stock market http://www.wisebread.com/taxonomy/term/1549/all en-US Are You Choosing the Right Fund for Your Portfolio? http://www.wisebread.com/are-you-choosing-the-right-fund-for-your-portfolio <div class="field field-type-filefield field-field-blog-image"> <div class="field-items"> <div class="field-item odd"> <a href="/are-you-choosing-the-right-fund-for-your-portfolio" class="imagecache imagecache-250w imagecache-linked imagecache-250w_linked"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/imagecache/250w/blog-images/man_reading_newspaper_75921495.jpg" alt="Learning if mutual funds are better than ETFs" title="" class="imagecache imagecache-250w" width="250" height="140" /></a> </div> </div> </div> <p>With a market of over $30 trillion, mutual funds are some of the most popular investments. But the $3 trillion ETF (<a href="http://www.wisebread.com/the-10-weirdest-etfs-you-can-buy" target="_blank">Exchange Traded Fund</a>) market is catching up quickly. So, what <em>are </em>ETFs? How do they differ from mutual funds? And are they right for you? Here's what you need to know:</p> <h2>Mutual Funds 101</h2> <p>When you invest in an individual stock, the success of your investment is completely dependent upon the success of that one company. But when you invest in a mutual fund, your money is diversified. It's pooled with many other investors' money and then invested in many companies, based on the design of the fund or the decisions of the fund manager.</p> <p>It's the same with bonds and bond funds, or real estate and real estate funds.</p> <p>Think of an exchange-traded fund as a close cousin of a mutual fund. It, too, manages a pool of money from many investors, spreading it among many investments. But there are some very important differences between ETFs and mutual funds.</p> <h3>ETFs Are Priced Throughout the Day</h3> <p>When you enter an order to purchase a mutual fund, the order will fill at the end of the day, after the value of all of its underlying assets are tallied.</p> <p>ETFs, on the other hand, can be bought and sold throughout the day like stocks. When you enter an order to purchase an ETF, your order will typically be filled very soon after entering the order at a price very close to the price you saw when you placed the order.</p> <p>That's one of the main reasons why ETFs were created. On October 19, 1987, a day now known as &quot;Black Monday,&quot; the U.S. stock market fell by nearly 23%. Mutual fund investors who wanted to sell their shares couldn't until all the damage had been done. Three years later, the first ETF was launched, giving investors all of the diversifying benefits of a mutual fund but the flexibility to buy or sell throughout the trading day.</p> <h3>ETFs Have Lower Expenses</h3> <p>Exchange-traded funds tend to have lower operating expenses than mutual funds, and that lower cost structure is passed along to investors in the form of lower expense ratios. For example, Vanguard's S&amp;P 500 index <em>mutual fund</em> (ticker symbol VFINX) has an expense ratio of .16%. If you invest $1,000 in the fund, $1.60 will go toward fund expenses. That's already very low. However, if you invest in Vanguard's S&amp;P 500 <em>exchange-traded fund</em> (ticker symbol VOO), you'll pay an even lower expense ratio of .05% &mdash; or 50 cents per $1,000 invested.</p> <h3>ETFs Have Lower Minimums</h3> <p>Many mutual funds have minimum initial investment amount requirements. Common amounts range from $250 to $3,000, but some funds require as much as $10,000.</p> <p>With ETFs, the minimum investment amount required is the cost of one share. If you wanted to invest in Vanguard's VFINX mutual fund, you'd need to come up with at least $3,000 for your initial investment. However, getting started with what, in essence, is the ETF version of the same fund, VOO, would cost only about $190 &mdash; the price of one share when this article was written.</p> <h2>Which Is Better?</h2> <p>There are three main factors that can help you decide whether to go with a mutual fund or an exchange-traded fund.</p> <h3>Availability</h3> <p>You may not have a choice. Some 401K plans don't yet include ETFs in the investment options they make available to participants. If that's true with your workplace plan, you'll have to go with one or more of the available mutual funds.</p> <h3>Strategy</h3> <p>While the ETF universe is growing rapidly, there are still many more mutual funds. So, it could be that the investment strategy you're following calls for the use of a particular mutual fund and there are no suitable ETF substitutes.</p> <h3>Cost</h3> <p>If you're following an investment strategy that calls for the use of a particular fund that's available as a mutual fund or an ETF, check on each one's expense ratio. It's very likely that the ETF will cost less, making it the better choice.</p> <h2>One Last Consideration</h2> <p>Some critics say ETFs can get investors in trouble by encouraging more trading. They argue that because the funds can be bought and sold throughout the day, they'll tempt otherwise conservative investors to take undue risk and turn them into roll-the-dice day-traders.</p> <p>But that's like arguing that because <em>some </em>people get into car accidents, <em>no one </em>should be allowed to drive. If you follow the rules of the road for wise investing &mdash; if you're a long-term investor, not a short-term trader &mdash; ETFs can be a very efficient, cost-effective investment vehicle.</p> <p><em>So, which is it for you? Mutual fund or ETF?</em></p> <br /><div id="custom_wisebread_footer"><div id="rss_tagline">This article is from <a href="http://www.wisebread.com/matt-bell">Matt Bell</a> of <a href="http://www.wisebread.com/are-you-choosing-the-right-fund-for-your-portfolio">Wise Bread</a>, an award-winning personal finance and <a href="http://www.wisebread.com/credit-cards">credit card comparison</a> website. Read more great articles from Wise Bread:</div><div class="view view-similarterms view-id-similarterms view-display-id-block_2 view-dom-id-2"> <div class="view-content"> <div class="item-list"> <ul> <li class="views-row views-row-1 views-row-odd views-row-first"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/the-10-weirdest-etfs-you-can-buy">The 10 Weirdest ETFs You Can Buy</a></span> </div> </li> <li class="views-row views-row-2 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/8-ways-etfs-can-put-more-money-in-your-pocket-than-mutual-funds">8 Ways ETFs Can Put More Money in Your Pocket Than Mutual Funds</a></span> </div> </li> <li class="views-row views-row-3 views-row-odd"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/how-to-build-an-investment-portfolio-for-under-5000">How to Build an Investment Portfolio for Under $5000</a></span> </div> </li> <li class="views-row views-row-4 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/8-things-everyone-should-know-about-the-commodities-markets">8 Things Everyone Should Know About the Commodities Markets</a></span> </div> </li> <li class="views-row views-row-5 views-row-odd views-row-last"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/11-investment-mistakes-we-all-make">11 Investment Mistakes We All Make</a></span> </div> </li> </ul> </div> </div> </div> </div><br/></br> Investment bonds commodities comparisons ETFs exchange traded funds mutual funds portfolio stock market Wed, 27 Jul 2016 09:30:36 +0000 Matt Bell 1757851 at http://www.wisebread.com 7 Money Moves to Make as Soon as You Conquer Debt http://www.wisebread.com/7-money-moves-to-make-as-soon-as-you-conquer-debt <div class="field field-type-filefield field-field-blog-image"> <div class="field-items"> <div class="field-item odd"> <a href="/7-money-moves-to-make-as-soon-as-you-conquer-debt" class="imagecache imagecache-250w imagecache-linked imagecache-250w_linked"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/imagecache/250w/blog-images/woman_happy_sunset_79384959.jpg" alt="Woman making moves after conquering debt" title="" class="imagecache imagecache-250w" width="250" height="140" /></a> </div> </div> </div> <p>Congratulations &mdash; you're debt free! Now what?</p> <p>The road to debt elimination was long and treacherous, but just because the black cloud of lingering bills is no longer hanging over your head, that doesn't mean your financial house is in order. It's in better shape, sure, but you've still got a ways to go. To continue working toward that goal, here are a few smart moves you should make as soon as you get out of the red:</p> <h2>1. Rearrange and Trim Your Budget</h2> <p>Your top priority when getting out of debt is to not get back into debt. To accomplish that, you'll need to make changes to your spending and savings habits. You'll also need to revisit your budget and rearrange your priorities. Now that you don't have credit card or loan payments bleeding you dry every month, you'll have more disposable income &mdash; and you need to decide what you'll do with it to improve your quality of life and set yourself up for the future. Cut out anything that's unnecessary: Maybe it's the cable that you don't watch much of, the gym membership you don't use, or subscriptions to services you can live without. Whatever is it, cut the fat and don't look back.</p> <h2>2. Get Back to Building Your Emergency Fund</h2> <p>If you've been digging yourself out of a negative-money pit, chances are you don't have much of an emergency fund &mdash; and that needs to change ASAP. Building an emergency fund is the best way to avoid a potential debt scenario in the future. You'll be able to draw from that account to pay off life's little surprises in full, so you're not constantly treading water every time something unexpected happens.</p> <p>&quot;I recommend having an emergency fund saved up equal to six months' worth of expenses,&quot; says financial planner Russell Robertson of Alidade Wealth Partners in Atlanta, GA. &quot;This will give you time to get back on your feet if something unforeseen happens without completely disrupting everything in your life.&quot;</p> <h2>3. Check in on Your Credit Situation</h2> <p>Brace yourself. If you've been battling debt for an extended period of time &mdash; especially if you've only being sending in minimum payments &mdash; your credit situation is likely less than ideal. The good news, however, is that you're in the clear now (debt-wise, anyway), and this is the best time to <a href="http://www.wisebread.com/what-does-your-credit-score-mean-good-bad-or-excellent?ref=internal">start rebuilding your credit</a>.</p> <p>Having a solid credit score puts you in a strong position when you need to finance a purchase, like a house or car, or apply for a new line of credit. It's always a good idea to know where you stand with credit and take steps to improve it.</p> <h2>4. Max Out Your Matching-Dollar Opportunities for Retirement</h2> <p>Like your emergency fund, contributions to your 401K and IRA were probably low (or perhaps even nonexistent) while you concentrated on paying down your debt. With more funds freed up now, it's important to start concentrating on your future &mdash; especially your retirement goals &mdash; and that includes maxing out dollar-matching opportunities to take full advantage of free money.</p> <p>&quot;401K plans in 2016 have a contribution limit of $18,000 a year, plus an extra $6,000 for people over 50, so with no debt to pay, you might have the opportunity to reach that limit now,&quot; says financial planner and investment adviser Jaycob Arbogast of Arbogast Advisers. &quot;Similarly, an IRA has a $5,500 limit for people under 50 and a $6,500 limit for people 50-plus, so maxing out those plans might be a good idea too. For example, with a 6% return, adding an extra $5,000 each year to your retirement savings from age 50 to 60 could add an additional $65,000 to your retirement savings. That's a great boost that someone in debt might not be able to maintain.&quot;</p> <h2>5. Start Investing With Long-Term Returns in Mind</h2> <p>Personally, I recommend investing in real estate, but what you invest in is up to you, so long as you're investing. Outside of your emergency fund, your money should never sit in a savings account earning fractions of pennies. Instead, you'll be better off putting that money in places that promise bigger returns over the long term, so you can meet your savings goals sooner and continue making more investments for (hopefully) a more prosperous life.</p> <p>Alternatively, Robertson recommends the stock market.</p> <p>&quot;If your budget still has room for more saving, put that money to work by investing in the markets,&quot; he advises. &quot;Exchange-traded funds (ETFs) are a great way to get diversified, low-cost exposure, and many online brokerages will offer commission-free ETF options as well.&quot;</p> <h2>6. Put Money Back Into the Investments You Already Have &mdash; Like Your Home</h2> <p>For many people, their homes are their biggest investments. To ensure that investment pays off the way you want and need it to, you have to maintain it. Thus, when you've paid off your debt, start thinking about home improvement projects that will increase value. Just be careful that you're not taking on projects that cost more than the house is worth. The last thing you need is to dump your savings into your home if the project doesn't enhance the house enough to make it worthwhile in the long run.</p> <h2>7. Open a Money Market Account for Higher Interest on Savings</h2> <p>If you have a substantial amount of savings in your emergency fund &mdash; and you should &mdash; that money shouldn't be in a traditional savings account. Contact your bank, or research others, to find savings accounts that offer the best interest rates, like money market accounts or high yield savings. Bottom line, there's absolutely no reason you shouldn't be getting the most bank for your buck, especially where savings are concerned.</p> <p>Robertson agrees, and in this particular case, rescinds his recommendation to invest in stocks.</p> <p>&quot;If there is something specific you are saving up for &mdash; a celebratory trip to Europe? A wedding? &mdash; within the next two to three years, I would recommend keeping that money out of the stock market,&quot; he says. &quot;Instead, consider a money market account or CD from an online bank. In many cases you can get close to 1% interest right now on cash that is still guaranteed up to FDIC limits (currently $250,000). In fact, this is a good idea for that emergency fund as well &mdash; something that earns interest and is separate from your everyday checking account.&quot;</p> <p><em>What else should the newly debt-free do with their money?