The start into 2022 certainly took most market participants by surprise: a rout in equities on the back of rising rates, Russia’s invasion of Ukraine, and an explosion in various commodity prices.
Equally still, it seems the dust has settled quickly with US equity markets recovering most of their losses since the start of the war. So is it all over now?
The key question investors might ask themselves and the world after January’s rout in stocks is: are we still in a secular bull market, or has this been the beginning of a bear market?
Price/Sales or P/S is the most widely used valuation metric for stocks (equities). The ratio expresses a company’s share price divided by the company’s sales or revenue per share.
We are having an exciting week ahead: after a steep market decline, there are plenty of market-moving releases this week: earnings galore of Tech and, on Wednesday, the FOMC.
This is part of a series of very basic fundamental investment principles. I will try to explain in no-nonsense terms the simplest concepts of fundamental investing and how to apply them when researching stocks.
