I was looking at the chart of priceline.com Incorporated (NASDAQ/PCLN) the other day, as the stock surpassed the $1,000 level. But why would I consider paying so much for a stock when there are cheaper comparables in the same online travel space?
It’s true; there are less expensive online travel stocks than priceline.com. But when you are stock picking, you should look at the comparative valuation and growth metrics, and .
This is an exciting time of the year if you are a fan of baseball. With the start of the Major League baseball season starting in a few weeks, I’m raring to go.
The interesting thing about baseball is its similarities to the stock market.
Success in baseball circles around the abundance of statistics, as is the case in trading stocks, but there are major and subtle differences. In fact, .
This is an exciting time of the year, as we near the end of the baseball season with the race to the playoffs heating up. Success in baseball swirls around the abundant statistics, as is the case in trading stocks, but there are major and subtle differences. In fact, the key to achieving stock market success is more akin to pitching than batting.
Let me explain. In baseball, the ultimate .
One piece of stock market advice for you at this time—be careful.
Success in stock picking is trading in the right direction, while also making sure you have a defensive strategy should the trade turn against you, and using puts as a hedge.
I see some danger on the S&P 500 chart.
In January, I noted the S&P 500 could test 1,400 this year, writing that how much the index .
If you’ve been stock picking the last little while, you know it’s tough just to keep your buck, let alone make one. Stock picking is a lot easier when there’s wind at your back. During the technology bubble of the late 1990s, you didn’t even need to do much stock picking; you could have just bought the NASDAQ Composite. Now, in a slow growth environment, making money from the stock .
One of the largest electronic retailers in the world, Best Buy Co., Inc. (NYSE/BBY), is at a crossroads. The future is looking bleak, at least according to investor sentiment, for what was once a mighty organization. Large format retailers have been difficult for stock picking as they’ve lost significant market share to online retailers. Consumers prefer to touch the product in the store and purchase the goods at home. Best .
I love watching baseball—America’s favorite pastime. Success in baseball also swirls around the statistics, as it does in trading stocks, but there are major differences. In fact, achieving stock market success is more like pitching than batting.
Let me explain why. In baseball, the ultimate utopia for every batter would likely be to hit over .300—that is three hits for every 10 at bat for you baseball neophytes. Of course, .
When you think about speculating in the stock market, everyone wants the same thing: the biggest capital gain in the shortest amount of time. Of course, if it were easy to be a consistent stock picking winner, everyone would be doing it.
I like to approach stock market speculation the same way I would create a portfolio of big-cap companies—by building a handful of holdings. For speculating, I would allocate .
If you want to see an outstanding performance from a large-cap stock, all you have to do is pull up a long-term chart on McDonald’s Corporation (NYSE/MCD). It’s kind of odd to think that a mature business like burger flipping could be so profitable, but this company has rewarded shareholders tremendously well. This stock market performance should be studied in business schools.
For a large-cap stock and Dow Jones .
Stock picking in a market with very little tailwind makes life much more difficult compared to a bull market. This is obvious. But in any market, there are opportunities in differing market sectors. There’s always the opportunity for short-selling and near-term momentum trading. There’s also the opportunity to build longer-term investments in good companies at attractive valuations. As an equity speculator, you can’t fight the stock market; you can only .
Immediate term outlook:
The bear market rally in stocks that started in March 2009, extended because of unprecedented central bank money printing, is coming to an end. Gold bullion is up $1,000 an ounce since we first recommended it in 2002 and we are still bullish on the physical metal.
Short-to-medium term outlook:
World economies are entering their slowest growth period since 2009. The Chinese economy grew last year at its slowest pace in 24 years. Japan is in recession. The eurozone is in depression. With almost half the S&P 500 companies deriving revenue outside the U.S., slower world economic growth will negatively impact revenue and earnings growth of American companies. Domestically, America’s gross domestic product grew by only a meager 2.3% in the second quarter, which will negatively impact an already overpriced equity market.
Estimates Aug. 29, 2015
Trailing 12-month EPS for Dow Jones companies (Most Recent Quarter)