More From BlackRock
Why You Should Consider Buying Indian Stocks
Cheaper oil prices have helped improve India’s current account balance while also bringing down inflation from double digits in 2013 to ~5.5%.
Could Mexican Stocks Surge?
The Mexican (EWW) economy has been growing at a solid rate of 2.6%.
Should Minimum Volatility Be Part of Your Core Holdings?
The minimum volatility strategy has worked very well in the last ten years. It also tends to be a less risky strategy.
What Happens to Minimum Volatility Funds When Volatility Spikes?
The potential for a downside protection and upside participation is how minimum volatility strategies have delivered strong risk-adjusted returns over the long term.
Company & Industry Overviews
How the Brexit Vote Affected the Markets
Investors are worried about the ultimate consequences of a Brexit and whether volatility will stay high. In this series, we’ll see how you can protect your capital without compromising on returns.
Company & Industry Overviews
Why Has Market Volatility Increased Sharply in Recent Months?
In this series, we’ll see how investors can best seek to reduce volatility and capture opportunities by following diversification and selectivity as a long-term strategy.
Why Do Biotech Stocks Look Attractive?
Today, biotech is one of the hottest investment areas. It’s driven by the demand for effective treatments and new cures. Stocks had strong growth in recent years.
Looking for Dividends? Stay Away from the Utilities and REITs
What makes the utilities unattractive is the fact that interest rates will likely be rising soon. The utilities require a huge amount of infrastructure.
Latin America Is at a Crossroads
Latin America is at a crossroads. While some economies are faring reasonably well, others are struggling to recover from slower growth since 2013.
Does Latin America’s Weak Infrastructure Present an Opportunity?
Latin America’s underdeveloped infrastructure places it at a disadvantage compared to other emerging markets. Brazil is ranked 104th in a World Economic Forum report.
Investing in Education to Reduce Poverty in Latin America
In an effort to reduce inequality and poverty in Latin America, governments there have increased education spending many times over in the last decade or so.
The Implications of Depreciating Latin American Currencies
Latin American currencies have depreciated against the dollar since 2014. The Argentine peso is one of the most beaten up currencies in the region, having lost 27% in this period.
Equities: The Best-Performing Asset Class In The Long Run
Equities are the best-performing asset class over the long run. The CAGR for equities over the last 20 years, not considering the dividends, is 13%.
Increased Life Expectancy Means A Longer Investment Horizon
Increased life expectancy means a longer investment horizon. With life expectancy increasing, young investors should invest in equities aggressively.
Why Millennials Hold More Cash Than Older Generations
Millennials hold more cash than older investors. Typically, younger investors can invest a higher proportion in equity—given their age and long horizon.
The Importance of Rebalancing Your Portfolio
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.
Company & Industry Overviews
Basics About The Capital Gains Tax
The rates for capital gains tax depend on the asset’s holding period. If the holding period is less than one year, short-term capital gains tax is payable.
Why ETFs are the best vehicle for your beta exposure
We believe the best vehicle for your beta exposure — the most efficient, tradable and affordable vehicle — is an exchange-traded fund.
Why a Fed rate icrease still doesn’t mean higher yields
Indeed, there are already signs of that increase as central banks back off from so-called quantitative easing. However, the rise in rates is likely to happen more slowly than past rate normalization processes.
Impending increase in interest rates to affect bonds negatively
Historically lower interest rates. In our opinion it’s inevitable that interest rates are going to rise, and have a potentially negative effect on bonds.
Japanese large caps versus Japanese small caps: An overview
Many large-cap stocks are exporters, and can benefit from a weaker yen. Look for funds that provide broad and diversified exposure to well-established Japanese large- and mid-cap companies.
Must-know: Why is it important to hedge your Japanese position?
We are presently overweight Japanese equities, as their valuations are attractive relative to U.S. stocks. If you’re looking for exposure to Japan, there are several ways to get it.
The Bank of Japan and a weaker yen could lead to recovery in Japan
The nation’s central bank seems committed to its goal of reaching 2% inflation, aiming to continue its monetary easing plan for the next two years or so.
Why wage growth and the private sector are the keys for Japan
As noted in Rising Sun, Setting Sun, a special report from the BlackRock Investment Institute, there are several key events and processes that can help Japan to escape economic stagnation.
Must-know: Points to remember about currency hedging
The effects of currency fluctuations are more relevant today than ever before.
Must-know: Benefits of hedged currency investment
When the U.S. dollar appreciates, gains on international equity investments can diminish when converted back into U.S. dollars.
Overview: 3 things to know about currency hedging
Your total return depends on both equity and currency returns, which are sensitive to economic, political, and market events, and fluctuate over time.