stock market http://www.wisebread.com/taxonomy/term/1549/all en-US 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-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/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-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-3 views-row-odd"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/who-cares-about-where-the-stock-market-is-headed">Who Cares About Where The Stock Market Is Headed?</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-stocks-to-invest-in-during-the-holidays">10 Stocks to Invest in During the Holidays</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/10-deliciously-profitable-food-and-beverage-stocks">10 Deliciously Profitable Food and Beverage Stocks</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-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/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-2 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/7-things-your-financial-advisor-wishes-you-knew">7 Things Your Financial Advisor Wishes You Knew</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/6-sobering-facts-about-the-stock-market">6 Sobering Facts About the Stock Market</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/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-5 views-row-odd views-row-last"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/who-cares-about-where-the-stock-market-is-headed">Who Cares About Where The Stock Market Is Headed?</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-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/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/6-sobering-facts-about-the-stock-market">6 Sobering Facts About the Stock 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/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-4 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/who-cares-about-where-the-stock-market-is-headed">Who Cares About Where The Stock Market Is Headed?</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/10-stocks-to-invest-in-during-the-holidays">10 Stocks to Invest in During the Holidays</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 10 Stocks to Invest in During the Holidays http://www.wisebread.com/10-stocks-to-invest-in-during-the-holidays <div class="field field-type-filefield field-field-blog-image"> <div class="field-items"> <div class="field-item odd"> <a href="/10-stocks-to-invest-in-during-the-holidays" class="imagecache imagecache-250w imagecache-linked imagecache-250w_linked"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/imagecache/250w/blog-images/large_cruise_ship_000032123654.jpg" alt="Finding stocks to invest in during the holidays" title="" class="imagecache imagecache-250w" width="250" height="140" /></a> </div> </div> </div> <p>If you've been out to the malls or shopped online recently, you'll be fully aware that the holidays are approaching.</p> <p>For many companies, the months of November and December are make or break time. Retailers rely on holiday sales to hit revenue targets. Investors can take advantage of this holiday blitz by buying shares of those companies poised for an end-of-year boost.</p> <p>Here are 10 <a href="http://www.wisebread.com/stabilize-your-portfolio-with-these-11-dividend-stocks">stocks worth eyeing</a> as the winter holidays approach.</p> <h2>1. Amazon [NASDAQ: <a href="http://www.nasdaq.com/symbol/amzn">AMZN</a>]</h2> <p>The National Retail Federation is predicting online retail sales to jump 6%&ndash;8% this year. As the world's largest online retailer, Amazon will benefit from this perhaps more than anyone. It recently opened a &quot;Black Friday Deals&quot; store, with 30,000 deals available to Amazon Prime members.</p> <h2>2. Wal-Mart [NYSE: <a href="http://finance.yahoo.com/q?s=WMT">WMT</a>]</h2> <p>Have you ever seen a Walmart store on Black Friday? Demand for deals places this top retailer in a position to cash in every year, usually to the benefit of shareholders. Wal-Mart's investments in online sales should pay off here, as well.</p> <h2>3. FedEx [NYSE: <a href="http://finance.yahoo.com/q?s=FDX">FDX</a>]</h2> <p>Forget Santa and his sleigh &mdash; this company has found a way to really cash in on holiday sales. It saw package volume jump nearly 9% during last year's Christmas season, and it's getting better and better at delivering packages on time every year. With an increasing number of people shopping online during the holidays, FedEx is always poised to do big business this time of year. Look to competitor UPS [NYSE: <a href="http://finance.yahoo.com/q?s=UPS">UPS</a>] to have a great holiday season, too.</p> <h2>4. Best Buy [NYSE: <a href="http://finance.yahoo.com/q?s=BBY">BBY</a>]</h2> <p>I am not normally a big fan of investing in &quot;big box&quot; retail, but Best Buy usually does well this time of year as the go-to place for many of the most popular consumer electronics. And the company is being aggressive online as well, after announcing it will offer free shipping with no minimum purchase through the holiday. Best Buy is rolling out &quot;Black Friday&quot; sales as early as November 7. Can the costs of offering deep discounts and free shopping be offset by higher sales? Investors hope so.</p> <h2>5. Foot Locker [NASDAQ: <a href="http://www.nasdaq.com/symbol/fl">FL</a>]</h2> <p>This retailer has been on a tear in 2015, with shares up 25% on the year. In the last fiscal quarter, the company saw net income rise 29% over the same quarter a year ago. Analysts predict that the company will see a 17% rise in earnings for the year. A strong holiday season will make investors a very happy bunch.</p> <h2>6. Big Lots [NYSE: <a href="http://finance.yahoo.com/q?s=BIG">BIG</a>]</h2> <p>Few multi-line retailers have had as good a year as Big Lots, with shares up 15% on the year. It's already getting buzz for its new &quot;Black Friday Deals Every Day&quot; campaign, and two new commercials. Analysts are predicting earnings to rise about 20% in 2015 when compared to last year.</p> <h2>7. Nike [NYSE: <a href="http://finance.yahoo.com/q?s=NKE">NKE</a>]</h2> <p>The athletic footwear and sports equipment manufacturer had a great year and is expected to enter 2016 with a lot of momentum. Shares are up 40% on the year, and there's buzz about the company's sponsorship of next year's Summer Olympics in Rio de Janeiro. Nike announced it set an aggressive goal of $50 billion in annual sales by 2020.</p> <h2>8. Royal Caribbean [NYSE: <a href="http://finance.yahoo.com/q?s=RCL">RCL</a>]</h2> <p>The travel industry often gets a bump around the holidays, as people find the time to get away to warmer climates. Shares of Royal Caribbean are near a 52-week high, as analysts recently predicted earnings would rise 37% in 2015 compared to last year.</p> <h2>9. Ross Stores [NYSE: <a href="http://finance.yahoo.com/q?s=ROST">ROST</a>]</h2> <p>This discount retailer has been a consistent solid performer over the holiday season in recent years. Morgan Stanley reported that the stock price has gone up an average of 1.2% after every fourth quarter earning report dating back to 2010. Shares are already up 25% in the last 12 months, making Ross one of the better-performing retailers out there.</p> <h2>10. JetBlue [NYSE: <a href="http://finance.yahoo.com/q?s=JBLU">JBLU</a>]</h2> <p>Planes will be full during the holidays, and with oil prices at super-low levels, airlines should be pulling in solid profits. Consumer Reports recently rated JetBlue its top overall airline, giving the company some nice publicity heading into the heavy travel season. Shares of JetBlue have more than doubled in value this year.</p> <p><em>How will you plump up your portfolio this holiday season?</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-stocks-to-invest-in-during-the-holidays">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-8"> <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/15-cheap-and-delicious-punch-recipes-for-holiday-parties">15 Cheap and Delicious Punch Recipes for Holiday Parties</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-deliciously-profitable-food-and-beverage-stocks">10 Deliciously Profitable Food and Beverage Stocks</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-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-4 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/survive-the-bear-market-10-steps-to-ride-the-downturn">Survive The Bear Market: 10 Steps To Ride The Downturn</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/if-youd-held-these-10-stocks-instead-of-sold-youd-be-rich-now">If You&#039;d Held These 10 Stocks Instead of Sold, You&#039;d Be Rich Now</a></span> </div> </li> </ul> </div> </div> </div> </div><br/></br> Investment Christmas Holidays stock market stocks winter Tue, 24 Nov 2015 14:00:03 +0000 Tim Lemke 1615575 at http://www.wisebread.com 10 Deliciously Profitable Food and Beverage Stocks http://www.wisebread.com/10-deliciously-profitable-food-and-beverage-stocks <div class="field field-type-filefield field-field-blog-image"> <div class="field-items"> <div class="field-item odd"> <a href="/10-deliciously-profitable-food-and-beverage-stocks" class="imagecache imagecache-250w imagecache-linked imagecache-250w_linked"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/imagecache/250w/blog-images/starbucks_coffee_cups_000018322629.jpg" alt="Finding deliciously profitable food stocks to buy" title="" class="imagecache imagecache-250w" width="250" height="140" /></a> </div> </div> </div> <p>Everyone has to eat. That's why food stocks can often be some of the most <a href="http://www.wisebread.com/tesla-six-flags-and-9-other-adventure-stocks-worth-investing-in">consistent performers</a> in the market. From restaurants to coffee chains and brewers, companies in the business of feeding the masses can be hugely profitable enterprises.