About Stocks: ROA is a Leading Measure of Company's Efficiency

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	from Ken Little The optimist suggests it is always darkest before the dawn, which is another way of saying, There is a light at the end of the tunnel.Of course that light in the tunnel may be a train headed your way. Most rational investors are preparing for lower profits in the near future. How low? Right now a low risk seven or eight percent return looks pretty good. That may be a stretch if inflation keeps going up and the economy keeps slowing down. Rather than whine about those disappearing double-digit returns, the realists in the market take what they can get based on a comfortable level of risk. Don't change your risk threshold just to chase higher returns.
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ROA is a Leading Measure of Company's Efficiency Investors often look for the magic number or metric that will identify a great stock out of the universe of all stocks. This magic number doesn't exist. However, when you are considering stocks to buy, there are certain metrics and numbers that are more important than others.             More Topics Investing Philosophies Investing Techniques Advanced Trading of Stocks What Makes the Market Rise and Fall Taxes Tools for Picking Stocks Top Online Stock Trading Sites Look into the Future with Stock Market Indexes You can get a clue about where traders are thinking the market will open by looking at the indexes in relationship to "fair value."   Picking Stocks begins with Assessment of Need If there is one number that people look at than more any other it is the Price to Earnings Ratio (P/E). The P/E is one of those numbers that investors throw around with great authority as if it told the whole story. Of course, it doesn't tell the whole story (if it did, we wouldn't need all the other numbers.)     Sponsored Links   Work Hard, Travel Easy Making Business Travel Easier Get tips for making life easier whenever you have to travel for work. Find out how to get the best seats, enjoy your flights, de-stress when you fly and much more.

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