Hey Friends. I hope my post finds you well.
Never since I started investing in stocks has the market been more confusing and convoluted. Our financial foundations seem to be floating on air today. National debt was 122.9% of the nominal GDP for our nation as of September 2023. […]
Hey friends. I hope you are doing well! As we approach another fall season, 2022 thus far has seemed a fast-moving time of great turbulence on most fronts. Yet, here we are and God, just as He did when this year and all those before it had their beginnings, remains in control of His universe. He is not wringing His great Hands nor does He slumber, and He tells all those who look to Him in faith: […]
Hello friends. I hope this post finds you doing really well. Summer is quickly approaching here in the deep south. Temperatures around our town are already hitting the 90+ degree level. It’s “hot” today — and humid!
The stock market surely isn’t hot at this time. As you know, it’s in a tailspin. Many stock market pundits have that “deer in the headlights” look about them as they scramble to forward their opinions as to “what’s next for the stock market,” or “where’s the bottom,” etc. […]
Hey Friends,
Uncertainty can be deemed risk in the realm of stock investing. With skyward inflation, concerns over the Fed’s management of interest rates, an exponentially growing (already astronomical national debt), the war in Russia/Ukraine (what will it be tomorrow?) and on and on — macro risk is eye-popping for the marketplace. […]
Hey Friends. I’m praying for your health and safety during these very different times we are experiencing.
Recently, you may have read my blog post titled, “Frothy Market.” Today, you’ll find linked in this post a few articles that express the thinking that we are in an extremely exaggerated stock market. One article suggests that across asset classes, bubbles are forming in terms of loftiness of business valuations against business fundamentals. My personal thoughts more or less align with this take of asset bubbles everywhere. […]
Hey Friends,
I’m not sure I remember a time where macro uncertainty was more pronounced. Such uncertainties include: […]
Hey Friends,
Perhaps you’ve read some of the research on the application of accounting rules to “smooth” earnings. What is meant by smoothing earnings? Here’s a good description:
“Income smoothing is the shifting of revenue and expenses among different reporting periods in order to present the false impression that a business has steady earnings. Management typically engages in income smoothing to increase earnings in periods that would otherwise have unusually low earnings. The actions taken to engage in income smoothing are not always illegal; in some cases, the leeway allowed in the accounting standards allows management to defer or accelerate certain items.” […]
Hello friends. Today’s post shares what I believe is the most important part of the Choose Stocks Wisely methodology. That part is the “quality” balance sheet scorecard checkup. To discuss this is timely, I believe, as more and more people wonder where the stock market heads from here. […]
Hello friends. I hope my blog post today finds you well!
Last time, I wrote about the nature of balance sheet assets according to the technical meaning assigned by the Financial Accounting Standards Board (FASB). Repeating the definition, assets are “probable future economic benefits obtained or controlled by a particular entity as a result of past transactions or events” (FASB Concept 6). Today, I’ll relate the definition to my Scorecard approach of discounting the asset values provided on the balance sheet. […]
Hey friends; this is one resilient stock market! Tech is rolling like it did in the late 1990s. It seems many cloud-based companies involved with “smart-everything” technology are seeing their stock prices charging ever higher as the companies stretch to meet strong demand while needed supplies are constrained. It has led to some stout profit margins in the “Internet of Things” (IOT) world of today. […]
