When to Sell Your Stocks?

Choosing When to Sell Stocks is Hard When to sell your stocks is a common but key question investors often ask. Regardless how well you identify investing opportunities or time the market, your profit (or loss) is only realized when equities are sold in the market (except cash dividends). It should be noted that selling … Read more

When Will Stock Market Fall? Here Is One Way to Tell.

Introduction The US S&P 500 index has jumped by 64% since March 2020 despite worsening COVID-19 conditions and unemployment. The discrepancy between stock market and real economy makes more and more investors question when the stock market is going to fall. Even though predicting future is notoriously difficult, economic research provides us with tools to … Read more

How I Took Advantage of Mr. Market’s Overreaction to News

In his classic The Intelligent Investor, Ben Graham named the forces that drive stock market “Mr. Market”. Mr. Market is infamous for his changeable emotions. When he is in good mood, he positively overreacts to news and pushes up stock prices; when he is in a bad temper, the market drops even with good news. … Read more

Patterns of Price/Earnings Ratios among Sectors and Company Sizes

I recently came across an interesting fact in Value Investing: from Graham to Buffett and Beyond about the relationship between the price to earnings ratios (P/E) of small cap companies and the market. According to the authors of the book, “[G]enerally the small caps P/Es are higher, befitting their more realistic prospects for growth. In 1983, . … Read more

How Business Cycle Works with Value Investing

Business Cycle The performance of sectors in the equity market is affected by cyclical factors of the economy. Understanding the patterns of sector performance can help us more effectively manage asset allocation and maximize return of investment at different phases of business cycle. Business cycle approach is a medium – long investment approach, which could … Read more