The Contrarian Investor – Going against the grain for the green… Going with the crowd is not always the best way to financial success. Betting on the underdog and finding promising industries that are out of favor can be an alternate path to success. Being a contrarian; it is a method many investors follow. If you’re going to grab investments when they are “mis-priced,” you will need some form of a contrarian streak in you.
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Preferred Stocks How did I forget the exciting investment area of preferred stocks? (sarcasm). Preferred stocks are seen a mixture of stock and bond…debt and equity. They bring with them no voting power, as regular stocks do, but they give the holder first rights on dividend distribution. They are not typically bought for share price appreciation. If the company goes broke, you’re 2nd in line for claiming company assets, behind the bond holders. If
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Investing & The Political Cycle Market’s don’t like uncertainty because people in general do not like uncertainty. When your are uncertain a certain degree of fear exists within you and you may become hesitant to take certain risks. More certainty means your perception of risk is less than it was before. In the upcoming elections it is expected that the minority party (Republicans) will grab a number of seats in the House and Senate. The
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Companies you know and use that pay strong & steady dividends. Investing in companies that you know of and/or use their products/services, isn’t such a bad idea. For one, you know something about their company and what they offer. If you use what they produce/service, then you also know something about the quality of their product(s)/service(s). This provides you with a nice foundation upon which to begin your research into whether or not it makes
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Quick Ratio = (Current Assets – Inventories) / Current Liabilities Provides you with an indication of a company’s short-term liquidity. Measures a company’s ability to meet its short-term obligations with its most liquid assets. The higher the quick ratio, the better the position of the company to meet its short-term obligations. Current Ratio = Current Assets / Current Liabilities If this ratio is under 1, then the company has some serious problems. Short-term liabilities (debt and payables) versus short-term assets (cash, inventory, receivables). Higher
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If you want to gamble, then do it through an investment account rather than a casino. When we think of gambling, we often think of high risk situations where the pay-off is great. If you win, you win big. If you lose, you go home empty handed. A number of companies on the market are taking part in very risky ventures and stand to gain a lot, if successful. If they are successful their shareholders
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