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 […]
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 […]
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 […]