Big tech is cratering, economists are warning of a lost decade in the stock market and the S&P 500 is going nowhere. What can an investor do? Pull out your magnifying glass. Today we’re looking at small-caps — and why there’s potential in these stocks. There are two major indices that every investor should know:…
Read moreWhat type of returns can investors expect over the next decade?
Last month, legendary investor Stanley Druckenmiller said there was a “high probability” that the market will be flat for a decade. Is he spitting out facts, or is he Drucken outta his mind? He argues that the factors that created the bull market since 1982 are no longer there: Falling interest rates: The US benchmark…
Read more“Help, I Have a Stock That’s Down 70%. What Do I Do?”
We’d say the chance you’re holding one of these is fairly high. At the start of this year, nearly 40% of stocks in the tech-heavy Nasdaq index were down over 50%. Zoom, Shopify and Peloton are a few of the most popular COVID stocks that are down over 70%. They also have little guidance from…
Read moreDo you feel like walking away from the market?
Don’t worry, “imnotwillferrell”; you’re not alone. Millions entered the market in 2021 and many of us likely fell victim to the market crash. 2022 has been a really challenging year. The S&P 500 is down 25% this year, and the Nasdaq is down even more (-33%). The following data won’t give you much ease, but…
Read moreThe FTX curse: Tokens trend to zero after listing
FTX is the third largest crypto exchange by spot trading volume (behind Binance and Coinbase). All Star Charts highlighted something interesting about FTX: They’ve got impeccably (bad) timing at launching new cryptos or assets on their platform. Many trend toward zero after launching. Let’s take a look at some examples that All Star Charts highlighted:…
Read moreThe passive investor: go aggressive or go safe?
60.9% of investors surveyed by the AAII are feeling bearish over the markets in the following six months — the highest since 2009. Who can blame them? One week it’s inflation, the next, it’s a housing recession. With markets down 20% this year, investors are questioning whether they should play it safe or take advantage…
Read moreQuestion of the week: What do we know?
For those with images turned off: “Tell me… If we don’t know when we’re OUT of a pandemic…or when we are IN a recession. What do we know?” We’re no economists or health experts, but here are some things we do know about markets: 1/ Bear markets are unavoidable. Over a 50-year period, expect 14…
Read moreHere’s a lesson on investing from the worst market timer in history
If you suck at market timing, raise your hand. At this point, everyone’s hand should be up. But it’s okay; you can be bad at market timing and still make money… Meet Wally — the main character in Charlie Bilello’s hypothetical story. Wally is terrible at market timing. He would chase bull markets — constantly…
Read moreShould investors diversify their portfolio internationally?
Warren Buffett famously said, “never bet against America” — a market that has seen consistent gains throughout history. Despite the S&P 500 being down 18% in 2022 — the U.S. market has still outperformed other global stock markets. U.S. GDP growth may be slowing, but the country isn’t dealing with some of the major problems…
Read moreHow do activist investors impact companies and their stock returns?
Activist investors: CEOs hate them, bankers love them and retail investors don’t know what to think of them. Last week, it was revealed that activist Elliott Management took a stake in PayPal — sending the stock up 15% since. PayPal’s stock moved up; that should be good, right? That depends… Do activist investors improve investment…
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