How 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…

Read more

ETF Spotlight: The Morningstar Wide Moat ETF

This exchange-traded fund invests in companies deemed to have strong competitive advantages. Since its inception in 2012, it has outperformed the S&P 500 by a wide margin… A competitive advantage (a.k.a., moat) helps companies fend off competitors and generate higher returns. The more moats a company has, the stronger the company. Financial services firm Morningstar…

Read more

One famous investor says it’s time to get aggressive

Howard Marks is famous for taking contrarian bets — investing when others are afraid. He wrote the book “Mastering the Market Cycle,” — where he emphasizes that markets are like a pendulum constantly fluctuating between fear and greed. His investment memos are popular among professional investors, including Warren Buffett. Here’s what he’s saying now… In…

Read more

Ways to invest in an uncertain market environment

If your portfolio is down less than 16% in 2022, you’re beating the S&P 500. Congrats. FWIW, if your portfolio is down less than 44%, you’re beating one of the top hedge funds in the world. It’s been tough for all types of investors, even for Tiger Global — one of the top-performing hedge funds…

Read more

What should investors prioritize in the “worst environment” for financial assets?

2022 hasn’t been easy on investor portfolios. Instead of chasing returns, investors could fare better by shifting their strategies… What’s the big deal? “You can’t think of a worse environment than where we are right now for financial assets,” — according to Paul Tudor Jones (CNBC). His advice: Capital preservation should be investors’ priority. Several…

Read more

How are fund managers positioning their portfolios in 2022?

Investors have many questions: How much further will the market fall? Is a recession coming? What sectors perform better in such a period? Let’s try to answer these questions… Economists are worried that rising interest rates and slowing growth will trigger a recession… Rates: The Fed has charted a course of rising interest rates for…

Read more

What is the right crypto allocation for your portfolio?

Unless the plan is Lambo or food stamps, we’d advise against it. Figuring out the right amount can be tricky — and the answer varies depending on whom you ask and your circumstances. How Mr. Wonderful invests in crypto Investor and entrepreneur Kevin O’Leary of Shark Tank — shares his views on how he invests…

Read more

What type of returns should investors expect in the next decade?

One of the most popular portfolios isn’t living up to its expectations. Supposedly, the 60/40 portfolio diversification (60% stocks and 40% bonds) provides enough growth via stocks — while reducing bonds’ volatility. Bond and stock prices traditionally move in opposite directions, but the two have moved in sync in 2022: Bonds: The iShares 20 Plus…

Read more

How to prepare for market corrections?

After its sharp March recovery, the S&P 500 is now only down 4.5% in 2022. Those that sold during the March lows would have missed out on a massive rally. Analysts are now divided over the direction of the market. Morgan Stanley’s Chief US Equity Strategist believes the rally is over — and expects the…

Read more