</em></p> <br /><div id="custom_wisebread_footer"><div id="rss_tagline">This article is from <a href="http://www.wisebread.com/mikey-rox">Mikey Rox</a> of <a href="http://www.wisebread.com/7-money-moves-to-make-as-soon-as-you-conquer-debt">Wise Bread</a>, an award-winning personal finance and <a href="http://www.wisebread.com/credit-cards">credit card comparison</a> website. Read more great articles from Wise Bread:</div><div class="view view-similarterms view-id-similarterms view-display-id-block_2 view-dom-id-1"> <div class="view-content"> <div class="item-list"> <ul> <li class="views-row views-row-1 views-row-odd views-row-first"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/the-10-biggest-myths-about-investing">The 10 Biggest Myths About Investing</a></span> </div> </li> <li class="views-row views-row-2 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/should-you-pay-down-debt-first-or-invest">Should You Pay Down Debt First or Invest?</a></span> </div> </li> <li class="views-row views-row-3 views-row-odd"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/are-you-choosing-the-right-fund-for-your-portfolio">Are You Choosing the Right Fund for Your Portfolio?</a></span> </div> </li> <li class="views-row views-row-4 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/401k-or-ira-you-need-both">401K or IRA? You Need Both</a></span> </div> </li> <li class="views-row views-row-5 views-row-odd views-row-last"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/best-online-sites-for-building-wealth">Best Online Sites for Building Wealth</a></span> </div> </li> </ul> </div> </div> </div> </div><br/></br> Budgeting Debt Management Investment 401k advice credit score emergency funds ETFs home improvements IRA money moves retirement stock market Fri, 15 Jul 2016 09:00:17 +0000 Mikey Rox 1752364 at http://www.wisebread.com 5 Reasons to Stay Away From Penny Stocks http://www.wisebread.com/5-reasons-to-stay-away-from-penny-stocks <div class="field field-type-filefield field-field-blog-image"> <div class="field-items"> <div class="field-item odd"> <a href="/5-reasons-to-stay-away-from-penny-stocks" class="imagecache imagecache-250w imagecache-linked imagecache-250w_linked"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/imagecache/250w/blog-images/penny_stock_investment_407668.jpg" alt="Learning reasons to stay away from penny stocks" title="" class="imagecache imagecache-250w" width="250" height="140" /></a> </div> </div> </div> <p>Penny stocks are inexpensive equities trading for as little as pennies per share. Because they do not meet rigorous financial reporting requirements, you won't find these stocks listed on the NYSE or NASDAQ. Instead, they're traded on the over-the-counter market rather than the stock exchanges where more reputable stocks are found. You've probably heard stories about people getting rich from penny stocks, but consider these reasons to stay away. (See also:&nbsp;<a href="http://www.wisebread.com/are-you-making-the-biggest-investment-risk-of-all" target="_blank">Are You Making the Biggest Investment Risk of All?</a>)</p> <h2>1. You Don't Know What You Are Buying</h2> <p>When I look at buying something that is really cheap, my first question is, &quot;Why is that so inexpensive?&quot; Most penny stock is in companies with few or no assets. It's also hard to know what you are getting, since the financial reporting requirements are less rigorous than for other stocks. Without audited financial reports, it is easy to be misled as an investor and buy stock in a company that is basically worthless.</p> <h2>2. Penny Stocks Can Be Difficult to Sell</h2> <p>A big consideration for any investment is your exit strategy &mdash; how will you get your cash out? Since penny stocks are not traded on stock exchanges, it can be difficult to find a buyer when you want to sell. There are just not that many investors looking for stock in companies with low asset value and less than standard financial documentation.</p> <h2>3. Penny Stock Scams and Fraud</h2> <p>Penny stocks are often associated with scams and &quot;pump and dump&quot; schemes. Some penny stock investors will buy lots of shares of worthless stock, promote it through mass email as the next &quot;hot stock,&quot; and then sell it when the stock price peaks. The stock price then goes back down and everyone who thought they were buying a hot stock is left with a loss and a stock that is hard to sell.</p> <h2>4. Like Day Trading, But Worse</h2> <p>Many people who invest in penny stocks are not investing based on the value of the business, but are trying to make money from the volatility of penny stocks &mdash; buying a stock when the price is moving up, and selling it within a few days before the price goes back down. But you know that trying to time the market is always risky. Doing this with penny stocks is even riskier than with other assets, since limited financial information is available.</p> <h2>5. You Will Likely Lose Money</h2> <p>Since penny stock companies have low asset value, there is significant risk that the company could go bankrupt and leave you with worthless stock. A buy and hold strategy for penny stocks may leave you with zero value instead of growth in the stock price. Even if you don't plan to hold a penny stock for long, you are most likely to notice a penny stock while it is &quot;hot,&quot; meaning you are buying near the peak price and will probably lose money by the time you can sell it.</p> <p><em>Have you ever been burned playing with penny stocks?</em></p> <br /><div id="custom_wisebread_footer"><div id="rss_tagline">This article is from <a href="http://www.wisebread.com/dr-penny-pincher">Dr Penny Pincher</a> of <a href="http://www.wisebread.com/5-reasons-to-stay-away-from-penny-stocks">Wise Bread</a>, an award-winning personal finance and <a href="http://www.wisebread.com/credit-cards">credit card comparison</a> website. Read more great articles from Wise Bread:</div><div class="view view-similarterms view-id-similarterms view-display-id-block_2 view-dom-id-1"> <div class="view-content"> <div class="item-list"> <ul> <li class="views-row views-row-1 views-row-odd views-row-first"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/womanhood-microscopic-and-other-hot-stock-tips">Womanhood microscopic and other hot stock tips</a></span> </div> </li> <li class="views-row views-row-2 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/7-money-moves-to-make-as-soon-as-you-conquer-debt">7 Money Moves to Make as Soon as You Conquer Debt</a></span> </div> </li> <li class="views-row views-row-3 views-row-odd"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/are-you-choosing-the-right-fund-for-your-portfolio">Are You Choosing the Right Fund for Your Portfolio?</a></span> </div> </li> <li class="views-row views-row-4 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/what-to-do-when-you-suspect-a-scam">What to Do When You Suspect a Scam</a></span> </div> </li> <li class="views-row views-row-5 views-row-odd views-row-last"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/learn-how-to-invest-with-these-5-stock-market-games">Learn How to Invest With These 5 Stock Market Games</a></span> </div> </li> </ul> </div> </div> </div> </div><br/></br> Investment day trading fraud losing money over the counter penny stocks scams stock market Mon, 04 Jul 2016 10:00:04 +0000 Dr Penny Pincher 1743167 at http://www.wisebread.com Are You Making the Biggest Investment Risk of All? http://www.wisebread.com/are-you-making-the-biggest-investment-risk-of-all <div class="field field-type-filefield field-field-blog-image"> <div class="field-items"> <div class="field-item odd"> <a href="/are-you-making-the-biggest-investment-risk-of-all" class="imagecache imagecache-250w imagecache-linked imagecache-250w_linked"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/imagecache/250w/blog-images/man_watering_plants_9791310.jpg" alt="Man making biggest investment risk of all" title="" class="imagecache imagecache-250w" width="250" height="140" /></a> </div> </div> </div> <p>When you're young, you're full of bravado. You're willing to step out on the skinny branches and take some risks. At least, that's the stereotype.</p> <p>When it comes to investing, though, it turns out that today's young adults are anything <em>but</em> risk takers. According to a recent study by UBS, Millennials (people ages 21&ndash;36) are almost as likely as people age 68 and older to describe their <a href="https://www.ubs.com/us/en/wealth/news/wealth-management-americas-news.html/en/2014/01/27/ubs-investor-watch-report-reveals-millennials.html">risk tolerance as <em>conservative</em></a>. And they're putting their money where their cautious mouths are. The average Millennial investor has more than half his or her portfolio in cash!</p> <p>The problem is, when you're young, one of the riskiest things you can do with your investments is to play it too safe.</p> <p>That's because, over time, inflation eats away at your buying power. Even in today's low-inflation environment, the cost of living is growing faster than money in bank savings accounts. You simply need to earn a better rate of return, and that means being willing to accept more risk.</p> <p>If you're young and feeling hesitant about investing, here are two factors that may be holding you back, along with some suggested solutions.</p> <h2>Lose Your Fear of Losing Money</h2> <p>In 2008, the U.S. stock market tanked by 37%. Imagine having $100,000 invested at the start of that year and ending up with a mere $63,000.</p> <p>Whether you were just a kid at the time or a young worker, that's a frightening bit of market history. But keep this in mind: Since bottoming out in March of 2009, the market came roaring back, nearly tripling in value by the end of 2015.</p> <p>The best way to overcome a fear of investing is to set your expectations by gaining some understanding about the market. Long-term, the stock market has outperformed bonds, real estate, gold, and cash. However, what many people fail to take into account is how bumpy the ride can be at times.</p> <p>To be successful as an investor, you have to expect some ups and downs. If you're a Millennial, you have time to ride out the ebb and flow of bull markets and bear markets. So you can afford to invest aggressively. What you may need to develop is the stomach to handle the ride.</p> <p>Knowing a little stock market history, and expecting some downturns along the way, will help you accept an <a href="http://www.wisebread.com/2-investing-concepts-everyone-should-know">age-appropriate level of risk</a> in your portfolio (if you're young, think mostly equities), and then stay invested no matter what's happening in the market.</p> <h2>Develop Your Sense of Urgency</h2> <p>It's easy to think, &quot;I'm young. I can afford to wait a while before I start investing. Right now, I have other priorities, like making my student loan payments.&quot;</p> <p>But there's a high price to be paid for waiting. Consider this. If you invested $200 a month for 40 years, that would amount to $96,000. And if you earned a very realistic average annual return of 7%, you'd end up with about $525,000. That's what happens when you combine periodic investments with a decent rate of return and then allow time to work its magic through the power of compound interest.</p> <p>But what if you waited 10 years? Investing $200 a month for <em>30 </em>years would amount to $72,000. However, because of this late start, you'd end up with less than $245,000.</p> <p>Wow. You only invested $24,000 fewer dollars, but you ended up with nearly a whopping $300,000 less!</p> <p>That should motivate you to find the money to invest now. Keep your housing costs reasonable. See if you can get by without a car or, if you're a two-car family, consider becoming a one-car family. Freeing up a couple of hundred dollars a month could make hundreds of thousands of dollars of difference long-term.</p> <p>If your employer provides a match for some of the money you put into its 401K plan, that's the easiest money you'll ever make. You have to take full advantage of that. So, at the very least, invest enough to get the full match.</p> <p>Remember, if you're a Millennial or younger, you have an asset many older people wish they had. You have time. Make the most of it by getting started as a stock market investor as soon as you can.</p> <p><em>What's holding you back from investing?</em></p> <br /><div id="custom_wisebread_footer"><div id="rss_tagline">This article is from <a href="http://www.wisebread.com/matt-bell">Matt Bell</a> of <a href="http://www.wisebread.com/are-you-making-the-biggest-investment-risk-of-all">Wise Bread</a>, an award-winning personal finance and <a href="http://www.wisebread.com/credit-cards">credit card comparison</a> website. Read more great articles from Wise Bread:</div><div class="view view-similarterms view-id-similarterms view-display-id-block_2 view-dom-id-4"> <div class="view-content"> <div class="item-list"> <ul> <li class="views-row views-row-1 views-row-odd views-row-first"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/7-money-moves-to-make-as-soon-as-you-conquer-debt">7 Money Moves to Make as Soon as You Conquer Debt</a></span> </div> </li> <li class="views-row views-row-2 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/8-steps-to-starting-a-retirement-plan-in-your-30s">8 Steps to Starting a Retirement Plan in Your 30s</a></span> </div> </li> <li class="views-row views-row-3 views-row-odd"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/should-you-pay-down-debt-first-or-invest">Should You Pay Down Debt First or Invest?</a></span> </div> </li> <li class="views-row views-row-4 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/youre-wasting-up-to-42532-by-not-investing-your-gasoline-savings">You&#039;re Wasting Up to $42,532 by Not Investing Your Gasoline Savings</a></span> </div> </li> <li class="views-row views-row-5 views-row-odd views-row-last"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/are-you-choosing-the-right-fund-for-your-portfolio">Are You Choosing the Right Fund for Your Portfolio?</a></span> </div> </li> </ul> </div> </div> </div> </div><br/></br> Investment 401k compound interest conservative millennials risk tolerance stock market Tue, 14 Jun 2016 09:00:06 +0000 Matt Bell 1730337 at http://www.wisebread.com You're Wasting Up to $42,532 by Not Investing Your Gasoline Savings http://www.wisebread.com/youre-wasting-up-to-42532-by-not-investing-your-gasoline-savings <div class="field field-type-filefield field-field-blog-image"> <div class="field-items"> <div class="field-item odd"> <a href="/youre-wasting-up-to-42532-by-not-investing-your-gasoline-savings" class="imagecache imagecache-250w imagecache-linked imagecache-250w_linked"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/imagecache/250w/blog-images/iStock_000074872237_Large.jpg" alt="she can invest the money she saves at the pump" title="" class="imagecache imagecache-250w" width="250" height="140" /></a> </div> </div> </div> <p>Gas prices are as low as they have been in a long time. In April 2016, the U.S. Energy Information Administration (EIA) forecasted that the average full price of regular grade gasoline will be lower in July 2016 (<a href="http://www.eia.gov/forecasts/steo/">$2.07 per gallon</a>) than at the same time last year ($2.79 per gallon).