The stock market continues notching new all-time highs. Sentiment is running hot amid the Federal Reserve’s new interest rate cutting campaign. In theory, lower interest rates could help boost demand for credit and give a major boost to sectors like housing and automobiles. Also, there is the perception that valuation ratios for stocks should expand as the cost of capital…
With three months left in 2024, U.S. health care stocks are out of sick bay and up 12.3% on a year-to-date basis, as measured by the S&P 500 Health Care Index. While health care stocks continue to move in the right direction, consistently trailing the main S&P equities index is not what sector investors had in mind. Yet the industry…
Contrary to popular belief, achieving diversification in investing goes beyond simply not “putting all your eggs in one basket.” Owning shares in multiple companies doesn’t necessarily mean an investor’s portfolio is diversified. For real diversification, a broader approach is essential – one that spans various asset classes including bonds, cash, commodities, precious metals and even alternative investments. Basically, a diversified portfolio can be…
In the past 90 years, dividends have accounted for about 40% of the total stock market return. The combination of a rising stock price and a regular dividend can work wonders for long-term returns. Dividends from high-quality stocks can also be a reliable source of income during economic downturns. Fortunately, there are plenty of dividend stocks out there that don’t…
On Sept. 12, the European Central Bank announced that, for the second time in three months, it was cutting its key interest rate. While the move was not altogether unexpected, it did reinforce the belief that the U.S. Federal Reserve would soon embark on a similar program of rate cuts. World financial markets now widely expect the Fed to announce…
The artificial intelligence (AI) industry continues to heat up, with OpenAI – creator of ChatGPT – squarely at the center once again. After earning $13 billion in backing from Microsoft Corp. (ticker: MSFT) since 2019, other notable tech giants are now eyeing their own investments in the AI firm. Notably, according to the Wall Street Journal, Apple Inc. (AAPL) and Nvidia…
Generating passive income can help investors cover everyday expenses and achieve their retirement goals. Accumulating assets like stocks and real estate can lead to gains, but some funds aim to reward investors with steady cash distributions. These funds have relatively high yields and can be a reliable source of income. Income funds tend to be less volatile than funds that focus…
Federal Reserve Chairman Jerome Powell did Friday what everyone expected, acknowledging in a speech in Jackson Hole, Wyoming, that the time to cut interest rates from their two-decade high is now. “The time has come for policy to adjust,” Powell said. “The direction of travel is clear, and the timing and pace of rate cuts will depend on incoming data,…
Artificial intelligence has grabbed headlines recently, but a different sort of sector of the U.S. economy is in full growth mode: franchising. Perhaps unsurprisingly, investors are turning to franchising as a stock market alternative. Franchise investors are attracted to brand-name businesses with a proven business model, which allows them to stack cash more quickly. Whether you become an actual owner…
After a long slump, renewable energy stocks have begun to stage a comeback as inflation is starting to ease and interest rates are poised for a Federal Reserve cut in September. It’s important to look at the big picture when considering renewable energy stocks. Undeniably, the renewable energy sector has vast potential, and it’s expected to keep growing. Overall, solar and wind power generation…