How to invest in equity market

Major Moves The European and U.S. equity markets rebounded today in anticipation of future central bank dovishness. The Federal Open Market Committee (FOMC) has signaled that it is potentially looking to cut interest rates as early as this month, and the European Central Bank (ECB) announced at its monetary policy meeting today that it expects key ECB interest rates to remain at their present levels at least through the first half of 2020.” Traders are buying large-cap stocks in anticipation that low rates could both stimulate the economy and make it cheaper for large corporations to continue funding their share buyback programs with more debt. They are also anticipating that low rates and economic expansion could spur demand for crude oil . Crude oil can be a great indicator for anticipated economic strength. Oil prices tend to climb when traders expect the economy to get stronger, and they tend to fall when traders expect the economy to get weaker. Crude oil bounced … [Read more...] about Dovish ECB Joins the FOMC to Rally Markets

Share to Twitter Share to Linkedin Topline The stock market rebounded for a second day in a row on Thursday, on track to snap a seven-week losing streak, as recession fears cooled amid a slew of strong quarterly earnings reports that boosted investor sentiment. Key Facts Stocks moved higher as investors continued to assess the minutes from the Federal Reserve’s latest policy meeting: The Dow Jones Industrial Average rose 1.6%, over 500 points, while the S&P 500 gained 2% and the Nasdaq Composite 2.7%. Despite seven straight weeks of losses pushing the S&P 500 briefly into bear market territory last Friday, stocks are on track to post a strong rebound this week: The Dow and S&P 500 are up over 4% and the Nasdaq more than 3%. “Last week’s doom and gloom about the all-important U.S. consumer may have been overdone, along with the dire recession headlines,” says Quincy Krosby, chief equity strategist for LPL Financial, about the … [Read more...] about Dow Jumps 500 Points, Market Rebounds As Strong Earnings Alleviate ‘Dire Recession Headlines’

Share to Twitter Share to Linkedin 2022 has been a brutal year for investors. Presently, the S&P 500 is down over 16% Year-To-Date (YTD), the Dow is down 12% YTD, the NASDAQ is down an astounding 25% and the Russell 2000 small capitalization index is down 19%. The devastation has been widespread, with a high number of stocks down over 50%. Due to this, the Nasdaq Composite, S&P 500 Growth (SPYG) and Russell 2000 (All and Growth) segments of the market have confirmed their bear market status. The O’Neil methodology tends to use -25% from highs as the threshold for a bear market. Taking the commonly used -20% from highs, the S&P 500 and Russell 2000 Value have also reached the threshold. Only S&P 500 Value and Dow Industrials have not. In our January 28, 2022 Forbes article, we noted that after two consecutive failed Follow-Through Days (FTDs)*, triggered by an undercut of prior established lows, historically (using the S&P 500 since … [Read more...] about Bear Markets & Market Bottoms

Share to Twitter Share to Linkedin The lawn and garden market is projected to reach $26.3 billion by 2020, according to Allied Market Research. Gardening can lift your spirits and help make you feel peaceful and content. Yet, something good for you mentally isn't necessarily good for the environment. The non-organic chemicals in pesticides, herbicides, and fertilizers can be toxic to the environment . Through her capital and deal flow pipeline for early-stage female tech founders, Vinetta Project, Vanessa Dawson started working with consumer packaged goods (CPG) corporations like P&G. Because smaller CPG brands are often better able to address millennial and generation Z consumer demands, established companies are accelerating investment in emerging brands. Farmers and researchers have been developing sustainable ingredients in pesticides, herbicides, and fertilizers. Dawson saw using sustainable ingredients as an opportunity and launched … [Read more...] about How A Female Tech Founder Leveraged Her Skills In The Organic Biological Garden Market

Share to Twitter Share to Linkedin I remain a big fan of cash right now. I know, I know. I’m not supposed to say this in a stock -focused column like this. “But Brett,” I can hear the rebuttal. “We’ve been smartly selling the rips . My cash is burning a hole in my pocket.” “And I’m here for the income. Shouldn’t I buy something ?” Not yet. We contrarians shouldn’t be in a hurry to time the bottom of the market. There will be free and fast money on the other side of this bearish storm. Every correction eventually ends. For now, we buy lightly. And enjoy our comfortable seat. This is what I call the “no beta” portfolio. It’s a pile of cash that we deploy when we “back up the truck” at major market bottoms. In the spring of 2020 , we went on a dividend shopping spree. We bought stocks like energy toll bridge ONE ONE ONEO NEO OK (OKE) for a song—and we’re now sitting on 148% gains. Later that year, we identified … [Read more...] about The Best Dividend Stocks, Bull Or Bear

