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How to Invest This Election Year
(Main Content/blog)
... rates, and it's widely believed that the Federal Reserve is done raising rates and will start cutting them in 2024. As for new investments, there's plenty of opportunity, and many companies could become ...
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We're Not Out of the Woods
(Main Content/blog)
... doesn’t necessarily translate into stronger results for companies. A lot of the effect of higher interest rates takes place a year or even two years after they’re raised. This lag effect means there could ...
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The Big Question: When Can I Retire?
(Main Content/blog)
... drop. They’re so popular that all the brand-name financial companies seem to have a rule-of-thumb formula for figuring it out. Fidelity's guideline is to save at least one time your salary ...
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Here’s Why I’m a “No” on Annuities
(Main Content/blog)
... overall costs and fees than, say, mutual funds due to their insurance features, guarantees and administrative expenses. And the returns of index annuities are typically capped so that the insurance companies ...
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“Sell in May Go Away” is Not the Way
(Main Content/blog)
... earnings are Ford Motor, Alphabet and Meta. Inflation may have been a problem for many companies a year ago, when it really started to spike. But if you've bought anything at all since then, you know ...
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How to Get Back into the Market
(Main Content/blog)
... over time, good companies are going to grow and make money, and that they as investors will ultimately benefit. Now for what to invest in. The first step in figuring that out is to, again, pull back. ...
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Putting the Market’s Drama in Context
(Main Content/blog)
... owning good companies over long periods of time. And this happens to be a very good time to make sure that the holdings in your portfolio are optimized to get you where you'd like to go. Investors should ...
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Is the Next Stock Market Catalyst Taking Shape?
(Main Content/blog)
... rising inflation, which typically hurts most companies’ financial results. Clear signs that inflation has topped out or started easing, I believe, will spark a market rally. The assumption behind ...
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When Will Stocks Get Back in the Black?
(Main Content/blog)
... now it's less than 22. Facebook's P/E ratio has fallen from near 20 to around 11. Amazon's P/E has been halved from 2 years ago. These companies are highly profitable, not the kind of speculative bets ...
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For Investors, the Shoe Has Dropped
(Main Content/blog)
... 2020, or a shift downward like we're experiencing now, tends to be dramatic. In the current selloff, less-profitable companies and those built on stories about long-term potential were hit first and ...
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What the Crashes of Netflix and Facebook Tell Us
(Main Content/blog)
... beyond. Rising interest rates are bad for growth stocks, a category that includes Netflix and Meta, whose valuations are predicated on robust future earnings. Because growth companies are more dependent ...
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Market Turmoil Brings Buying Opportunities
(Main Content/blog)
... rates, which are seen as particularly harmful for such businesses. Predictably, work-from-home companies have been crushed by a combination of interest-rate fears and workers returning to the office—Zoom's ...
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A Big Market Shift is Underway
(Main Content/blog)
... the cost of borrowing. Thus, the long-term earnings potential of companies like Tesla or Peloton become less appealing when interest rates climb. The tech-heavy NASDAQ index is down 7% since early November, ...
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Why I Don't Invest in Crypto
(Main Content/blog)
... of real-life companies. It's not widely used in legitimate commerce—you can't buy groceries with it, for example, nor does the IRS accept tax payments in Bitcoin. The value of crypto is based simply on ...
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How to Handle the Market’s Volatility
(Main Content/main)
... is Covid-19 and its rampaging Delta variant. Supply chain disruptions due to Covid are making it difficult for companies to obtain components for their products. That in turn is making it harder to meet ...
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How to Handle the Market’s Volatility
(Main Content/blog)
... is Covid-19 and its rampaging Delta variant. Supply chain disruptions due to Covid are making it difficult for companies to obtain components for their products. That in turn is making it harder to meet ...
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Where to Invest Now? It's Tricky
(Main Content/blog)
... is running at a 5.4% annual rate, although it could cool down as supply chain bottlenecks related to reopening subside. Junk bonds, issued by lower-quality companies, usually compensate for their riskiness ...
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When Will Stocks Rise Again?
(Main Content/blog)
... the rise of work-from-home companies like Zoom and Amazon, and more recently, the distribution of highly effective vaccines. But since early May, the market's momentum has stalled out: After hitting a ...
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How to Invest for Inflation
(Main Content/blog)
... companies’ costs—everything from wages to materials to borrowing costs. That puts pressure on earnings growth—and fast earnings growth is a core attraction of companies like Netflix, Amazon and Facebook. ...
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Rising Inflation and Interest Rates: What to Do
(Main Content/blog)
... companies, especially those that might pay a dividend. Think insurance companies, banks energy companies, for example. If you need to do selling within taxable accounts, do not delay doing it because ...