- ETFs vs. Hedge Funds: Which Is Better?
If you are an ordinary investor, an ETF is often a good investment. In part this is because an ETF has a more stable risk profile than a hedge fund, but mostly it’s because an ETF is your only legal option. Hedge funds are limited to institutions and high-net-worth (or “accredited”) investors. If you are an… read more…
- What You Need to Know About Poison Pills
A poison pill is a defensive strategy used by companies seeking to fend off hostile takeovers. Also known as a shareholder rights plan, a poison pill aims to deter other companies or shareholders from acquiring a target firm by driving up the price of the potential acquisition or making it exceedingly difficult to complete. When… read more…
- What Is Foreign Direct Investment (FDI)?
Investment opportunities have expanded more and more, and globalization has enabled yet another avenue: foreign direct investment. This form of investment allows businesses to expand their operations by investing directly in foreign countries. In terms of incoming foreign investment, China and… read more…
- 5 High-Net-Worth Investing Strategies
High-net-worth investors are those with at least $1 million in investable assets. While hard-and-fast investing strategies like keeping tabs on asset allocation, holding a diversified set of assets, and focusing on long-term investments, apply to everyone there are some strategies that specifically benefit those who already have substantial money to work with. Here are five… read more…
- A Guide to Understanding ESG Ratings
Investors passionate about environmental, social, or governance concerns often use the ESG ratings to assess companies or equities worth investing in. The ESG rating tells investors the level of risk exposure a company has in these three areas. Therefore, issues such as energy efficiency and sustainability may have current and future financial implications that should… read more…
- What Is the Average Stock Holding Period?
There are a number of factors that can influence your decision to buy stocks and when you decide to sell them. Your average stock holding period can depend on your overall strategy. If you favor a buy-and-hold approach, then you may purchase stocks with the intent to keep them in your portfolio for decades until… read more…
- Ways to Invest $100k for the Short-Term
Whether you’re saving for a down payment, renovation or wedding, you might be looking for a place to park your cash until you need it. Short-term investments may not offer the same returns as long-term ones, but they reduce risk, grow modestly and stay accessible. So, if you have a lump sum of money ready to invest,… read more…
- Gold vs. Silver Investments: Which Is Better?
Commodities trading means you’re buying and selling raw materials rather than finished products (like a house) or financial assets (like stocks and bonds). Commodities are assets like corn, coffee, lumber and ore. One common form of commodities trading is investing… read more…
- What Is a Restricted Stock Unit (RSU)?
A restricted stock unit (RSU) is a form of common stock that a company promises to deliver to an employee at a future date, depending on various vesting and performance conditions. Restricted stock units are not received until these restrictions… read more…
- 5 Bear Market Investing Strategies
As an investor, you are used to seeing prices rise and fall regularly. But at times, you might encounter a prolonged drop in prices. It might be a bear market, which happens when the prices of key assets fall in… read more…
- What to Know About Automatic Rebalancing
A diversified portfolio enables investors to minimize risk while participating in multiple investment sectors. Over time, the performance of these different sectors causes your portfolio to be out of balance. Rebalancing brings your investment assets back to your intended allocation… read more…
- 10 Investment Styles: Which Works for You?
Choosing an investment style matters because those strategies, methods, and ideas will shape your portfolio. Of course, there are several different ways to approach investing depending on your risk tolerance and overall goals. By comparing some of the most popular options you can find your ideal style for growing wealth. A financial advisor can provide… read more…
- Why Is Diversification of Investments Important?
Investing money in the stock market is a proven way to grow wealth, but it’s not without risk. Diversification is a strategy that aims to manage risk while still allowing you to realize your desired rate of return. So why is diversification of investments important? Without it, you may be taking on too much –… read more…
- Conservative Investments
Conservative investments can be attractive for people who want to generate income or minimize their exposure to stock market volatility. An investor’s who getting closer to retirement, for example, may begin to shift their portfolio toward investments that have a… read more…
- What Is the Relationship Between Risk and Return?
Risk and return are, effectively, two sides of the same coin. In an efficient market, higher risks correlate with stronger potential returns. At the same time, lower returns correlate with safer (lower risk) investments. Together these concepts define how investors choose their assets in the marketplace, and they define how investors set asset prices. Let’s… read more…
- Shares Outstanding vs. Float: Key Differences
When companies issue stock they often split their shares up. Some shares, typically most of them, get offered to the general public. Others are restricted, which might be held by the company itself or have different rules about how investors can trade them. The difference is expressed as the company’s shares outstanding vs. its floating stock.… read more…
- Understanding How Liquid Alternatives Work
Creating a strong investment portfolio means diversifying investments to hedge against volatility and loss. One way to do that, especially for investors who are unable to access hedge funds, is with liquid alternatives. Here’s what you need to know about this type of security. A qualified financial advisor can help you decide whether liquid alternatives are a… read more…
- Altcoin vs. Stablecoin: Pros and Cons
An altcoin has one of two definitions. It is either any cryptocurrency that is not Bitcoin, or any cryptocurrency that is neither Bitcoin nor Ethereum. Regardless of which definition you pick, this term refers in general to all of the… read more…
- Understanding How Unit Trusts (UTs) Work
A unit trust is an investment that’s usually good for beginning investors. It’s similar to, but not the same as, a mutual fund. Unit trusts pass profits directly to investors instead of reinvesting them in the fund. A unit trust is not to be confused with a unit investment trust, although the two are very… read more…
- Money Market Funds: A Guide for Investors
Money market funds are mutual funds that invest in high-quality short-term debts from governments, banks and corporations. They are different from the money market accounts you open at a bank. Money market funds are actually mutual funds that are baskets… read more…
- What Is a Pure Play Company?
Pure play stocks represent publicly traded companies that focus on a single line of business. While other companies may diversify their business operations, pure play companies focus on selling a single product or service. So what does this mean when… read more…
- Here’s What You Need to Know About Goal-Based Investing
Many investors save as much as they can for as long as they can without a specific goal in mind. While this approach can build a solid nest egg, it lacks one of the most fundamental aspects of setting goals… read more…
- How to Stop Making This Common But Costly Investing Mistake
Is your mind playing tricks on you when it comes to investing? It’s no secret that everyone should be investing for the future. Even if you’re extremely risk-averse, investing your savings in stable investments like exchange-traded funds (ETFs) or bonds will likely yield significantly higher returns than stashing your money away in a bank account.… read more…
- What Does Diamond Hands Mean?
Diamond hands is a term that has been popularized by the cryptocurrency community. In a nutshell, it means holding on to an investment asset despite volatility and risks. Rather than running for a haven when an asset is taking a beating or appears poised to sustain serious damage, an investor with diamond hands battens down… read more…
- What the Breakeven Inflation Rate Tells Investors
Investing is about more than just saving enough money for retirement. It requires investors to think about inflation, especially when it comes to a retirement portfolio. Without factoring in the effects of inflation over the years to come, those savings might not be enough to last. The breakeven inflation rate is a predictive measurement that helps… read more…