TED Spread & LIBOR: What Every Investor Should Know
The TED Spread is the difference between the 3 month T-bill rate and the 3 month London Inter Bank Offered Rate (LIBOR). It is important because it is an indicator of perceived economic risk, monetary liquidity, and perceived credit risk of the global financial banking system.
...Exponential Growth, Double Time, and the Rule of 72
Exponential growth is sometimes described as the “miracle of compounding” because of the extraordinary explosion that takes place over time. Investors can use double time and the Rule of 72 to estimate the power of exponential growth to meet their retirement goals. Use this important financial concept to meet your investment goals!
...Shiller PE 10: An Important Stock Market Valuation Tool
Professor Robert Shiller of Yale University developed the Shiller PE 10 to more accurately reflect long term trends and smooth volatile components of the standard P/E ratio. PE 10 is also called the cyclically-adjusted price-to-earnings (CAPE) ratio. Shiller was able to show that the P/E 10 at any given time was correlated to what market returns would be over the next 20 years.
...PEG Ratio – Stock Valuation Tool
Use stock valuation tools such as the PEG Ratio to evaluate and compare companies. The ratio provides insight into the trade off between the price of the stock, the earnings per share, and company’s expected growth rate!
...About
As founder of the Arbor Investment Planner my passion is to educate and empower the individual investors to manage their own investment portfolio.
The Arbor Investment Planner is a value investment portfolio management guide for those individual investors who choose to manage their own money. I focus on ideas and concepts important to the self directed investor; but put special emphasis on risk management, value investing strategies, and proper asset allocation and diversification.
- Ken Faulkenberry
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