Up, Up and Away

The markets have continued their climb in 2017 to all new heights. They’ve shrugged off any negative news or signs the economy might be slipping a bit to get there. Pretty much any broad based stock index fund around the world would have netted you gains. The increases have been very impressive and below are the returns of a few ETFs to show you the amazing climb the markets have made this year. Continue reading “Up, Up and Away”

Price to Earnings Ratio

When I look at a stock, the first thing I look at is the P/E ratio. In essence, this tells me how much I will paying for the companies earnings. A P/E ratio of 12 means you would be paying $12 for each dollar of earnings. Now a days the Forward P/E ratio has taken prominence for the most part over the traditional, backwards looking P/E ratio but I think this is misguided. Focusing on only what you think the company will do ignores what the company has already done. So lets delve into the P/E ratio. Continue reading “Price to Earnings Ratio”