Category: Investing

  • Tesla Model Y demand strong in China, Germany, UK and US for September 2022.

    Despite supply chain challenges, Covid restrictions in China, huge stock market declines, continued conflict in Ukraine, the Tesla Model Y sales remain strong in many parts of the world for the month of September 2022. In October 5 2022, UK’s SMMT reported The Tesla Model Y is 2nd best selling car in UK for the…

  • Use S&P 500 PE ratio to check if stocks are expensive or cheap

    2022 has been seen stocks drop double digits from their peak. At its peak stocks were overpriced because there was too much demand. Part of that was from Covid stimulus and part of it was from cash that consumers saved from not being able to travel and spend on entertainment. During this rise, it may…

  • Why Stocks drop when Federal Reserve increases interest rate?

    Stocks obey the basic economic laws of supply and demand. When demand is high, prices rise but when demand drops, prices go the opposite direction and drop. When Federal Reserver Chairman announced it will increase federal funds rate .75% to 3 1/4% on September 21 2022 and will likely need to continue to increase the…

  • Investing Rule: Avoid trading options

    Options has the potential for quick gains but it can also create disastrous losses. In the US, an option is a derivative or contract that allows someone to purchase or sell a stock at a specified price before an expiration date. Peter Lynch, a very successful mutual fund manager for Fidelity has never needed options.…

  • How to evaluate price of stock? Part 2: the PEG ratio

    Most companies change with time. Some grow to be bigger companies than they were a year ago. Some grow at slower pace. Another metric is needed to compare PE of companies with different growth rates. This metric is call PEG which stands for PE/Growth rate ratio. It divides the PE by the annual income grow…

  • How to evaluate the price of a stock? Part 1 the PE ratio

    The price of a stock like anything else should be evaluated on what it rewards its owner. The rewards of owning a stock is the earnings of a company, the potential of future growth and supporting the positive impact to society provided by the company. The earnings of the company need to be evaluated with…

  • Invest in yourself first

    Taking care of your health and continuing your education should be a high priority. Good health enables you to enjoy life and provides you the energy to do great work. If one day someone gives you a baby unicorn as gift, you would probably provide this beautiful, one of a kind creature the best nutrient…