Financial Adviser: 5 Simple Financial Ratios Every Stock Market Investor Needs To Know

Financial Adviser: 5 Simple Financial Ratios Every Stock Market Investor Needs To Know

There is a saying that you don’t judge a stock by its market price. Many first-time investors make the mistake of evaluating a stock whether it is cheap or expensive by simply looking at the share price. For example, a stock may be perceived expensive when its share price is trading at over a thousand pesos per share while a stock may be considered cheap when it is selling at less than one peso per share only. Similarly, a stock may be considered a bargain when its share price has fallen by over 20 percent as compared to a stock seen as overpriced, whose share price has increased by the same percentage. The tendency to evaluate the worth of a stock based on share price alone can be risky because…

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GOLDMAN SACHS: ‘Machines have replaced humans’ — and their impact on the next financial crisis could be devastating

GOLDMAN SACHS: ‘Machines have replaced humans’ — and their impact on the next financial crisis could be devastating

At a recent Goldman Sachs conference, Himmelberg noted that episodes such as the February sell-off had so far happened against the backdrop of a growing economy. Additionally, investors were always on standby to intervene by buying at lower prices.

But all this has bred complacency among investors, Himmelberg said. And, there could be a steep price to pay when, unlike now, there are more compelling reasons to sell stocks over buying.

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