Impara l’ingese gratis – lezione 29

Impara gratuitamente inglese

Impara l’ingese gratis – lezione 29

Inglese finanziario for Dummies LESSON 29

Impara l’ingese gratis – lezione 29

4) Think Long Term

Taxes aren’t the only reason short-term trading is a loser’s game for most investors. Trying to buy or sell shares based on a quarterly earnings report or an economic data point is a game for automated trading platforms, not the average Joe.

Better opportunities come when a stock or sector is dismissed by the market and languishes despite steady economic results that will produce a long stream of profits. Transportation stocks like airlines and railroads have gone through long out-of-favor stretches, only to churn out considerable gains when economic conditions and industry dynamics align.

Years of mismanagement in the airline industry led to a string of bankruptcies in the 2000s, but the resulting merger wave made American Airlines, United Continental and Delta Air Lines more competitive and poised to benefit from trends like plunging fuel costs.

5) Dividends Are Your Friend

Apple's share price dropped from $110.38 to $105.26 in 2015. That’s an 11% decline, but investors who owned the stock all year lost just 3%. Why? Because Apple paid out $2.03 in dividends over the course of the year.

Dividend-paying stocks aren’t immune from declines, but they do offer a degree of insulation that others don’t.

6) There Is No Perfect Metric

Professsional and amateur investors alike have their favorite measures of growth and value, from price-earnings ratios to dividend yields and profit margins. But there is no single number that divides good stocks from bad ones. A stock that looks cheap at 10 times earnings can go to 5 times in a flash, and a flashy tech startup that looks pricey at 3 time sales can easily jump to 6 in a heartbeat.

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ABOUT THE AUTHOR

Pietro Di Lorenzo