Much of the world is currently a bit doom and gloom when referring to the stock markets. Our speakers presented thoughts and ideas that weren’t necessarily optimistic, but they shed a bit of light that might make the future less daunting.
What does a typical stock portfolio look like? Well, it’s apparently not too flash. According to Openfolio — a network of 70,000 members who share their portfolio data — the average US investor made less than half the S&P 500’s return in 2016.
‘Nothing lasts forever.’ Plain spoken and no-nonsense, this is a saying that governs all aspects of our lives. And when it comes to the markets, this impermanence is the shadow that is always lurking behind the scenes.
No business is worth an unlimited amount of money. Sometimes it’s easy to forget this when talking about the explosive potential of small-cap stocks. Investors end up paying dollars for a stock that might only be worth cents.
All the banks charge Lender Mortgage Insurance when home loans with more than 80% loan-to-value ratios are taken. Let’s get this very clear. This is a very expensive premium. And you pay it to protect the bank if you can’t repay the loan. That’s right, you’re paying an insurance policy that protects THE BANK...
You’re looking for small-caps with the potential to grow earnings. How do you know earnings will grow? Well, maybe it’s as simple as looking at the industry. Small-caps ready to double, triple and quadruple can be found in the resource, tech, finance and a whole bunch of other sectors. But when trying to grab a 10-bagger, it helps to look in growing markets.
Last month, Westfield London launched the first phase of its million-dollar expansion, which was well ahead of schedule. Westfield, whose share price grew 1.49% this morning, will feature the largest shopping centre in Europe once the expansions are complete.
We’ve been preparing for life in a bear market for some time. By this I mean giving ourselves every chance of making some money while also recognising the downside risks of a market potentially transitioning from bull to bear. How is this transition looking now?
Small-caps are an amazing opportunity. They have far more volatility, but that’s the point. Not all small-caps are worthy investments. Some could be amazing. Others you’d be completely crazy to buy. Today we’re going to look at how to approach small-cap investing. Specifically, we’re going to look at how to limit our losses.
Still, who exactly was buying last week when the share price was north of $5.50? Seriously, I spent about 30 mins looking at the numbers and doing some high school maths that I managed to remember, and concluded the stock wasn’t worth touching with the proverbial barge pole. It was plain to see, even for someone as simple as me, that this thing was radioactive.