2023 has turned the cash-rich into the cash-richer. Interest rates are at 22-year highs, helping savings accounts and money market funds offer annual risk-free returns of up to 5% APY. But rate cuts are coming — and soon, savers will be making less interest on their money. But there’s a way they can keep today’s…
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How should investors position their portfolios if the market bottoms in 2023?
The market goes on sale only a few times a decade. We may be near one of those points if you drown out the noise. A Finimize survey last week showed that 80% of 2,000 retail investors believe the market will bottom within the next six months. Question: Aren’t we expected to enter a recession…
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Major themes to watch in 2023: Interest rates, inflation, US dollar and sector rotations
2023 is around the corner. And if the new year is anything like 2022 — it will be another long year of early afternoon drinks. But have no fear; the Fed pivot may be near. 🤞 Enough bad rhymes. Let’s dive into the major themes we’re watching over the next year. 1/ Interest rates: Will…
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Best-performing S&P 500 stocks from the bottom of the 2008 market crash
2008 and 2022 have had many similarities: Stock market crash, housing downturn, high levels of debt and investor portfolios going bust. But there are also many differences: ‘08 was led by a housing bubble — while today’s crash is primarily from a reversal in monetary policies. Inflation was also healthy in 2008, and the Fed…
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This top-performing value fund sees opportunity in Meta
The Liontrust Tortoise Fund has beaten 99% of other long-short equity funds this year (19% return). Their success this year has come from: Pivoting towards defensive sectors like Consumer Staples and Healthcare — sectors that have outperformed this year. Betting against the S&P 500 and US tech stocks with “relatively large” short positions. Recently, they’ve…
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Remember this investing phrase: The stock market is not the economy
Was the stock market or Bitcoin part of your dinner table conversation in 2021? Did a friend ask you about Peloton or Zoom? At that point, the economy was humming along, but prices had already began decreasing. Should we call this the FOMO indicator? This year, we’ll bet Thanksgiving dinner topics are going to be…
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IPO trend: Investor lockup periods get shorter — here’s how it will impact investors
Investors beware, IPO lockup periods are getting shorter (data via Renaissance Capital research) — which could lead to greater volatility investing in companies that recently went public. What’s the big deal? Early investors and insiders (i.e. employees) often have lockup periods of 90-180 days before they can sell their shares after an IPO. Upon these…
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What’s the right crypto allocation for investors?
Last weekend, crypto fell hard with Bitcoin falling as much as 25% within 24 hours — fully displaying the volatile nature of cryptocurrencies. Just how volatile? According to Ben Carlson, Bitcoin has seen corrections of 33%, 39%, 41%, 30%, 84%, and 62% since 2017 — along with several single-day 20% crashes. But volatility is the…
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Large cap stocks outperformed in 2021 — will small caps rebound in 2022?
Compared to last year when nearly anything purchased at the bottom of the market went up — investing in 2021 was a lot more challenging. ~93% of stocks in the S&P 500 went through a 10% correction in 2021. According to Ben Carlson of Ritholtz Wealth Management: 1 out of 3 stocks are down in…
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High-flying growth stocks are down big in 2021 — what comes next?
2021 hasn’t been kind to the high-flying growth stocks of 2020. Many are down 50% plus but when we look at a longer time frame (since the start of 2020), the story is very different… If you only look at 2021 returns, many stocks are down big — Compound Advisor’s Charlie Bilello showed some of…
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