Computing a stock’s price-to-earnings (P/E) ratio is one of the quickest ways to learn whether a company is overvalued or undervalued. If a company’s stock is undervalued, then it may be a good investment based on the current price. If it is overvalued, then you need to evaluate whether the company’s growth prospects justify the stock price. What is the price-to-earnings…
Since a bad inflation report last week, stocks have suddenly rallied for no obvious reason, making many investors wonder if the brutal bear market that has ensued for most of the year is over. After all, the S&P 500, a broader benchmark for the overall market, is still down more than 23% and is only about 11.8% higher than pre-pandemic levels…
Oil prices have bounced around quite a bit this year. Brent oil, the global-pricing benchmark, started 2022 below $80 a barrel before soaring into the $120s following Russia’s invasion of Ukraine. It has since cooled off, steadily falling back into the $80s on global economic concerns. However, OPEC recently took a step to stem the slide in crude prices by…
Wall Street has many messages for people who are or who may become its customers: “We help people, businesses and institutions build, preserve and manage wealth so they can pursue their financial goals.” “Our processes are finely tuned, deliberate, time-tested and risk-aware, all in the mission to achieve sustainable, above-market results.” “Investment professionals design and manage a portfolio aligned to…
The past few weeks have been refreshing for Cathie Wood and fans of her style of growth stock investing. The CEO and co-founder of Ark Invest publishes the buys and sells of her firm’s exchange-traded funds (ETFs) every market day, giving the public insight into her latest allocation strategies. Many of her stocks have been moving higher. Her most popular…
Home buyers have been struggling over the past year and change due to a number of factors, including sky-high home prices and a glaring lack of real estate inventory. Unfortunately, the first issue continues to be a problem in today’s housing market, as the National Association of Realtors (NAR) reports June’s median home sale price as $416,000 — a new…
Real estate investing is considered a good way to diversify a portfolio because not only has real estate itself shown its resilience through all kinds of market conditions, but it gives you the feeling of actually owning something. It’s real. There are lots of ways to buy real estate in the stock market too, including in the form of the…
Fight or flight is a natural survival mechanism. But history tells us that holding through periods of volatility is the best way to compound wealth over time. It’s tempting to fight a bear market by shifting your investment strategy toward whatever is working in the moment, or to sell everything and clear your head. Here’s why defying instincts is one…
For months on end, inflation has been rampant. And consumers have been struggling to pay for essentials like gas, groceries, and utilities. The problem has gotten so bad that many people are depleting their savings and racking up credit card debt just to stay afloat. Meanwhile, the Federal Reserve just took a huge step to help combat inflation — it hiked interest rates by…
There’s no sugarcoating it: the investing community is enduring a challenging year. During stock market corrections and bear markets, it’s not uncommon for volatility to pick up or for investors’ emotions and resolve to be challenged. After nearly a quarter of a century of putting my money to work on Wall Street, I’ve learned that the light at the end…