Top Penny Stocks March 2011 : Against The Top Down Approach To Picking Stocks - Against The Top Down approach To Picking Stocks
If you have heard fund managers talk concerning the way they invest, you realize a great numerous employ a top down procedure. First, they decide how considerably of their portfolio to allocate to stocks and how a lot to allocate to bonds. At this point, they may as well decide upon the relative mix of foreign and domestic securities. Next, they decide upon the industries to invest in. It's not until all these decisions have been made that they the reality is get down to analyzing any particular securities. In the event you think logically about this procedure for but a moment, you may recognize how actually foolish It is.
A stocks earnings yield is the inverse of its P/E ratio. So, a stock using a P/E ratio of 25 has an earnings yield of 4%, although a stock with a P/E ratio of 8 ... [Read More - Top Penny Stocks March 2011]
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