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from Ken Little The markets have taken a beating in the recent weeks. When there is intense downward pressure on stock prices, you should not lose your perspective. Sinking stock prices may or may not indicate a company is in trouble. Financial stocks have lost a lot of value, but you can tie that to a strong business case that they were over-valued considering the risky assets on their books. Other companies have been hurt because of a general economic slow down. And then, there are companies that have declining stock prices simply because the mood of the market is so pessimistic. Your goal is to identify into which group a potential or current investment target falls. | |
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