Most investors fail to realize that a stock price has nothing to do with the underlying company, as more than 90% of the time, there is a wide gap between value and price. How come businesses like PepsiCo Inc. NASDAQ: PEP, which have a solid global presence with sales coming in almost auto-pilot mode, are…
The new market cycle could be the best environment for ‘boring’ stocks to take off. Recently, there has been some interest in the real estate sector, especially after Warren Buffett started buying homebuilding stocks like PulteGroup Inc. NYSE: PHM and D.R. Horton Inc. NYSE: DHI over the last quarter of 2023. This raised the question…
Investors should take Wall Street’s view of a particular sector or stock with a grain of salt, as there are typically conflicts of interest behind these views. Think about it: if an analyst working for an investment bank decides that a company’s future is bearish, that analyst could risk losing his or her job over…
The market cycle affects more than just stocks and sectors. As investors know, during economic booms, consumer discretionary stocks tend to outperform all others, especially the ‘boring’ consumer staples names. However, there is another metric that investors should always keep an eye on as far as cycles go: the volatility index (VIX), also known as…