Finding Bargains Among Stocks With Falling Stock Prices

  Finding Bargains Among Stocks With Falling Stock Prices Underperforming stocks may seem unappealing, but the price weakness can turn them into bargains with upside potential. The Essence of the Benjamin Graham Approach A cut-to-the-chase synopsis of Graham’s rules, which were based on buying stocks trading with a margin of safety.   52-Week Highs Perform…

 

How We Define Risk

The potential of losing money by investing in the stock market has become front and center over the past several weeks. The decline in the S&P 500 index and the bigger drops in other indexes and stocks has drawn attention. It has also led to the usual chatter about what the downside volatility means and…

 

Finding Stocks with the Piotroski Price-to-Book Screen

This week’s AAII Weekly Digest highlights these “must-read” AAII articles:   Rules for Drawing and Analyzing Trendlines Trendlines can offer insights even though they have an artistic element to them. Using bar and line charts can help in their analysis. However, unlike other market gauges that have “overbought” and “oversold” parameters to assist investors in…

 

The Earnings Quality Indicator Used by ETFs

Look under the hood of exchange-traded funds (ETFs) incorporating a quality factor and you will often find accruals being used. An accrual is an accounting entry recorded at the time a transaction occurs, regardless of whether not payment has been made. Accrual accounting allows businesses to report their sales and earnings performance without being beholden…

 

Where Is the Bond Armageddon?

On Wednesday, The Wall Street Journal published an article headlined, “Rock-Bottom Bond Yields in Europe Hit All-Time Lows.” Thursday morning, a headline on The Financial Times’ website declared: “Relentless: Bund Yields Take Fresh Step Down.” The headlines were written in reaction to what is occurring in global bond markets. Earlier today, yields on the 10-year…

 

Uses & Misuses of Ben Graham-Style Investing

This week’s AAII Weekly Digest highlights these “must-read” AAII articles: Uses and Misuses of Ben Graham-Style Investing: Deep value investing has outperformed the market averages over long periods of time, so why wouldn’t everyone with a long time horizon embrace it? While all investors strive toward essentially the same goal—to make money in the market—their paths…

 

A Look at Relative Strength Measures

Just as a rising tide lifts all boats, a rising market tends to lift all stocks. Well, almost all stocks. Upward price individual stock performance during a strong market may represent only average performance while a minor stock price decline during a major bear market represents strong relative price performance. Price momentum is normally measured…

 

Momentum Investing & Turbulent Markets Don’t Mix

Momentum indicators are commonly used to find winners. Winners are stocks with comparatively higher price returns. In normal market conditions, momentum indicators work well on an aggregate basis. Momentum indicators can lose their usefulness in turbulent market conditions, in the initial rebound period following a bear market or during slowing economic conditions. I’ve noticed the…