Do You Need Growth for Successful Stock Picking?

A new stock screen I created omits one characteristic that may surprise some (or perhaps many) of you: growth. Nothing in the screen requires a passing company to be growing revenues or profits. It is an admitted deviation from how I’ve previously looked for stocks. I’m not alone in omitting growth. The four AAII Stock…

 

How Impactful Are Changes in Analyst Ratings?

Before you give into any temptation to follow analysts’ recommendations, consider this conclusion from three researchers: “On average, analysts’ revisions are not highly correlated with subsequent long-run returns, indicating that analysts do not provide new information that is relevant for the long run for typical investors.” The finding is from an appropriately named paper published…

 

Coping With the Frustrating Market

Mr. Market started 2016 on the wrong foot, and his mood has gotten worse throughout this month. Barring a big rebound next week, this will be the third consecutive year the S&P 500 has declined in January—something that has only happened two other times since 1950. The index may also come close to breaking, or…