Strategies

To help give you additional insight into your attitude toward risk, we’ve compiled a list of questions that together look at risk from a broader perspective than what typical questionnaires tend to address.

The stock market used to be a playground for the elite and the well-informed but it is now overrun by relatively ignorant retail investors. In light of this, and other dramatic shifts in market conditions, a P/E ratio of '15' may now be a real bargain if '20' is now the new fair market value.

The cloud on the horizon is a flock of black swans. No one can predict when they might land. What can be said for certain is that, at some point, they most certainly will.

Instead of obsessing over the timing of eventual interest rate hikes to contain inflation, it may be more useful observing the slope of the yield curve to see where the economy and the stock market are headed.

Pullbacks happen, and usually the market recovers, so trying to time the market is probably a fool's errand - and a money loser.

Successful investors outperform by being patient and riding out the volatility. Losers panic and sell at what might appear to be the beginning of downturns. Losers make the mistake of thinking they can predict what will happen next and unsuccessfully time the market. Here's proof that Panic Selling Is A Failing Strategy.

Just because stocks are expensive doesn't mean investors should immediately cash out and prepare for imminent price declines. Why? Because elevated P/E levels are not that reliable in predicting potential market performance. Here's the proof.

Robert Shiller's revered stock market valuation ratio, the so-called CAPE, is crappy at predicting 12-month returns. Here's proof.

Predicting what the stock market will do in the next 12 months is tantamount to predicting coin flips. Here's more proof that past stock market performance tells you nothing about future results — literally nothing.

I was re-reading Art of War recently, and I couldn’t help noticing how Sun Tzu’s approach to military strategy applies to investing. As he said 2,500 years ago, “he who knows them will be victorious; he who knows them not will fail.” Below are 6 quotes well worth applying as a result of the present financial chaos we find ourselves in.