</p> <p>That means the average American will <a href="http://money.cnn.com/2016/02/10/news/economy/gas-savings/">save about $1,000</a> on gas this year. But unless you're banking those gas savings, you're wasting an opportunity to improve your financial situation. That's because money saved and invested compounds over time, and a mere $1000 could turn into tens of thousands, instead.</p> <p>Here is why you're wasting up to $42,532 by not making smart use of your gas savings.</p> <h2>Make an Investment</h2> <p>Among the best pieces of <a href="http://www.wisebread.com/the-5-best-pieces-of-financial-wisdom-from-warren-buffett">financial wisdom from Warren Buffett</a> is, &quot;someone's sitting in the shade today because someone planted a tree a long time ago.&quot; Whether it's by dining out more often or buying more clothes, spending that extra $1,000 per year instead of saving or investing it is a decision that your future self will regret dearly.</p> <p>Today is the best day to start an investment, even if it's with a small amount. If you were to invest $83.33 every month (about $1,000 a year) for 20 years in an online high-yield savings account with a 1% annual interest rate, you would have a total of $22,137.21 at the end of the 20-year period.</p> <p>With such a long-term investing period, you would do even better with alternate forms of investment. For example, if you were to make the same string of deposits in an investment account paying a 4% annual rate of return, your investment would be worth $30,418.19 at the end of the 20-year period.</p> <p>Of course, you would do best by putting that series of monthly $83.33 deposits in an exchange-traded fund (ETF), which is a marketable security tracking a market index, such as the S&amp;P 500 or Russell 2000 indexes. The <a href="http://www.investopedia.com/ask/answers/042415/what-average-annual-return-sp-500.asp">historical average annual return</a> for the S&amp;P 500, adjusted for inflation is around 7%. So, if you were to put $83.33 every month in an ETF tracking the S&amp;P 500 for 20 years, you would end up with $42,532.14 after 20 years before applicable fees or taxes.</p> <p>Making a consistent monthly deposit over a long period of time allows you to leverage the power of interest compounding, making the most of your gas savings.</p> <h2>Pay Down High-Interest Debt</h2> <p>Of course, you may want more immediate gratification with your gas savings. By using your gas savings to pay more than your minimum monthly payment on high interest credit cards, you can potentially save up to a few thousands of dollars every year.</p> <p>Let's assume that you have a total balance of $4,534 on a credit card with a 25.24% annual percentage rate (APR) and that your monthly minimum payment is $140.56. By making only the minimum payment, you wouldn't pay off the total card balance for 18 years, and would end up paying an estimated total of $12,592!</p> <p>By just increasing your monthly payment an extra $40.44 (about half of the estimated gas savings), you would pay off the credit card in only three years and save an estimated $6,081.</p> <p>Another reason to pay down those high-interest credit cards is that those interest payments aren't tax deductible. Unlike your interest payments on mortgages, home equity loans, and student loans, your interest payments on credit cards or auto loans offer no tax advantage.</p> <p>See also: <a href="http://www.wisebread.com/when-to-do-a-balance-transfer-to-pay-off-credit-card-debt?ref=seealso">How to Use a Balance Transfer to Save on Credit Card Interest</a></p> <h2>The Bottom Line</h2> <p>Gas prices will eventually go back up. For now, the EIA predicts that the average retail price for U.S. regular grade gas will be around the $2 mark until December 2017. Make the most out of your gas savings for the next year by investing the extra cash or paying down your high-interest debt.</p> <p><em>What are other ways to make the most of your gasoline savings?</em></p> <br /><div id="custom_wisebread_footer"><div id="rss_tagline">This article is from <a href="http://www.wisebread.com/damian-davila">Damian Davila</a> of <a href="http://www.wisebread.com/youre-wasting-up-to-42532-by-not-investing-your-gasoline-savings">Wise Bread</a>, an award-winning personal finance and <a href="http://www.wisebread.com/credit-cards">credit card comparison</a> website. Read more great articles from Wise Bread:</div><div class="view view-similarterms view-id-similarterms view-display-id-block_2 view-dom-id-1"> <div class="view-content"> <div class="item-list"> <ul> <li class="views-row views-row-1 views-row-odd views-row-first"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/7-money-moves-to-make-as-soon-as-you-conquer-debt">7 Money Moves to Make as Soon as You Conquer Debt</a></span> </div> </li> <li class="views-row views-row-2 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/are-you-choosing-the-right-fund-for-your-portfolio">Are You Choosing the Right Fund for Your Portfolio?</a></span> </div> </li> <li class="views-row views-row-3 views-row-odd"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/the-10-weirdest-etfs-you-can-buy">The 10 Weirdest ETFs You Can Buy</a></span> </div> </li> <li class="views-row views-row-4 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/a-beginner-s-guide-to-investing-in-frontier-markets">A Beginner’s Guide to Investing in Frontier Markets</a></span> </div> </li> <li class="views-row views-row-5 views-row-odd views-row-last"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/2010-predictions-from-wall-street-and-main-street-whos-smarter">2010 Predictions from Wall Street and Main Street: Who&#039;s Smarter?</a></span> </div> </li> </ul> </div> </div> </div> </div><br/></br> Investment compound interest debt ETFs gas prices price per gallon savings stock market Mon, 02 May 2016 09:30:25 +0000 Damian Davila 1700679 at http://www.wisebread.com 11 Food and Beverage Stocks That Are Having a Good Year http://www.wisebread.com/11-food-and-beverage-stocks-that-are-having-a-good-year <div class="field field-type-filefield field-field-blog-image"> <div class="field-items"> <div class="field-item odd"> <a href="/11-food-and-beverage-stocks-that-are-having-a-good-year" class="imagecache imagecache-250w imagecache-linked imagecache-250w_linked"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/imagecache/250w/blog-images/coca_cola_soda_000020559356.jpg" alt="Finding food and beverage stocks that are having a good year" title="" class="imagecache imagecache-250w" width="250" height="140" /></a> </div> </div> </div> <p>Food and drink. They are necessities, and if we invest in companies that produce them, there's a good chance we'll make money.</p> <p>There are a number of companies whose shares have been off to a great start this year. Here's a list of food and beverage firms that have already delivered positive growth for shareholders in 2016.</p> <h2>1. Coca-Cola [<a href="http://finance.yahoo.com/q?s=KO">NYSE: KO</a>]</h2> <p>Coke has historically been a great stock to own, due to its long history of steady growth. But in recent years, it's underperformed the market as consumers have shifted to healthier food and beverage options. That said, its investors have made out well so far in 2016, as the company has started a major restructuring. Shares are up more than 9% this year and hit a 52-week high on April 11.</p> <p>&quot;Even as they brace for another year of shrinking revenue and sluggish earnings from the beverage giant, a growing number are encouraged by an <a href="https://eresearch.fidelity.com/eresearch/evaluate/news/basicNewsStory.jhtml?symbols=KO&amp;storyid=201604160544DOWJONESDJONLINE000306&amp;provider=DOWJONES&amp;product=DJONLINE&amp;sb=1">accelerated restructuring</a> that many saw as overdue,&quot; Dow Jones reported.</p> <h2>2. Campbell's Soup Co. [<a href="http://finance.yahoo.com/q?s=CPB">NYSE: CPB</a>]</h2> <p>Investing in chicken noodle soup and SpaghettiOs can help your portfolio: Campbell's shares are up nearly 20% this year, powered by a 26% rise in earnings during the last quarter. The company has enjoyed strong results from an aggressive cost-cutting initiative, and investors are expecting to see positive impact from last year's acquisition of Garden Fresh Gourmet. Campbell's also got some good press when it announced all of its cans would be free of BPA by 2017.</p> <h2>3. McDonald's [<a href="http://finance.yahoo.com/q?s=MCD">NYSE: MCD</a>]</h2> <p>It's been tough going for McDonald's in the last couple years, but patient investors are finally being rewarded. Shares are up more than 9.5% this year, as both investors and analysts seem to agree that the company has its operating fundamentals in good order. The stock also responded positively to the news of plans for 1,300 new stores in China.</p> <h2>4. General Mills [<a href="http://finance.yahoo.com/q?s=GIS">NYSE: GIS</a>]</h2> <p>This massive food conglomerate has a market cap of more than $37 billion, making General Mills a veritable blue chip of the food industry. But investors should be especially happy with General Mills' recent performance, which has seen shares rise nearly 9% this year alone. In its last quarterly earnings report, the company announced progress on cost-cutting plans, and a 5% increase in profits.</p> <h2>5. Tyson Foods [<a href="http://finance.yahoo.com/q?s=TSN">NYSE: TSN</a>]</h2> <p>Shares of this massive food processor and marketer are up 22% this year, which is a big jump for a company worth nearly $24 billion. The company's first quarter earnings rose 49%, making analysts bullish on the stock.</p> <p>&quot;Fiscal 2016 is off to a very strong start in what we expect to be another record year,&quot; said Donnie Smith, Tyson's president and chief executive officer in February.</p> <h2>6. Marine Harvest [<a href="http://www.nasdaq.com/symbol/mhg">NASDAQ: MHG</a>]</h2> <p>We know that salmon fight to swim upstream, but there's been no struggle for this Norwegian company, which sells farmed salmon products all over the world. Shares are up 24% in 2016, and the company announced in early April that its first quarter salmon harvest of 97,000 tons exceeded expectations.</p> <h2>7. Molson Coors Brewing [<a href="http://finance.yahoo.com/q?s=TAP">NYSE: TAP</a>]</h2> <p>Shares of the Denver-based brewer began rising in the second half of last year and the momentum has continued, with a 52-week high in early April. The good stock movement is largely the result of last year's announcement that the company would seek to buy the other half of the MillerCoors Joint Venture and the entire Miller brand portfolio for $12 billion. That's a lot of beer brands under one corporate umbrella, and a lot of revenue for investors to salivate over.</p> <h2>8. MGP Ingredients [<a href="http://finance.yahoo.com/q?s=MGPI">NASDAQ: MGPI</a>]</h2> <p>It's been a hot couple of months for this producer and supplier of distilled spirits. Recently, the company reported a 7% increase in revenue year over year, and the stock price quickly responded, rising 20% within a month. MGP also got some good press when company officials rang the closing bell of the NASDAQ to celebrate the company's 75th Anniversary in March.</p> <h2>9. National Beverage Corp. [<a href="http://www.google.com/finance?cid=656083">NYSE: FIZZ</a>]</h2> <p>Coke isn't the only soda stock that's hot. National Beverage Corp., the maker of Faygo, Shasta, and other soda brands is also having a great run that began last summer and has continued through 2016. The Florida-based company reported in March that sales from the previous three months rose from $143 million to $162 million. Shares are up nearly 7% in 2016 and more than 80% in the last year.</p> <p>CNBC's <em>Mad Money</em> host Jim Cramer took note of National Beverage's performance.</p> <p>&quot;That is an <a href="http://www.cnbc.com/2016/04/18/cramer-remix-what-to-expect-from-netflix-now.html">astonishing move</a> for a little-known soft drink maker, and it is really just the tip of the iceberg,&quot; Cramer said.</p> <h2>10. Constellation Brands [<a href="http://finance.yahoo.com/q?s=STZ">NYSE: STZ</a>]</h2> <p>This producer and distributor of some of the most popular wine brands has been on a tear in 2016. Shares hit a 52-week high above $160 in early April, and are up more than 12% this year alone. Constellation reported revenues of more than $6.5 billion in the last quarter, beating analysts' estimates, with a 26% increase in net income. Investors are bullish on 2017, as Constellation is expected to make some forays into the profitable craft beer market.</p> <h2>11. Primo Water [<a href="http://finance.yahoo.com/q?s=PRMW">NASDAQ: PRMW</a>]</h2> <p>This smallcap stock has had a nice year, with shares up more than 30%. Revenues in the most recent quarter beat analysts' estimates and rose from $29.6 million to $31.5 million. Primo Water is expected to have double-digit earnings growth this year, and that should bode well for the stock.</p> <p><em>Do you own any of these food and beverage stocks? Do you have any of their products on your fridge or pantry? </em></p> <br /><div id="custom_wisebread_footer"><div id="rss_tagline">This article is from <a href="http://www.wisebread.com/tim-lemke">Tim Lemke</a> of <a href="http://www.wisebread.com/11-food-and-beverage-stocks-that-are-having-a-good-year">Wise Bread</a>, an award-winning personal finance and <a href="http://www.wisebread.com/credit-cards">credit card comparison</a> website. Read more great articles from Wise Bread:</div><div class="view view-similarterms view-id-similarterms view-display-id-block_2 view-dom-id-1"> <div class="view-content"> <div class="item-list"> <ul> <li class="views-row views-row-1 views-row-odd views-row-first"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/7-money-moves-to-make-as-soon-as-you-conquer-debt">7 Money Moves to Make as Soon as You Conquer Debt</a></span> </div> </li> <li class="views-row views-row-2 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/learn-how-to-invest-with-these-5-stock-market-games">Learn How to Invest With These 5 Stock Market Games</a></span> </div> </li> <li class="views-row views-row-3 views-row-odd"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/5-reasons-to-stay-away-from-penny-stocks">5 Reasons to Stay Away From Penny Stocks</a></span> </div> </li> <li class="views-row views-row-4 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/the-6-best-financial-news-sites-for-investors-in-a-hurry">The 6 Best Financial News Sites for Investors in a Hurry</a></span> </div> </li> <li class="views-row views-row-5 views-row-odd views-row-last"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/are-you-making-the-biggest-investment-risk-of-all">Are You Making the Biggest Investment Risk of All?