Amanda Stanhaus

Tag: stock market

Cyclical Stock

stock that moves with consumer preferences and the market‘s movements.

(Originally published on Amanda Stanhaus’s financial literacy vocab blog: XO, Bettie Vocab.)

Defensive Stock

Rain or shine these stocks will keep steady. Everyone needs to eat.

(Originally published on Amanda Stanhaus’s financial literacy vocab blog: XO, Bettie Vocab.)

Diversification

I have rain boots, riding boots, ankle boots, booties and snow boots to wear depending on the occasion. I want just as much variety in my portfolio to perform well, no matter the market.

(Originally published on Amanda Stanhaus’s financial literacy vocab blog: XO, Bettie Vocab.)

Dow Jones Industrial Average

DJIA. The dow. A number that reflects how the market is doing. If the stock market had a yearbook, it would win most popular.

(Originally published on Amanda Stanhaus’s financial literacy vocab blog: XO, Bettie Vocab.)

Earnings per share

Profit divided by the number of shares of common stock. An indicator of how much money the company is—or is not—raking in by equating overall earnings to the individual stock price.

(Originally published on Amanda Stanhaus’s financial literacy vocab blog: XO, Bettie Vocab.)

Active vs. Passive Investing

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Pre-my Man, I alternated between two dating philosophies.

Active: I was on the prowl. I shamelessly introduced myself to any man that caught my eye.

Passive: Who, me? [bat eyelashes] I fabulously sipped a single malt at the bar and men came to me.

Now that I’m taken, I see the middle path. Desperate does not look good, but playing too hard to get can backfire too. Now, I look fabulously approachable at all times.

My investing philosophy similarly take the middle path.

When investing, I’m in it for the long haul. I’m a value investor, a form of passive investing. I do extensive research before I buy, and then hold on tight to the stock!

Daily, I read the business section, but don’t act like an active investor. Active investors buy & sell throughout the day, hoping to make some quick $$.

It’s been worth it to passively wait to reach my long term goals, but it fun to follow the market!

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(Originally published on Amanda Stanhaus’s financial literacy blog: XO, Bettie.)

Economic Indicator

“I think…”Measurements of various aspects of the economy that signal where the market is headed. Examples include CPI and GDP.

(Originally published on Amanda Stanhaus’s financial literacy vocab blog: XO, Bettie Vocab.)

Efficient Market Theory

Value is perfectly reflected in the stock price. Therefore, take a random walk and enjoy the ride. This what Warren Buffett has disproven.

(Originally published on Amanda Stanhaus’s financial literacy vocab blog: XO, Bettie Vocab.)

Shopping = Diversifying

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I have an obsession with two clothing categories. Coats and lingerie.

I’ll go into detail about the former, as the latter are unmentionables.

I’m prepared for anything. Pink-striped raincoat. Green suede bolero. Black surprisingly-slim puffer. Gold evening coat. Etc.

My $$ needs to be similarly prepared for anything. As a stock maven would say, diversify.

Bonds for rainy days. Growth stock for the chance to buy a fur one day, not so far away.Value stocks so my heiresses can buy their own coat collection.

I rebalance my asset allocation if I move to a new climate or I gain a few too many lbs. And similarly, if my time frame or investment objectives change.

If my man asks what I’m up to when I’m out shopping, I’ve learned to say I’m diversifying!

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(Originally published on Amanda Stanhaus’s financial literacy blog: XO, Bettie.)

Equity Fund

Equity=stock Therefore, a mutual fund that invests in stocks.

(Originally published on Amanda Stanhaus’s financial literacy vocab blog: XO, Bettie Vocab.)