Which Stocks Are Safe to Buy?
The point of investing is to make money, not to lose it. Many who were hurt badly in the 2008 market crash have never returned to the stock market because they simply don’t know which stocks are safe to buy. There is a lot of advice out there about safe stocks but what can you believe and how should you proceed? As an example of current advice on this topic the Motley Fool suggests 3 safe stocks you can buy right now.
As recent events have clearly shown, even large-cap stocks that were thought to be stable can crater in the […]
How to Invest in British Stocks
Depending on the results of the Brexit vote you may want to consider how to invest in British stocks. What is a Brexit and what does that have to do with British stocks? The United Kingdom will soon vote in a referendum to decide if the nation should stay in the European Union or leave it. Brexit = British exit from the EU. Would an exit from the EU be a good for bad thing from a UK perspective? Business Insider UK is starting to think that a Brexit is a good idea. This is despite numerous dire economic projections.
Seeing […]
Do Penny Stocks Work?
Every so often stock analysts offer a list of penny stocks. Our question is do penny stocks work in general and do penny stocks work for your stock portfolio? Let’s start with an article from Money Morning, How to Find Good Penny Stocks to Buy Today.
The key to how to find good penny stocks to buy today is knowing what you are buying and if it fits your needs.
The first thing you want to do as a penny stock investor is figure out how much money you have to work with. Basically, don’t invest anything you can’t afford to lose.
We […]
Why Does the Economy do Better under Democrats?
Election year is upon us and the nation will pick a Republican (Donald Trump) or a Democrat (Hilary Clinton) as its next president. From an investor’s point of view which party is better in the White House for the economy? Despite the association of the Republican Party with business it would appear that having a Democrat in the White House is better for the economy. Salon demonstrates with charts that the economy does better under Democratic presidents.
The right likes to argue that [economic] conditions mark a clear failure of progressive policies, and in particular of the Obama administration. In the […]
How to Short the Chinese Economy
After decades of impressive economic growth China’s economy is not only slowing down but may be in danger of collapse. The question one might ask is how to short the Chinese economy. Profit Confidential addresses the issue of a possible China economic collapse.
The billionaire short seller, Jim Chanos, has often worried that China’s economic collapse is right around the corner. Last year’s stock market crash proved he may have a point, but how would we know when the economic collapse is here?
He says China’s problems are eerily similar to what went wrong in the United States a few years ago: […]
How to Analyze Energy Stocks
As the price of oil inches up energy stocks are becoming more attractive. But which energy stocks should you consider? Knowing how to analyze energy stocks is important in picking potential winners. Who is going to make a profit at $50 oil? When will large scale exploration and drilling resume? How will alternative energy stock fare as oil becomes cheaper. Where are niche markets in the energy sector? And, just how fast is the price of oil going to rise in world where many large economies are in or on the verge of recession?
Clean Energy Stocks
Usually clean energy like wind […]
How Do I Buy Cheap Stocks?
The old adage for successful stock investing is to buy low and sell high. But, how do you buy cheap stocks? Where do you find them and how do you pick the most profitable ones? A couple of weeks ago we asked the question, what is value investing? Value investing should always be on your mind when searching for cheap stocks.
A simple approach to value investing is to use a stock screening tool like the one in Google Finance to find stocks with low price to earnings ratios (P/E ratio) or price to book ratios and high dividends.
In short, what […]
Do Takeovers Create Value?
Takeovers of one company by another are often touted as a way to create value due to company synergies and to reduce cost by eliminating duplicated functions. But do takeovers create value? The Bayer offer to buy Monsanto for $62 billion brings this thought to mind. It may or may not succeed as noted in The Wall Street Journal which says that Bayer’s Monsanto bid has fallen flat.
One problem with conglomerates is that there is something to dislike for everyone. Bayer’s bid to buy U.S. seeds and pesticides company Monsanto risks suffering the same affliction, at least as far as […]
Do Value Stocks Outperform?
Value stocks are not just big companies are not necessarily companies with a strong recent track record. Rather value stocks are priced by the market below what their forward looking earnings should dictate. Value stocks are not always immediate winners. But do value stocks outperform over the long run? After all long term growth and dividends are typically why investors look to value stocks. Forbes published an interesting article about value stocks.
Value is not, never was and can never be just about low ratios. Anybody who sorts on the basis of P/E, Price/Sales, Price/Cash Flow etc. and simply buys stocks […]