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…
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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…
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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…
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Large-cap stocks have outperformed since 2014. Is it time for a small-cap stock comeback?
Do judge a stock by its size; it might help you figure out where to allocate your money in the coming months. Small-cap vs. large-cap returns Of the 3,000 largest stocks in the U.S — the S&P 500 index tracks ~500 of the largest, and the Russell 2000 index tracks ~2,000 of the smallest. Over…
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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…
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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…
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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…
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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…
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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…
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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…
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