</p> <p>Here are 10 of the best performing food stocks trading today.</p> <h2>1. Starbucks [NYSE: <a href="http://finance.yahoo.com/q?s=SBUX">SBUX</a>]</h2> <p>Those cups of joe have equaled cauldrons of profits for the Seattle coffee behemoth. Shares are up 52% in the last 12 months, and kudos to anyone who bought in back at the start of 2009, when the company was trading at a mere $4 a share. Starbucks pulled in $2 billion in profits last year on $16.4 billion revenue, making the bean counters very happy.</p> <h2>2. Monster Beverage [NASDAQ: <a href="http://finance.yahoo.com/q?s=MNST">MNST</a>]</h2> <p>There are few stocks of any kind that have grown at the pace of this maker of energy drinks. Shares are up 45% this year, and nearly 500% in the last five years. Investors should love the annual profits of $483 million on revenues of nearly $2.5 billion.</p> <h2>3. Molson Coors Brewing [NYSE: <a href="http://finance.yahoo.com/q?s=TAP">TAP</a>]</h2> <p>Other brewers get the headlines, but this company has seen steady and strong growth for years. Shares are up about 14% in the last three months, and 24% in the last three years. As people have moved away from low-priced beers to more &quot;premium&quot; brands, Molson Coors has seen increases in sales to its higher end Blue Moon, Leinenkugel's, and Redd's brands.</p> <h2>4. Chipotle Mexican Grill [NYSE: <a href="http://finance.yahoo.com/q?s=CMG">CMG</a>]</h2> <p>Perhaps no restaurant has benefitted more from the push away from fast food toward &quot;fast casual.&quot; Shares of the burrito chain are up 17% in the last three months, and 30% in the last three years. Chipotle pulled in $4 billion in revenue last year, with profits of $445 million.</p> <h2>5. Buffalo Wild Wings [NYSE: <a href="http://finance.yahoo.com/q?s=BWLD">BWLD</a>]</h2> <p>It's football season, so it's a good time of year for &quot;B-Dubs,&quot; which is growing faster than almost any restaurant chain in America. The company recorded net income of $21 million during the last quarter, on a record $466 million in revenue. That type of profitability has been great for shareholders, who've seen a 24% return over the last three months.</p> <h2>6. Papa John's [NYSE: <a href="http://finance.yahoo.com/q?s=PZZA">PZZA</a>]</h2> <p>The &quot;Better ingredients, better pizza&quot; motto has also meant better returns for investors, to the tune of a 74% return over the last year and 39% return over three years. Papa John's reported revenue of $1.6 billion with net income of $75 million last year.</p> <h2>7. Domino's Pizza Inc. [NYSE: <a href="http://finance.yahoo.com/q?s=DPZ">DPZ</a>]</h2> <p>Ever since announcing to the world that it was changing its pizza recipe, Domino's has been on a tear. Investors have enjoyed a 49% return over the last 52 weeks. Revenue hit nearly $2 billion last year, with net income of $163 million.</p> <h2>8. Gruma [OTC: <a href="http://www.otcmarkets.com/stock/GMKYY/quote">GMKYY</a>]</h2> <p>If you've ever bought or made a burrito, you've probably come across this company's core products, corn and flour tortillas. Gruma, based in Mexico, is the largest maker and distributor of these items that serve as a staple in many dinners around the world. Investors have seen a 30% return over the last year and a 70% return over the last three.</p> <h2>9. Pepsico [NYSE: <a href="http://www.google.com/finance?cid=27011">PEP</a>]</h2> <p>I hate to knock Coca-Cola, which has been one of the best performing stocks in the history of America, and a favorite of Warren Buffett. But the fact is that Pepsi investors have made out a lot better recently. Shares are about flat over the last 12 months, but compare that to an 8% decline seen by Coke investors. Growth may be slowed as customers move away from sugary drinks, but this is still a company with more than $66 billion in revenue and $6.5 billion in profits annually.</p> <h2>10. Hormel Foods [NYSE: <a href="http://www.google.com/finance?cid=17456">HRL</a>]</h2> <p>This producer of meat and other food products has been a consistently solid performer. Shares are up 20% year to date, and 30% over the last three years. The company recorded $2.2 billion in revenue in most recent quarter alone, with net income of $147 million. That's a lot of Spam.</p> <p><em>Is your portfolio well-stocked with food industry stock?</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-deliciously-profitable-food-and-beverage-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/10-stocks-to-invest-in-during-the-holidays">10 Stocks to Invest in During the Holidays</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/if-youd-held-these-10-stocks-instead-of-sold-youd-be-rich-now">If You&#039;d Held These 10 Stocks Instead of Sold, You&#039;d Be Rich Now</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/survive-the-bear-market-10-steps-to-ride-the-downturn">Survive The Bear Market: 10 Steps To Ride The Downturn</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-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-5 views-row-odd views-row-last"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/stabilize-your-portfolio-with-these-5-bond-funds">Stabilize Your Portfolio With These 5 Bond Funds</a></span> </div> </li> </ul> </div> </div> </div> </div><br/></br> Investment food industry profitable companies restaurants stock market stocks Wed, 14 Oct 2015 13:00:48 +0000 Tim Lemke 1586136 at http://www.wisebread.com 8 Times to Avoid Dividend Stocks http://www.wisebread.com/8-times-to-avoid-dividend-stocks <div class="field field-type-filefield field-field-blog-image"> <div class="field-items"> <div class="field-item odd"> <a href="/8-times-to-avoid-dividend-stocks" class="imagecache imagecache-250w imagecache-linked imagecache-250w_linked"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/imagecache/250w/blog-images/man_chalkboard_graph_000021551034.jpg" alt="Man learning when dividend stocks should be avoided" title="" class="imagecache imagecache-250w" width="250" height="140" /></a> </div> </div> </div> <p>Dividends, which are quarterly payments made by companies to shareholders, can be a very cool thing. Who doesn't love the idea of getting free money just for owning a stock?</p> <p>Shares of companies with solid dividends can be an important part of any investment portfolio, and some of the nation's most iconic companies have a track record of paying solid dividends to shareholders every quarter. But there are many cases where a dividend <a href="http://www.wisebread.com/10-times-you-shouldnt-invest-in-stocks">stock should be avoided</a>. Here are eight times to stay away from dividend stocks.</p> <h2>1. When You're Seeking Growth</h2> <p>Dividends are nice when you're seeking income, but often, companies pay high dividend yields because they can't offer investors much share growth. If you are young and have a long way to retirement, it should be growth you're seeking. Real estate investment trusts and utilities are examples of companies that pay good dividends and offer stability, but little in the way of share price upside.</p> <h2>2. When a Yield Is High Because the Price Is Low</h2> <p>If you look at a list of stocks with the best dividend yields, it will often include a number of struggling companies. A low stock price isn't necessarily a bad thing if you're getting a bargain, but beware of investing in companies that are dealing with major operational problems with no clear path to improvement. If a company continues to struggle, it may cut its dividend, anyway.</p> <h2>3. When the Company Would Be Better Off Not Offering Dividends</h2> <p>It's nice to get a dividend, but sometimes you'd rather see the company use that money to invest in the business, expand, or make acquisitions. A young technology firm, for instance, would probably be better off not paying a dividend.</p> <h2>4. When You Are Using a Tax-Deferred Account</h2> <p>If you have your retirement savings in a traditional IRA account, your earnings upon withdrawal are taxed at the ordinary income rate. This includes dividends that you may have accumulated over time. If you have dividend stocks in a taxable brokerage account, you pay the the prevailing dividend tax rate instead, which is usually lower. And any gain &mdash; including dividends &mdash; from stocks in a Roth IRA are not taxed at all upon withdrawal when you retire.