- Understanding Risk-Free Assets: Guide
When the market fluctuates, some investors get scared and want to eliminate risk from their portfolios. Risk-free assets provide a safe harbor against market volatility, but that safety comes at a cost. These investments tend to have low rates of… read more…
- Risk-On vs. Risk-Off: Investment Guide
Risk-on and risk-off are descriptive terms referring to changes in the attitude and approach investors take toward risk during different economic scenarios. When investors are risk-on, they tend to put more money into riskier investments, such as stocks. When investors… read more…
- CDs vs. Mutual Funds: Key Differences
Investing is risky, especially amidst international strife and a volatile economy. However, it is possible to mitigate risk while preserving certain levels of return. For example, certificates of deposit (CDs) are low-yield accounts that provide a guaranteed interest rate over… read more…
- Private Equity vs. Investment Banking
Private equity and investment banking both help businesses find, develop and grow capital, but each does it in a different way. A private equity firm buys assets itself, looking to grow those assets and profit off of each down the line when they are sold. An investment bank primarily sells assets for another party. While… read more…
- What Are Technical Indicators?
Technical indicators are the data points that show how an asset’s price has changed over time. They can reflect everything from straightforward information, such as a simple average or highs and lows, to complex market-wide analysis of how investors have traded the asset. Technical indicators are particularly useful for analyzing patterns. Investors can use information… read more…
- CDs vs. Stocks Comparison
You might occasionally hear the word “savings” in reference to investments, but there are important differences between the two. For instance, certificates of deposit (CDs) are a type of savings account, while stocks are an investment. CDs provide a sense of stability to your portfolio while stocks might provide a better return. Choosing the right… read more…
- Robo Advisors vs. Index Funds
While most people understand that investing for retirement is a good idea, the way to get started can be unclear. Two investment tools investors may start out with include robo-advisors and index funds. Investors can utilize either of these without… read more…
- When and How to Buy the Dip
Buying the dip reflects Warren Buffet’s famed investing advice to sell when others are buying and buy when they sell. In this case, when everyone else is selling their stocks, prices will dip. You can take that as an opportunity to buy those assets while they’re undervalued. As far as general investment advice goes, this… read more…
- Forex vs. Crypto: Key Differences
Foreign currency and cryptocurrency may sound like similar, even overlapping, asset classes to many investors. They could be forgiven for thinking that non-U.S. currencies and Bitcoin share the same rules and should occupy the same part of your financial planning. Nothing could be further from the truth. In reality, cryptocurrency and foreign currency share little more than… read more…
- Defensive Stocks: What They Are and Why They Matter
In uncertain economic times, many investors shift their portfolios to a defensive posture. These moves help to preserve capital and buy stocks that perform better in a recessionary environment. Understanding what defensive stocks are and what industries they fall into can help you make smarter investment decisions. You can also work with a financial advisor… read more…
- How Much of Your Savings Should You Invest?
Your savings are a pillar of your financial foundation. And as you build out your financial plan, you’ll likely wonder: How much of your savings should you invest? The answer will depend on your financial needs, goals and risk tolerance. Let’s… read more…
- How to Know When the Stock Market Bottoms Out
From global politics to the prospects of tech startups, many influences drive the stock market. So when investors grapple with market volatility, one question often emerges: Will the market rebound now or is it headed further downward? While there are… read more…
- How to Buy SpaceX Stock
Space Exploration Technologies Corp., commonly known as SpaceX, has rocketed to public prominence with an internal valuation of $350 billion. Investor interest is keen, but only a select few entities have been able to acquire direct ownership stakes in the Elon Musk-founded company. Despite that, there are ways to acquire an indirect ownership interest, at least… read more…
- Understanding Direct Indexing vs. ETFs
Investors interested in diversifying their portfolios can use direct indexing and ETFs to achieve that goal. While an ETF can be a simpler option, you can exercise more control over your portfolio with direct indexing solutions. Let’s compare the advantages and disadvantages of both for your portfolio. A financial advisor could help you pick the best… read more…
- What Is a Margin Call?
Buying on margin means investors borrow funds through their brokerage accounts to invest, with the goal being to earn more money through your investment. But sometimes, you may lose money when the investment drops in value. At that point, a margin call may enter the picture. If you are on the fence about a margin… read more…
- How to Buy CATL Stock
Investors who want to piggyback on the growth of popular companies should look at ancillary businesses that grow in parallel because of their relationship to the popular business. For investors who find Tesla (TSLA) appealing, an ancillary company to consider… read more…
- How to Find Cost Basis of Old Stock
Determining the cost basis of old stock can be challenging, especially if purchase records are missing. Investors can check brokerage statements, company investor relations pages, or IRS guidelines for reconstructing cost basis. If records are unavailable, the IRS allows the use of the first-in, first-out method or an average cost approach for mutual funds, ensuring… read more…
- Long-Term Investments vs. Short-Term Investments
Creating an investment portfolio requires clarity about your goals, risk tolerance, desired investments, and time horizon. Decide if you’re aiming for quick gains or long-term growth, as this will shape your mix of short- and long-term investments. Understanding their differences and trade-offs ensures your portfolio aligns with your objectives. For help setting up a portfolio… read more…
- How to Buy Hertz Global Holdings (HTZ) Stock
As more people start traveling after a two-year pandemic, many investors are looking at a revival in the car rental sector for new investment opportunities. One of the biggest companies in this sector is Hertz. Let’s break down how to buy stock in this car rental company and what to look out for before investing.… read more…
- How to Buy Uranium Stocks
Growing global interest in nuclear power as a carbon-free source of energy has led to increasing prices for uranium used as nuclear power plant fuel as well as the shares of companies that mine and process uranium. There is no commodities market for the radioactive mineral so investors who want to profit from uranium’s rise… read more…
- Public vs. Private Companies: Key Differences
Though similar in many respects, private and public companies differ in significant ways. Private companies only have to follow laws and statutes that apply to everyone else. Publicly traded companies, on the other hand, have to obey both generally applicable… read more…
- Institutional Investors vs. Retail Investors
Whether you’re a working parent focused on keeping up your 401(k) contributions or starting your first job out of college without giving much thought to retirement, you may not be aware of who trades on the market and how your small slice of securities fits in with the rest of the investing activity. The stock… read more…
- Ways to Survive a Market Downturn
Current market volatility has many investors wondering how to minimize losses and find new opportunities. But whether you’re worrying over your IRA or alternative investments, there are several strategies you can implement to survive a market downturn. So, to navigate the current market conditions with ease, here are some ways to keep calm and invest on. A financial advisor can… read more…
- What Is the Nominal Rate of Return?
The nominal rate of return shows the yield of an investment over time without accounting for negative elements such as inflation or taxes. By calculating the nominal rate of return, you can compare the performance of your assets easily, regardless of the inflation rate or differing spans of time for each investment. By obtaining a bird’s-eye view of… read more…
- Can a Public Company Go Private?
In recent months, the news has been full of speculation about Elon Musk potentially purchasing Twitter and making it a private company, leading some people to wonder exactly how that works. Firstly – yes, a publicly traded company can, in fact, become privately held again. While the application of this can be fairly complicated (as… read more…