Is The Increase In Volatility Signaling A Dangerous Market Environment?

Introduction

Over the last several weeks stock price volatility has increased significantly above norms.  All of a sudden it is not uncommon to see stock prices moving 5%, 10% or more in a single trading day.  Interestingly, this volatility is occurring both to the upside and the downside.  Common sense would suggest that the intrinsic value of a business cannot change by those orders of magnitude from one day to the next.  Logic dictates that the market is either inaccurately pricing the stocks now or it was incorrectly pricing them yesterday. […]

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Chicago Bridge & Iron: A Solid Company With An “Out Of Whack” Dividend

By means of introduction, the Chicago Bridge & Iron Company (CBI) is an energy infrastructure firm and a major provider of government services. We’d give you three guesses as to where and how the company began, but we don’t believe you’d need that many: Chicago Bridge & Iron was founded in 1889 in Chicago, Illinois being initially involved in bridge design and construction. Since that time Chicago Bridge & Iron has expanded into one of the world’s largest engineering, procurement and construction companies focusing on the global energy industry – today employing about 55,000 people. […]

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Stocks for 2014: Something for Everyone: Part 1

Introduction Chuck Carnevale My biggest pet peeve regarding common stock investing is how so many people have a tendency to over-generalize this asset class.  Commonly held beliefs such as investing in stocks is risky, or that the stock market is overvalued, or that the fed is driving stock prices, etc., are just a few examples[…]

Stocks 2014: Investing for Growth – The Power and Protection of High Compounding Earnings Growth – Part 2

As I become more mature (translate: gotten older), my investment philosophy has slowly evolved into a more conservative posture.  When I was a younger investor I felt I had time on my side, and therefore, was willing to take on greater risk as long as I believed that greater rewards could follow.  In other words,[…]

Energize The Growth Component Of Your Portfolio With Chicago Bridge & Iron Co

Chicago Bridge & Iron Co (CBI) potentially offers high growth at a very reasonable price. Although the company does exhibit the occasional bout of cyclicality, long-term earnings growth has averaged over 16% per annum. Consequently, long-term buy and hold shareholders have earned returns that have exceeded the market by a large margin. Some of the[…]