Hey Friends,

Promotion is not my thing when it comes to trying to sell myself. But I decided to put in a plug for my book, “Choose Stocks Wisely,” today. The commentary is due to heightened concern over the uncertainty of what’s ahead for our economy.

My book addresses the import of the balance sheet with regard to performing risk assessment in the realm of investing in common stocks. While the book shares a methodology of determining a low price based primarily on the balance sheet, the first order of business in risk assessment is determining whether a business has a sound financial foundation enabling the financial flexibility to move ahead. So, assuring the solidity of the balance sheet composition precedes the importance of assuring a bargain basement stock price. In fact, my Scorecard starts with analysis to determine sufficient liquidity and solvency. And if those necessary quality thresholds aren’t hurdled, the method puts up a stop sign with regard to the wisdom of considering further the stock as a viable investment candidate.

The calculations covered in my book for assessing the sufficiency of liquidity and solvency revealed on the balance sheet are of consequence during any stock market era. However, the current uncertainty presented by vast divergencies in the political realm with the election almost here amid a pandemic inclines me to speak a bit more loudly about the elevated risk associated with holding stocks where balance sheets show cracks in the financial foundation.

There are many opinions out there and I’m just offering one more but any opinion considered should be substantive, especially at a time like this. I conclude by holding out my book, “Choose Stocks Wisely,” as one of the timely aids in the quest to analyze financial health. Parts A and B of the Scorecard presented in the book are key. Because the book teaches a practical way of examining balance sheet health, and because of this present time of potentially unusual volatility, I’m okay with suggesting this tool for someone’s toolbox and hope it serves you and perhaps some in your circles that are active in the stock market.

I look forward to next time and hope you all stay well. May God bless you.