step up of the trade war. Negotiations seem to have stalled as both the USA and China refuse to budge over issues that they consider essential to their national interests. We alluded to this sort of situation in our article about what happen if the trade war becomes permanent. The American dominance of the global economy is not an assured thing and neither is the dominance that China wants to achieve. But both nations are squaring off to fight for what they want. The down side for the USA is reduced […]
It is a good idea to diversify your portfolio of investments. Doing so reduces the risk of loss by spreading out your investments over several vehicles and several sectors of the stock market. But, can you diversify too much? The answer is, yes. There comes a point where adding more stocks, for example, does not improve your risk profile but makes it harder to keep track of your individual investments. And it takes you away from investments that you understand. If you are a dedicated long term investor, you will routinely review your portfolio and assess intrinsic stock value. While […]
The reason for investing in stocks is to attain financial security. While some people may make a spectacular investment decision by chance, the vast majority who succeed at investing in stocks save their money and invest over a long period of time. Success in investing starts with defining your goals. What do you want to get out of investing? Make a list with the most important goals like having enough money for retirement, putting your children through college, or saving up to start your own business at the top of the list. Then consider how many years are left for […]