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Stock Market,

The metrics and signs I use to assess the stock market

metrics to assess the stock market

I was recently asked two things: how do I pick stocks and how do I determine whether the stocks I want to buy (and the stock market as a whole) is over-valuated. It is the latest question I want to cover today. This may help beginners investing in the stock market. I bring you an extensive, yet simple (but profound) article, with metrics to assess the stock market. You simply have to connect when did stock market crash and what were the metrics telling you and you’ll probably find yourself making grounded stock market predictions.

Stock Market,

Why am I happy that Trump won?

I will also share a somewhat unpopular opinion. Please proceed to read my answer with that in mind.

I am clearly for Trump (especially if the opponent is Hillary). I mean, its not necessarily that I like the person, but I like the policies he intends to apply. The fundamental difference between them, in my view, are the economic policies of each other.

Trump proposes to use what is called trickle down economy policies, lowering taxes aggressively, which will dramatically help the economy. Trump proposed the biggest tax cuts since Reagan’s presidency. Reaganomics, as they went on to be known as, ended the 1980 recession in the US. Trump’s idea is to reduce corporate tax to 15%, to start off.

Hillary, on the other hand, wanted to increase the taxes on the wealthy (and use the extra money to invest in infrastructure, thus stimulating the economy). She emphasized this a lot in the debates, if you followed them. She proposed a 5% increase on whoever earns over $5 million, to start off.

Stock Market,

Revitalizing my stock portfolio!

(image from businessdayonline.com)

During the past days, I have been working on revitalizing my stock portfolio. My strategy is clear: I am a conservative investor who cares about wealth preservation and increasing income. Therefore, I only buy stocks that pay dividends. Buying a stock that doesn’t pay a dividend is insane to me. It doesn’t make sense in my head. Why would you do that? If a stock doesn’t pay dividends, it is speculation. Maybe you recall these words being said by somebody else. That is possible, because Kevin O’Leary says this day in day out. And when it comes to the stock market, I second Mr Wonderful all the way up: I only buy dividend paying stocks, and in particular, solid companies which have the ability to consistently pay dividends and increase them over time. I also allocate up to 5% in anyone’s name, and 20% per sector (if possible, low volatility is desired). As I am European, I need to apply market limits as well, and currency hedges. To achieve this, I could simply go out there and buy a wallet of aristocrat stocks in different markets, right? Well, I personally want high yields too!