Brought to you compliments of Sarah M. Place, MBA
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April 2006
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Wednesday, September 8, 2010
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Pursuing Those Hot Stock Tips
It happens to all of us. You’re talking to a friend whose opinion you respect and he/she mentions a great stock that is sure to double in value in the next six months/one year/etc. What should you do? Find out as much as you can about the company.
We can help tremendously in this process. We have access to research opinions, annual reports, and a wealth of other financial information. Together, we can find answers to important questions, such as:
What makes this stock so attractive now? How has the price changed in the recent past? Have sales and earnings grown consistently? Are there any new business opportunities or new products offered by the company? What is the outlook for the company’s industry? How does the company compare to its competitors?
Your friend might be right...or wrong. But before making a financial commitment to any stock tip, call or e-mail so we can analyze the tip in more detail.
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Why Is Asset Allocation Important?
The theory behind asset allocation is to
spread your investments across different asset classes to help
protect your portfolio from downturns in any one asset. Since
different investments are affected differently by economic events
and market factors, owning different types of investments helps
reduce the chances that your portfolio will be adversely affected
by a particular risk type. Does asset allocation really accomplish
this goal?
[FULL ARTICLE]
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Have You Assessed Your Risk Tolerance?
While investors want the highest returns
possible, returns compensate you for the risks you take - higher
risks are generally rewarded with higher returns. Thus, you need
to assess how much risk you are willing to take to obtain potentially
higher returns. However, this can be a difficult task. It is one
thing to theoretically answer questions about how you would react
in different circumstances and quite another to actually watch
your investments decrease significantly in value. What you are
trying to assess is your emotional tolerance for risk, or how
much price volatility you are comfortable with. Some questions
that can help you gauge that risk tolerance include.
[FULL ARTICLE]
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Investing vs. Paying Off Debt
It can be difficult to decide where to allocate
your funds when you want to both increase your investment portfolio
and reduce your outstanding debt. The decision typically depends
on the potential return of the investment compared to the interest
rate paid on the debt. There are some situations, however, when you should consider other factors.
[FULL ARTICLE]
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How Do We Measure Inflation?
The most commonly cited measure of inflation
is the consumer price index (CPI). However, the government releases
not one, but three, versions of the CPI -- the CPI-U (CPI for all urban consumers), CPI-W (CPI for urban wage earners), and C-CPI-U (the chained CPI for all urban consumers). All three CPIs measure the average change in prices paid by consumers for over 200 categories of goods and services in eight major categories.
[FULL ARTICLE]
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Keep an Eye on Inflation
Inflation has been tame for so long that
it's easy to ignore it when planning for retirement. However,
even inflation of 2% or 3% a year, over a period of many years,
can seriously erode the purchasing power of your funds. At 2.5%
inflation, $1 today will be worth 78 cents in 10 years, 61 cents
in 20 years, and 48 cents in 30 years. To combat the effects of
inflation on your retirement income, consider these tips.
[FULL ARTICLE]
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Sarah has over fifteen years experience in the financial services industry. She received her MBA at St. Mary's University Graduate School of Business in San Antonio, TX and her bachelor’s degree in Economics–Finance at Bentley College in Waltham, MA. The firm she founded, Place Trade Financial, Inc., (Member NASD, SIPC) is an active member of the Securities Industry Association (SIA).
Feel free to contact Sarah via e-mail at
sarah@placetrade.com
or visit our Web site
www.placetrade.com
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Published by
Sarah M. Place
Copyright © 2006 Place Trade Financial, Inc., Member NASD/SIPC. All rights reserved.
This newsletter intends to offer factual and up-to-date information on the subjects discussed, but should not be regarded as a complete analysis of these subjects. The appropriate professional advisors should be consulted before implementing any options presented. No party assumes liability for any loss or damage resulting from errors or omissions or reliance on or use of this material.
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TELL A FRIEND
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