The broad-based S&P 500 (SNPINDEX: ^GSPC) has been on an absolute tear in recent years. Over the trailing five-year period, through March 10, 2018, the S&P 500 was up 79%. Mind you, the stock market historically averages a return of 7% per year, inclusive of dividend reinvestment and when adjusted for inflation. Over the past five years, it's practically doubled its historic average return.Can any other asset classes top the stock market's returns over the next decade?Yet investors are often left to wonder if they're truly taking the smartest investment path forward. In other words, is investing in a broad basket of stocks via the S&P 500 the best way to put your money to work over say the next 10 years, or are other assets, such as bitcoin, marijuana stocks, or gold, a considerably smarter play over the next decade?Truth be told, all four investment classes -- bitcoin, marijuana stocks, gold, and the S&P 500 -- offer pros and cons. Let's have a look at what each asset … [Read more...] about Bitcoin vs. Marijuana Stocks vs. Gold: Can Any Beat the Market?
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Every day, Wall Street analysts upgrade some stocks, downgrade others, and "initiate coverage" on a few more. But do these analysts even know what they're talking about? Today, we're taking one high-profile Wall Street pick and putting it under the microscope... Verizon (NYSE: VZ) stock is in free fall -- down 12% in 28 days after 10-year U.S. Treasury bonds spiked to nearly 2.8% earlier this month. (They're at 2.85% today, by the way.) How are those two facts connected? More closely than you might think. In a note carried on StreetInsider.com (requires subscription) this morning, "boutique" research shop MoffettNathanson argued that rising "bond yields and higher expectations for inflation" are directly responsible for Verizon's sell-off this month -- but they're also directly responsible for giving you a chance to buy Verizon stock on the cheap. Here's what you need to know. Investors hung up on Verizon stock in February. Was that the wrong call? Image source: Getty Images. … [Read more...] about Verizon Stock Upgraded: What You Need to Know
NEW YORK (AP) — Treasury yields rose Tuesday, and U.S. stock indexes fell after the head of the Federal Reserve said that he's feeling more optimistic about the economy. The testimony by Fed Chairman Jerome Powell before Congress was highly anticipated, and investors dissected his every word for indications that the central bank will get more aggressive about raising interest rates in the face of a growing economy and potentially higher inflation. KEEPING SCORE: The Standard & Poor's 500 was down 16 points, or 0.6 percent, at 2,763, as of 1:50 p.m. Eastern time. It is coming off a three-day winning streak and is now down 3.8 percent from its record high, which was set last month. The index had been down as much as 10 percent earlier this month. The Dow Jones industrial average fell 97, or 0.4 percent, to 25,617, and the Nasdaq composite dropped 45, or 0.6 percent, to 7,376. FED SPEAK: Powell made his first public comments as head of the Federal Reserve, and he … [Read more...] about Treasury yields rise, stocks dip following Fed testimony
OK, those of us in our 60s know this already, but I'm going to say it anyway: We are not old. "Old" people are 10 or more years older than us, a perspective we've probably held for a long time -- say, since our first rock concert in the 1960s. I'm not just being whimsical about this; I have data. The Pew Research Center conducted a study of aging and found that the definition of old age depends on who you ask. People between 18 to 29 think that the average person becomes old at age 60. Those of middle age believe the threshold is closer to 70, and people 65 and older -- the ones who ought to know, I might add -- say on the average that old age starts at 74. Well, I admit that how we feel about aging might not matter much in investing, but what does matter is longevity. A woman turning 65 in the U.S. today can expect to live, on average, to 86.6. A man can expect to live to 84.3. And perhaps even more important is the fact that 1 out of every 4 65-year-old Americans will live to 90 … [Read more...] about In Your 60s? 3 Stocks You Should Consider Buying
A potentially embarrassing math calculation employers have long hoped to escape - one that pay experts thought was dead following President Donald Trump's election - can no longer be avoided. In recent weeks, a few public companies have begun disclosing a ratio, required for the first time this year, that compares the pay of their chief executive to the pay of their median employee. At industrial giant Honeywell, the largest company yet to disclose, the ratio was 333 to 1. At Teva Pharmaceuticals, the Israel-based generic pharmaceutical company, it's 302 to 1. And at the regional bank Umpqua Holdings, it's about 55 to 1. As of Wednesday morning, companies had disclosed the figure for only about 20 CEOs, according to the research firm Proxy Insights. But with Corporate America's annual meeting season getting under way - the majority of public companies release their annual reports and proxy voting documents in the coming months - investors, the public and employees are about to get a … [Read more...] about As companies reveal gigantic CEO-to-worker pay ratios, some worry how low-paid workers might take the news
There’s nothing like some furious stock market swings to tease average investors with thoughts of “How do I make money on this?” Sounds tempting, but most professional investors will warn you not to try this at home. Following are several basics to consider about this current volatility. People are calling the recent stock market volatility a correction. What is a correction? • A correction is generally considered a 10 percent or more decline from the highest price of a group of stocks such as the Dow Jones industrial average or even an individual stock such as Apple. A decline of 20 percent or more from a high is considered a bear market. Corrections signal that the equity, or stock, was overvalued. So the market is “correcting” the price to reflect a more accurate value, also referred to as fair value. However, a correction doesn’t necessarily bring a stock or bond’s price to fair value. Value is in the eye of the beholder. Should I … [Read more...] about The stock market is going bonkers. Here’s what investors should know.
