Does PE Ratio Predict Stock Market Returns?
For most stocks, the PE ratio isn’t useful. But for industry and market averages, it can help predict future returns. Here’s a look at PE ratios and following 10-year returns.
CFA exams
Molodovsky Effect for CFA Exams
One of many CFA terms to learn, the Molodovsky Effect helps explain why we see high or low PE ratios in different business cycles.
Questions to Ask a Financial Advisor
These questions can help you find a better financial advisor. Small steps can help you limit risk and reach your financial goals.
Three Pythagorean Means
Arithmetic average is the most common of the three Pythagorean means. That’s followed by geometric and harmonic means.
Harmonic Mean Formula
The harmonic mean formula is useful with these investing examples. It’s good to know for finance, along with arithmetic and geometric averages.
Mosaic Theory CFA Example for Investors
Mosaic Theory is a useful concept for investors. I first learned about it when studying for the CFA exams. This can help you avoid illegal insider trading.
Geometric vs. Arithmetic Formulas
When investing, it’s better to use geometric mean instead of arithmetic. I’ll show you why with the formulas and an example.
Selling Covered Calls 2 Real Examples
With this example of selling covered calls, you’ll see why I trade options. With this strategy, I limit both the total risk and return.
Is the CFA Worth it? How to Pass Level 1, 2 and 3 Exams
After passing levels 1, 2 and 3, I’m better equipped to answer if the CFA is worth it. I also know many others that have passed the exams. And for a short answer, the value you unlock depends on your goals and career path. To help you decide if the CFA designation is worthwhile, I’ll
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