i decided to buy shares of apple today and plan to hold for 1-5 years. here's why: -the p/e and yield are attractive (11 and 2%) -i think apple will grow their dividend (current payout ratio = 6%) -short term, maybe they will beat q4 estimates -i think they will make more gadgets that millions of people will buy
Asness: Shiller P/E Is Signaling Risk Of Another Lost Decade For U.S. Stocks [View article]
intel (INTC) currently has a more attractive schiller p/e (around 14) compared to the broader market and its peers. but its not hard to find the reasons why its valuation is low. my point being, simply buying when the S&P500 p/e is below historical norms, and being in cash when its above is an oversimplified investment strategy. to get good returns in today's market (and probably also in past markets) you have to find companies that can grow or become more profitable. now more than ever stock picking is the key to good returns and while schiller p/e's may point investors in the right direction, it is not enough to signal buys or sells.
Weighing The Week Ahead: The Lull Before The Storm? [View article]
looking forward I predict that equities drift higher until jackson hole, QE will be withheld thus reigniting euro-zone/fiscal-cliff fears and knocking 10-20% off the market.
A Goldman Bet That May Sink The Ship [View article]
too big to fail can make bets they can't handle because they have the government and tax payer as a safety... and to think it's the eu concerned about 'moral hazard'.
it's an eff'ed up world when the individual investor needs to hedge the positions of the banks.
"Fear isn't here," writes Brendan Conway of the VIX, which is up a "scant" 5% amidst a 2% sell-off in equities. Not only is the index not moving much (it rose 50% on August 8, for instance), but traders say volume today, while brisk, is not particularly strong. VXX +5.9%. [View news story]
Post Guidance Bomb, LinkedIn Is Still Insanely Expensive [View article]
Apple's Growth Story Is Over [View article]
Is There A Worm In The Apple? [View article]
here's why:
-the p/e and yield are attractive (11 and 2%)
-i think apple will grow their dividend (current payout ratio = 6%)
-short term, maybe they will beat q4 estimates
-i think they will make more gadgets that millions of people will buy
Asness: Shiller P/E Is Signaling Risk Of Another Lost Decade For U.S. Stocks [View article]
my point being, simply buying when the S&P500 p/e is below historical norms, and being in cash when its above is an oversimplified investment strategy.
to get good returns in today's market (and probably also in past markets) you have to find companies that can grow or become more profitable. now more than ever stock picking is the key to good returns and while schiller p/e's may point investors in the right direction, it is not enough to signal buys or sells.
Intel: There's Certainly A Bull Case [View article]
opened a position in INTC today
August Retail Sales: +0.9% vs. +0.8% expected, +0.6% prior (revised from +0.8%). Ex-autos +0.8% vs. +0.8% expected, +0.8% prior. [View news story]
2 Reasons Not To Buy Drilling Stock Transocean [View article]
P/E of 6.5 and 3% yield
Late Stage Bull Markets Carry High Risk [View instapost]
Weighing The Week Ahead: The Lull Before The Storm? [View article]
i'm curious what others make of this prediction??
The Housing Market Has Definitely Turned The Corner [View article]
the fact is, if rates rise the interest on the debt would be too high therefore rates have to stay low.
A Goldman Bet That May Sink The Ship [View article]
it's an eff'ed up world when the individual investor needs to hedge the positions of the banks.
EUR Pessimism Overdone? [View article]
Inflation: The Next Crisis, And How To Protect Your Investments [View article]
how would resource providers hold up in an inflationary environment. which types of miners would do best? gold? copper? what about oil companies??
The Most Deceptive And Dangerous Financial Headline I Have Ever Seen [View article]
"Fear isn't here," writes Brendan Conway of the VIX, which is up a "scant" 5% amidst a 2% sell-off in equities. Not only is the index not moving much (it rose 50% on August 8, for instance), but traders say volume today, while brisk, is not particularly strong. VXX +5.9%. [View news story]