But if I knew how to manage my portfolio safer and smarter than most hedge fund managers, I could realistically grow my wealth.
Falling oil prices to impact some countries more than others
Falling oil prices are broadly positive for oil importing countries. It will free up money in the pockets of consumers, giving them more purchasing power.
The economic growth projection for the US is much more positive than it is for struggling countries such as Japan.
When Bill Gross issues a statement predicting a market reversal, it commands attention, but prudent investors question everything.
We often talk about the risks of high inflation, but the risks of low inflation are often overlooked.
It’s beneficial to start investing early. The longer the period you invest, the higher the returns will be exponentially.
It’s been said the amount of equity you should hold in your portfolio is inversely proportional to your age. The proportion of equity is 100 minus your age.
Prepare your portfolio for the rate hike by investing in good-quality equities (SPY) (IVV) and low-debt companies. Avoid exposure to short-term Treasuries.
US financial markets were off to a stormy start in the year’s first full week of trading. The turmoil was not restricted to just US equities.
High yield bonds correlate highly with equities and moderately with investment grade corporate bonds. Hence, high yield bonds are not good diversifiers.
Stocks are still the best place to be in 2015. However, investors should exercise caution. Investors need to be selective when they plan their portfolios.
The divergence in central banks’ actions and global markets’ economic growth will likely lead to a stronger US dollar. The Fed is poised to hike rates in 2015.
If you believe that the stock market could fall, you would buy low beta stocks such as Walmart Stores (WMT) and Pfizer (PFE) to defend yourself.
In this kind of scenario, the following tips can help you prepare your portfolio for 2015.
Between Jan. 1 and the end of August, the average daily close on the VIX Index (a common measure of stock market volatility) was 13.5.
With a rising rate environment on the horizon, it would make sense to shift your focus to cyclical stocks and away from defensive sectors.
REITs are providing an average dividend yield of 3.5%, so investors are drawn to them. This is causing rich valuations and making REITs look overpriced.
A market rebound of more than 12% from the depths seen in October has left investor sentiment buoyant.
All funds are expected to pay their realized net capital gains every year in the form of capital gains distributions. Most funds prefer to pay at the end of the year.
Rebalancing your portfolio means bringing the portfolio back to the asset allocation levels specified in the financial plan. Not rebalancing can expose you to higher risk.
As the end of the year approaches, investors need to calm their fears about capital gains increasing their tax bills. They need to enjoy and celebrate gains accruing from the positive global financial markets.