What are Quality Stocks? Do They Outperform? What are the Pitfalls?
Updated – 11/3/23 Quality stocks are a popular type of stock market factor. Quality stocks are generally defined as businesses with above average growth and lower risk (of bankruptcy). Based on these definitions, it would sound that quality stocks are always the best ones to own. But that is not always true. As with everything […]
Historical Economic Data: 25+ Years (U.S.)
Updated – 11/17/23 It’s hard to understand the economy in general because there’s so much data, and it’s so often taken out of context. We will narrow down only the most critical indicators of economic development and examine real data published by government agencies to get context on these metrics. Macroeconomic data can help make […]
Should You Be Investing in Defensive Stocks?
“But investing isn’t about beating others at their game. It’s about controlling yourself at your own game.” -Benjamin Graham The majority of investors want to see their money increase in value. Growth is an important objective, but it’s not the only one. A prudent investment plan also protects a portfolio from economic downturns. Defense-oriented equities […]
9 Industries That Thrive During a Recession
Today’s economy operates differently from past recessions. The Great Depression, for example, hit at a time when the primary means of transportation were trains and steamships. Today, in contrast, we have planes and cars as the primary means of transportation. While recessions tend to shake things up for a while until things get back on […]
The Importance of Price Elasticity of Demand in Investing
“The single most important decision in evaluating a business is pricing power. If you’ve got the power to raise prices without losing business to a competitor, you’ve got a very good business. And if you have to have a prayer session before raising the price by 10 percent, then you’ve got a terrible business.” –Warren […]
3 Leading Indicators for Markets – Why FedEx’s Latest Release is a Big Signal
FedEx’s latest preliminary earnings release sent the stock down 21.4% on Friday, September 16th as management withdrew their forecast on worsening business conditions. The news of forecasts being pulled at FedEx helped send the broad S&P down 0.72% because FedEx is a key company in the transportation industry and a component of the Dow Jones […]
Guide: How to Read Google Finance
Google finance is a great tool to use in your investing arsenal. It’s a great way to get updated ticker information, as well as news, financials, and other key metrics. You can quickly see past price performance (with this special trick), as well as 1D, 5D, 1M, 3M, 6M, YTD, 1Y, 5Y, and MAX. To […]
Qualitative Fundamental Analysis: The 8 Key Factors According to Ben Graham
Investors think of Warren Buffett’s mentor, Benjamin Graham, as a numbers guy who only considered financial data, or the quantitative side of fundamental analysis. They haven’t read his books carefully enough. Ben Graham dedicated most of a chapter in his seminal Security Analysis to the qualitative factors of fundamental analysis. It is well worth examining. […]
A No-Nonsense Value Investing Checklist from One of the All-Time Greatest
Value investors come in all styles, shapes and sizes. Fidelity’s Peter Lynch was one famous brand of value investor—looking for growth-y companies trading at a reasonable price. Who better to find a value investing checklist from than the great Peter Lynch? Here are some of the items on Lynch’s checklist (“The Final Checklist”) that he […]
Purchase Managers Index (PMI) as a Leading Indicator of Economic Growth
The Purchase Managers Index (PMI) is a great economics tool for investors to wrap their heads around as it can be watched as a leading indicator of changes in the economy. The changes in PMI data can indicate many things including changes in GDP, inflation, and employment which can all be used when making investment […]