Major Moves After President Trump postponed the tariffs that U.S. importers would have had to pay on $200 billion of Chinese goods beginning on March 2, the S&P 500 hit a new short-term high today. However, a new tariff deadline or a schedule for meetings with Chinese President Xi were not provided by President Trump via his Twitter feed. The initial rally in U.S. equities faded through the rest of the day as interest rate-sensitive sectors like utilities and real estate declined. However, Chinese stock indexes continued to have the best day since 2015 following the trade news. As you can see in the following chart, the Shanghai Composite Index reached its full price projection based on the depth of the double bottom pattern formed in January. S&P 500 The worst performing sectors and stocks in the S&P 500 included just about anything paying a larger than average dividend yield like consumer staples, utilities and real estate investment trusts (REITs). … [Read more...] about Trade Rally Fades on Rising Uncertainty

Oil prices have been steadily pulling back from six-month highs as trade worries intensify, with the U.S. threat to raise tariffs against Chinese goods appearing likely to become reality tonight. Both sides have been hardening their stance, and if we see an all-out tariff war, oil could slide lower along with a global rout in equities and commodity currencies. The trade spat is raising global growth concerns, which could put a dent in the demand side of the argument for higher oil prices. If talks do not completely fall apart, we could see oil markets quickly focus on the geopolitical risks from Iran, Russia, Venezuela and Libya. Iran The escalation in the rift between the U.S. and Iran is showing no signs of slowing down. The ending of U.S. sanction waivers at the beginning of the month is adding further pressure to an already weak Iranian economy . A year ago, President Trump decided to pull the U.S. from the landmark nuclear deal reached under President Obama. The U.S. … [Read more...] about Oil’s Geopolitical Risks to Outweigh Trade Concerns

Share to Twitter Share to Linkedin There seems to be a lot of confusion about whether annuities are good or bad. Some of it stems from viewing the product as complex and too time-consuming to study and understand. But I don’t see annuities being any more complicated than other financial products. For example, one type of annuity is simply like a pension, and there’s almost no one who thinks a pension is bad. Annuities are a type of insurance product. By purchasing one, you’re transferring risk to the insurance company just as you do with home, auto, or life insurance coverage. With annuity products, the insurer is assuming some, if not all, of the longevity or market risk and charging a fee doing so. Risk mitigation is common to all types of annuity products, yet they differ markedly in other ways. Variable Annuities When people talk about contract complexity and high fees, they’re usually referring to variable annuities. I find these products are … [Read more...] about Do Annuities Make Sense For Anyone?

While we have talked about the general froth in the initial public offering (IPO) market, it is time to focus on one of the major drivers – special-purpose acquisition companies (SPACs). SPAC IPOs accounted for over half of all IPOs in 2020   and are already set to make up a majority in quarter one of 2021. This is a cause for worry in the market and, more importantly, for investors who may get caught bearing the real costs of a SPAC. We'll look at the why and how of SPACs, as well as why the odds seem tilted against individual investors realizing a good return. Key Takeaways The IPO market has been frothy of late, with tech offerings seeing huge jumps in first-day trading. Within this IPO market, SPACs are making up a larger share of new offerings. This means that more and more money is hitting the market with a plan to find something to buy. SPACs give creators and sponsors structural advantages that later investors don't have, making the decision for retail … [Read more...] about SPACs Look Like a Bubble Within a Bubble

Share to Twitter Share to Linkedin With inflation on the loose, we’ve turned to experts for four strategies to help you beat rising prices, at least in your portfolio. As it turns out, you don’t need to abandon stocks to hedge against inflation entirely. Instead, you can just shift some funds from the sectors you hold now over to the ones that are likely to benefit from an inflationary environment. 1. Stocks in Companies Providing Basic Supplies One area to shelter your portfolio from inflation is in companies providing basic supplies. They’re always in demand, which makes it possible for suppliers to raise prices in step with inflation. “Inflation is at near-term historic highs and investors are looking for the best ways to protect from it,” notes Sankar Sharma, Investing Authority and the Founder of RiskRewardReturn.com . “Where there is a problem there is a solution. Investors can invest in the consumer staples, energy, utilities, … [Read more...] about 4 Expert Inflation Protection Strategies To Implement Now