Price to earnings is relied upon by a lot of people in deciding a stock’s outlook. The idea is to hope that we’ll get a reversion to the mean. This isn’t how stocks work though. We have a natural tendency to want to oversimplify things, and this certainly extends to how we view the movement […]

The stock market hasn’t shown any real signs of slowing down, but in a survey of money managers, their confidence in the current market is getting a little rattled lately. We might think that this year’s rally, which wiped out the losses that the market suffered in the latter part of 2018, might have money […]

Investors often worry about risk, but many don’t think about it too much unless they have already been exposed to a lot of it. We always want to be aware of such things. A very popular approach to risk management among individual investors is to just choose to ignore it, and even approach this ignorance […]

The first thing people may have thought when they saw the U.S. first quarter GDP come in so much higher than expected is that this may be alarming. We need not worry. There are some smaller creatures that, when faced with a threat, will puff themselves up to appear bigger than they actually are. This […]

While there is much speculation on whether Chevron or Occidental will win the bid to take over Anadarko Petroleum, you can’t just necessarily go by the size of the bids. Takeover bids with companies aren’t always decided by the size of a company’s offer, and it just may not be in the case of Chevron […]

After a terrible 2018 which saw 3M stock lose 20%, 2019 was shaping up much better, until Thursday that is. The stock lost most of their 15% year to date gain on a single day. It’s usually not nice to disappoint the street with your earnings estimates. Current estimates become digested by the market so […]

Procter and Gamble’s stock has done very well over the last year, up 43% from where it sat last April. Barclay’s believes that it should go even higher, based upon its solid earnings. Procter and Gamble may not quite be a household name, but many of their products sure are. The company has been making […]

Microsoft has been right up there with Apple as far as the biggest stocks in the world go. They got there from their tremendous rise in stock prices, and are ready to deliver more. Microsoft’s IPO in 1986 has gone down in history for a number of reasons, not the least of which is how […]

The Consumer Financial Protection Bureau was put in place in 2008 in the aftermath of the mortgage crisis. New director Kathy Kraninger is focused more on education than enforcement. The financial crisis of 2007 exposed many cracks in the system, and once we started to right the ship a little, the Obama administration created a […]

We’re often told to diversify a lot with our stock positions. While some diversification can make sense, if we’re picking our stocks ourselves, how much of this do we need? Phil Fisher is considered by some to be among the greatest investors of all time. Warren Buffet, who is widely regarded to be in this […]