Analysis of the price volatility in “cash equivalent” ultrashort duration ETFs. Capital preservation tied to underlying portfolio composition and credit quality. Reevaluate your risk tolerance.
Right now market fear and volatility is hitting record highs. Uncertainty about the short-term effects of the pandemic and effects on economic and corporate earnings growth is driving the market. It’s precisely for times like these that a diversified, and properly risk-managed portfolio is essential. These will allow you to ride out the bear market without selling quality stocks.
As long-term dividend growth investors, we are best served to take the long-term view and ride the short-term volatility out. I am confident that we are going to see fundamental deterioration over the short run as a result of the fear that the coronavirus has instigated. FAST Graphs Friday analyze Out Loud Video.
A long, drawn out note to investors who may not have been sleeping so well lately…
With this article, I will attempt to illustrate what I believe is a more rational way to evaluate how well your stocks are performing. Good companies that have been overvalued for a long time, could become reasonable or even cheap again. FAST Graphs Friday Analyze out Loud Video: A Better Way to Measure Performance.
A brief overview of ESG investing. Example of how to obtain and analyze ESG information.
Part 3 of a series comparing dividend yield and growth. How long do companies remain dividend growers? How dividend reinvestment affects compounding returns.
Maintaining a positive mindset can go a long way towards warding off the fear, greed, and other negative emotions that cause investing pitfalls. Celebrate success; don’t demonize wealth. Be patient and disciplined and over time, anyone can create a meaningful passive income stream.
Part 2 of a series comparing dividend yield and growth. How dividend growth can decouple from earnings growth. How long can high growth be sustained? A look at long term historical dividend growth rates.
Should you focus on higher yield or higher growth? A comparison of strategies and how they can affect income and total return. The optimal strategy for you depends on your income needs and time frame.
Analysis of the price volatility in “cash equivalent” ultrashort duration ETFs. Capital preservation tied to underlying portfolio composition and credit quality. Reevaluate your risk tolerance.
Right now market fear and volatility is hitting record highs. Uncertainty about the short-term effects of the pandemic and effects on economic and corporate earnings growth is driving the market. It’s precisely for times like these that a diversified, and properly risk-managed portfolio is essential. These will allow you to ride out the bear market without selling quality stocks.
As long-term dividend growth investors, we are best served to take the long-term view and ride the short-term volatility out. I am confident that we are going to see fundamental deterioration over the short run as a result of the fear that the coronavirus has instigated. FAST Graphs Friday analyze Out Loud Video.
A long, drawn out note to investors who may not have been sleeping so well lately…
One of the most common questions we receive regarding FAST Graphs is: why are P/E ratios different on the historical graphs versus the forecasting calculators? Although this is a fair question, it also illustrates that many of our users are not fully understanding how the tool is designed and/or how it works or should be interpreted. Therefore, I offer the following analyze out loud video to illustrate how, why and when the valuation multiples will change on a FAST Graph.
However, before I post the video, a few introductory remarks on what FAST Graphs are, how they work and how they are intended to be utilized are in order. For starters, FAST Graphs are a tool, and like any tool, their value will be proportionate to the skill of the person utilizing the tool. The acronym FAST stands for fundamentals analyzer software tool. The acronym is telling us that this is a tool that can help you analyze the fundamentals of a stock. Nevertheless, the word analyze (analyzer) is the key concept to adopt.
In this context, we market FAST Graphs as a “tool to think with.” Therefore, it is important to understand that FAST Graphs are not designed to dictate fair value, instead, they are built to reveal it. As a result, it’s up to the user to analyze what the tool reveals and use that information to make smarter and more prudent long-term investment decisions. Nevertheless, it’s also important to recognize that judgment is required.
We believe that FAST Graphs can help investors of all levels make better decisions regarding when to buy, sell or hold a publicly traded common stock. Moreover, we believe our tool does that perhaps better than any other tool. And in this context, we further contend that FAST Graphs are an authentic research tool that are simultaneously powerful and comprehensive.
By authentic we are suggesting that FAST Graphs do not purport to be anything more than they are. Making sound buy, sell or hold investing decisions on common stocks is difficult and impossible to do perfectly. However, FAST Graphs do facilitate that task within reasonable margins of error. Assessing the fair value of a stock can only be done within reason because of the dynamic nature of trying to assess the value of a business with incessant ongoing operations. Investors need to recognize and accept that a business is constantly generating changing operating results. Therefore, calculating metrics such as earnings, cash flows, sales, etc., simply means taking a snapshot at a moment in time that has already passed.
FAST Graphs Analyze out Loud Video on Interpretation of Valuation Reference Lines utilizing Southern Co (SO), Ross Stores (ROST), Johnson & Johnson (JNJ), Alphabet (GOOGL) and Cognizant (CTSH)
