- Morningstar Says to Look for Durable Dividends
Dividend stocks are the primary building blocks of income portfolios – that is, investment portfolios that aim to generate cash flow instead of simply growing in value. Picking which dividend stocks to buy, though, isn’t always easy. While the “instant… read more…
- Why Schwab Believes Short-Duration Stocks Belong in Your Portfolio
As the Federal Reserve has aggressively raised interest rates over the last year to fight inflation, shorter-duration bonds have offered higher yields than their longer-duration counterparts. Surprisingly, a similar dynamic has existed for equities, according to financial services giant, Schwab.… read more…
- Buy to Open vs. Buy to Close: Investment Guide
Buying to open is when you purchase a new options contract and assume either a long or short position. Conversely, buying to close is when you purchase an existing options contract that matches a contract you sold. In doing so… read more…
- What Are FAAMG Stocks?
FAAMG is an acronym for a group of five American technology stocks: Facebook, Apple, Amazon, Microsoft and Google. Given the tech behemoths behind each of these stocks, they have been centerpieces in millions of stock portfolios. Here’s what you need… read more…
- Have Apple and Microsoft Made Portfolio Diversification Impossible?
While the volatility of a single stock can lead to big winnings if the company takes off, your portfolio can suffer just as easily if that firm has a bad day. Diversification can help you smooth out those lows. At… read more…
- These Stocks Fell at Least 38% Last Quarter. Are They in Your Portfolio?
The first quarter of 2023 was a mixed bag for many stocks. And five, in particular, were among the worst performers. According to Morningstar, First Republic Bank (FRC), Bed Bath & Beyond (BBBY), Groupon (GRPN), Lumen Technologies (LUMN) and Zions Bancorp… read more…
- Dollar-Cost Averaging vs. Lump Sum Investing
If you want to dip your toe into investing, it can be overwhelming. The terminology, risks and fees might make you want to just dump your funds in a savings account instead. But that would be a mistake – investing… read more…
- How to Be a Risk Averse Investor
A risk-averse investor is someone who prefers to emphasize security over potential gains. Their portfolio is built to preserve capital and prevent losses first and pursue growth second. This isn’t to say that risk-averse investors see no gains. This is… read more…
- When You Should Use a Taxable Brokerage Account?
A taxable brokerage account that allows you to buy and sell a wide range of securities, such as stocks, bonds, mutual funds and exchange-traded funds (ETFs). Unlike contributions to a traditional IRA or a 401(k), contributions to a taxable brokerage… read more…
- Protect Your Investments From Market Crashes With Theses 2 Strategies From Fidelity
When financial markets are falling fast, risk-averse investors may be tempted to cut and run. But cashing out your investments when markets are falling often means locking in investment losses. And knowing the right moment to reenter the market when… read more…
- Impact Investing vs. ESG
Impact investing is a strategy for using your money to create or affect positive change by investing in things that will do good in the future. ESG, on the other hand, is a framework for evaluating and selecting investments based… read more…
- Obsessed With High-Dividend Stocks? Here’s Why This Major Firm Says That’s a Mistake
In recent years, high-dividend stocks have become especially popular among investors looking for income in their portfolios. A new article from asset management firm AllianceBernstein, though, posits that these shares are not enough for building an effective portfolio. Rather, the… read more…
- 5 Tips From Morningstar to Invest Like Warren Buffett
Warren Buffett is one of the most successful investors of all time, with a net worth of over $100 billion. Known as the “Oracle of Omaha,” Buffett has made his fortune by investing in businesses with strong competitive advantages and… read more…
- Morningstar Says These Two Assets Can Protect Your Portfolio From Inflation
Let’s face it: the past few years have been pretty scary for investors. From the pandemic to the bear market and inflation, it seems like most people aren’t as concerned with making huge gains as they are with simply protecting… read more…
- Vanguard Says Don’t Give Up on the 60/40 Portfolio
Of all the choices an investor has to make, asset allocation could be the most important. Deciding how to split up the money you invest among different asset classes requires clarity of purpose and an understanding of each category’s advantages… read more…
- What Is the Volcker Rule, and How Does It Work?
The Volcker Rule was established following the Great Recession of the late 2000s and early 2010s. Essentially, the law stops depository banks from making risky and speculative investments with customer deposits. Furthermore, it prohibits banks from owning and investing in… read more…
- The Dodd-Frank Act Explained (and How It’s Changed)
The Dodd-Frank Wall Street Reform and Consumer Protection Act, commonly known as Dodd-Frank, was passed in 2010 in the wake of the 2008 financial crisis. The Obama-era law aimed to prevent another financial meltdown. It increased regulation of the financial industry… read more…
- SIPC vs. FDIC: Understanding Key Differences
Whether you’re saving money in a bank account or investing it in the market, you want some reassurance that it’s safe. The Federal Deposit Insurance Corporation (FDIC) and the Securities Investor Protection Corporation (SIPC) ensure banks and other financial institutions,… read more…
- How to Invest in Airbnb Without Owning Property?
Airbnb, which literally started with an air mattress in San Francisco, has now become arguably the biggest thing in hospitality. This app and website reached a level where many people run entire businesses, particularly in communities with lots of tourism.… read more…
- 6 Things to Invest in When a Recession Hits
When the market is soaring, it’s easy to forget that what goes up can also come down. But economic slowdowns tend to be cyclical, which means that another recession is in the future. Whether it’s fast-approaching or still a ways off, it’s… read more…
- How Do Employee Stock Options Work?
Stock options are something most people have heard of, but you might not know exactly how they work. In brief, stock options are a type of alternative compensation that some companies, including many startups, offer as part of their package… read more…
- How to Invest $100,000
If you’re looking to invest $100,000, you have a lot of options, and what you decide to go with can affect what kinds of returns you earn. You could also invest in real estate, or put some of the money… read more…
- What Is a Good P/E Ratio? Is High or Low Better?
P/E ratio, or price-to-earnings ratio, is a quick way to see if a stock is undervalued or overvalued. And so generally speaking, the lower the P/E ratio is, the better it is for both the business and potential investors. The… read more…
- How to Open a CD Account
Certificates of deposit (CD) accounts allow depositors to earn a guaranteed interest rate in exchange for keeping their money in the account for a predetermined length of time. These accounts can have higher interest rates than those on traditional savings… read more…
- You Can Now Make Money Making Fun of Jim Cramer
In the world of television commentators, few inspire more venom among certain portions of the internet as CNBC’s Jim Cramer. He was harshly criticized in the aftermath of the 2009 credit crisis, and he’s still frequently called out for his… read more…