Cash-rich Tech Sector Will Likely Benefit Going Forward
Two strong factors tilt the scales in favor of tech stocks—their low sensitivity to a hike in rates and their cash-rich nature.
When to invest? We think US tech valuations look reasonable now. You can also look to market pullbacks for other attractive entry points.
The US tech sector looks to be fundamentally strong. The strong earnings report provided momentum for the sector. It outperformed the broader market.
Cyclical momentum favors the tech sector. Economic growth favors cyclical stocks like technology. The tech sector invests in a lot of R&D.
The US stock market had a phenomenal six-year bull run. The S&P 500 almost tripled since March 2009. It achieved another record high of 2,115.5 on February 24, 2015.
Mitigate mistakes made due to behavioral biases by thinking long-term and using ETFs as a tool to diversify your portfolio.
The disposition effect is risky in the long term. This behavior is especially prevalent among risk-averse investors.
Diversify to reduce risks. Your risk can never be zero, as there are some systematic risks that you can can never diversify away.
The number of Americans investing in stocks (SPY)(IVV) is decreasing. Conservatism toward stocks has caused a dip in stock ownership.
Do you avoid the stock market? Shun diversification? Trade inefficiently? We examine three common bad behaviors among investors and provide tips.
A stronger dollar is ultimately positive for US purchasing power and inflation, but in the near term, it would act as a further headwind for US exports.
With the stock markets being so richly valued, the question is where can you find opportunities in US equity markets.
Increased mergers and acquisitions activity in the past couple of weeks has supported US equity markets (SPY).
Europe continues to be a headwind for US equities, as it has been suffering from recessionary and deflationary trends in the past year.
Investors would be advised to beware of bond market proxies and shift to cyclical sectors.
Increased life expectancy means a longer investment horizon. With life expectancy increasing, young investors should invest in equities aggressively.
Despite the difficulty of market timing, you are bound to get positive results if you stick around long enough.
Gold needs to be in your portfolio. You should hold gold—at least in a small amount. By diversifying, you improve your risk-adjusted returns.
If I were a fly on the wall at the FOMC meeting, I may have observed some concern for two important components that the Fed isn’t really talking about.
ECB’s QE is definitely not the panacea for all European ills, but it could bring some relief to the ailing economy.
But if I knew how to manage my portfolio safer and smarter than most hedge fund managers, I could realistically grow my wealth.