Tag: stocks
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What is Risk, Really? (Hint- It’s Not Market Volatility)
A Life-Time View at Risk When mainstream financial media talk about “risk,” they are usually talking about short-term bumps in the road. In this context, “risk” is used interchangeably with “volatility”; it is measured using a statistical metric called “standard deviation.” I look at things a little differently. True risk is not having enough money…
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How expensive is that stock, what is P/E ratio, and why is it important?
A good company is a wonderful thing to own, but investors often forget to think about how much they paid for their favorite AI stock. No, I am not talking about the actual stock price, but what that price is in relation to the company’s earnings. One key ratio to consider when looking at a…
