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Showing posts from September 27, 2023

How to spot a Stock Market Bounce-Back (Recovery)

Do you want to know when the Stock Market is going to bounce back from a slump? Do you want to avoid buying Stocks when they are about to further sink, or selling them when they are about to soar? Do you want to be the next Warren Buffett, or at least not the next Bernie Madoff? If you answered yes to any of these questions, then this Post is for you. There are hundreds of measuring sticks, literally. But in this post, I will share some indicators I use to help recognize a Stock Market recovery. These simple indicators... even a monkey can understand. Well, maybe not a monkey, but you get the idea. The first indicator that can help you predict whether the Stock Market is going to rise, or fall is deemed the BE/ME Ratio. No, this is not a measure of how much you love yourself, but rather how much the Market loves a Company. The BE/ME ratio stands for Book Equity to Market Equity, and it compares how much a Company’s Assets are worth on paper versus how much they are worth on the Stock ...