</a></span> </div> </li> </ul> </div> </div> </div> </div><br/></br> Investment food and beverages good year shares stock market Fri, 29 Apr 2016 09:00:08 +0000 Tim Lemke 1699423 at http://www.wisebread.com A Beginner’s Guide to Investing in Frontier Markets http://www.wisebread.com/a-beginner-s-guide-to-investing-in-frontier-markets <div class="field field-type-filefield field-field-blog-image"> <div class="field-items"> <div class="field-item odd"> <a href="/a-beginner-s-guide-to-investing-in-frontier-markets" class="imagecache imagecache-250w imagecache-linked imagecache-250w_linked"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/imagecache/250w/blog-images/man_reading_newspaper_000090680889.jpg" alt="Man learning about frontier markets and how to invest" title="" class="imagecache imagecache-250w" width="250" height="140" /></a> </div> </div> </div> <p>For many years, investors were able to capitalize in the accelerated growth of emerging markets, such as Brazil and China. However, the <a href="http://www.wisebread.com/5-ways-greece-and-chinas-economic-problems-might-impact-you">economic problems in Greece and China</a> have demonstrated that some emerging market economies are experiencing a slower rate of growth and, in some cases, facing substantial economic roadblocks.</p> <p>Seeking alternatives for emerging markets, some investors are turning to so-called &quot;frontier markets.&quot; While less developed than emerging nations, frontier market nations are experiencing such accelerated growth that they may provide aggressive returns to investors willing to take on the risk.</p> <h2>What Are Frontier Markets?</h2> <p>While there are many lists detailing what countries are considered frontier markets, the <a href="http://www.msci.com/market-classification">MSCI market classification</a> is the most widely accepted. The MSCI Frontier Markets Index is made of 120 stocks from 23 frontier economies, including Argentina, Lithuania, Nigeria, and Sri Lanka. With 500 stocks from 34 frontier markets, the <a href="http://us.spindices.com/indices/equity/sp-frontier-bmi-us-dollar">S&amp;P Frontier BMI</a> is another index that provides a comprehensive benchmark of the frontier market economy as a whole.</p> <p>Frontier markets are characterized by their high volatility. For example, the MSCI Frontier Markets Index had a 72.74% annual gain in 2005 &mdash; and a 54.10% annual loss in 2008. Investors seeking potentially high returns in frontier markets need to understand that they will be facing higher risks, such as large currency fluctuations, political instability, and unfamiliar &mdash; or relaxed &mdash; regulatory systems.</p> <h2>Why Frontier Markets Matter</h2> <p>Despite the higher risks, many companies are investing in these markets for the long run. One example is the Coca-Cola Company.</p> <p>Coca-Cola has substantial investments in heavy soda-drinking nations in developed markets, such as the United States and Belgium, and emerging ones, such as Mexico and Brazil. However, frontier nations are the ones promising the most growth for the beverage company.</p> <p>In 2014, Argentinians consumed the most soft drinks per capita in the world, a whopping <a href="http://www.npr.org/sections/goatsandsoda/2015/06/19/415223346/guess-which-country-has-the-biggest-increase-in-soda-drinking">154.6 liters</a>. That's one liter per person more and 18 liters per capita more than U.S. drinkers (#2 on the list) and Mexican drinkers (#4 on the list) purchased in the same year. This explains why Coca-Cola's CEO pledged to <a href="http://www.bloomberg.com/news/articles/2016-01-22/argentina-may-lure-20-billion-in-investment-in-2016-macri-says">invest $1 billion in Argentina</a> over a four-year period starting in 2016.</p> <p>Vietnam is another frontier market of interest to Coca-Cola. Over the 2013&ndash;2015 period, the southeast Asian nation was one of the <a href="http://www.coca-colacompany.com/stories/share-a-coke-in-vietnam-continues-the-momentum-with-emoticons/">world's fastest growing markets</a> for the brand. It has been estimated that the consumption of soft drink liters per capita in Vietnam increased by over 105% over the 2009&ndash;2014 period.</p> <p>Just like Coca-Cola, many other domestic and international companies are interested in frontier market nations. Even governments recognize the importance of increasing trade relations with up-and-raising developing nations. For example, the Trans-Pacific Partnership (TPP) trade agreement signed in February 2016 aims to lower trade barriers between 12 nations, including Vietnam.</p> <h2>How to Invest in Frontier Markets</h2> <p>For the average individual investor, buying stocks in individual companies trading in frontier market stock exchanges may prove impractical for several reasons.</p> <ul> <li>Trading volume for frontier market stocks is generally lower than that for U.S. stocks, which produces more volatility and prevents efficient market transactions.<br /> &nbsp;</li> <li>Finding &quot;winners&quot; is very challenging for individual investors without connections in those markets. Many investors can track the price of Bao Viet Holdings, the largest insurance company in Vietnam and the seventh largest listed company by market capitalization in that nation, but very few can name stocks in Estonia or Kenya.<br /> &nbsp;</li> <li>Less-developed nations are still working on implementing international financial accounting standards, putting investors in the dark about the latest developments.</li> </ul> <p>Therefore, the average investor has three main ways to invest in frontier markets.</p> <h3>1. U.S Companies Focusing on Frontier Markets</h3> <p>First, an investor could invest in U.S.-traded companies that have strong interests in frontier markets. Besides Coca-Cola [<a href="http://finance.yahoo.com/q?d=t&amp;s=KO">NYSE:KO</a>], Facebook, Inc. [<a href="http://finance.yahoo.com/q?s=FB">NASDAQ:FB</a>], and Apple, Inc. [<a href="http://finance.yahoo.com/q?d=t&amp;s=AAPL">NASDAQ:AAPL</a>] are other companies eyeing those fast-growing nations.</p> <ul> <li>Facebook is working hard on increasing its presence in frontier nations. Through its <a href="https://code.facebook.com/posts/1556407321275493/building-for-emerging-markets-the-story-behind-2g-tuesdays/">2G Tuesdays initiative</a>, Facebook engineers are learning how to adapt the features of the social network app to work seamlessly even on a 2G Internet network. Also, Facebook is offering <a href="https://info.internet.org/en/story/free-basics-from-internet-org/">free Internet access</a> to cellphone users in Kenya, Bangladesh, and Pakistan and working on reaching similar agreements with cellphone carriers in other frontier markets.<br /> &nbsp;</li> <li>Trying to diversify its Asian portfolio, Apple opened a subsidiary company in Vietnam back in 2015 with an investment of <a href="http://www.reuters.com/article/us-apple-vietnam-idUSKCN0SU1UZ20151105">15 billion Vietnamese dong</a> (over $670,000). In 2014, sales of Apple's products in Vietnam grew five times faster than in India. Beyond Vietnam, Apple is looking to expand in other frontier markets.</li> </ul> <h3>2. Frontier Market Exchange-Traded Funds (ETFs)</h3> <p>Frontier market ETFs allow investors to include frontier stocks in their investment portfolios. For example, the iShares MSCI Frontier 100 [<a href="http://quotes.wsj.com/etf/FM">NYSE Arca:FM</a>] tracks the MSCI Frontier Markets 100 Index and holds over $408.70 million in net assets as of March 2016. By meeting minimum liquidity standards, ETFs allow investors to liquidate their positions with more ease when necessary. (See also: <a href="http://www.wisebread.com/10-questions-to-ask-before-you-sell-a-stock-or-a-fund?ref=seealso">10 Questions to Ask Before You Sell a Stock or a Fund</a>)</p> <h3>3. Mutual Funds Focusing on Frontier Markets</h3> <p>Structured and maintained to meet the demand of investors interested in frontier markets, mutual funds focusing on frontier markets seek to produce capital gains from stocks traded in less developed exchanges. Some examples are the Templeton Frontier Markets [<a href="http://finance.yahoo.com/q?s=TFMAX">MUTF:TFMAX</a>] and the Wasatch Frontier Emerging Small Countries Fund [<a href="http://finance.yahoo.com/q?d=t&amp;s=WAFMX">MUTF:WAFMX</a>].</p> <p>Investors who are particularly bullish in individual nations should consider ETFs and mutual funds focusing on specific frontier nations.</p> <h2>The Bottom Line</h2> <p>To compensate for slower growth in developed and emerging markets, investors can look into frontier markets. By investing in U.S. publicly traded companies, ETFs, and mutual funds focusing on frontier markets, individual investors can access these markets with better liquidity and more diversification. However, an individual investor should assess applicable fees for such investment vehicles, understand the higher risk involved in such investments, and limit the exposure to a number that is consistent with the investor's overall objective.</p> <p><em>How are you investing in frontier markets?</em></p> <br /><div id="custom_wisebread_footer"><div id="rss_tagline">This article is from <a href="http://www.wisebread.com/damian-davila">Damian Davila</a> of <a href="http://www.wisebread.com/a-beginner-s-guide-to-investing-in-frontier-markets">Wise Bread</a>, an award-winning personal finance and <a href="http://www.wisebread.com/credit-cards">credit card comparison</a> website. Read more great articles from Wise Bread:</div><div class="view view-similarterms view-id-similarterms view-display-id-block_2 view-dom-id-2"> <div class="view-content"> <div class="item-list"> <ul> <li class="views-row views-row-1 views-row-odd views-row-first"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/7-money-moves-to-make-as-soon-as-you-conquer-debt">7 Money Moves to Make as Soon as You Conquer Debt</a></span> </div> </li> <li class="views-row views-row-2 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/the-10-weirdest-etfs-you-can-buy">The 10 Weirdest ETFs You Can Buy</a></span> </div> </li> <li class="views-row views-row-3 views-row-odd"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/8-things-everyone-should-know-about-the-commodities-markets">8 Things Everyone Should Know About the Commodities Markets</a></span> </div> </li> <li class="views-row views-row-4 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/etfs-offer-incredible-benefitswith-a-dark-side">ETFs Offer Incredible Benefits...with a Dark Side</a></span> </div> </li> <li class="views-row views-row-5 views-row-odd views-row-last"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/youre-wasting-up-to-42532-by-not-investing-your-gasoline-savings">You&#039;re Wasting Up to $42,532 by Not Investing Your Gasoline Savings</a></span> </div> </li> </ul> </div> </div> </div> </div><br/></br> Investment emerging nations ETFs frontier markets global economies high risk stock market Thu, 21 Apr 2016 09:01:08 +0000 Damian Davila 1691584 at http://www.wisebread.com 8 Things Everyone Should Know About the Commodities Markets http://www.wisebread.com/8-things-everyone-should-know-about-the-commodities-markets <div class="field field-type-filefield field-field-blog-image"> <div class="field-items"> <div class="field-item odd"> <a href="/8-things-everyone-should-know-about-the-commodities-markets" class="imagecache imagecache-250w imagecache-linked imagecache-250w_linked"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/imagecache/250w/blog-images/cows_000066842465.jpg" alt="Everyone learning things about commodities markets" title="" class="imagecache imagecache-250w" width="250" height="140" /></a> </div> </div> </div> <p>It's common in the investment world to hear a lot about commodities. These are things like oil, soybeans, gold, and even cattle, which can be bought and sold on exchanges, similar to stocks.</p> <p>The price of commodities plays a big role in our economy, from how much it costs to fuel our cars, to the price of a gallon of milk. It's possible to earn money trying to predict how the price of these commodities will move, although it can be risky.</p> <p>Investing in commodities is not for beginners, but it's helpful to know some of the basics of how they work and how they may impact other parts of your portfolio &mdash; and even your day-to-day life.</p> <h2>1. There Are Four (or Three) Basic Groups of Commodities</h2> <p>Commodities can be lumped together in an infinite number of ways, but are generally placed in four groups:</p> <ul> <li>Energy (Things like oil and natural gas)</li> <li>Metals (Gold, silver, platinum, zinc, etc.)</li> <li>Livestock and meat (Cattle, pork bellies, hogs, etc.)</li> <li>Agricultural (Corn, soybeans, coffee, and so forth)</li> </ul> <p>Some people like to group agricultural and livestock together. But no matter how they are categorized, it's possible to invest in certain groups of commodities through funds and ETFs that track specific commodity exchanges.</p> <h2>2. The Chicago Mercantile Exchange Is the Place</h2> <p>We all know the New York Stock Exchange and NASDAQ as the places to buy and sell traditional stocks. But for commodities, the world's largest exchange is the Chicago Merc or CME, located on Wacker Drive. About 80% of the trades on the CME are done electronically, but a portion still come from &quot;open outcry&quot; in which traders stand in a &quot;pit&quot; and call out orders, prices, and quantities.</p> <h2>3. They Are Volatile</h2> <p>If you're looking for slow and steady growth, commodities aren't for you. In fact, volatility is pretty much the norm, and it's gotten worse in recent years. A report from consulting firm Deloitte said that several commodity groups including oil, natural gas, coffee, and copper, have seen price increases of 30% to 60% over a three to six month period. And between 1997 and 2012, there were far more extreme price changes than the previous 15 years.</p> <h2>4. Commodities Are Impacted by the Dollar</h2> <p>Just about every aspect of the world economy is impacted by currency values in some way, but commodity prices are especially sensitive. That's because commodities are often priced in dollars around the world due to faith in the American economy. In the U.S., a strong dollar usually means low prices for commodities. And the inverse is true; it will take more dollars to buy commodities when the value of the dollar goes down, so commodity prices go up as well.