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Reporting season is when companies release the numbers for what happened in the last financial year and provide an update on what to expect in the new financial year. For analysts, it is all about looking for changes. If you want the value of a company to go up or down, you need something to …

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The biggest question for investors is are we in a boom or a bust? Each bust sets the stage for a new boom. It is cultivated with low-interest rates, easy monetary conditions, and a negative outlook. They say Bull markets are born on pessimism, grown on scepticism, mature on optimism and die on euphoria. So, …

Boom or bust? Read More »

Volatility can give investors insight into whether market conditions are ripe to support a rising market or whether investors should strap themselves in for a roller coaster ride. When something is volatile, it is prone to explode. Volatility means big moves. When volatility spikes, it’s time to hang on tight, and perhaps even shut your …

How to use volatility to navigate markets Read More »

If you want the value of a company to go up or down, you need something to change. If everything was to remain the same, then the value of the company should not change. Think of the local corner store. Let’s say one day you buy it for $1 million. 3 months later, you decide …

Waiting for the world to change Read More »

Let’s start with the first: getting capital to start with. Unless you win the lotto or come into a windfall, for most people this will mean saving money. The best way to save money is to automate the process as much as possible. Most of us know that at some level we have self-control issues, …

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Unsurprisingly when P/E ratios and dividend yields reach extreme levels, stock prices usually revert back to a normal level or a longer-term mean. The question is whether this is due to a change in the financial situation of a company or a change in stock price. In other words, can P/E ratios and dividend yields …

Can fundamentals predict performance? Read More »