The best way to use a P/E ratio for stock analysis is as a supplement when comparing companies within the same sector or industry. However, it is a bad idea to use P/E multiples to benchmark a technology company to a consumer staples company.
Maybe there is a valid basis for the lack of confidence going into 2018. This article looks at some of those reasons, as well as other key factors driving our economy along its current path. Furthermore, I offer my interpretation and what it could mean for investors and the economy going into 2018. My goal is to give a balanced perspective so that you, the reader, understand the logic behind the arguments being postured in Washington DC and in the media.
Mutual Funds, index funds, or ETFs -- which is better? With $1-trillion flowing from actively managed mutual funds to passively managed index funds and ETFs, the answer may seem obvious. However, like most things in life, these numbers need some context before understanding the reasons for the recent shift in investor behavior.