</p> <h2>5. Weather and World Events Can Affect Commodity Prices</h2> <p>Commodity investors often find themselves becoming experts in meteorology and world affairs, because of the various things that can impact commodity prices. Maybe it's a drought in the Southeast United States that has taken out soybean crops. Or perhaps the threat of a hurricane that could temporarily shut down oil refineries. Everything from floods to flies to civil war can impact the supply of certain goods, thus impacting prices.</p> <h2>6. It's Okay for Your Portfolio to Have Commodities, But Not Too Many</h2> <p>Many financial advisers suggest holding commodities along with stocks, bonds, and real estate as part of a diverse portfolio, particularly if your nest egg is large. But keep in mind that commodities don't pay dividends or interest, and very few have a terrific track record of gains over the long term. Charles Rotblut of the American Association of Individual Investors told the Wall Street Journal that most investors should only consider investing in commodities after having the basic allocations down. In the same publication, Rick Ferri, an advocate of low-cost index fund and ETF investing, called commodities &quot;dead money&quot; and said most people would be better off without them.</p> <h2>7. You Can Invest in the Future With Commodities (Sort Of)</h2> <p>Investors who want to avoid some of the risk of commodity price fluctuations can buy something called a &quot;futures contract,&quot; which is essentially an agreement to buy or sell a commodity at a certain price at a certain date. Investors who are sellers get to lock in prices this way. Investing with commodities futures is not for inexperienced investors, as it requires a certain amount of cash up front and often involves the borrowing of money, or leverage. It is easy to lose a lot of money in a short amount of time this way.</p> <h2>8. It's Possible to Have Commodities Exposure Without Owning Commodities</h2> <p>If you don't feel comfortable trading commodities futures or owning commodity ETFs, you can buy shares of stock in companies that work with those commodities. For instance, an investor can buy shares of a company involved in gold mining, or in producing equipment for oil fields. By going this route, it's possible to diversify your portfolio with exposure to commodities, but avoid some of the volatility.</p> <p><em>Are there any commodities in your portfolio?</em></p> <br /><div id="custom_wisebread_footer"><div id="rss_tagline">This article is from <a href="http://www.wisebread.com/tim-lemke">Tim Lemke</a> of <a href="http://www.wisebread.com/8-things-everyone-should-know-about-the-commodities-markets">Wise Bread</a>, an award-winning personal finance and <a href="http://www.wisebread.com/credit-cards">credit card comparison</a> website. Read more great articles from Wise Bread:</div><div class="view view-similarterms view-id-similarterms view-display-id-block_2 view-dom-id-1"> <div class="view-content"> <div class="item-list"> <ul> <li class="views-row views-row-1 views-row-odd views-row-first"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/are-you-choosing-the-right-fund-for-your-portfolio">Are You Choosing the Right Fund for Your Portfolio?</a></span> </div> </li> <li class="views-row views-row-2 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/7-money-moves-to-make-as-soon-as-you-conquer-debt">7 Money Moves to Make as Soon as You Conquer Debt</a></span> </div> </li> <li class="views-row views-row-3 views-row-odd"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/a-beginner-s-guide-to-investing-in-frontier-markets">A Beginner’s Guide to Investing in Frontier Markets</a></span> </div> </li> <li class="views-row views-row-4 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/the-10-weirdest-etfs-you-can-buy">The 10 Weirdest ETFs You Can Buy</a></span> </div> </li> <li class="views-row views-row-5 views-row-odd views-row-last"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/youre-wasting-up-to-42532-by-not-investing-your-gasoline-savings">You&#039;re Wasting Up to $42,532 by Not Investing Your Gasoline Savings</a></span> </div> </li> </ul> </div> </div> </div> </div><br/></br> Investment agriculture commodities ETFs Food futures gold oil stock market volatility Thu, 14 Apr 2016 10:01:03 +0000 Tim Lemke 1687440 at http://www.wisebread.com 10 Boring Investments That Are Surprisingly Profitable http://www.wisebread.com/10-boring-investments-that-are-surprisingly-profitable <div class="field field-type-filefield field-field-blog-image"> <div class="field-items"> <div class="field-item odd"> <a href="/10-boring-investments-that-are-surprisingly-profitable" class="imagecache imagecache-250w imagecache-linked imagecache-250w_linked"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/imagecache/250w/blog-images/man_reading_newspaper_000076745113.jpg" alt="Man buying boring investments that are surprisingly profitable" title="" class="imagecache imagecache-250w" width="250" height="140" /></a> </div> </div> </div> <p>It may seem fun to invest in companies that excite you. But there are few things more exciting than seeing share prices rise, even if the companies themselves are a real bore.</p> <p>If you want to make money in investing, it helps to forget about the sizzle factor. Because some of the weirdest or most boring investments are often the most profitable. Consider these 10 investments that aren't too exciting, but have shown great returns over time, or have recent good results worth watching. (See also:&nbsp;<a href="http://www.wisebread.com/4-ways-boring-investments-make-life-exciting?ref=seealso">4 Ways &quot;Boring&quot; Investments Make Life Exciting</a>)</p> <h2>1. Office Buildings</h2> <p>Is there anything less exciting than large square buildings or shopping centers? Think of the big malls or huge office parks that you'll often drive past in the suburbs. Boring, right? Well, if you invest in this type of real estate, you'll do okay &mdash; or better. There are many real estate investment trusts (REITs) that allow investors to buy shares, and they often pay some of the highest dividends on the market. Consider stocks like Federal Realty Investment Trust, now trading near its 52-week high and with a five-year return of nearly 90%.</p> <h2>2. Gambling Stocks</h2> <p>For a few years, casino stocks were getting crushed, in part due to problems with the gaming industry in China. But there is evidence that the industry has bottomed out and may be on the verge of rebounding. New resorts are planned in Las Vegas, Macau, and elsewhere that are expected to boost revenues for companies like Wynn [NASDAQ: WYNN], Las Vegas Sands [NYSE: LVS] and MGM Resorts [NYSE: MGM]. So if you don't have a moral objection to investing in these stocks, now may be the time to get in on the action.</p> <h2>3. Baking Soda and Condoms</h2> <p>Church &amp; Dwight [NYSE: CHD] may not be the sexiest investment out there. Or maybe it is. After all, it owns Trojan, which makes more condoms than anyone else. And it makes First Response, the popular pregnancy test (in case you forgot to use the Trojans). Church and Dwight also makes a lot of household products that Americans use every day, including Arm &amp; Hammer baking soda and OxiClean. Church &amp; Dwight reported record sales and profits in 2015. Shares are trading near a 52-week high and are up 10% in 2016.</p> <h2>4. An Old Newspaper</h2> <p>What? Investing in a newspaper? Okay, let's be clear. No one is getting rich quick by investing in the New York Times [NYSE: NYT]. But perhaps no news organization has done a better job of shifting its business model from print to digital, and its revenues show the results. The company reported $444 million in revenue during its most recent financial quarter, with a 48% increase in profit.</p> <h2>5. Botox and Viagra</h2> <p>Hey, it's easy to get rich on older people trying to stay young. Pfizer, the maker of Viagra, said last year it would merge with Allergan, the maker of Botox, to form the world's largest pharmaceutical firm. The merger has yet to be approved and has some critics, but the combined company could see a boost from efficiencies and a lower corporate tax rate (it would be based in Ireland).</p> <h2>6. Cigarettes</h2> <p>It's hard to believe that people still smoke, but Altria [NYSE: MO], the owner of Philip Morris and other tobacco-related companies, has offered strong returns to investors even as people became more aware of their product's risks. Altria has been a leader in developing e-cigarettes and other new products, and has reported growing sales and profits of more than $11 billion last year. Shares of the company are trading near a 52-week high.</p> <h2>7. Dollar Tree</h2> <p>How can you make huge profits, one dollar at a time? This company knows how. Dollar Tree [NYSE: DLTR] splurged and bought competitor Family Dollar last year, so it now owns nearly 14,000 stores in North America and is predicting more than $20 billion in sales in 2016. Investors were initially skeptical about the merger, but the company's stock price is now about $80, and some analysts think it will go above $90 by year's end as the benefits of the merger take shape.</p> <h2>8. Boxes and Packages</h2> <p>When was the last time you thought about the package an item comes in? Maybe never, right? Bemis Company has quietly served as one of the world leaders in packaging for food, electronics, and pharmaceuticals throughout North America, Central America, and Asia. It reported sales of more than $4 billion last year. Shares are up 17% to date and are trading near a 52-week high.</p> <h2>9. Paint</h2> <p>Investing in paint may seem as exciting as watching paint dry. But shares of companies that produce paint are actually quite profitable. Consider Valspar [NYSE: VAL] which just hit its highest price in a year and has been one of the stock market's most consistent performers for decades. Or Axalta, which recently got a $500 million investment from Warren Buffett's Berkshire Hathaway. (Berkshire also owns Benjamin Moore paints.) Meanwhile, Sherwin Williams shares are up nearly 30% since last fall.</p> <h2>10. Environmental Testing Equipment and... Dental Technology</h2> <p>You will never hear much about what Danaher Corp. [NYSE: DHR] does, except generate good returns for investors. The company produces a wide array of industrial products including testing instruments, technology solutions for dentists, and even laser marking for product packaging. Despite a product line that won't make headlines, Danaher has been a consistently solid performer &mdash; $1,000 invested in Danaher stock 20 years ago would be worth $21,000 today.</p> <p><em>Are any of these dull, but winning, stocks in your portfolio? </em></p> <br /><div id="custom_wisebread_footer"><div id="rss_tagline">This article is from <a href="http://www.wisebread.com/tim-lemke">Tim Lemke</a> of <a href="http://www.wisebread.com/10-boring-investments-that-are-surprisingly-profitable">Wise Bread</a>, an award-winning personal finance and <a href="http://www.wisebread.com/credit-cards">credit card comparison</a> website. Read more great articles from Wise Bread:</div><div class="view view-similarterms view-id-similarterms view-display-id-block_2 view-dom-id-3"> <div class="view-content"> <div class="item-list"> <ul> <li class="views-row views-row-1 views-row-odd views-row-first"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/10-stocks-that-are-actually-having-a-good-year">10 Stocks That Are Actually Having a Good Year</a></span> </div> </li> <li class="views-row views-row-2 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/the-9-best-performing-mutual-funds-of-the-2000s">The 9 Best Performing Mutual Funds of the 2000s</a></span> </div> </li> <li class="views-row views-row-3 views-row-odd"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/7-money-moves-to-make-as-soon-as-you-conquer-debt">7 Money Moves to Make as Soon as You Conquer Debt</a></span> </div> </li> <li class="views-row views-row-4 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/11-investing-tips-you-wish-you-could-tell-your-younger-self">11 Investing Tips You Wish You Could Tell Your Younger Self</a></span> </div> </li> <li class="views-row views-row-5 views-row-odd views-row-last"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/learn-how-to-invest-with-these-5-stock-market-games">Learn How to Invest With These 5 Stock Market Games</a></span> </div> </li> </ul> </div> </div> </div> </div><br/></br> Investment boring stocks returns share prices stock market Tue, 12 Apr 2016 10:00:11 +0000 Tim Lemke 1686648 at http://www.wisebread.com 10 Stocks That Are Actually Having a Good Year http://www.wisebread.com/10-stocks-that-are-actually-having-a-good-year <div class="field field-type-filefield field-field-blog-image"> <div class="field-items"> <div class="field-item odd"> <a href="/10-stocks-that-are-actually-having-a-good-year" class="imagecache imagecache-250w imagecache-linked imagecache-250w_linked"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/imagecache/250w/blog-images/man_growing_stocks_000048414830.jpg" alt="Man learning which stocks that are having a good year" title="" class="imagecache imagecache-250w" width="250" height="140" /></a> </div> </div> </div> <p>The market greeted 2016 with the worst two-week start since the 1800s. Despite the market's overall troubles, however, there are some promising investments to be made right now. Read on for our guide to the hottest stocks of the moment. (See also:&nbsp;<a href="http://www.wisebread.com/10-questions-to-ask-before-you-sell-a-stock-or-a-fund">10 Questions to Ask Before You Sell a Stock or a Fund</a>)</p> <h2>1. Burlington Stores</h2> <p>With 546 stores and a solid online presence, the off-price department store for coats, home goods, and clothes is growing. Burlington (<a href="http://finance.yahoo.com/q?s=BURL">BURL</a>) closed out 2015 with a value of just under $43. As of Feb. 20, the company's stock has risen to $54. Experts expect to see the company's profits soar upward of 18% in the fiscal year that ends in January 2017.</p> <h2>2. Macy's</h2> <p>America's iconic department store closed out 2015 valued at $35 per share. Macy's stock (<a href="http://finance.yahoo.com/q?s=M">M</a>) has since risen to more than $40, following a 2015 in which it had returns topping 15%.</p> <h2>3. Cabot Oil &amp; Gas</h2> <p>Cabot (<a href="http://finance.yahoo.com/q?s=COG">COG</a>) has risen two points since closing out 2015 with a value of less than $18 per share. The independent oil and gas company has been on an upward trend after dipping to $15 in early January.