Portfolio diversification is a strategy that helps investors manage risk. Investors often choose to diversify among industries for stocks, for instance. But they also consider diversification within different assets types. Bonds are an alternative to stocks that can provide for diversification, if you understand how to use them. Should you consider adding bonds to your […]
Many people check the food labels of the items they buy in the grocery store. Labels can help give them an indication of what they buy to eat is good for them. Similarly, publicly listed companies have the equivalent of a label that investors can use to check the soundness of companies. It comes in […]
With interest rates at record lows, many analysts are questioning the benefits of running the classic 60%/40% (equity to fixed) balanced portfolio. The historical argument for such a portfolio hinges on the non-correlated performance of stocks and bonds. During times of equity drawdowns, fixed income securities typically provided offsetting positive performance, so over time the […]
When you start investing, you may learn about “paper trading” as a method to test your trading skills. Some people believe it’s an excellent method to learn and become a proficient trader. Others think it’s a waste of time. Let’s go over some of the pros and cons of paper trading. If you have never […]
Warren Buffett, also known as the “Oracle of Omaha,” is an investing legend. The chances are, if you have any experience with the stock market, then you know who he is. He is regarded by many as one of the best if not the best investor in the world. However, he does go about investing […]
You watched in horror while that stock you own dropped over 30%. The relief you feel now after it recovered is outweighed by the dread of watching it sink again. Or, you followed the adage to buy when there is blood in the streets and bought at the market low in March and neither want […]
Perhaps the biggest advantage of investing in dividend-paying stocks is that reinvesting your dividends can increase your returns considerably in the long run. This strategy is commonly referred to as a dividend reinvestment plan (DRIP). Under a dividend reinvestment plan the dividends paid by the stocks you own do not reach your brokerage account at […]
The volatility and speculation in the stock market since the COVID-19 lock down has been unprecedented, and this hasn’t been lost on Mad Money’s Jim Cramer. “I’ve never seen so many games played with stocks, which is that, ‘Hey, we’re taking this one up today. We’re taking that one up today,’” said Cramer. “Please be careful […]
Are you committed to investing a part of your monthly income towards retirement? You can insulate your financial future against unforeseen emergencies and economic risks if you use an automatic investment plan (AIP) to ensure consistency in your retirement contributions. An AIP is like putting your investments on auto-pilot. Automatic investment plans are investment programs […]
Are you looking for ways to earn higher returns without risking it all? When it comes to investing your money today, there are plenty of options that promise attractive returns. Many of them involve taking on additional risk by concentrating your bets on a single stock or sector. That might give you some added juice […]
