Consumer Confidence at a Three Year High

Yesterday morning Thomson/Reuters and the University of Michigan reported the results of their U.S. consumer confidence survey.  Here are the results:   The level of 77.5 marks the highest level attained in consumer confidence in three years. Economists expectations were exceeded by 3.2 points, or around 5% For the first time in six years consumers said that they were hearing more positive...
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What Does It Mean When a Stock is Fairly Valued?

One of the most misunderstood of all investment issues is what it means when shares of stock in a business are fairly valued.  When investors hear that a stock is fairly valued they inevitably treat that stock as if it is over valued – avoiding a purchase in that business.  However, that is not what the term fairly valued means.   To understand the issue a brief overview of stock...
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Obstacles to Accessing Your Intuition, Part Two

This is part two of a two part series about the principle obstacles standing in the way of you accessing your intuition.  Obstacles to Accessing Your Intuition, part one was published one week ago today.  Combined, these two posts should become a part of your investor’s toolkit.  If you are looking for a manual for how to access your intuition as applied to investment results I encourage...
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No Investment News to Write About and What It Means

As a blog writer I try and provide you with essential, actionable content on a daily basis.  Yet, other than the uprisings cascading through the Middle East, I don’t really feel as if there is much to write about or to pass on to you.  What does it mean that there is no investment news to write about?   I started the blog on October 6, 2008 in the midst of an extremely volatile...
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Intuitive Assessment of Middle East Unrest

There are currently 11 countries in the Middle East that are experiencing either anti-regime or demand-for-change protests.  With issues involving such gigantic complexity facts oftentimes stop short of generating either a clear or fully descriptive picture of what is happening.   Here I am going to take each of the countries in turn and use an intuitive process to contribute to the...
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‘Flash Crash’ Panel Emphasizes Computer Trading’s Problems

After last May’s gigantic, all in a single moment, financial market sell off – now known as the “Flash Crash” – a joint-committee was created by both the Commodity Futures Trading Commission (CFTC) and the Securities and Exchange Commission (SEC) to review the causes.  Friday saw the publishing of the joint SEC-CFTC committee’s report and, in short, it...
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Is Apple Stock Cheap? – The Fallacy of PEG Ratios

WHAT IS THE PEG RATIO? In case you have never come across this quaint, and potentially dangerous, little valuation shortcut, let me provide a brief overview.  The PEG ratio compares the price to earnings (P/E) ratio of a business to its expected future growth rate (G); this period is typically five years. P/E ÷ G = PEG ratio. Sometimes you will see a P/E ratio in the calculation that utilizes...
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