Robots might be taking over, but at least their revolution is giving stocks in robotics some good returns. The robotics industry is expected to grow from a current size of USD $27.7 billion to $74.1 billion by 2026. And its effects will be felt in many sectors: Defense: $487 billion is expected to be spent…
Read more
Historical data says to stay away from FAANG stocks in the next decade
Think FAANG stocks are forever? Think again. The strong track record of FAANG stocks — Facebook, Apple, Amazon, Netflix and Google — made them go-to investments for investors seeking consistent growth. For the past 5 years, these stocks averaged annualized returns of 41.6% — easily outperforming the S&P 500’s 15.8% per year. But today’s giants…
Read more
The economy’s next booster shot — businesses armed with credit
Businesses are armed with money in the form of credit — which could lead to a big-spending boost for the economy. Bank of America and JPMorgan have a combined $1t in credit lent to businesses that haven’t been spent yet, up 20% from 2020. Banks are getting more inquiries about new and existing credit lines…
Read more
Electric vehicle charging stocks get a jolt from Biden’s infrastructure bill
It’s summertime sadness in August — historically the worst month for the US stock market. But here’s a potential cure: Eat your greens. Clean energy stocks gave portfolios some of 2021’s greenest days. Since then, they’ve taken a backseat in investors’ minds, but early signs point to the narrative coming back to relevance. A $1t…
Read more
Valuation matters when it comes to picking stocks
Stock valuations are near record highs — leading many to argue that valuations no longer matter. Charles Billelo warns those who agree: It’s only a matter of time before you’re proven wrong. ELI5: The price-to-sales (P/S) multiple is a ratio used to compare stocks to determine whether one is under/overvalued. P/S multiple = a company’s…
Read more
Analyst buy recommendations at two-decade highs, here’s what this means for investors
Is there such a thing as too much good news? Not when it comes to the stock market. Buy signals are at a two-decade high, as US stocks continue to beat earnings expectations — sending stock prices to record levels. Despite the market enthusiasm, US GDP continues to be below expectations. For some, this might…
Read more
ETF Spotlight: iShares Semiconductor ETF
What do Apple, Microsoft and Tesla all have in common? Semiconductor chips are a key component in their products, and they’re all worried they won’t have enough. What’s the big deal? Companies supplying the world’s computer chips are wrestling two big trends: Skyrocketing demand for chips caused by a surge in digital consumption during COVID…
Read more
All-purpose tech ETF: Is Invesco’s Nasdaq-100 ETF Right For You?
We’ve been in a raging bull market since 2009, with the S&P 500 averaging 16% per year. But tech-heavy Nasdaq-100 returns are even more impressive — 23% a year. Warren Buffett is vocal about most people putting their money in an S&P 500 ETF and letting it grow. But we’re no longer in the 90s,…
Read more
Why, when and how to rebalance your portfolio
As the economy transitions from COVID recovery to expansion, it might be time to rebalance your portfolio. Not sure how? Consider the following. ELI5: In rebalancing your portfolio, you can reassess the weight of your portfolio. If one area is too large, moving money into another helps manage risk. Think of your portfolio as a…
Read more
The dark side of investing in newly public companies
2021 has been a record-breaking year where US initial public offerings (IPOs) have already raised $216 billion. But does that mean it’s a good time to dabble in IPOs? According to behavioral finance expert, Vishal Khandelwal, the answer is simple. His advice: steer clear of IPOs. Insiders club: IPOs typically benefit the pre-IPO investors and…
Read more