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Welcome to the 'No-Guilt' blog!
People come to here because they want to build financial confidence and take meaningful action. We provide the context for those things that affect your financial health. Our goal is to help you live in the 'No-Guilt Zone'.

17X – Not a Fitness Program, but It's Still PE

I’m a huge fan of P90X fitness programs, but 17X is not about fitness.  It’s about the U.S. stock market.

The stock market is a forward-looking barometer and reflects the future expectations of the economy.

One of the oldest and commonly used metrics to value individual stocks and the stock market is the price-to-earnings ratio (P/E ratio).  The P/E ratio is defined and calculated as market price per share divided by annual earnings per share.

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Investor Sentiment – A Poor Measure of Irrational Exuberance

Former Fed Chief Alan Greenspan coined the phrase “Irrational Exuberance” in 1996, during the dot-com craze of the 1990s.  Many interpreted the phrase as his warning that the market was getting overvalued or overheated.

Since the dot-com bubble imploded in 2000, we’ve heard the phrase whenever someone perceives any kind of speculative frenzy in the stocks, housing, commodities or some other asset class or area of the economy.  For many, irrational exuberance means we’re in bubble territory.

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VIX, Not the Cold or Flu Remedy, But a Poor Measure of Market Volatility

When you hear someone say VIX, don’t confuse it with Vick’s, the brand that brings you "The Nighttime Sniffling Sneezing Coughing Aching Stuffy Head Fever So You Can Rest Medicine.”

VIX is the CBOE Volatility Index, a popular measure of near-term volatility of S&P 500 index options. It is often referred to as the fear index and it represents one measure of the anticipated stock market volatility over the next 30-day period.

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When the Fed Strikes Back…Yield, Don’t Stop!

It’s hard for many to believe that the economic recovery is now over six years old.  GDP is steadily improving. And, the Bureau of Economic Analysis reports that our economy is larger than it has ever been.

When we look at the economy from an investor's perspective only two things come to mind: stocks and interest rates.

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Mr. Bubble or the US Stock Market

The continued annual rise of the Dow Jones Industrial Average, S&P 500 Index and NASDAQ highlights the dynamic nature of the U.S. economy.  The U.S. market goes from near collapse in 2008 to record highs in 2015.

People are in disbelief about the ascent of the stock market.  And, this leads us to the key question: Are we in bubble territory?

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