EDU Articles
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Should I Trust an Article Such as “Five Awesome Value Stocks?”
Articles that list “great value” buys should be food for thought, but may not put food on your table.
Value stocks are those with low Price to Earnings ratios. To say that a particular Value Stock has an “Awesome” value is to say that it has been significantly undervalued by the market.
While sometimes the market is ignorant of the growth potential and strong fundamentals of a particular company, the author of such an article would have you believe there is a great big crystal ball in his office.
Maybe one of these will take off after a while — maybe two. Or maybe none of them.
While there are inefficiencies in the market at times, you must realize that there are millions of somewhat rational investors out there, and everyone is using their money to vote of quality, using all available information.
And there’s a lot of information out there. Take such recommendation with a (big) grain of salt.
Should I Trust an Articles Such as “What are the Best 10 Stocks For the Next 10 Years?”
Should I Trust an Article Such as “Five Best Ways to Invest For Income”?
What is a credit default swap?
A Credit Default Swap is a contract that provides a hedge against credit default risk
What is a Multiple?
A multiple is a measure of a stock’s value, calculated by comparing one metric to another. The most commonly used is P/E
What is the Capital Market Line?
The Capital Market Line is a complex concept, but put simply, it is a calculation meant to give the investor/analyst...
What is Accelerated Amortization?
Accelerated amortization is the recalculation of an amortization schedule, after the borrower pays off some of the debt
What is Cash Available for Distribution?
Cash Available for Distribution is a term used in REITs for the balance of earnings left over after expenses have been paid
What are foreign currency effects?
Companies with significant operations or sales abroad will be affected by changes in foreign currency exchange rates
What is currency substitution?
Currency Substitution is a country whose commerce is partially, or fully, conducted using the currency of another country
What is Investment Property?
The purpose of investment property is to provide income through rental or lease, or to be sold at a later time
What is a Living Trust?
A living trust describes a trust designed to transfer assets to beneficiaries upon the death of the owner/grantor
Why Use a Blockchain?
Blockchains create an indisputable digital record that is decentralized, i.e,, cannot be changed by a single actor. Using blockchain is generally for digital security