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What is the VIX index?

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The VIX index, formally known as the CBOE Volatility Index, is a popular measure of market expectations of near-term volatility conveyed by S&P 500 stock index option prices. It is often referred to as the “fear gauge” or “fear index” because it tends to rise when investors are fearful or uncertain about the market’s future direction. Here are some key points about the VIX index: Definition The VIX measures market expectations of 30-day volatility for the S&P 500 index, derived …

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A buying opportunity with Reliance Worldwide

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We recently researched Reliance Worldwide Corporation (ASX:RWC) in The Dynamic Investor. Market concerns about weakening demand across all operating segments had weighed on the shares. We took the view that the de-rating in RWC presented an opportunity. This was because the shares were trading on a multiple that was well below historical levels and at the bottom end of the prior trading range. With the shares having recovered strongly since our recent report, do current levels still present an attractive …

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What does EPS growth mean?

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EPS growth stands for Earnings Per Share growth. It is a financial metric that measures the increase in a company’s earnings per share (EPS) over time. EPS is calculated by dividing the company’s net income by the number of outstanding shares of its common stock. EPS growth is significant for investors because it indicates how fast a company’s profitability is growing on a per-share basis. A higher EPS growth rate generally suggests that a company is performing well and increasing …

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Worley shares can climb higher from here

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We recently researched Worley (ASX:WOR) in The Dynamic Investor after a period of share price weakness. We concluded that the shares presented an opportunity. This view was based on two factors. Firstly, that the medium-term EPS growth profile remained unchanged from prior to the recent sell-off. Secondly, market concerns about stalling growth and project delays were overdone. With the shares having recovered strongly since our recent report, do current levels still present an attractive entry point? About Worley Worley is …

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The disadvantages of dividend stocks

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Investing in dividend stocks is a popular strategy with investors as it provides regular income and is thought of as being less volatile than growth stocks. However, there are also several disadvantages to consider: Lower Growth Potential Dividend-paying companies typically distribute a portion of their earnings to shareholders as dividends. This means they may have less capital available for reinvestment in business expansion or innovation compared to companies that retain all earnings for growth. As a result, dividend stocks may …

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