The never-ending hunt for higher yield is leading investors to bet record amounts on emerging market debt.
In just the first two weeks of 2012, governments of undeveloped economies from Asia to Africa sold more than $30.6 billion in dollar-denominated bonds, (more…)
With the stock market surging wildly up and down, many investors have been scared away from equities. But for most investors, a complete retreat from stocks is not the best move. What might make more sense is to rebalance your portfolio toward low-volatility stocks.
As The Wall Street Journal recently reported, the Standard & Poor’s Low Volatility Index, a portfolio of the 100 least-volatile stocks in the S&P 500 stock index, lost just 1.1 percent, compared with a 9.8 percent drop for the S&P 500 overall (more…)
Commodities are things you can touch and feel, like oil, gold and wheat. Some are absolutely necessary, such as food products and raw materials for construction and energy. Others, like gold, do not have that kind of intrinsic worth. But both are at the mercy of the markets to decide their value.
Investing in commodities is sometimes tougher than investing in stocks, because market forces are much harder to predict. (more…)
The stock market’s volatility over the past few years has frightened many investors, and some have left the market for good. If you’re worried about the market but not yet ready to abandon it, perhaps it’s time to consider exchange-traded funds, or ETFs.
ETFs look like mutual funds but behave like stocks. And they are tailored to the small investor in that they offer low cost and quick diversification. You can buy as little as one share, unlike mutual funds which often require an initial investment of $3,000 or more.
ETFs mirror an index and don’t require a manager, so fees are usually quite small. (more…)
During the halcyon years preceding the Great Recession, many investors were lulled into believing that if they only contributed regularly to a retirement account, they reasonably could expect a materially comfortable life in their golden years.
Much has changed. IRA and 401(k) savings were sliced in half during the stock-market free fall of 2008 and early 2009. Despite a rebound, the market’s recovery has come in fits with frequent setbacks.
Equity investments, like the age-indexed mutual funds that became widely popular early in the last decade, have lost their luster. (more…)
I love autumn. The leaves start to turn color where I live, and the first hint of winter is invigorating. It is also a great time to peruse each of the financial markets for the shorter-term, seasonal trades that are always lurking — if you know where to look, that is.
One place that’s worth looking at right now is the global currency markets, where a major war is currently being waged. As part of the so-called “race to the bottom,” the U.S. dollar is down 14 percent since June. This drop in the greenback has come at a time when a major bull market in commodities has broken out everywhere in the world.
Gold, silver, wheat and corn have all recently achieved multi-year highs. Cotton just hit its highest price in 140 years.
There has been an exception, however — a headline commodity that’s been left behind. Indeed, this particular commodity has been in decline for six months, dropping almost daily. But that’s about to change. (more…)
So you are an investor or have decided you will become one. How do you develop a solid investment strategy?
First, determine your goals. Then, establish how much time and money you have to invest. Finally, choose a mix of investment products that fit your situation.
Your Goals
Of course, every investor wants to earn money. But you must force yourself to be specific. How much money do you want to earn? How soon will you need those funds and for what purposes? (more…)
When it comes to emerging market investing, there’s no doubt that the BRIC nations—Brazil, Russia, India and China—dominate the headlines.
Sure, they’re big, important countries. And together, they make up roughly 50 percent of the iShares MSCI Emerging Market Index (NYSE: EEM), which is obviously a significant chunk of the popular exchange-traded fund.
But what about the other 17 countries in the fund?
For some time now, I’ve been monitoring a country that is well off the radar screens of even the most sophisticated investors–one that I think represents a bigger prize than the BRIC nations. (more…)
Diving into the world of bullion investing can be a scary trip. You have some doomsayers who gasp at the thought of money that’s only as good as the government’s word as they dig another hole in their yard for a few more 100-ounce silver bars. At the same time, you have Wall Street just beginning to respect precious metals as they slowly make their way onto the trading floor in the form of exchange-traded funds. (more…)
Author and investing professor Leland Hevner recently noticed a trend among his college-level investing students: Many are retirees or nearing retirement age and have used financial advisers for most of their investing life. They show up in his classroom lost and bewildered, after suffering significant losses of the savings they planned to live on after retirement. Now they need to learn a new strategy. (more…)