When I was new, I traded just the picture of prices. Later after living through a full cycles, I learned stocks were actually businesses. Business sell stuff to customers and generate revenue each year. Businesses have cash flows and earnings. Thats why when we look book 10 to 20 years, most businesses are more valuable today then back then. Valuation looks at...
XLF financials, Stocks to GDP and stocks to gold, all tell the story. Our debt based system is bottlenecked. More money is 'needed'.
the market only goes 2 ways, up and down, and yet it can still be difficult to see through the noise. I used to just look at charts, and trade off of the pictures. boy was I a fool. turns out stocks are businesses. if you knew that, you should have told me sooner :D valuation changed my life. on dark days like today, the market is falling and its feels...
Stocks are businesses. most of them anyways. some are expensive hobbies until the money runs out. Its a good exercise to value opportunities as you see them. useful to weigh it and make notes in your files. Maybe not now, but later, your pitch with be thrown, and you might be ready to swing at it.
I used stare at charts and colored bars and tried to find shapes to figure out the next move. Guess what, I missed out on a lot of easy opportunities to hold and ran scared out of good stocks because I didnt understand growth valuation. Stocks will do things that dont make sense on the charts. Stocks are businesses. We really need to understand the companies...
Where is fair value and where is cheap? Price and value are not the same. Price is snapshot of opinion while value is a moving story that changes over time. PE price to earnings is how we gauge value, at least one of the main ways. I like to think of PE in terms of years. How many years of earnings am I paying in advance for this underlying business?. It...
lets look at 150 years of stock prices and see how valuation with inflation played out, and apply the "rule of 20" as a guide. The rule of 20 is a benchmark regression that essential says when PEs and cpi inflation are added together they should be under 20 for stocks to be attractive historically. SPX DJI QQQ NASDAQ:NDX GOLD
In this video, I explained the logic of recent market move caused by US 10Y yield. Actually, what caused the volatility doesn't matter at all, the key is what you're going to do. Some highlights are as below: 1. Why JPM rallied in the recent month? 2. Concern of the US 10Y rally continue to weigh on stocks.. 3. Similar pattern between US 10Y and JPM 4....