</p> <h2>5. When a Company Is Low on Cash</h2> <p>Generally speaking, investors like to see a company pay for its dividends and capital expenditures with cash on hand. Sometimes a company needs to borrow to meet these obligations, and that's a red flag that the company may have to cut its dividend down the road. Read a company's balance sheet to determine its cash flow situation, then figure out if the dividend is sustainable.</p> <h2>6. When the Stock Is Too Pricey for the Dividend</h2> <p>Dividends are nice, but there's very little point to paying $100 per share for a 25 cent per share annual dividend. Under this scenario, you're only getting a dividend yield of .25% &mdash; hardly a king's ransom. But if the stock is trading at $40 and the dividend is $1, you'll have a much nicer yield of 2.5%.</p> <h2>7. When Interest Rates Are High</h2> <p>Dividend stocks can be very popular when interest rates are low, because they can offer a better return than cash saved in the bank. Why keep your cash in the bank getting less than 1% interest annually when you can get 3.35% by investing in Coca-Cola? But the opposite is also true. At various times in history, bank interest has exceeded most dividend yields. High interest rates can also be a killer for Real Estate Investment Trusts, which are impacted by the housing market and have some of the market's highest dividends.</p> <h2>8. When There's No Record of Dividend Growth</h2> <p>It's tempting to be drawn to the current yield of a dividend stock, but it's better to examine whether the company has a history of increasing its dividend on a regular basis. A company's true health will shine through if it can routinely make dividend payments and even boost those payments every year. So-called &quot;dividend aristocrats&quot; are those firms that have increased dividends each year for 25 straight years, and the list includes many of the most prized blue chip stocks including Coca-Cola, AT&amp;T, Wal-Mart, and ExxonMobil.</p> <p><em>Do you have any dividend 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/8-times-to-avoid-dividend-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-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-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-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/6-sobering-facts-about-the-stock-market">6 Sobering Facts About the Stock Market</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/who-cares-about-where-the-stock-market-is-headed">Who Cares About Where The Stock Market Is Headed?</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/10-stocks-to-invest-in-during-the-holidays">10 Stocks to Invest in During the Holidays</a></span> </div> </li> </ul> </div> </div> </div> </div><br/></br> Investment dividends shareholders stock market yields Thu, 17 Sep 2015 13:00:16 +0000 Tim Lemke 1555417 at http://www.wisebread.com The 9 Best Performing Mutual Funds of the 2000s http://www.wisebread.com/the-9-best-performing-mutual-funds-of-the-2000s <div class="field field-type-filefield field-field-blog-image"> <div class="field-items"> <div class="field-item odd"> <a href="/the-9-best-performing-mutual-funds-of-the-2000s" class="imagecache imagecache-250w imagecache-linked imagecache-250w_linked"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/imagecache/250w/blog-images/man_investments_000068915471.jpg" alt="Man discovering best mutual funds of the 2000s" title="" class="imagecache imagecache-250w" width="250" height="140" /></a> </div> </div> </div> <p>If you're looking to supercharge your investment returns, it's often helpful to look at some of the best performing <a href="http://www.wisebread.com/9-top-mutual-funds-for-low-risk-investors">mutual funds</a> of recent years. It's a particularly fun exercise to examine the funds that have performed best since the year 2000.</p> <p>This list was compiled using historical data on annual average returns from Morningstar and Fidelity. It is heavy on biotechnology and health funds, driven by some of the biggest gainers in the stock market over the last 15 years.</p> <p>It's worth noting that there are several funds that could be on this list, but are now closed to new investors. There are also other funds that have done exceptionally well in the last 10 years, but did not make the list because of bad performance between 2000 and 2005.</p> <p>Here's to hoping these funds can give your portfolio a boost. Just remember that past performance does not guarantee future returns.</p> <h2>1. Prudential Jennison Health Sciences Fund Z [<a href="http://www.morningstar.com/funds/XNAS/PHSZX/quote.html">PHSZX</a>]</h2> <p>It's hard to complain about an 18% average annual return over the last 15 years. A $10,000 investment at the start of 2000 would be worth more than $130,000 now. Top holdings are Biomarin Pharmaceutical, Shire, and Allergan.</p> <h2>2. Rydex Basic Biotechnology Fund Class A [<a href="http://www.morningstar.com/funds/XNAS/RYBOX/quote.html">RYBOX</a>]</h2> <p>Founded in 2004, here's a fund that has ridden the wave of hot biotech stocks. This fund would have netted $57,000 from a $10,000 investment at the start. It boasts a 17% average annual return over the last decade, and a more than 50% return over the last year. Gilead, Amgen, and Celgene are the top holdings in this fund.</p> <h2>3. ProFunds BioTechnology UltraSector Fund Investor Class [<a href="http://www.morningstar.com/funds/XNAS/BIPIX/quote.html">BIPIX</a>]</h2> <p>This fund is not for the faint of heart. It has high fees and a high minimum investment ($15,000), and uses leverage to maximize returns. But that risk has paid off for investors with an average annual 9% return since being founded in June of 2000. It's recorded a 21% average annual return in the last decade and a 63% average annual return in the last three years. Its holdings include some of the biggest names in biotech, including Gilead Sciences, Amgen, and Alexion Pharmaceuticals.</p> <h2>4. Fidelity Select Biotechnology [<a href="http://www.morningstar.com/funds/XNAS/FBIOX/quote.html">FBIOX</a>]</h2> <p>This fund has been a solid performer for more than a decade, with an average annual return of more than 14% since the start of 2000, and more than 19% since 2005. Investors should be especially pleased with the 64% return in the past year. Anyone who invested $10,000 into this fund back in 2000 would have about $45,000 today.</p> <h2>5. Rydex Dynamic NASDAQ-100 2x Strategy Class A [<a href="http://www.morningstar.com/funds/XNAS/RYVLX/quote.html">RYVLX</a>]</h2> <p>This is another fund that should probably come with a bottle of ulcer medication. Investors tough enough to endure a brutal 2008 will have seen this mutual fund rebound nicely. This fund has a 16% average annual return since being founded in 2004, and a 50% annual return since the bottom in early 2009. The goal of this fund is to double the performance of the NASDAQ-100. Top holdings include Apple, Amazon, Google, and Facebook.</p> <h2>6. Fidelity Select Pharmaceuticals Portfolio [<a href="http://www.morningstar.com/funds/XNAS/FPHAX/quote.html">FPHAX</a>]</h2> <p>It took a while for investors to make money from this fund, but there were solid gains between 2005 and 2007, and super performance in the last six years. We like a 9.8% annual return since its founding date in 2001, and more than 15% in average annual returns in the last 10 years.</p> <h2>7. Fidelity Select Health Care Portfolio [<a href="http://www.morningstar.com/funds/XNAS/FSPHX/quote.html">FSPHX</a>]</h2> <p>Ronald Reagan was in his second year as president when this fund first came into being. It's been a solid performer all its life, and has generated an average annual return of 12% in the last 15 years. Current top holdings include Allergan, Medtronic, and Boston Scientific Corp.</p> <h2>8. Fidelity Select IT Services Portfolio [<a href="http://www.morningstar.com/funds/XNAS/FBSOX/quote.html">FBSOX</a>]</h2> <p>This fund was once known as &quot;Business Services and Outsourcing,&quot; but now invests about 80% of its holdings in the information technology sector. Whatever the focus, the fund has been good to investors. An average annual return of about 11% makes this one of the best performers of the last 15 years. Top holdings include Visa, Mastercard, and IBM.</p> <h2>9. Janus Global Life Sciences Fund [<a href="http://www.morningstar.com/funds/XNAS/JAGLX/quote.html">JAGLX</a>]</h2> <p>Here's a funny thing about this fund: If you bought right at the start of 2000, you'd have been rewarded with a 70% return on your investment within two months. But if you bought in March of that year, you'd have been forced to wait 11 years to see any positive return at all. Patient investors, however will have seen an average annual return of between 11% and 12%, and a 41% average annual return over the last three years.