The stock market is on a remarkable run, which has been great news for long-term investors that have had their skin in the game for the past eight years. But for investors putting new money in today things appear to be a bit dicey. The market is expensive, and no one wants to see their investment immediately plunge on the back of a market correction. While truly Foolish investors needn't worry about trying to time the market, investing in solid, dividend-paying stocks is a great way to keep your emotions -- and portfolio -- in check. Today's competitors -- Procter & Gamble (NYSE: PG) and Unilever (NYSE: UN) -- are two such companies. Image source: Getty Images While we can never know with 100% certainty which stock will outperform over the long-run, we can get a better idea of what we're paying for by evaluating them through three different lenses. Sustainable competitive advantage If you're a long-term, buy-to-hold investor -- and we think you should be -- there's … [Read more...] about Better Stock: Procter & Gamble Co (PG) vs. Unilever NV (UN)
Home Depot (NYSE: HD) has been one of the best-performing retail stocks since the recession. While much of the sector has struggled with the rise of e-commerce and a decline in store traffic, shares of the home-improvement retailer have surged over 650% over the last decade. The company has benefited from operating in a retail segment that's protected from e-commerce disruption, a strong housing recovery, and smart strategic decisions like resisting adding stores. Let's take a look at why Home Depot's strong performance should continue into 2018. Image source: Home Depot. A booming housing market As the nation's leading home-improvement retailer, Home Depot's fortunes are tied more closely to the domestic housing market than anything else. As the economy continues to grow, so does the housing market. Home prices have now topped previous records set during the bubble in 2006,l and sales of existing homes were at their highest at the end of last year since 2006. The National … [Read more...] about Time to Get Greedy With Home Depot Stock
SAN FRANCISCO • Apple Inc. will open a new campus as part of a 5-year, $30 billion U.S. investment plan and will make about $38 billion in one-time tax payments on its overseas cash, one of the largest corporate spending plans announced since the passage of a tax cut signed by President Donald Trump. The company has been under increasing pressure to make U.S. investments since the 2016 presidential campaign, when Trump targeted the iPhone maker for making products in Asian factories. Though Apple has announced no plans to change that practice and experts say it would be economically impractical to make iPhones in the United States, the company has begun to emphasize its U.S. economic impact, from developers who sell software on its App Store to the tens of billions of dollars per year it spends with U.S. suppliers. Between the spending plan, hiring 20,000 people, tax payments and business with U.S. based suppliers, Apple estimated Wednesday that it would spend $350 billion in the … [Read more...] about Apple plans new U.S. campus, to pay $38 billion in foreign cash taxes
As a Foolish investor, you know why diversification is important for your portfolio. One of the best ways to diversify is to buy stocks in international markets that are growing rapidly. Or, simply, buy Indian stocks. There's a reason Amazon.com (NASDAQ: AMZN) is pumping billions of dollars into India and even believes this could just be the beginning. Recently, CEO Jeff Bezos claimed that Amazon.in is the "most visited and fastest-growing marketplace in India." In 2017 alone, Amazon India's seller base grew a whopping 80%, according to the Press Trust of India. An Economic Affairs Officer at the United Nations believes that India has the potential to grow at 8% "not for a few years, but 20 years." Officially, the United Nations projects the Indian economy to grow at 7.2% and 7.4% in 2018 and 2019, respectively. At that rate, India will overtake China to become the fastest-growing economy in the world, yet again. India held the crown until demonetization (a sudden pullout of 80% of … [Read more...] about 3 Top Indian Stocks to Buy to Profit From the World’s Fastest-Growing Economy