If investors wish to purchase cannabis stocks and are comfortable with tremendous volatility with potentially vicious drawdowns, then all of the power to them. I hope they are right. These would be fantastic Canadian growth stories. It is the aim of this article to familiarize retail investors with the high-flying valuation and understand how purchase price is incredibly important to long term stock returns.
Price to Earnings or PE ratio is known as the first valuation ratio most investors will use to very quickly get a picture of how expensive the stock market is pricing a public company. An attractively low PE ratio should never be the sole reason for an investing decision.
Even though all investment advisory firms uses beta as a standard measure, they are only trying to attract clients who want "low volatility". This is all garbage. Now lets talk about actual risk to consider when holding a business in your portfolio.
Congratulations, you are thinking about pulling the trigger on opening your own self directed brokerage account. You don’t have to be a professional to use their services and you will outperform all your friends who are paying out of control commission fees. You have come to the right place if you want to open up a Tax Free Savings Account (TFSA). The beauty of a TFSA is your capital gains will stay in your portfolio and are incredible for dividend growth income portfolios.
It is a wonderful time to be a stock investor with so many free tools available. Why not screen for the best of the best businesses available? Feel free to be picky, there are great business models available at attractive evaluations in all market conditions! Stock screeners help investors start looking in the right place for opportunities before conducting even more research before a purchase. There are many stock screeners available, but they are primarily only useful with full data sets for larger stock exchanges such as the NYSE and NASDAQ.