Given the latest market run, I am getting a lot of questions about chasing returns and individuals comparing themselves to the S&P 500 index. The flaw of human nature is that whatever we have is ...
Absolute income is your total earnings from all sources. Factoring in relative income helps assess financial status against peers. Increasing absolute income allows more saving and investment, so you ...
Relative valuation—using simple metrics to compare a firm’s value to its peers—is a cornerstone of financial decision-making. If a company earns $2 billion in profit, and if similar firms trade at 15 ...