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Tag Archives: cash flow

Measuring a stock’s valuation

Originally published on Sierra Sun, Tahoe Daily Tribune http://www.tahoedailytribune.com/news/opinion/12940183-113/price-cash-value-flow Legendary investor Warren Buffet once said, “Price is what you pay. Value is what you get.” Two major styles of investing are known as growth and value. Growth investors seek companies who are rapidly growing their earnings and profits. Value-oriented investors search for stocks who are trading at a reasonable valuation relative to their peers. There are several common metrics for …Read More

Income options for retirees

Retirees who need income today may find it very challenging to produce their desired cash flow. Interest rates are well below historical norms. As a result, many retirees are stretching for yield and buying high-yield bonds and bond funds and dividend paying stocks. The risk-reward ratio in the high-yield bond market isn’t too good right now, and investors may not be getting compensated for the risks they are taking. Dividend-paying …Read More

ZIRP and bond risk

ZIRP is an acronym that stands for “zero interest rate policy.” For the last five years, the Fed has employed a zero interest rate policy to help stimulate the economy. Investors need to understand all of the risks that their hard earned investment dollars can be exposed to. Most investors buy stocks and stock mutual funds when they’re in the accumulation phase of their retirement planning. As they age they …Read More