About Stocks: Adjust Risk Premium for Stocks to Market Condition
 | from Ken Little
Will mergers and acquisitions pull the market out of its depression? Not if they are handled the way Microsoft fumbled its Yahoo bid. But with overall prices beaten down and many companies sitting on a pile of cash, the opportunities may be too good to pass up. Look for more possibilities among tech stocks as well as the humbled financial services sector. Don't overlook health care, which faces a less than certain future pending the upcoming presidential election. There are some attractive targets trading at relatively inexpensive prices when you take the long-term view. Let the bidding begin.
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Adjust Risk Premium for Stocks to Market Conditions
In times of market turbulence, should investors be rethinking the idea of risk premium when buying stocks? The idea of risk premium is that investors have a safe place to put their money (U.S. Treasuries), so any investment that carries more risk should also offer a premium return.
| | Let Go of Old Stock Investing Strategies
We humans are creatures of habit, even when it comes to investing in stocks, which should be made by a logical decision process. Yet, the truth is that many investors will stick with an investing pattern even if it isn't working, just because it worked once before.
| How to Profit from Insider Trading
The Dow closed at a four-month high Thursday, May 1, while oil fell and the dollar rose. What a great way to start a new month. Is the market looking past the current economic woes to better times in the fourth quarter? It is too early to tell, but investors may want to monitor company insiders for an increase in stock purchases. If key executives believe a rebound is coming, they may be picking up additional shares.
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