</p> <h2>4. Comcast</h2> <p>Comcast (<a href="http://finance.yahoo.com/q?s=CMCSA">CMCSA</a>) stock has risen 3% so far in 2016, though it more recently settled back down to $57 &mdash; the same value it held upon closing out 2015. In 2015, the company saw its top year for cable TV services in nearly a decade, which has forecasters predicting that the stock will do well again in 2016.</p> <h2>5. Eaton Corp.</h2> <p>The electrical systems maker Eaton Corporation (<a href="http://finance.yahoo.com/q?s=ETN">ETN</a>) jumped 4% in February after posting higher-than-expected earnings. Eaton is currently trading at $56.</p> <h2>6. Chipotle</h2> <p>To say that everyone's favorite burrito joint had a rough year is an understatement. Following a very public food safety scare, the Mexican grill's stock plummeted 40%, closing out 2015 just under $480. But in 2016, Chipotle's (<a href="http://finance.yahoo.com/q?s=CMG">CMG</a>) value has risen to $511 (as of February 20). Right now the stock is generally considered to be undervalued. For the patient investor, now is the time to buy-in cheaply and wait for continued growth.</p> <h2>7. Emerson Electric Co.</h2> <p>Emerson (<a href="http://www.marketwatch.com/investing/stock/emr">EMR</a>) stock value has risen one point since ending 2015 valued just under $48. The stock's annual dividend payment is currently an eyebrow-raising 4.4% &mdash; another shareholder perk.</p> <h2>8. Hormel Foods Corp.</h2> <p>Hormel (<a href="http://finance.yahoo.com/q?s=HRL">HRL</a>) stock hasn't spiked this high in years. The food company that makes SPAM is having a good moment, rising to $43 per share from $39 since the start of 2016.</p> <h2>9. Wynn Resorts</h2> <p>The high-end hotel operator is currently valued at $78 &mdash; up from $69 at the close of 2015. January was the Macau business's &quot;<a href="http://www.thestreet.com/story/13457766/1/wynn-resorts-wynn-stock-spikes-on-q4-earnings.html">best month in a long time</a>,&quot; founder Steve Wynn said on a conference call. Adding to the momentum is Wynn's (<a href="http://finance.yahoo.com/q?s=WYNN">WYNN</a>) higher-than-expected 2015 fourth quarter adjusted earnings, released in mid-February.</p> <h2>10. EQT Corp.</h2> <p>EQT Corporation (<a href="http://finance.yahoo.com/q;_ylt=AwrC1Cnp289WPzcApMSTmYlQ;_ylu=X3oDMTByMjB0aG5zBGNvbG8DYmYxBHBvcwMxBHZ0aWQDBHNlYwNzYw--?s=EQT">EQT</a>), the largest natural gas producer in the Appalachian Basin, was valued at $52 at the close of 2015. So far in 2016, the stock has spiked to nearly $59 &mdash; a good sign for the months ahead.</p> <p><em>Are any of these stocks in your portfolio?</em></p> <br /><div id="custom_wisebread_footer"><div id="rss_tagline">This article is from <a href="http://www.wisebread.com/brittany-lyte">Brittany Lyte</a> of <a href="http://www.wisebread.com/10-stocks-that-are-actually-having-a-good-year">Wise Bread</a>, an award-winning personal finance and <a href="http://www.wisebread.com/credit-cards">credit card comparison</a> website. Read more great articles from Wise Bread:</div><div class="view view-similarterms view-id-similarterms view-display-id-block_2 view-dom-id-4"> <div class="view-content"> <div class="item-list"> <ul> <li class="views-row views-row-1 views-row-odd views-row-first"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/10-boring-investments-that-are-surprisingly-profitable">10 Boring Investments That Are Surprisingly Profitable</a></span> </div> </li> <li class="views-row views-row-2 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/the-9-best-performing-mutual-funds-of-the-2000s">The 9 Best Performing Mutual Funds of the 2000s</a></span> </div> </li> <li class="views-row views-row-3 views-row-odd"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/7-money-moves-to-make-as-soon-as-you-conquer-debt">7 Money Moves to Make as Soon as You Conquer Debt</a></span> </div> </li> <li class="views-row views-row-4 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/11-investing-tips-you-wish-you-could-tell-your-younger-self">11 Investing Tips You Wish You Could Tell Your Younger Self</a></span> </div> </li> <li class="views-row views-row-5 views-row-odd views-row-last"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/learn-how-to-invest-with-these-5-stock-market-games">Learn How to Invest With These 5 Stock Market Games</a></span> </div> </li> </ul> </div> </div> </div> </div><br/></br> Investment growth hot stocks returns stock market upturn Mon, 07 Mar 2016 11:30:06 +0000 Brittany Lyte 1666377 at http://www.wisebread.com 10 Questions to Ask Before You Sell a Stock or a Fund http://www.wisebread.com/10-questions-to-ask-before-you-sell-a-stock-or-a-fund <div class="field field-type-filefield field-field-blog-image"> <div class="field-items"> <div class="field-item odd"> <a href="/10-questions-to-ask-before-you-sell-a-stock-or-a-fund" class="imagecache imagecache-250w imagecache-linked imagecache-250w_linked"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/imagecache/250w/blog-images/man_using_tablet_000057362770.jpg" alt="Man asking questions before selling stock or fund" title="" class="imagecache imagecache-250w" width="250" height="140" /></a> </div> </div> </div> <p>Legendary investor Peter Lynch said it best: &quot;In stocks, as in romance, ease of divorce is not a sound basis for commitment.&quot; A clear majority of investors agree that stocks provide the highest average annual return of most common investments, as long as you're willing to hold them for a long period of time (from 1964&ndash;2014, U.S. stocks provided a 2,300% return!).</p> <p>However, there are times that it is indeed worthwhile to bid farewell to a stock. Here are 10 useful questions to ask yourself before you sell a stock or fund.</p> <h2>1. &quot;Why Did You Buy the Stock or Fund?&quot;</h2> <p>Depending on how long ago you acquired the shares, you may not even remember why you bought that stock in the first place. If you call yourself a student of value investing (meaning that you measure the fair value of a stock based on its future earnings power), and you already want to liquidate your holdings after just three months, you're not being consistent with your original investment objective. Most successful investors agree that consistency is essential, so revisit your original reason for buying the stock and determine whether or not it's really time to sell.</p> <h2>2. &quot;What Is Your Risk Tolerance?&quot;</h2> <p>Every investor has an unique approach to wealth management and is comfortable with different price drops. As mentioned earlier, the key is to be consistent and avoid eliminating your positions due to emotions. Remember that the stock market goes up <em>and </em>down. Follow the advice of former Fed Chairman Alan Greenspan: &quot;The market pays a premium to those willing to endure the angst of watching their net worth fluctuate beyond what Wall Streeters call the 'sleeping point.'&quot; (See also: <a href="http://www.wisebread.com/3-pearls-of-financial-wisdom-from-alan-greenspan?ref=seealso">3 Pearls of Financial Wisdom From Alan Greenspan</a>)</p> <h2>3. &quot;How Is the Investment Performing Against Its Benchmark?&quot;</h2> <p>Learning that the price of your stock dropped 3% may make you nervous, but finding out that its benchmark dropped 6% over the same period puts things in perspective. Just like having an investment strategy and determining your risk tolerance, establishing a benchmark is essential to evaluate the performance of any investment. Financial advisers often suggest using an exchange-traded fund (ETF) that tracks an index, such as the S&amp;P 500 or the <a href="http://finance.yahoo.com/q?d=t&amp;s=%5ERUT">Russell 2000</a> as a benchmark. Depending on the sector of your stock, other ETFs or indices may be more appropriate. For mutual funds, consider reviewing the <a href="http://online.wsj.com/mdc/public/page/2_3020-lipperindx.html">Lipper Indexes</a> of funds with a similar investment style.</p> <h2>4. &quot;What Is the Weight of a Stock or Fund in Your Portfolio?&quot;</h2> <p>Don't sweat the small stuff! It's one thing if that your stock represents 2% of your entire portfolio, and quite another if it's 60% of your portfolio. If you did your due diligence, you selected a variety of investments so that the positive performance of some investments neutralizes the negative performance of other investments. Putting all of your eggs in one basket is never a good idea when it comes to investing, especially with your nest egg.</p> <h2>5. &quot;Do the Shares Have a Vesting Period?&quot;</h2> <p>In the event that you're thinking about selling stock that you received as part of an annual bonus, you may be out of luck. For example, your employer could have awarded 250 restricted stock units that vest over time, such as 50 units every year for the next five years. If you're on the third year out of those five, you may be able to sell 150 out of those 250 shares. To find out the vesting period and the list of applicable rules of your company stock, contact your HR department.</p> <h2>6. &quot;What Is the Total Transaction Cost of the Sale?&quot;</h2> <p>Remember to include all applicable fees in your transaction cost calculations. Among the many <a href="http://www.wisebread.com/watch-out-for-these-5-sneaky-401k-fees">sneaky 401K fees to watch for</a>, the back-end load (also known as redemption fee, exit fee, or contingent deferred sales charge) is the one that you have to pay attention to during the sale of mutual funds. While you can technically sell your shares of a mutual fund right after having loaded them into your portfolio, you may have to pay an extra fee by not holding the shares a minimum period. Back-end loads range from 0.01% to 2% and are triggered by sales within 65 days, on the average.</p> <h2>7. &quot;What Is the New Asset Mix?&quot;</h2> <p>The sale of shares may dramatically affect the asset mix of your portfolio. For the long-term retirement savings of young investors, most financial advisers recommend allocating 90% of funds to stocks and 10% to bonds. Under this scenario, by selling a large holding in your portfolio, you may decrease your stock allocation significantly! To get your asset mix back on target, you would need to exchange the old stock or mutual funds shares for some new ones. If you're planning to exchange shares within the available options of a 401K plan or investment account, watch for potentially <a href="http://www.wisebread.com/4-sneaky-investment-fees-to-watch-for">applicable sneaky investment fees</a>, including exchange fees and front-end loads.</p> <h2>8. &quot;Do You Keep Your Current Schedule of Charges?&quot;</h2> <p>On the other hand, if you decide to liquidate your holdings and cash out entirely out of your portfolio, beware the ranges of the schedule of charges of your investment account. By reducing the size of your investment portfolio, you may forfeit benefits such as reduced fees and expenses. When cashing out is a must, your financial institution could allow you to keep your current schedule of charges by signing a letter of intent to reach that threshold again within a specific period of time.</p> <h2>9. &quot;What Are the Tax Consequences of the Sale?&quot;</h2> <p>On top of any associated fees from liquidating your shares, you also face applicable income taxes on capital gains. The IRS treats capital gains from the sale of shares held for less than a year as ordinary income, but provides a tax break on sales of shares held longer &mdash; typically a <a href="http://time.com/money/2794895/do-i-pay-taxes-when-i-profit-from-a-stock-sale/">15% tax rate</a>. And if you make the mistake of taking a distribution from your retirement account for the amount of the sale before age 59 1/2, you would trigger an additional 10% early distribution penalty.</p> <p>In the event of a capital loss, remember that you have to follow the IRS' &quot;wash-sale rule&quot; to be able to claim the loss for tax purposes. The rules state that you can't buy the same or &quot;substantially identical&quot; security within 30 calendar days before or after the sale.</p> <h2>10. &quot;What Is the Opportunity Cost of the Sale?&quot;</h2> <p>While you shouldn't become a victim of paralysis-by-analysis by overthinking too many &quot;what ifs,&quot; make sure to consider the opportunity costs of liquidating your stock or mutual holding shares.</p> <p>For example, for individuals younger than 50, the annual contribution limits to a 401K plan and IRA are $18,000 and $5,500, respectively for both 2015 and 2016. Let's assume that you are age 40, plan to retire at age 65, and have an expected rate of return of 6% for your IRA. If you were to liquidate an entire $5,500 from your Roth IRA, you would forfeit an extra $23,605 of income at age 65.</p> <p>By figuring out the opportunity cost before you sell a stock or fund, you begin to understand why Warren Buffett's favorite holding period is forever.</p> <p><em>What are other questions to ask before you sell a stock or fund?</em></p> <br /><div id="custom_wisebread_footer"><div id="rss_tagline">This article is from <a href="http://www.wisebread.com/damian-davila">Damian Davila</a> of <a href="http://www.wisebread.com/10-questions-to-ask-before-you-sell-a-stock-or-a-fund">Wise Bread</a>, an award-winning personal finance and <a href="http://www.wisebread.com/credit-cards">credit card comparison</a> website. Read more great articles from Wise Bread:</div><div class="view view-similarterms view-id-similarterms view-display-id-block_2 view-dom-id-2"> <div class="view-content"> <div class="item-list"> <ul> <li class="views-row views-row-1 views-row-odd views-row-first"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/learn-how-to-invest-with-these-5-stock-market-games">Learn How to Invest With These 5 Stock Market Games</a></span> </div> </li> <li class="views-row views-row-2 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/the-debate-between-buy-and-hold-vs-timing-the-market">The Debate Between Buy and Hold vs Timing The Market</a></span> </div> </li> <li class="views-row views-row-3 views-row-odd"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/4-ways-to-spring-clean-your-investment-portfolio">4 Ways to Spring-Clean Your Investment Portfolio</a></span> </div> </li> <li class="views-row views-row-4 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/10-deliciously-profitable-food-and-beverage-stocks">10 Deliciously Profitable Food and Beverage Stocks</a></span> </div> </li> <li class="views-row views-row-5 views-row-odd views-row-last"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/the-4-best-investments-for-lazy-investors">The 4 Best Investments for Lazy Investors</a></span> </div> </li> </ul> </div> </div> </div> </div><br/></br> Investment annual returns funds hold risk selling stock market stocks vesting period Mon, 29 Feb 2016 11:30:05 +0000 Damian Davila 1661853 at http://www.wisebread.com Are You a Value or Growth Investor? Take This Quiz http://www.wisebread.com/are-you-a-value-or-growth-investor-take-this-quiz <div class="field field-type-filefield field-field-blog-image"> <div class="field-items"> <div class="field-item odd"> <a href="/are-you-a-value-or-growth-investor-take-this-quiz" class="imagecache imagecache-250w imagecache-linked imagecache-250w_linked"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/imagecache/250w/blog-images/woman_piggy_bank_000017048013.jpg" alt="Woman learning if she is a value or growth investor" title="" class="imagecache imagecache-250w" width="250" height="140" /></a> </div> </div> </div> <p>If the tortoise and the hare were investors, their investing styles would be pretty obvious. The tortoise would buy &quot;value&quot; stocks, and the hare would be a &quot;growth&quot; <a href="http://www.wisebread.com/the-5-most-successful-investors-youve-never-heard-of">stock investor</a>.