Fama and French Three Factor Model for Stock Investing

3 factor modelA logical investor might assume that the best performing stocks are massive, cash-rich companies that have been in existence for decades. A reasoning mind tells us that smaller companies (i.e. small and micro-cap stocks) present a higher risk with less padding to fall on during economic crises. Others might argue that small stocks might be a suitable investment, but only if they are high-growth companies that are aggressively increasing net profits annually. But most might agree that small companies with low growth potential that trade close to their intrinsic value do not present valuable investments.
But does historical and empirical data back up this intuitive response or does it lead us in another direction? The answer is somewhat surprising, and the research behind the answer brings us to the Three Factor Model.

Click to continue reading...

Small and Micro-Cap Stock Investing – Definition, Benefits & Risks

small cap stocks plantNowadays it seems like everyone has their favorite investing style. Nowhere is this more evident than Wall Street itself. Everywhere you turn, a different investment advisor or mutual fund is touting a new magic formula for market beating returns. Do they all deliver on their promises? Not even close. 66% of actively-traded funds fail to beat the market over any period in excess of 5 years, according to Time Magazine. When you factor in the expenses and sales loads of these advisors and mutual funds, it is safe to say that the percentage of the funds that fail to beat the market is even higher.

Click to continue reading...

How Middle East Turmoil & Oil Prices Lead to Maxed Out Credit Cards – 8 Degrees of Separation

gas prices credit card frownYou don’t have to drive 100 miles a day to notice just how high gas prices have risen. Experts are predicting that we’ll see them continue to climb, especially with summer approaching.

After I pay more at the pump, I go home to watch the news to learn about international struggles and strife in the major oil-producing nations of the Middle East. And it strikes me: The effect that global news has on our wallets and budgets isn’t going away. In fact, the rise in oil will directly impact our credit card balances.

Click to continue reading...

4 Types of Luggage You Need Traveling on Flights – For Less than $150

plane luggageNo matter where I travel, I’m amazed by how many people struggle with unwieldy and expensive luggage. Their fancy luggage will inevitably get scraped, scuffed, and abused by the airlines – if it doesn’t get lost in the first place. I’m left wondering, “Why bother investing any more than necessary to get stuff from one place to the next?”

I have had the same luggage set for the past six years, and I didn’t pay more than $150 dollars for all four pieces. I easily navigate airport arrival halls, hotel lobbies, and busy city streets, surviving on the road for weeks at a time.

Click to continue reading...

Dividend Payout Ratio Formula & Definition – Analyzing Blue Chip Stocks with High Dividends

dividend payout ratiosWhen it comes to picking the best blue chip dividend-paying stock, all that really matters is dividend size, right? Wrong!

As a blue chip investor, you know how important it is to do your research. And you also know how much data is available. Even well-trained investors can find it overwhelming.

If dividends are your priority, then you can’t just look at the size and frequency of a company’s recent payments. You also need to look at the dividend payout ratio when you’re analyzing stocks. Otherwise, you could end up buying shares of a sinking ship that is cleverly masked with unsustainable high-yield dividends.

Click to continue reading...

17 Cheap Wedding Flowers Ideas & Arrangements on a Budget

wedding flowers bouqetsFlowers can add such beauty to your big wedding day, but they can also add a lot to your expenses!

With so many different uses for flowers in a wedding – the bride’s bouquet, the bridemaids’ bouquets, boutonnieres, various corsages, flower girl peddles, altar arrangements, pew decorations, cake decorations, and reception decor – brides can spend upwards of $10,000 on the flowers alone.

But you can still have a gorgeous wedding, without emptying your wallet. Here are 15 great ideas to save green while buying greenery.

Click to continue reading...

4 Free Social Media Marketing Sites for Local Small Businesses

google maps business signAs a small business owner, you probably have a Facebook page and a Twitter account, but that doesn’t mean you’re effectively using social media for marketing. If you’re still skeptical about how social media can positively affect your bottom line, or if you just don’t know which mix of social media services to participate in to draw people to your business, read on.

Using social media to promote your business is all about rewarding people with something small to give them a positive first or repeat experience with your business.

Here are three free ways to attract and reward customers with little effort.

Click to continue reading...

Advantages & Disadvantages of Outsourcing Jobs to Freelancers

outsourcing globeImagine walking into a building where there are no boundaries, no language barriers, and workers with an unlimited amount of skills and talents whose number one goal is to help you with your business.

That’s what is commonly known as “the cloud” – a place (albeit in cyberspace) that allows business owners to tap into talent around the globe and outsource jobs for prices that are reasonable and attainable, even for the small business owner.

Click to continue reading...

5 Employee Job Performance Review Questions to Ask

performance review glassesWhether you work for a small company or a large one, your performance review probably raises your anxiety to a frightening level. It’s tough to hear criticism, even when it’s constructive, and you might even be uncomfortable taking compliments. And while you may dread bad news, your performance review can be great opportunity to advance your career and build a better relationship with your supervisors.

If you have a performance review on your upcoming schedule, make sure you take the opportunity to explore additional compensation, more responsibility or a change in direction, and advice on how to keep your career progressing the way you want it to.

Click to continue reading...

How to Improve Computer Performance & Supercharge Your Productivity – Tips From an IT Pro

computer nerdI’m not the fastest typist in the world, yet I’m still able to operate a computer with a level of speed and efficiency that amazes some people.

Over time, I’ve learned that the number of words you can type per minute isn’t everything when it comes to maximizing your time on the computer. As someone who has been working in information technology for over a decade, I have made a concerted effort to find every trick to getting the most done in the least amount of time.

Click to continue reading...