Bull Market Comes To An End January 26, 2018
On January 26, 2018, the stock market made it’s last high and the second longest and biggest gaining bull market has come to an end. Subscribers to my Index Trading Strategy were alerted to the upcoming crash on January 30 and profited off the drop by investing in Contra ETF’s like TZA or SPXU. If you missed the party, come join us.
Be Careful Of The Pump And Dump!
Pump and dump is a form of stock fraud in which people artificially inflate the price of stock in order to profit. It is most commonly used to target microcap stocks and penny stocks, stocks in companies with a low value. Stocks of this nature are very easy to manipulate, and their prices are notoriously volatile, so consumers expect some irregularity in these types of stocks. [...]
What Is Intrinsic Value Of A Stock
In An Owner's Manual that Warren Buffett sends to all new Berkshire Hathaway investors, he wrote that the intrinsic value of a stock is "the discounted value of the cash that can be taken out of a business during its remaining life." This leads to three questions. The simplest answer to Question 1 is that "cash" refers to dividends. Obviously this does not work for [...]
How To Calculate The Value Of A Stock
Warren Buffet loves to invest in companies whose stock he feels is at bargain prices. But what makes that stock a bargain? To determine that, an investor needs to know how to calculate the value a stock. If the true value is higher than what the stock is currently trading at, than that stock is said to be undervalued and that stock would make a great buy (if current market [...]
A Lesson From Buffett’s $1 Million Bet – Hedge Fund vs. S&P Index Fund
Back in 2007, America’s most successful investor, Warren Buffett, claimed that you can’t outperform the S&P 500 by investing in a hedge fund. Buffett was so confident in his prediction he was willing to to offer $1 million to charity if any hedge fund manager could outperform his strategy of buying and holding a low-cost S&P Index Fund. Initially no on [...]