</p> <p><em>Are you invested in any of these nine best performing mutual funds of this century? </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/the-9-best-performing-mutual-funds-of-the-2000s">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/7-ways-to-invest-in-biotech-without-getting-burned">7 Ways to Invest in Biotech Without Getting Burned</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-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-3 views-row-odd"> <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-4 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/6-sobering-facts-about-the-stock-market">6 Sobering Facts About the Stock Market</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-best-ways-to-invest-50-500-or-5000">The Best Ways to Invest $50, $500, or $5000</a></span> </div> </li> </ul> </div> </div> </div> </div><br/></br> Investment 2000s biotech healthcare millennium mutual funds returns stock market Mon, 31 Aug 2015 13:00:24 +0000 Tim Lemke 1536881 at http://www.wisebread.com 5 Ways Greece and China's Economic Problems Might Impact You http://www.wisebread.com/5-ways-greece-and-chinas-economic-problems-might-impact-you <div class="field field-type-filefield field-field-blog-image"> <div class="field-items"> <div class="field-item odd"> <a href="/5-ways-greece-and-chinas-economic-problems-might-impact-you" class="imagecache imagecache-250w imagecache-linked imagecache-250w_linked"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/imagecache/250w/blog-images/woman_reading_newspaper_000035901626.jpg" alt="Woman learning how China and Greece&#039;s problems might impact her" title="" class="imagecache imagecache-250w" width="250" height="140" /></a> </div> </div> </div> <p>It's virtually impossible to watch the news without hearing about China or Greece.</p> <p>With Greece on the constant brink of defaulting its debt payments and China's stock market losing almost 40% of its value, you may be wondering, &quot;Is this going to affect me or my finances?&quot;</p> <p>Here are the five ways Greece and China's economic problems might impact you.</p> <h2>1. Professional Investors Betting on a Greek Stock Bounceback</h2> <p>According to data from Athens Exchange Group, foreign investors own <a href="http://www.bloomberg.com/news/articles/2015-06-21/you-could-fit-america-s-greek-stock-holdings-in-one-u-s-midcap">own close to 60%</a> of the Greek stock market. The same data reveals that U.S. investors hold the lion's share (25%), which amounts to $5.7 billion.</p> <p>Despite the downward trend of the Greek stock market, U.S. investors continue to pour money into Greek holdings, such as the Global X FTSE Greece 20 ETF (<a href="http://finance.yahoo.com/q?s=GREK">NYSE:GREK</a>). And even though the price of this ETF dropped from a high of $23 in June 2014 to a bottom of $9.90 in July 2015, the ETF's total assets have increased from $245 million to $304 million over the same period.</p> <p>Unless you've got an unusually high risk tolerance, investing in Greek stock is probably best avoided for the time being. Ditto for China, which is likely to experience continued volatility in the short-to-medium term.</p> <h2>2. Average Investors' &quot;Sleeping Point&quot; Put to the Test</h2> <p>While the investing pros may be betting on the Greek stock market to bounce, the rest of us may be losing some sleep about the ups and downs of our 401(k) balances. (See also: <a href="http://www.wisebread.com/5-simple-ways-to-boost-an-underperforming-401k?ref=seealso">5 Simple Ways to Boost an Underperforming 401(k)</a>)</p> <p>When Greece appeared likely to default on its debt payment on Tuesday, June 30th, the Dow Jones industrial average <a href="http://www.washingtonpost.com/business/economy/global-markets-fall-as-greece-closes-banks-and-twin-defaults-loom/2015/06/29/c1a48d72-1e76-11e5-aeb9-a411a84c9d55_story.html">plunged by 350 points</a> the day before. Even though American financial institutions have improved mechanisms to shield themselves from foreign externalities, the global financial system continues to be highly interconnected.</p> <p>This is why many U.S. investors may be reaching their sleeping point &mdash; taking only the risk that still allows them to sleep at night &mdash; and decide to sell part of their stocks or switch holdings to alternative financial vehicles, such as bonds.</p> <p>In these times of financial turmoil is important to remember this pearl of <a href="http://www.wisebread.com/3-pearls-of-financial-wisdom-from-alan-greenspan">financial wisdom from Alan Greenspan</a>: &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; Before jumping the gun on Greek or Chinese stocks, consult your financial advisor or 401(k) plan manager to make an informed and non-emotional decision.</p> <h2>3. U.S. Dollar Becomes Stronger</h2> <p>The mid-June 2015 crash of the Shanghai stock market was huge. The world's third largest stock exchange by company value, the <a href="http://www.bloomberg.com/quote/SHCOMP:IND">Shanghai Stock Exchange Composite Index</a> went down by more 20% during the second half of June.</p> <p>There was such a selling frenzy of Chinese stocks that China's 21 major securities brokers had to mutually <a href="http://news.xinhuanet.com/english/2015-07/04/c_134381795.htm">agree on not selling</a> Chinese stocks as long as the Shanghai Composite is below 4,500 points (it's currently trading at about 3,990 points).</p> <p>The Chinese stock market crisis has contributed to the strengthening of the U.S. dollar as more and more Chinese investors are seeking refuge in U.S. assets, including stocks, treasuries, or just plain cash. Tack on Greece's economic problems, and you get an U.S. dollar gaining 3% in value against global currencies.</p> <p>In theory, a stronger U.S. dollar sounds awesome. However, the reality is a bit more complicated. It can make exports more expensive, hurting returns for American companies, for example.</p> <h2>4. Chinese Investors Are Inflating U.S. Real Estate Prices</h2> <p>One thing that Chinese investors are buying a lot: U.S. real estate. That may be in part because of the unstable economic reality of their home country.</p> <p>According to the National Association of Realtors (NAR), in 2014 Chinese buyers spent an estimated $22 billion on American real estate. Even more surprising, 76% of those purchases were made in cash. If you think you had to keep the bid for your dream home competitive, well now you have to work extra hard to keep it that way.</p> <p>Since the NAR indicates that 51% of real estate purchase from Chinese investors took place in California, Washington, and New York, home buyers in those states need to inform themselves about properties that may be attractive for Chinese investors. If you snooze, you lose.</p> <h2>5. Slowdown for Some U.S. Businesses</h2> <p>Chinese consumers contribute about 8% of the revenues for companies in the Standard &amp; Poor's 500. However, the contribution of Chinese consumers to the revenues of some American businesses is much higher.</p> <p>Take for example, Yum! Brands Inc. (<a href="http://finance.yahoo.com/q?d=t&amp;s=YUM">NYSE:YUM</a>) with over 6,800 restaurants in over 1,000 cities &mdash; it generates about 18% of its sales from China. Another example: Apple (<a href="http://finance.yahoo.com/q?d=t&amp;s=AAPL">NASDAQ: AAPL</a>) reported <a href="http://www.theguardian.com/technology/2015/apr/27/apple-record-results-china-iphone-sales">$16.82 billion in sales</a> from China for the first quarter of 2015. This means that the giant from Cupertino made 29% of its global sales just in China.</p> <p>A shaky Chinese stock market or economy means that those same Chinese consumers may have to cut back on ordering buckets of KFC and buying iPhones. Some U.S. companies are already feeling the burn. The world's largest auto market saw auto sales tumble 2.3% in June year-over-year and this drop has already <a href="http://www.cnbc.com/2015/07/18/china-woes-to-hit-auto-sales.html">affected the price target</a> of General Motors stock from $44 to $36.</p> <p>So, don't be surprised if some of your U.S. stocks take a dip, or if your employer downgrades sales projections, or starts looking at ways to cut costs. What happens across the globe can impact us, too.</p> <p><em>How have Greece and China's economic problems affected you? Let us know in the comments below or tweet us at </em><a href="http://www.twitter.com/wisebread"><em>@Wisebread</em></a><em>.</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/5-ways-greece-and-chinas-economic-problems-might-impact-you">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-7"> <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/recession-depression">Recession Depression</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/21-things-that-young-adults-absolutely-need-to-know-about-money">21 Things That Young Adults Absolutely Need to Know About Money</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/15-personal-finance-rules-you-should-be-breaking">15 Personal Finance Rules You Should Be Breaking</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/5-online-tools-to-manage-your-money-in-under-10-minutes-a-week">5 Online Tools to Manage Your Money in Under 10 Minutes a Week</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/tiny-nestegg-retire-abroad">Tiny Nestegg? Retire abroad!