A great company is not necessarily a great stock. (Reason being that better-than-average profits are already built into the stock’s price, so for the stock to perform better than average, the company’s profits must exceed the market’s expectations rather than just exceeding the profits of other companies.)
Similarly, as Larry Swedroe explains this week, periods of good economic conditions are not necessarily the best periods for stock market performance.
- How Recessions Impact Stock Returns from Larry Swedroe
- The Bond Market: Challenges Ahead from Vanguard
- Financial Advisors Exposed from Allan Roth
- Broker Competition: Moving from TD Ameritrade to ETrade from The Finance Buff
- Best and Worst U.S. Style Indices from Rick Ferri
- Investors Chase Another Risky Fad from Larry Swedroe
Other Money-Related Articles
- How to Find Work You Enjoy in Retirement from Steve Vernon
- Are You Saving Enough for Retirement? from Financial Ramblings
- Taxes from A to Z: M is for Miscellaneous Income from Kelly Phillips Erb
- Making Sense of College Aid from Ruth Simon and Rob Barry
Thanks for reading!