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Posted: Sat 19:16, 26 Oct 2013 Post subject: hollister france All About Against The Top Down Ap |
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A stock's earnings yield is the inverse of its P/E ratio. So, a stock with a P/E ratio of 25 has an earnings yield of 4%, while a stock with a P/E ratio of 8 has an earnings yield of 12.5%. In this way, a low P/E stock is comparable to a high - yield bond.
Now, if these low P / E stocks had awfully infirm earnings or carried a good deal of debt, the spread between the long bond yield and the revenues yield of these stocks could be justified. However, many low P / E stocks essentially have steadier takings than their high multiple kin. Some do employ a lot of debt. Still, inside latest memory, one could find a stock with a revenues yield of eight 12%, a dividend yield of 3- five percent, and literally no debt, notwithstanding some of the lowest bond yields in half a century. This situation could only come about if stockholders [url=http://www.hncxzx.com/guestbook.asp]hollister[/url] shopped [url=http://www.rtnagel.com/louboutin.php]louboutin pas cher[/url] for their bonds without also considering stocks. This makes about as much sense as buying a truck without also considering an auto or wagon.
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If you are convinced it is, purchase it the market be damned! [url=http://www.rtnagel.com/airjordan.php]nike air jordan pas cher[/url] Obviously , the most shrewd approach to investing is to appraise every individual security re all others, and only to consider the kind of security insofar as it has effects on every individual analysis. [url=http://www.fibmilano.it]woolrich outlet[/url] A top down approach to investing is a needless barrier. Some awfully smart speculators have imposed it on themselves and beat it ; there's no need for you to do the same.
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