Why Shares of RTI International Metals, Inc. Popped Today

Is this meaningful or just another movement?

May 23, 2014 at 4:23PM

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of RTI International Metals, (NYSE:RTI) jumped 11% today after being upgraded by an analyst.

So what: JPMorgan's analysts upgraded RTI from neutral to overweight, and put a price target of $34 on the stock. The analysts said that the stock's recent pullback and increasing titanium demand from Airbus give the stock significant upside. 

Now what: Stocks often jump on analyst upgrades, but the increase in share prices often fades after traders get out of the initial move. RTI's stock is down 21% so far this year, in large part because titanium production increased faster than aerospace demand did, leading to a decline during the past few years. There's been a short-term increase in prices recently, but I'd like to see that be sustainable before jumping in, because there's not enough evidence yet that this is more than just a short-term price movement.

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Travis Hoium has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

A Financial Plan on an Index Card

Keeping it simple.

Aug 7, 2015 at 11:26AM

Two years ago, University of Chicago professor Harold Pollack wrote his entire financial plan on an index card.

It blew up. People loved the idea. Financial advice is often intentionally complicated. Obscurity lets advisors charge higher fees. But the most important parts are painfully simple. Here's how Pollack put it:

The card came out of chat I had regarding what I view as the financial industry's basic dilemma: The best investment advice fits on an index card. A commenter asked for the actual index card. Although I was originally speaking in metaphor, I grabbed a pen and one of my daughter's note cards, scribbled this out in maybe three minutes, snapped a picture with my iPhone, and the rest was history.

More advisors and investors caught onto the idea and started writing their own financial plans on a single index card.

I love the exercise, because it makes you think about what's important and forces you to be succinct.

So, here's my index-card financial plan:


Everything else is details. 

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