</a></span> </div> </li> </ul> </div> </div> </div> </div><br/></br> Personal Finance China economic problems greece investing stock market Fri, 24 Jul 2015 17:00:13 +0000 Damian Davila 1501861 at http://www.wisebread.com The 10 Weirdest ETFs You Can Buy http://www.wisebread.com/the-10-weirdest-etfs-you-can-buy <div class="field field-type-filefield field-field-blog-image"> <div class="field-items"> <div class="field-item odd"> <a href="/the-10-weirdest-etfs-you-can-buy" class="imagecache imagecache-250w imagecache-linked imagecache-250w_linked"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/imagecache/250w/blog-images/woman_reading_newspaper_000019458258.jpg" alt="Woman investing in weird ETFs but probably shouldn&#039;t" title="" class="imagecache imagecache-250w" width="250" height="140" /></a> </div> </div> </div> <p>If you read Wise Bread often, you'll know we're big fans of exchange traded funds, known as ETFs. They are great vehicles for broadening and diversifying your portfolio, and offer some advantages over mutual funds. (See also: <a href="http://www.wisebread.com/8-ways-etfs-can-put-more-money-in-your-pocket-than-mutual-funds?ref=seealso">8 Ways ETFs Can Put More Money in Your Pocket Than Mutual Funds</a>)</p> <p>But as ETFs have grown in popularity, they've also grown in number. And that means there are some very strange ETFs out there. Being weird doesn't make an ETF bad, necessarily, but all too often these unique ETFs are too specialized or complicated to be useful to the average investor. And many of them just aren't good performers.</p> <p>Here's an examination of some of the weirder ETFs out there, with reasons why you shouldn't bother investing in them.</p> <h2>1. High Volatility or Beta ETFs</h2> <p>These ETFs give you exposure to companies that are uniquely sensitive to the ups and downs of the market. Examples include Powershares' S&amp;P 500 High Beta Portfolio ETF [<a href="http://finance.yahoo.com/q?s=SPHB">SPHB</a>] or its High Beta Emerging Markets Portfolio ETF [<a href="http://finance.yahoo.com/q;_ylt=AltJGS9tP77yDaNAPbL0lWpzAcAF?uhb=uhb2&amp;fr=uh3_finance_vert_gs&amp;type=2button&amp;s=EEHB">EEHB</a>]. In theory, these ETFs can help you make more money when markets rise, but it could also mean bigger losses during bear markets. If you're investing for the long term, your goal should be to smooth out the ups and downs, not embrace wild swings. Unless you enjoy getting ulcers, stay away from these ETFs.</p> <h2>2. Inverse ETFs</h2> <p>The idea here is that you are betting against an index, so you can make money during a bear market. Perhaps it makes sense for a short-term investor, but it does not make sense for the typical investor looking to grow wealth over the long term. It's true that stock market can take a nosedive from time to time, but it's very hard to predict exactly when. Over time, markets go up, so let that guide your investment strategy.</p> <h2>3. ETFs for Obscure Countries</h2> <p>For the average investor, there's really no good reason to own an ETF centered solely on, say, Qatar. Look instead to ETFs with a broad exposure to international and emerging markets. The iShares Total International ETF [<a href="https://www.ishares.com/us/products/244048/ishares-core-msci-total-international-stock-etf">IXUS</a>] is a good one, as is the iShares Emerging Markets ETF [<a href="http://www.ishares.com/us/products/244050/ishares-core-msci-emerging-markets-etf">IEMG</a>].</p> <h2>4. Leveraged ETFs</h2> <p>A leveraged ETF can help you get amplified returns, because they take advantage of borrowed money. Think of it as a simpler way to trade on margin. Popular leveraged ETFs include the Daily S&amp;P 500 Bull 3x ETF [<a href="http://finance.yahoo.com/q?s=SPXL">SPXL</a>] and the Ultra S&amp;P 500 ETF from ProShares [<a href="http://www.proshares.com/funds/sso.html">SSO</a>]. Leveraged ETFs aren't bad, but they're not great for a typical investor who's looking for steady and long-term growth. That's because any time you're trying to boost returns through borrowing, you may also see amplified losses.</p> <h2>5. Ultra-Specific Sector ETFs</h2> <p>It's sensible to try and diversify your portfolio by investing in a mix of sectors, such as energy, health care, and technology. But it's possible to get too crazy with it. An ETF for the broad materials sector is fine, but there's no need to delve deep into the agribusiness sector. A general energy ETF will help your portfolio, but do you need specific exposure to solar companies? The impact of these investments could be positive, but relatively miniscule, so don't complicate things for yourself.</p> <h2>6. Advisorshares GlobalEcho Fund [<a href="http://advisorshares.com/fund/give">GIVE</a>]</h2> <p>There's nothing wrong with socially responsible investing, but it's probably best to stay away from this particular ETF, which focuses on investments &quot;that may technologically, socially, and environmentally impact the earth positively.&quot; The ETF's performance is up barely more than 1% in 52 weeks, and its expense ratio of 1.61% is far higher than most ETFs. To find better performance and lower expenses, consider investing in iShares MSCI KLD 400 Social Index Fund [<a href="https://www.ishares.com/us/products/239667/ishares-msci-kld-400-social-etf">DSI</a>] instead.</p> <h2>7. S&amp;P 500 VIX Short-Term Futures ETF [<a href="http://finance.yahoo.com/q?s=VXX">VXX</a>]</h2> <p>I have to admit, I don't really understand this ETF. And I doubt most investors will. Dow Jones says the ETF &quot;utilizes prices of the next two near-term VIX futures contracts to replicate a position that rolls the nearest month VIX futures to the next month on a daily basis in equal fractional amounts.&quot; Got it? Me neither. But I do understand price performance, and this ETF has lost nearly all of its value over the years. Stay away.</p> <h2>8. Market Vectors Gaming ETF [<a href="http://finance.yahoo.com/q?s=BJK">BJK</a>]</h2> <p>This is an ETF that tracks the performance of some of the largest casino companies, including MGM Grand, Las Vegas Sands, and Galaxy International. Many of these aren't bad companies, per se, but this far too specialized an ETF for most investors. Not to mention, anyone who did invest in this ETF in recent years hasn't exactly hit the jackpot. Shares are down 27% over the last three years, and are up just 6% in three years.</p> <h2>9. Exchange Traded Managed Funds</h2> <p>Part of the attraction to ETFs is that they are passively managed and their investments are clearly advertised. But there is a new push for approval of managed ETFs, or ETMFs. In theory, these investments have a chance to outperform an underlying index because they are actively managed. But there's a growing body of evidence that asset managers can't beat the market on a consistent basis. You're better off with an ETF that's simpler and more transparent.</p> <h2>10. Yorkville High Income Infrastructure MLP Index ETF [<a href="http://www.yetfs.com/ymli.aspx">YMLI</a>]</h2> <p>This ETF tracks the movements of select energy infrastructure master limited partnerships. That's a mouthful, and it's pretty unlikely the average investor needs anything that specialized in their portfolio. What's more, this particular ETF has an astonishingly high expense ratio of 5.91%.</p> <p><em>Do you have any unique or interesting ETFs 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/the-10-weirdest-etfs-you-can-buy">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/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-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/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-4 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-5 views-row-odd views-row-last"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/6-sobering-facts-about-the-stock-market">6 Sobering Facts About the Stock Market</a></span> </div> </li> </ul> </div> </div> </div> </div><br/></br> Investment ETFs exchange traded funds portfolio risks stock market Wed, 15 Jul 2015 13:00:12 +0000 Tim Lemke 1484611 at http://www.wisebread.com If You'd Held These 10 Stocks Instead of Sold, You'd Be Rich Now http://www.wisebread.com/if-youd-held-these-10-stocks-instead-of-sold-youd-be-rich-now <div class="field field-type-filefield field-field-blog-image"> <div class="field-items"> <div class="field-item odd"> <a href="/if-youd-held-these-10-stocks-instead-of-sold-youd-be-rich-now" 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_000033450380.jpg" alt="Man realizing why it&#039;s good to hold onto a stock" title="" class="imagecache imagecache-250w" width="250" height="140" /></a> </div> </div> </div> <p>You've heard this advice before: Buy and hold &mdash; <a href="http://www.wisebread.com/7-dumb-stock-picking-mistakes-even-smart-investors-make">invest for the long term</a>. But it's hard to do when you see some of your investments languish near all-time lows. Patience is challenging, but if you can find a way to stay strong, there's a good chance you'll be rewarded in the long run.