Where to invest when the market is on top and the risks are high?

Out of about 8000 firms, solely 22 met our standards. Now we are going to let you know what parameters we used to pick.

We chosen firms based mostly solely on basic assessments, with out “expertise.” In actual fact, there have been few parameters:

1) An important factor is liquidity. To have the ability to purchase and promote at one of the best worth with out having to search for a purchaser / vendor. To do that, we sorted firms by the quantity of buying and selling quantity per day, in items: above 200 thousand per day, each the common (Common quantity) and for the final day of buying and selling (Present

2) Profitability (profitabiliy). That is proven by the P / E multiplier, the ratio of market capitalization to earnings. For the present P / E, we’ve got chosen a price> 0 – higher than zero, it does not matter what the revenue is, the principle factor is what’s; however for the longer term (Ahead P / E), the projected revenue subsequent 12 months, we’ve got chosen

3) An essential ingredient in our technique would be the absence of debt from the corporate: leverage is a form of anchor for shares, which considerably limits their progress. Since we don’t kind shares by capitalization, the dearth of debt burden is a crucial plus;

4) The ultimate parameter, which is able to decide the corporate as steady and powerful, would be the ratio of capitalization to free money movement (P / FCF) – it can be crucial for us that the chosen firms often generate money movement, which is able to verify their standing of a “protected haven” – within the case of a market panic, these are the businesses that turn out to be the item of funding.

Thus, we would have liked solely Four easy parameters – however solely 22 out of 7855 shares correspond to them:

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