The value of any investment is the sum of its future cash flows discounted to present value. The key criteria in valuing an investment are: Price-to-cash-flows (is it a good value?) Growth of cash flows (is it growing?) Appropriate discount rate (is it risky?) Total number of future cash flows (will it last?) Value investing…
Apple Inc. (AAPL) announced its fiscal 2015 third quarter earnings report after market close yesterday. While the company beat expectations for revenue and earnings, iPhone sales were softer than expected, leading the stock to fall over 7% in after-hours trading. The Cupertino based company reported quarterly revenue of $49.6 billion and quarterly net profit of $10.7…
When you’re first starting out as a forex trader, it can be tempting to start trading real money right away, however, this may be a recipe for disaster. If you trade real money without understanding how forex trading really works, then the chances are you’re going to make more bad decisions than good ones. Fortunately,…
Ouch. That’s how I felt in 2008 when my portfolio was down 28.6%. The S&P was down 37% that year but I certainly didn’t care about having beaten the market. I’m supposed to be indifferent to how the market is doing and to take a long term focus. After all, that’s what I tell people…
Hot stocks of the day: MSFT, ARMH, GPRO Video length: 00:03:37
Video length: 00:1:59 The overall market attitude during the session on Wednesday will probably be dictated more by charts than anything else, as there isn’t too much in the way of economic announcements to move the markets. However, we do have a Crude Oil Inventory number coming out, so this could offer a bit of…
In his podcast released yesterday evening, Peter Schiff explains why the price of gold plunged on Sunday night. More importantly, he reminds investors why gold is not a faith-based asset, like fiat money. He also reviews China’s relationship to gold, and compares the current market to the last time a bear market in gold ended….
Earlier, we showed that according to Citigroup (among many) for Greece to have any hope of surviving, it needs a masive debt haircut: the bigger, the better, with Citi tossing out numbers as high as €130 billion. Still, even if Greece does get debt relief, as long as it remains in the Eurozone, its economy has nothing…
On the 5th of July, the Greek people voted 5 to 3 in favor of rejecting an EU bailout agreement linked to further economic reforms. They were promised that their Eurozone partners would relent and that within 24 hours, the banks would reopen and within 48 hours, the Eurozone would offer them a deal on…
The relatively light news stream continues to facilitate corrective action in the capital markets. The advancing streak in global equities has broken while Chinese shares continue to stabilize after their recent dramatic slide. Peripheral bond markets are giving back some of their recent gains. The US dollar has been pushed from its recent highs but is…