</p> <p>Here are 10 recent examples that show how investors with long time horizons will eventually reap great financial benefits.</p> <h2>1. Apple [AAPL]</h2> <p>After the death of Steve Jobs, everyone wondered if the iconic company would return to being the most innovative brand around. It went through a lull, but thanks largely to <a href="http://www.wsj.com/articles/apple-earnings-iphone-powers-results-1430166629">sales of the iPhone</a>, Apple is now the most valuable company in the world and shares are trading near all-time highs. Shares are up more than 20% in 2015 and 50% since this time last year.</p> <h2>2. Amazon [AMZN]</h2> <p>For years now, many observers have complained about Amazon's thin or even non-existent profits. Shares tumbled badly last fall after the <a href="http://time.com/3536969/amazon-fire-phone-bust/">troubled launch of the Amazon Fire Phone</a>. But they rebounded to new heights at the end of April after reports of strong earnings from Amazon's web services business. Shares have risen more than 40% in the last 52 weeks, rewarding those investors who hung in there.</p> <h2>3. Netflix [NFLX]</h2> <p>The company made what was widely regarded as a massive blunder back in 2011 when it announced it would split into separate services for streaming movies and DVDs. It was an unpopular move that led the company's stock price to drop by more than 60%. But Netflix quickly fixed the mistake and is now a leader in the streaming media business, and its stock price has jumped nearly ten-fold.</p> <h2>4. AOL, Inc. [AOL]</h2> <p>For many people, AOL may be a symbol of the old dot-com era, complete with dial-up Internet access and romantic comedies featuring Tom Hanks and Meg Ryan. But the reality is that the company has quietly transformed itself into a content provider and key player in the web ad space. Shares shot up recently when Verizon announced it would buy AOL for more than $4 billion. If the sale goes through, AOL shareholders will end up with $50 a share &mdash; a 37% increase over the last year and 80% jump in the last three years. (Disclosure: I own some shares of AOL.)</p> <h2>5. Boeing [BA]</h2> <p>Shares of this major aerospace company languished as the government announced cuts in defense spending &mdash; and the troubled rollout of the 787 &quot;Dreamliner&quot; plane in 2013 did not help. Then came the disappearance of Malaysian Airlines Flight 370 &mdash; a Boeing plane. But anyone who unloaded their Boeing shares would have missed out on a big rise in share value. Boeing shares are up 40% in the last two years, and up 12% since the start of 2015. The company delivered a record 723 airplanes in 2014 and expects to deliver another 755 this year.</p> <h2>6. Facebook [FB]</h2> <p>Despite considerable hype, Facebook's initial public offering did not go particularly well. And things got worse, as shares of the social networking company traded at about half their original value for much of 2012. Eventually, Facebook CEO Mark Zuckerberg went all in with a mobile advertising strategy that paid off for the company and investors. Shares now trade at about $80, near an all-time high. (Disclosure: I own some shares of Facebook.)</p> <h2>7. Rite Aid [RAD]</h2> <p>For a long time, investors in this pharmacy chain were the ones buying heavy doses of stomach and headache medicine, as the company was practically near bankruptcy during the economic downturn. But a restructuring plan has helped Rite Aid shed debt and increase sales, to the benefit of investors. Shares have nearly doubled since the fall of 2014 and are up 15% year to date.</p> <h2>8. Goldman Sachs [GS]</h2> <p>Of course, anyone invested in bank stocks in 2008 would have lost some serious dough. But despite some major problems with some of its peers and the industry as a whole, Goldman's viability as a company was never really questioned. Shares dropped to about $50 in the fall of 2008, but then rose back to $189 by the following year once investors realized that Goldman wasn't going anywhere. After another tough year in 2011, shares are now trading at more than $200.</p> <h2>9. Starbucks [SBUX]</h2> <p>The coffee chain is seemingly ubiquitous, but that doesn't mean it has always been a great performing stock. During the financial downturn, shares got battered as customers cut back on pricey vanilla lattes. Starbucks shares traded below $4 in the fall of 2008, but then began a steady climb as the company did the tough work of closing underperforming stores and laying off workers. Shares topped $93 in April of this year and then split. Kudos to those investors who hung in there.</p> <h2>10. The S&amp;P 500</h2> <p>No doubt, it was tough times in 2008, when the S&amp;P 500 fell more than 36%. But those investors with the intestinal fortitude to hang in there were rewarded with nice returns every year since. The average annual return from 2009&ndash;2014 was 17.4%, more than recouping any losses from the period of the Great Recession. To invest in the S&amp;P 500 or broader U.S. stock market, look at low-cost mutual funds or ETFs, such as Vanguard's S&amp;P 500 Index Fund (VFINX) or iShares Total Market ETF (ITOT).</p> <p><em>Do you have any tales of stocks you're grateful to have kept?</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/if-youd-held-these-10-stocks-instead-of-sold-youd-be-rich-now">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/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-2 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/10-stocks-to-invest-in-during-the-holidays">10 Stocks to Invest in During the Holidays</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/survive-the-bear-market-10-steps-to-ride-the-downturn">Survive The Bear Market: 10 Steps To Ride The Downturn</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/buy-and-hold-investing-four-ways-to-make-it-more-effective">Buy-and-Hold Investing: 4 Ways to Make It More Effective</a></span> </div> </li> </ul> </div> </div> </div> </div><br/></br> Investment buy and hold stock market stocks Fri, 12 Jun 2015 11:00:11 +0000 Tim Lemke 1451212 at http://www.wisebread.com The 4 Greatest Stock Reversals in the Last Decade http://www.wisebread.com/the-4-greatest-stock-reversals-in-the-last-decade <div class="field field-type-filefield field-field-blog-image"> <div class="field-items"> <div class="field-item odd"> <a href="/the-4-greatest-stock-reversals-in-the-last-decade" class="imagecache imagecache-250w imagecache-linked imagecache-250w_linked"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/imagecache/250w/blog-images/man_money_coins_000027630827.jpg" alt="Man learning about greatest stock reversals of all time" title="" class="imagecache imagecache-250w" width="250" height="140" /></a> </div> </div> </div> <p>America loves a Cinderella tale.</p> <ul> <li>After giving up boxing due to chronic hand injuries during the Great Recession, boxer James Walter &quot;Cinderella Man&quot; Braddock managed the unlikely feat of winning the Heavyweight title.<br /> &nbsp;</li> <li>Despite losing both of her legs and damaging her right arm during the Iraq War, Tammy Duckworth became the first disabled woman to be elected to the House of Representatives.</li> </ul> <p>We even have a special admiration for corporate comebacks. Watching a stock price topple &mdash; only to recover after several years &mdash; is proof of American perseverance and ingenuity. (See also: <a href="http://www.wisebread.com/4-big-tech-stocks-offering-big-returns?ref=seealso">4 Big Tech Stocks Offering Big Returns</a>)</p> <p>Here are four of the greatest stock reversals in the last decade.</p> <h2>1. AIG</h2> <p>Let's start with a big and controversial stock reversal. This company has been no stranger to financial scandals. For example, in 2005 AIG's operations were under fire by the Securities and Exchange Commission, U.S. Justice Department, and New York State Attorney General's Office due to potential accounting fraud.</p> <p>However, AIG (<a href="http://finance.yahoo.com/q?s=AIG">NYSE:AIG</a>) is best known for its credit derivatives debacle that required nearly $200 billion in government bailout funding in 2008. From a peak price of $2073.76 in December 2000, AIG stock tumbled all the way down to $7 by March of 2009.</p> <p>While highly controversial, the bailout worked and the insurance meltdown was halted. The good news was that U.S. taxpayers did come ahead in this deal. As early as 2012, the U.S. Treasury considered selling some of its AIG holdings, providing a profit for taxpayers.</p> <p>Today, the stock trades at about $56. Bearish investors that bought $10,000 of AIG stock at the March 2009 bottom would have close to $80,000 today. That's a 700% return.</p> <h2>2. AOL</h2> <p>Of all the noises that mark a generation, the sound of AOL's modem dial-up connection has to be near the top for both Generations X and Y.