</p> <p>Value stocks are often cheaper, undervalued stocks of companies that nonetheless have long-term earnings potential. Meanwhile, growth stocks tend to focus on sectors such as technology or health care, where more rapid appreciation and price to earnings ratios are common.</p> <p>Each offers a different timeline for investors, who may differ in their risk capacity. Are you a tortoise or a hare &mdash; a value or growth investor? Take our quiz:</p> <h2>1. Can You Wait 31 Years?</h2> <p>If you plan to remain fully invested for a long time, you're likely to win the race &mdash; as the tortoise does in Aesop's fable &mdash; with a slow and steady approach as a value investor.</p> <p>In a comparison of value and growth stock market indexes by Wiley Global Finance, the <a href="https://www.fidelity.com/learning-center/trading-investing/trading/value-investing-vs-growth-investing">31-year annualized return</a> of growth-oriented large-cap U.S. stocks was 9.91%, while similar value-oriented indexes outperformed them with an average return of 11.66%.</p> <p>An initial $10,000 investment would grow to $187,071 with the growth stocks, and $305,169 with the value stocks. In other words, long-term returns were 63% better for the value stocks.</p> <h2>2. Do You Want to Be Part of the &quot;In&quot; Crowd?</h2> <p>If you enjoy talking with coworkers and friends about the latest tech stock you bought (and hopefully profited from in a big way), then a growth stock is what you want. If you're willing to take a chance on the next big thing, then you're a hare.</p> <p>Facebook, Amazon, Netflix, and Alphabet (nee Google) are examples of companies with rapidly growing revenue. Those four companies were expected to have <a href="http://www.nytimes.com/2016/01/25/technology/looking-for-signs-that-apples-runaway-growth-is-waning.html?_r=1">annual revenue gains of 23%&ndash;40%</a> during the last three months of 2015, according to Bloomberg data in the New York Times.</p> <p>On the other hand, aging companies such as Cisco, Oracle, and Intel are value stocks that may not grow as fast in price as growth stocks.</p> <h2>3. Do You Mind Paying More for a Stock?</h2> <p>If you don't mind paying more for a stock that is expected to grow quickly, then a growth stock could be worth your money.</p> <p>But if the thought of potentially overpaying makes you nervous, then you're a value investor who would rather get a deal on an undervalued stock.</p> <p>One way to determine if you're overpaying or getting a deal is to look at price-to-earning ratios, or the P/E ratio.</p> <p>A stock <em>could</em> be a value stock if it has a lower price-to-earnings ratio, meaning it has a lower price per share relative to the company's earnings per share. But take note: A low P/E ratio doesn't necessarily mean a stock is undervalued or a good buy &mdash; it could just mean it's a bad stock. You'll need to understand whether the company's long-term prospects are better than its low P/E ratio suggests in order to determine whether it's a worthy buy. By contrast, growth stocks have higher P/Es and thus a higher price per share because the stock price is expected to grow faster.</p> <p>Netflix, for example, had a recent P/E of 301.4. Oracle had a P/E of 17.17.</p> <h2>4. Do You Plan to Make Significant Withdrawals From Your Portfolio Soon?</h2> <p>If you have major expenses such as buying a home or paying for college in the next five years, then you probably don't want to be a value investor.</p> <p>While value stocks are known for outperforming over the long term, they're likely to underperform the market for shorter periods. Value companies can face slow growth and possibly declining revenues and profits over the short term, causing their price to drop over a few years.</p> <p>While growth stocks are no guarantee of a short-term profit, they're more likely to lead to it than value stocks are.</p> <p>Planning for large, quick profits from the stock market is risky. If you expect to need that money within the next five years, then at least a mix of value and growth stocks or another type of investment may be the best route.</p> <p>Determining if you're a tortoise or a hare &mdash; a value or growth investor &mdash; is a personal choice that can largely be based on your risk tolerance. These types of investments don't usually go up together at the same time &mdash; one will usually rise while the other drops &mdash; so a long-term plan and a mix of both could turn your portfolio into a hybrid of the tortoise and the hare.</p> <p>Aesop may not be so fond of such a combination, but your investment portfolio might thank you.</p> <p><em>Are you value or growth?</em></p> <br /><div id="custom_wisebread_footer"><div id="rss_tagline">This article is from <a href="http://www.wisebread.com/aaron-crowe">Aaron Crowe</a> of <a href="http://www.wisebread.com/are-you-a-value-or-growth-investor-take-this-quiz">Wise Bread</a>, an award-winning personal finance and <a href="http://www.wisebread.com/credit-cards">credit card comparison</a> website. Read more great articles from Wise Bread:</div><div class="view view-similarterms view-id-similarterms view-display-id-block_2 view-dom-id-1"> <div class="view-content"> <div class="item-list"> <ul> <li class="views-row views-row-1 views-row-odd views-row-first"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/7-money-moves-to-make-as-soon-as-you-conquer-debt">7 Money Moves to Make as Soon as You Conquer Debt</a></span> </div> </li> <li class="views-row views-row-2 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/learn-how-to-invest-with-these-5-stock-market-games">Learn How to Invest With These 5 Stock Market Games</a></span> </div> </li> <li class="views-row views-row-3 views-row-odd"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/5-reasons-to-stay-away-from-penny-stocks">5 Reasons to Stay Away From Penny Stocks</a></span> </div> </li> <li class="views-row views-row-4 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/the-6-best-financial-news-sites-for-investors-in-a-hurry">The 6 Best Financial News Sites for Investors in a Hurry</a></span> </div> </li> <li class="views-row views-row-5 views-row-odd views-row-last"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/are-you-making-the-biggest-investment-risk-of-all">Are You Making the Biggest Investment Risk of All?</a></span> </div> </li> </ul> </div> </div> </div> </div><br/></br> Investment growth investor p/e ratios quiz stock market value investor Wed, 24 Feb 2016 11:00:11 +0000 Aaron Crowe 1659931 at http://www.wisebread.com 6 Sobering Facts About the Stock Market http://www.wisebread.com/6-sobering-facts-about-the-stock-market <div class="field field-type-filefield field-field-blog-image"> <div class="field-items"> <div class="field-item odd"> <a href="/6-sobering-facts-about-the-stock-market" class="imagecache imagecache-250w imagecache-linked imagecache-250w_linked"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/imagecache/250w/blog-images/man_reading_paper_000053942274.jpg" alt="Man learning sobering facts about the stock market" title="" class="imagecache imagecache-250w" width="250" height="140" /></a> </div> </div> </div> <p>The market's downright disappointing start to 2016 (the worst yearly start since 1928), demonstrates that putting money in the market can be a sobering experience. Even when things are moving in a favorable direction, investing is not for the faint of heart. Here are six inconvenient truths about the stock market.</p> <h2>1. The Market Doesn't Always Go Up</h2> <p>While the stock market's long-term trend has been upward, its path has been neither straight nor smooth. Instead, it's been marked by many twists and turns, with some scary downturns thrown in for good measure.</p> <p>It's easy to make the mistake of hearing about the market's performance for a given year &mdash; say it grew by 14% &mdash; and assume it moved from January 1st to December 31st in a straight, smooth upward path. But it doesn't usually work that way.</p> <p>Let's look at 2013 to illustrate the point. That was a year when the S&amp;P 500 generated a remarkable return of <em>nearly 30%</em>. But there were quite a few downturns along the way, including a more than 2% decline on April 15th, the day of the Boston Marathon bombing. Each time the market slipped, you can be sure many investors wondered whether it would continue to fall, and if so, how far.</p> <p>Those who stayed invested were handsomely rewarded, but the ride got a bit scary at numerous times throughout the year.</p> <h2>2. The Market Regularly Goes Down</h2> <p>From 1900 through 2013, there were 123 corrections (about one per year) and 32 bear markets (one every 3.5 years), according to Ned Davis Research.</p> <p><em>Correction</em> is a deceptively neutral-sounding term. When it comes to the stock market, a correction doesn't mean a mistake was found and fixed. It refers to a market decline of at least 10% from its most recent high.</p> <p>Bear markets are even more severe. They're defined as a decline of at least <em>20%</em> from the market's most recent high.</p> <p>Downturns of any kind can be scary. But if you come to expect them from time to time, it can take away some of the fear.</p> <h2>3. No One Knows Which Way the Market Will Go Next</h2> <p>Every January, without fail, stock market prognosticators come out of the woodwork, gaze into their crystal balls, and tell all who will listen where the market will be 12 months later and what sectors will be especially hot. Most fail.</p> <p>Among recent examples, the consensus forecast called for high single digit market growth in 2015. It ended the year flat. Merrill Lynch thought energy stocks looked promising for 2015. The sector fell 25%.</p> <h2>4. You Can't Time the Market</h2> <p>There are countless studies that demonstrate the impossibility of determining the best times for investors to get in and out of the market. For example, a Morningstar study found that in a 10-year period through the end of 2013, the average mutual fund investor underperformed the average fund performance by <a href="http://news.morningstar.com/articlenet/article.aspx?id=637022&amp;sr=wt0110">2.5% per year</a>. &quot;In 2009,&quot; the company noted, &quot;money flew out of stock funds, but that proved to be the bottom of the market and a great spot to get in.&quot;</p> <p>Even if you are able to get out of the market right before a big decline, chances are you'll be unable to get back in at the right time. Once fear has driven you out, that same fear will make you hesitant to get back in.</p> <p>The good news is that you don't have to pull off the impossible task of perfectly determining the <em>best </em>time to invest. Consistently investing at the <em>same </em>time each month (which is called &quot;dollar-cost averaging&quot;) has proven very effective over time.</p> <h2>5. The Biggest Threat to Successful Investing Is You</h2> <p>There are numerous risks investors face: inflation risk, longevity risk (the ironically-named fear of living a long life, which can be a problem if you don't have enough money saved to cover your costs of living), and market risk, just to name three of the biggest. But an even greater risk is the possibility that you will do something to run your portfolio off the rails.</p> <p>In addition to ill-advised attempts at market timing, some investors become over-confident during times of rising markets and take on more risk than they should. For others, lethargy is the problem. According to a UBS study, the average Millennial has over half of his or her <a href="https://www.ubs.com/content/dam/WealthManagementAmericas/documents/investor-watch-1Q2014-report.pdf">investment portfolio in cash</a>! Such investors are squandering their unique advantage of having time to maximize the impact of compound interest.</p> <h2>6. You Need the Stock Market</h2> <p>Perhaps most sobering of all, the stock market represents your best opportunity to generate the sort of gains required in order for you to afford all that you'll need and want in your later years. Over the long haul, the <a href="http://investmentsillustrated.com/clients/crsp/bigpicture/">stock market has outperformed</a> inflation, cash, bonds, gold, and real estate.</p> <p>So, make peace with the market. Learn some of the essentials &mdash; such as the power of compound interest, how to determine your optimal <a href="http://www.wisebread.com/the-basics-of-asset-allocation">asset allocation</a>, and the importance of adopting the mindset of a long-term investor, not a short-term trader. Then find and implement a strategy you can stay with no matter how sobering market conditions are at the moment.</p> <p><em>How have you come to terms with the risks of investing?</em></p> <br /><div id="custom_wisebread_footer"><div id="rss_tagline">This article is from <a href="http://www.wisebread.com/matt-bell">Matt Bell</a> of <a href="http://www.wisebread.com/6-sobering-facts-about-the-stock-market">Wise Bread</a>, an award-winning personal finance and <a href="http://www.wisebread.com/credit-cards">credit card comparison</a> website. Read more great articles from Wise Bread:</div><div class="view view-similarterms view-id-similarterms view-display-id-block_2 view-dom-id-1"> <div class="view-content"> <div class="item-list"> <ul> <li class="views-row views-row-1 views-row-odd views-row-first"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/7-money-moves-to-make-as-soon-as-you-conquer-debt">7 Money Moves to Make as Soon as You Conquer Debt</a></span> </div> </li> <li class="views-row views-row-2 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/learn-how-to-invest-with-these-5-stock-market-games">Learn How to Invest With These 5 Stock Market Games</a></span> </div> </li> <li class="views-row views-row-3 views-row-odd"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/5-reasons-to-stay-away-from-penny-stocks">5 Reasons to Stay Away From Penny Stocks</a></span> </div> </li> <li class="views-row views-row-4 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/the-6-best-financial-news-sites-for-investors-in-a-hurry">The 6 Best Financial News Sites for Investors in a Hurry</a></span> </div> </li> <li class="views-row views-row-5 views-row-odd views-row-last"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/are-you-making-the-biggest-investment-risk-of-all">Are You Making the Biggest Investment Risk of All?