Why would anyone want to buy at the top of the market? No one can tell if we are there yet, but certainly valuations are heady – and many stock prices are expensive.
If someone wants to buy a company you own stock in, do you break out the champagne? Not necessarily. Given today’s burgeoning mergers and acquisitions, investors should approach M&A news with caution. Too many go wrong lately, punishing share prices and investors.
How often do you make mistakes? Well, “the intelligent investor must focus not just on getting the analysis right. You must also ensure against loss if your analysis turns out to be wrong,” says Jason Zweig, Wall Street Journal columnist and author of Your Money and Your Brain. How can you guard against your own goofs?
Shopping season blazed in full glory just a few weeks ago, the strategic plans of browsers and spenders playing out in packed aisles nationwide. You were probably in one of those aisles – and while drawing a bead on that perfect and marked-down gift, you also honed a skill to help your portfolio.
Research-driven strategies sound terrific, until you try applying them to the real world. Relying on such notions is a good way to lose money.
Recent markets befuddle even seasoned investors: The Dow’s up 200 one day, down 200 the next. Putting your money in Wall Street often means acknowledging and becoming comfortable with what you don’t, what you even can’t, know.
In the latest book of the Freakonomics series, Think Like a Freak, authors Steven Levitt and Stephen Dubner discuss the hardest three words for anyone to say: not “I love you” but “I don’t know.”
Low interest rates, often touted as our economic salvation in the wake of the Great Recession, are actually toxic. They delude investors into taking on too much risk, in a vain bid to get a better return.
Warren Buffett’s will leaves his wife money allocated conservatively: 90% in the Standard & Poor’s 500 and 10% in short-term Treasuries, frozen at those levels. That’s a great idea for the average person without a lot of financial prowess, he told CNBC. No, it isn’t.
As hard as it may be to believe, I recommend paying very little attention to how the big stock market indicators, such as the Dow Jones Industrial Average, are doing.
While the stock market made new highs and breathtaking lows over the last few weeks, one sector continued to simply fall, dare I say plummet: oil. Down with it went the price of a gallon of gasoline. Headlines warn that low-priced gas can hurt the economy but the benefit of cheap energy on your wallet remains, for now, clear.