</p> <p>Most of AOL's revenue came from <a href="http://qz.com/245585/aol-still-has-2-3-million-dialup-subscribers-and-theyre-very-profitable/">subscriber fees</a>, hitting a total of $25 million back in 2002. Fast forward to June 2014, that number has dropped to just $2.3 million. Ouch.</p> <p>Aside from 90s nostalgia, AOL (<a href="http://finance.yahoo.com/q?s=AOL">NYSE:AOL</a>) has also provided financial gain to stockholders that stuck around. From a rock bottom of $12 per share on September 1, 2011, the company's stock has risen to over $40 by April 2015.</p> <p>The company has gone through a lot of iterations through the years. Currently, AOL makes most of its revenue by amassing eyeballs through its popular websites, such as The Huffington Post and TechCrunch, and hawking online ad space to advertisers. AOL is testament that some investment ideas that sound dubious may still pack a financial punch. (See also: <a href="http://www.wisebread.com/4-great-investments-that-sounded-really-stupid-in-the-2000s?ref=seealso">4 Great Investments That Sounded Really Stupid in the 2000s</a>)</p> <h2>3. Apple</h2> <p>It wasn't always smooth sailing for the giant from Cupertino.</p> <p>Back in 1986, Apple (<a href="http://finance.yahoo.com/q?d=t&amp;s=AAPL">NASDAQ:APPL</a>) commanded a healthy 16% share of the PC market. However, that market share eroded to 2.7% in 2000. Things got so bad for Apple that at the end of the dot-com era, its stock price reached a <a href="http://latimesblogs.latimes.com/money_co/2011/08/apple-stock-steve-jobs-ceo-ipad-iphone-ipod-mac.html">dramatic low of $6.56</a>.</p> <p>But thanks to Steve Job's return to the company, Apple shifted its focus. By focusing on the MP3 market, Apple became the leader with a 72.7% market share. That's when the homeruns started to arrive: iTunes, iPod, iPod Touch, iPhone, and iPad.</p> <p>The constant release of successful products helped Apple rise from the ashes to become the world's largest company by market capitalization. In November 2014, <a href="http://business.financialpost.com/fp-tech-desk/apple-inc-tops-us700-billion-market-share-on-strong-iphone-and-ipad-demand?__lsa=3376-5d84">Apple's market cap</a> was $700 billion, which is higher than the GDP of all but 19 of the world's economies.</p> <p>Apple's stock price reached such a high price ($700) in June 2014 that the company decided to do a <a href="http://appleinsider.com/articles/14/04/29/why-apple-inc-decided-to-split-its-stock-7-1-">7&ndash;1 stock split</a>. The move to lower the stock price back to $100 was designed to attract more individual investors who could't afford buying the stock at $700. Given that Apple's current price is over $130 already, there are several financial pundits predicting that Apple's stock price may rise again to $700.</p> <h2>4. Best Buy</h2> <p>As more and more people are turning to online shopping, it may appear a bit confusing to include this chain of electronics superstores in this list. However, this once-ubiquitous big box store is enjoying a comeback.</p> <p>Amazon has claimed a lot of victims, such as Circuit City (liquidated in 2009) and Nobody Beats the Wiz (permanently closed since 2003), in its rise to the top. And Best Buy (<a href="http://finance.yahoo.com/q?s=BBY">NYSE:BBY</a>) certainly felt the squeeze as well. From a high of $58.32 per share back in May 2006, its stock tumbled to a low of $11.29 by December 2012.</p> <p>Times were tough for Best Buy. Earlier in 2012, the company had posted a $1.7 billion quarterly loss and had experienced 0% growth in revenue from the previous year. However, Best Buy powered on by closing underperforming stores, reorganizing the shopping experience at its locations, and streamlining its supply chain. These renewed efforts have positively impacted Best Buy's stock price, which currently trades around the $35 mark.</p> <p>Due to its large volatility, holding Best Buy stock is not for the faint of heart. Still, those investors that were in for the long run have been rewarded.</p> <p>Now, here's to wishing that you discover some of the greatest stock reversals of the next decade!</p> <p><em>What are other great stock reversals in the last decade that need to be on this list?</em></p> <p><em>(Disclaimer: I neither own any of these stocks nor receive compensation by the mentioned companies.)</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/the-4-greatest-stock-reversals-in-the-last-decade">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-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-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/6-sobering-facts-about-the-stock-market">6 Sobering Facts About the Stock Market</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/who-cares-about-where-the-stock-market-is-headed">Who Cares About Where The Stock Market Is Headed?</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/10-stocks-to-invest-in-during-the-holidays">10 Stocks to Invest in During the Holidays</a></span> </div> </li> </ul> </div> </div> </div> </div><br/></br> Investment reversals stock market volatility Wed, 13 May 2015 15:00:38 +0000 Damian Davila 1416510 at http://www.wisebread.com The Top 5 Index Funds to Own Now http://www.wisebread.com/the-top-5-index-funds-to-own-now <div class="field field-type-filefield field-field-blog-image"> <div class="field-items"> <div class="field-item odd"> <a href="/the-top-5-index-funds-to-own-now" 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_000031064290.jpg" alt="Man deciding which index funds he should own now" title="" class="imagecache imagecache-250w" width="250" height="140" /></a> </div> </div> </div> <p>Can you tolerate some market volatility? Is investing in passively-managed index funds still part of your diversification strategy? Hang in there if it is, because <a href="http://www.wisebread.com/3-steps-to-getting-started-in-the-stock-market-with-index-funds">index funds</a> are still a good choice.</p> <p>If you're hot on the trail for index funds to invest in, here are the top five index funds to own right now.</p> <h2>1. Vanguard High Dividend Yield Index Fund Investor Shares (<a href="https://personal.vanguard.com/us/funds/snapshot?FundId=0623&amp;FundIntExt=INT">VHDYX</a>)</h2> <p>Morningstar rating: 5 stars</p> <p>This large capitalization fund was designed for investors seeking long-term growth and those who can withstand greater volatility. This is an income-focused fund that invests in large U.S. companies that tend to pay higher dividends. Some of its holdings include ExxonMobil, Proctor &amp; Gamble, and JP Morgan Chase, to name a few.</p> <h2>2. Vanguard PRIMECAP Fund Investor Shares (<a href="https://personal.vanguard.com/us/funds/snapshot?FundId=0059&amp;FundIntExt=INT">VPMCX</a>)</h2> <p>Morningstar rating: 5 stars</p> <p>A long-term capital appreciation fund that invests in large and mid-cap companies with an emphasis on the technology and health care sectors. The fund follows a well-established investment strategy of dividing its portfolio amongst several fund managers for diversity of thought. Its holdings include Texas Instruments, Inc., Eli Lily &amp; Co., FedEx Corp., and many others.</p> <h2>3. Vanguard PRIMECAP Core Fund (<a href="https://personal.vanguard.com/us/funds/snapshot?FundId=1220&amp;FundIntExt=INT">VPCCX</a>)</h2> <p>Morningstar rating: 5 stars</p> <p>The PRIMECAP Core Fund is very similar to its younger sibling, PRIMECAP Investor Shares. This is a large cap fund that invests using the investment strategies of multiple fund managers. The key difference is the fund has both value and growth perspectives. Some of its holdings include Texas Instruments, Inc., Eli Lily &amp; Co., Google, and Johnson &amp; Johnson.</p> <h2>4. Vanguard U.S. Value Fund (<a href="https://personal.vanguard.com/us/funds/snapshot?FundId=0124&amp;FundIntExt=INT">VUVLX</a>)</h2> <p>Morningstar rating: 4 stars</p> <p>This is a large to mid capitalization fund that remains vested in about 200 companies using a qualitative approach that seeks to identify undervalued stock. Due to its broad-market exposure, investors should expect greater volatility and therefore invest with a long-term investment horizon. Some of the fund's major players are Pfizer, Inc., AT&amp;T, Chevron, ExxonMobil, and Wells Fargo &amp; Co.</p> <h2>5. Vanguard Consumer Staples Index Admiral Shares (<a href="https://personal.vanguard.com/us/funds/snapshot?FundId=5484&amp;FundIntExt=INT">VCSAX</a>)</h2> <p>Morningstar rating: 4 stars</p> <p>This fund is comprised of U.S. consumer staples, such as Wal-Mart, Costco, Coca-Cola Co., and PepsiCo. As a result, the fund will realize volatility consistent with consumer behavior, and investors should expect greater fluctuations. This is a very high-risk investment and it's advisable that it is used to hedge an already well-balanced portfolio.</p> <p><em>Are index funds part of your portfolio? Which?