Growth Stocks are a lot Like Ponzi Schemes

Growth stocks sound good but when do shareholders actually get paid? The only way a shareholder of a growth stock will get paid is if a subsequent buyer is willing to pay more for the shares.

Understanding Institutional Ownership

Most stocks are held by large institutions rather than individuals. Learn how institutional ownership works and how to tell when the big investors are making a change.

Stock Fundamental Analysis the Easy Way

Fundamental analysis is a powerful tool for stock investors. However, it is also easy to try to tackle too much analysis and wind up paralyzed. It is also true that many financial educators and analysts over-complicate fundamental analysis to create a mystique around their proprietary methods to create a “need” for their service. However, I … Continued

Understanding the Financial Statements

Knowing how the income statement, statement of cash flows, and balance sheets work together is key to understanding a company’s fundamentals and prospects.

Using Dividend Stocks in a Bear Market

Dividends can outperform real estate, so-called growth stocks and other forms of active trading. This is an important concept when considering bear market strategies.

Using Insider Trading In Your Investing

Insider trading is an often misunderstood investing tool. It can be helpful for traders but its value is usually overstated. This is a good topic to tackle right now as we are seeing an up-tick in the number of insiders buying in late 2008 and early 2009 compared to the last year. This could indicate that insiders … Continued

What is Bargain Hunting or Value Investing?

Value investing is easier than it sounds and it doesn’t take a degree in finance to learn how to do it. Learn how PEG and ROE ratios can be used to find good stocks.

Is a New U.S. President Good or Bad for Stocks?

Will a new president be good or bad for stocks? Will Obama’s reelection help market rally? The statistics about the presidential cycle can be very interesting.

How to Determine if P/E Levels Are Too High or Too Low

Most investors try to look inside the stock market to get an objective view of P/E levels. Instead, investors should be looking outside of the stock market and into the bond market, especially the U.S. Treasury market.