The price-to-earnings ratio, or PE ratio, is one of the simplest but most popular financial ratios for estimating the value of a stock. Even though the PE ratio is simple, it’s an amazingly useful tool.

In fact, a study by Merrill Lynch found that 33% of professional investment managers consider the PE ratio before investing in a company. And one of the most famous value investors of recent times, Peter Lynch, was known to make good use of the PE ratio in his analysis. Read more »

Vix index flicker imageIf you watch a lot of CNBC or read a fair amount of financial news you will no doubt have heard of the VIX Volatility Index, also known as the ‘fear index’.

What is the Vix Index?

The VIX is actually the ticker symbol for the CBOE (Chicago Board Options Exchange) Market Volatility Index future and it represents the expectation of stock market volatility over the next 30 days using S&P 500 options.

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