Investing

Is the Market Overvalued?

You keep hearing that, because stock market valuations are so high lately, that a downturn is imminent. But this is not necessarily the case. The often-used P/E ratio, which measures valuations and now is on the high side, is not always the best market bellwether.

It’s likely you’ve seen some version of this headline, and wondered what truth it holds:  “Stock Market’s High Suggests Lower Returns AheadForbes, June 18.

Amid Chaos, Invest for Income

Fighting again in the Middle East, oil prices and Wall Street volatile and apparently you need life insurance to fly certain airlines: In what seem scary times to invest, how do you cut through the clutter of panicky, short-term and just plain bad money strategies?

Everyone wants a strategy that builds confidence about investing – especially when everyone seems to be holding their breath. My answer: income investing, a way to generate consistent cash flow from your liquid investments.

Advisors: Plans, Not Fads

Will you ever stop underperforming your own investments? The rollercoaster market naturally spurs you to chase trends and lose sight of what you really ought to do: Stick to a well-advised plan of long-term payoffs and goals.

Bargains Amid Downturns

Periodic dips in the stock market grab investors’ attention and fuel anxiety. Here’s why long-term investors should not worry, and instead see opportunity. Market downturns are times to buy good bargain stocks.

Think back to early March 2009, the low point after the crash. America was on sale. If you bought stocks then, when they were cheap, you more than doubled your money as of now.

Winning by Losing Less

To reach your financial goals, you don’t have to outperform every benchmark every year. For long-term investors, avoiding and mitigating losses is a key factor in achieving ultimate success in your portfolio.

Is a Market Bubble in Sight?

In a bubble, investors believe assets’ value can move in only one direction. They’re usually right – just not about which direction. Long-running gains in U.S. stocks, despite sharp daily dips over this summer, inspire some market watchers to use the B-word again.

Is the equity market in or approaching a bubble?

The Economy and Inventories

The economy has had a rollicking time this year, going from negative in the winter to positive in the spring. Why? Corporate monkeying with inventory levels is a big reason. But the large impact of this manipulation does not inspire confidence in the strength of the recovery.

Surprises abound lately. After more than five years of mediocre economic growth and a first quarter of “negative growth,” the economy grew at a rate of 4% in 2014’s second quarter.

Avoiding Crisis After a Death

Most women understand too well the odds that later life might find them alone financially. Among baby boomers, for example, an estimated seven out of 10 wives will outlive their husbands. If you’re one of these women, how do you prepare?

Economic Expansion Till 2016

Given current trends, with an eye toward historical patterns, the economy likely will keep growing into 2016 – and the stock market with it. After that, look for much less robust results. Why? For one thing, the tailwinds of loose monetary policy will no longer be at our back.

Bullish: Stocks’ Jagged Rise

The second quarter of 2014 is in the books, and goes down as another positive period for the U.S.

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