</a></span> </div> </li> </ul> </div> </div> </div> </div><br/></br> Investment bear markets corrections predicting stock market timing Thu, 28 Jan 2016 14:00:05 +0000 Matt Bell 1643288 at http://www.wisebread.com The 6 Best Financial News Sites for Investors in a Hurry http://www.wisebread.com/the-6-best-financial-news-sites-for-investors-in-a-hurry <div class="field field-type-filefield field-field-blog-image"> <div class="field-items"> <div class="field-item odd"> <a href="/the-6-best-financial-news-sites-for-investors-in-a-hurry" class="imagecache imagecache-250w imagecache-linked imagecache-250w_linked"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/imagecache/250w/blog-images/man_using_tablet_000058336726.jpg" alt="Man using best financial news sites as an investor in a hurry" title="" class="imagecache imagecache-250w" width="250" height="140" /></a> </div> </div> </div> <p>Good investment decisions start with industry knowledge, information, and research. And as an investor, you probably already understand that news moves markets. But being the busy person you are, you're probably already inundated with tasks, making sifting through the plethora of information feel like a job in itself.</p> <p>Not sure where to get your investing news and information in a pinch? For our most time-conscious investors, here are the six best investments sites. (See also:&nbsp;<a href="http://www.wisebread.com/find-the-investing-style-thats-right-for-you">Find the Investing Style That's Right for You</a>)</p> <h2>1. Yahoo! Finance</h2> <p><a href="http://finance.yahoo.com/">Yahoo! Finance</a> aggregates the latest financial news stories and market data onto a single platform, including the latest in international news and markets. Users can create a watchlist to follow their favorite stocks, and when they login, they can view all market updates and news for stocks they follow. I particularly like how this site also pulls the latest news stories pertaining to stocks that may have a positive or negative correlation to those you follow.</p> <h2>2. CNBC</h2> <p>The CNBC TV network delivers real-time financial market data and updates, all day. That same news, information, and more is also available at your fingertips online over at <a href="http://www.cnbc.com/">CNBC.com</a>. I recommend that busy investors find time to tune-in to CNBC's programming and watch shows like Fast Money, Jim Cramer's Mad Money, Power Lunch, and others. These shows offer some of the most up-to-date coverage available and will help improve your analysis of markets. But if time's short, you can get video clips, articles, and other updates from those same shows' experts on the website.</p> <h2>3. Bloomberg</h2> <p>Bloomberg L.P. is where seasoned investors turn for some of the most trusted financial information. <a href="http://www.bloomberg.com/markets">Bloomberg Markets</a> keeps you informed by broadcasting news and analysis all day. For investors on the go, try any of <a href="http://www.bloomberg.com/mobile/">Bloomberg's mobile apps</a>, like Bloomberg TV, Bloomberg Business, Bloomberg Businessweek, and more. For professional investors whose employers are footing the bill, Bloomberg also offers <a href="http://www.bloomberg.com/professional/">Bloomberg Professional</a>, a subscription service featuring Bloomberg Terminal.</p> <h2>4. TheStreet</h2> <p>Created by CNBC's Mad Money host Jim Cramer (and Marty Peretz), <a href="http://www.thestreet.com/">TheStreet</a> is a leading financial news site. But the real attraction to the site is founder Jim Cramer and his expert investment knowledge, from the Cramer Stock Picks Newsletter and blog to his investment portfolio and insights. I've watched him since 2007 and have been successful with many stock picks adapted from his show (your performance may vary, of course). The site's <a href="https://secure2.thestreet.com/cap/login/aa_mbp_ft_video-wc_button_autoplay-on.jsp?CREATIVECODE=cr-0012&amp;PPOID_1=400041&amp;flowid=11fde9d41a2&amp;url=http%3A%2F%2Fwww.thestreet.com%2Fk%2Faap%2F_tscnav%2Findex.html">Action Alert PLUS</a> is a subscription service that grants subscribers access to research provided by TheStreet's team of analysts for $349.95 per year.</p> <h2>5. Zacks</h2> <p>Founded in 1977, Zacks Investment Research is another leading financial news and research site committed to helping investors reach their investment goals. Some of the site features include <a href="http://www.zacks.com/stocks/zacks-rank">Zacks Ranks</a>, a list of the company's top stock picks, <a href="http://www.zacks.com/education/stock-education">Zacks Education</a>, a series of readings and video, and <a href="http://www.zacks.com/portfolios/my-stock-portfolio/create-new-portfolio.php">Portfolio Tracker</a>, a service that lets you add holdings to your portfolio and receive free broker recommendations, company updates, email alerts, and more. And one of the main features of the site is its extensive Earning Per Share (EPS) data and analysis.</p> <h2>6. The Motley Fool</h2> <p>Like all of our best investment sites, <a href="http://www.fool.com/">The Motley Fool</a> offers news, insights, and analysis. The site also offers virtual advisor services for an annual premiums of $149 to $2,000. Another feature of the site is its forum of individual investors sharing insights and tips through its various discussion boards.</p> <p>The Wall Street Journal Digital Network (WSJDN) is also worth mentioning. The network includes the <a href="http://www.wsj.com/">WSJ</a>, of course, <a href="http://www.barrons.com/">Barron's</a> (which has been around as a leading financial news service since 1921), and <a href="http://www.marketwatch.com/">MarketWatch</a>, which offers several subscription-based financial newsletters such as <a href="http://www.marketwatch.com/premium-newsletters/hulbert-financial-digest">Hulbert Financial Digest</a>, <a href="http://www.marketwatch.com/premium-newsletters/marketwatch-options-trader">Options Trader</a>, <a href="http://www.marketwatch.com/newsimages/support/marketing/retirementweekly/20070703/drjuly07p3h.html">Retirement Weekly</a>, and <a href="http://www.marketwatch.com/premium-newsletters/etf-trader">ETF Trader</a>.</p> <p>Note: The sites suggested in this article were recommended in consideration of equity investors. Where you turn for market news and information should depend on your investment strategies.</p> <p><em>Where do you go for investing news and resources?</em></p> <br /><div id="custom_wisebread_footer"><div id="rss_tagline">This article is from <a href="http://www.wisebread.com/qiana-chavaia">Qiana Chavaia</a> of <a href="http://www.wisebread.com/the-6-best-financial-news-sites-for-investors-in-a-hurry">Wise Bread</a>, an award-winning personal finance and <a href="http://www.wisebread.com/credit-cards">credit card comparison</a> website. Read more great articles from Wise Bread:</div><div class="view view-similarterms view-id-similarterms view-display-id-block_2 view-dom-id-2"> <div class="view-content"> <div class="item-list"> <ul> <li class="views-row views-row-1 views-row-odd views-row-first"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/7-money-moves-to-make-as-soon-as-you-conquer-debt">7 Money Moves to Make as Soon as You Conquer Debt</a></span> </div> </li> <li class="views-row views-row-2 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/5-best-websites-to-help-you-retire-early">5 Best Websites to Help You Retire Early</a></span> </div> </li> <li class="views-row views-row-3 views-row-odd"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/how-to-improve-your-finances-using-social-media">How to Improve Your Finances Using Social Media</a></span> </div> </li> <li class="views-row views-row-4 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/are-you-choosing-the-right-fund-for-your-portfolio">Are You Choosing the Right Fund for Your Portfolio?</a></span> </div> </li> <li class="views-row views-row-5 views-row-odd views-row-last"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/5-reasons-to-stay-away-from-penny-stocks">5 Reasons to Stay Away From Penny Stocks</a></span> </div> </li> </ul> </div> </div> </div> </div><br/></br> Investment advice blogs finance sites newsletters stock market websites Thu, 21 Jan 2016 18:01:02 +0000 Qiana Chavaia 1642420 at http://www.wisebread.com Learn How to Invest With These 5 Stock Market Games http://www.wisebread.com/learn-how-to-invest-with-these-5-stock-market-games <div class="field field-type-filefield field-field-blog-image"> <div class="field-items"> <div class="field-item odd"> <a href="/learn-how-to-invest-with-these-5-stock-market-games" class="imagecache imagecache-250w imagecache-linked imagecache-250w_linked"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/imagecache/250w/blog-images/woman_investment_tablet_000044888130.jpg" alt="Woman learning how to invest with stock market games" title="" class="imagecache imagecache-250w" width="250" height="140" /></a> </div> </div> </div> <p>Have you ever wondered how you can learn to invest without risking your hard-earned cash? Stock market simulators may be the magic ticket. Most major brokerages offer online stock trading simulators that allow you to invest with pretend money, helping you learn the ropes before you plunk down real cash.</p> <p>Your account comes preloaded with a lump sum of pretend money, and your trades and investments fluctuate based on real market conditions, allowing you to see how they'd actually perform. Ready to get started? Try one of these five stock market simulators, and get comfortable with investing without risking a single hard-earned dollar. (See also:&nbsp;<a href="http://www.wisebread.com/the-best-ways-to-invest-50-500-or-5000">The Best Ways to Invest $50, $500, or $5000</a>)</p> <h2>1. TD Bank Wow!Zone</h2> <p><a href="http://virtualstockmarket.tdbank.com/">TD Bank's Fantasy Stock Market</a> game is designed for kids and young adults, but its stock market simulator is a useful tool for all beginner investors. Players start with a $100,000 play money portfolio balance and can trade on any of the U.S. stock exchanges.</p> <h2>2. optionsXpress by Charles Schwab</h2> <p>If you have more advanced market knowledge and want to test a new trading strategy before risking your own investments, try <a href="http://www.optionsxpress.com/">optionsXpress</a> by Charles Schwab. Here you can trade stocks, options, and futures, place advanced orders, and play around with 40 trading tools to help you analyze market conditions. Your account comes preloaded with $25,000 in virtual cash. Sign up for your <a href="http://www.optionsxpress.com/tools_research/virtual_trade.aspx">free optionsXpress account</a> to get started.</p> <h2>3. ScottradeELITE</h2> <p>Similar to optionsXpress, the <a href="https://research.scottrade.com/knowledgecenter/Public/help/Article?docId=767460b36aa84c2f8117fc6b92d0d876">ScottradeELITE</a> virtual trading platform allows users to place mock trades, access research tools, and test trading strategies. Accessing the platform requires software installation.</p> <h2>4. Wall Street Survivor</h2> <p><a href="http://www.wallstreetsurvivor.com/">Wall Street Survivor's</a> interactive platform has been recommended by Forbes, and it promises to teach users the fundamentals of personal finance, trading stocks, bonds, mutual funds, futures, currencies, and options. Users gain access a full suite of online resources, including virtual leagues, courses, videos, and article archives on investing topics and ideas.</p> <h2>5. Investopedia</h2> <p><a href="http://www.investopedia.com/simulator/">Investopedia's stock simulator</a> is one of the most robust platforms available for those just starting out. The website also offers free basic investing education via Investopedia University, along with thousands of insightful articles, and in-depth &quot;how to&quot; guides ranging from <a href="http://www.investopedia.com/university/beginner/?header_alt=true">Investing 101: Introduction</a> to advanced trading strategies. All users start out with an account balance of $100,000 in virtual capital.</p> <p><em>What's your favorite investing simulator or game? </em></p> <br /><div id="custom_wisebread_footer"><div id="rss_tagline">This article is from <a href="http://www.wisebread.com/qiana-chavaia">Qiana Chavaia</a> of <a href="http://www.wisebread.com/learn-how-to-invest-with-these-5-stock-market-games">Wise Bread</a>, an award-winning personal finance and <a href="http://www.wisebread.com/credit-cards">credit card comparison</a> website. Read more great articles from Wise Bread:</div><div class="view view-similarterms view-id-similarterms view-display-id-block_2 view-dom-id-5"> <div class="view-content"> <div class="item-list"> <ul> <li class="views-row views-row-1 views-row-odd views-row-first"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/how-much-can-you-afford-to-risk-in-a-play-money-account">How Much Can You Afford to Risk In a Play Money Account?</a></span> </div> </li> <li class="views-row views-row-2 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/10-questions-to-ask-before-you-sell-a-stock-or-a-fund">10 Questions to Ask Before You Sell a Stock or a Fund</a></span> </div> </li> <li class="views-row views-row-3 views-row-odd"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/7-money-moves-to-make-as-soon-as-you-conquer-debt">7 Money Moves to Make as Soon as You Conquer Debt</a></span> </div> </li> <li class="views-row views-row-4 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/the-6-best-financial-news-sites-for-investors-in-a-hurry">The 6 Best Financial News Sites for Investors in a Hurry</a></span> </div> </li> <li class="views-row views-row-5 views-row-odd views-row-last"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/5-reasons-to-stay-away-from-penny-stocks">5 Reasons to Stay Away From Penny Stocks</a></span> </div> </li> </ul> </div> </div> </div> </div><br/></br> Investment play money risk simulators stock market Fri, 08 Jan 2016 14:00:03 +0000 Qiana Chavaia 1634306 at http://www.wisebread.com