</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-top-5-index-funds-to-own-now">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-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-2 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/4-ways-boring-investments-make-life-exciting">4 Ways &quot;Boring&quot; Investments Make Life Exciting</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/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-4 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/6-sobering-facts-about-the-stock-market">6 Sobering Facts About the Stock Market</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/mutual-funds-for-wise-bloggers">Mutual Funds for Wise Bloggers</a></span> </div> </li> </ul> </div> </div> </div> </div><br/></br> Investment diversification index funds market volatility stock market Fri, 24 Apr 2015 11:00:07 +0000 Qiana Chavaia 1396634 at http://www.wisebread.com 5 Reasons Social Media is Still a Smart Investment http://www.wisebread.com/5-reasons-social-media-is-still-a-smart-investment <div class="field field-type-filefield field-field-blog-image"> <div class="field-items"> <div class="field-item odd"> <a href="/5-reasons-social-media-is-still-a-smart-investment" class="imagecache imagecache-250w imagecache-linked imagecache-250w_linked"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/imagecache/250w/blog-images/social_media_000040645286.jpg" alt="People being active on social media for a smart investment" title="" class="imagecache imagecache-250w" width="250" height="140" /></a> </div> </div> </div> <p>Welcome to the heyday of the social media stock. Not only is the value of shares in companies like LinkedIn and Facebook soaring, but experts also say these companies have got lasting power and major growth potential, making them good long-term investments. Sure, these companies have seen their fair share of challenges. Last year the <a href="http://www.federalreserve.gov/monetarypolicy/files/20140715_mprfullreport.pdf">Federal Reserve</a> called their valuations &quot;stretched&quot; and <a href="http://www.slate.com/blogs/moneybox/2014/05/06/twitter_s_stock_crashed_after_its_post_ipo_lockup_period_expired.html">Twitter's stock value</a> slumped to an all-time low. But these companies have lived and learned from their fumbles. Advocates say they've ironed out many of the kinks, making them better poised for a bright future than ever. Here are five reasons to favorite social media in your portfolio.</p> <h2>1. Social Media Is Overtaking Search</h2> <p>Businesses are always looking for better ways to promote themselves and connect with customers, and <a href="http://www.socialmediaexaminer.com/SocialMediaMarketingIndustryReport2014.pdf">social media is overtaking search</a> as one of the most sure-fire, influential ways of doing so. Over 90% of marketers now say that social media is important to their business. That's a strong indicator of social media's import and staying power, both in the business world and on the market.</p> <h2>2. New Revenue Streams Are Emerging</h2> <p>As more and more people take to using social media, the companies that own these networking sites are devising new ways to generate revenue. Twitter, for example, just created a brand new revenue stream by purchasing Niche, a sponsored content generator that connects social media stars with brand names. Facebook is making massive investments in satellite and aerospace technology, which advocates say could prove to be incredibly valuable down the road.</p> <h2>3. Big Data Is an Untapped Cash Cow</h2> <p>Social media companies own massive amounts of raw data that could reveal valuable information about things like how people make purchase decisions or what goods and services they may require in the future. Indeed, Facebook ingests approximately 500 times more data each day than the New York Stock Exchange does. &quot;Facebook is sitting on <a href="http://moneymorning.com/2014/04/10/the-two-best-social-media-companies-to-invest-in-now/">a hidden goldmine</a> if it can figure out a way to monetize the user data of its over one billion user base,&quot; tech sector specialist Michael A. Robinson told Money Morning.</p> <h2>4. The Growth Potential Is Huge</h2> <p>For every four minutes spent online, one is spent using social media. And, particularly with mobile device usage on the rise, experts say there's lots of room for growth. Bruno Del Ama, CEO of Global X Funds, says social media is one of the fastest-growing segments in global capital markets. In fact, there are very few companies growing as fast as Facebook, Twitter, LinkedIn, and Yelp. &quot;I think one of the most interesting things about these companies that's misunderstood is these are actually very defensible business models,&quot; Del Ama told CNBC. &quot;It's very, very difficult to go after, say, a Facebook or a Twitter. Once they build these networks, it's very difficult to displace them once you have&hellip; billions, in the case of Facebook, of users in your network.&quot;</p> <h2>5. Mark Cuban Says They're Solid</h2> <p><a href="http://www.cnbc.com/id/101867483">Social media stocks</a> are not in a bubble, billionaire investor Mark Cuban told CNBC. &quot;It's not 1999 all over again by a long shot,&quot; said the Dallas Mavericks owner, who made his fortune as an Internet entrepreneur. Yes, social media companies have large valuations. But unlike the '90s, they have good business models and strong revenue growth, too. That makes them solid long-term investments.</p> <p><em>Are you investing in social media stocks? Why or why not?</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/5-reasons-social-media-is-still-a-smart-investment">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/who-cares-about-where-the-stock-market-is-headed">Who Cares About Where The Stock Market Is Headed?</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/survive-the-bear-market-10-steps-to-ride-the-downturn">Survive The Bear Market: 10 Steps To Ride The Downturn</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/its-time-to-purchase-like-its-1999">It&#039;s Time to Purchase Like It&#039;s 1999</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/5-creative-ways-to-invest-during-a-weak-market">5 Creative Ways to Invest During a Weak Market</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/how-to-avoid-gambling-away-your-investments">How To Avoid Gambling Away Your Investments</a></span> </div> </li> </ul> </div> </div> </div> </div><br/></br> Investment investing social media stock market Mon, 02 Mar 2015 22:00:10 +0000 Brittany Lyte 1314958 at http://www.wisebread.com Best Money Tips: Ways to "Beat" the Stock Market http://www.wisebread.com/best-money-tips-ways-to-beat-the-stock-market <div class="field field-type-filefield field-field-blog-image"> <div class="field-items"> <div class="field-item odd"> <a href="/best-money-tips-ways-to-beat-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/business-boxing-4018611-small.jpg" alt="businessman boxing" title="businessman boxing" class="imagecache imagecache-250w" width="250" height="167" /></a> </div> </div> </div> <p>Welcome to Wise Bread&#39;s <a href="http://www.wisebread.com/topic/best-money-tips">Best Money Tips</a> Roundup! Today we found some great articles on ways to &quot;beat&quot; the stock market, saving for retirement, and prepping for guests with Dollar Store buys.</p> <h2>Top 5 Articles</h2> <p><a href="http://moneysmartlife.com/ways-to-beat-the-stock-market/">9 Ways to &quot;Beat&quot; the Stock Market</a> &mdash; If you want to beat the stock market, watch out for high fees and don&#39;t be afraid to take some risks. [Money Smart Life]</p> <p><a href="http://frugalportland.com/saving-for-retirement-at-each-stage-of-life/">Saving for Retirement at Each Stage of Life</a> &mdash; If you are in your 30s, consider gradually increasing the amount you save for retirement as your salary increases. [Frugal Portland]</p> <p><a href="http://www.savvysugar.com/How-Stock-Guest-Room-Cheaply-32376276">Prep For Guests With Dollar Store Buys</a> &mdash; Did you know you can buy bathroom supplies and general cleaners at the Dollar Store? [PopSugar Smart Living]</p> <p><a href="http://livingonthecheap.com/wipe-debt-good/">How to wipe out debt - this time, for good</a> &mdash; Wipe out your debt once and for all by learning new money habits. [Living On The Cheap]</p> <p><a href="http://andthenwesaved.com/cheap-honeymoon-ideas/">Cheap Honeymoon Ideas</a> &mdash; To save money on your honeymoon, try to travel in the off season. [And Then We Saved]</p> <h2>Other Essential Reading</h2> <p><a href="http://www.narrowbridge.net/how-to-stay-on-top-of-student-debt-and-save-while-in-school/">How to Stay On Top of Student Debt and Save While in School</a> &mdash; Save money and stay on top of your debt while in school by purchasing your books used. [NarrowBridge Finance]</p> <p><a href="http://yesiamcheap.com/2013/11/online-basics-every-new-business-needs/">Online Basics Every New Business Needs</a> &mdash; Every new business needs to provide links to its ecommerce site. [Yes, I Am Cheap]</p> <p><a href="http://parentingsquad.com/5-co-sleeping-myths-busted">5 Co-Sleeping Myths Busted</a> &mdash; It is a myth that co-sleeping prevents independence. [Parenting Squad]</p> <p><a href="http://www.greenpandatreehouse.com/2013/11/how-should-you-choose-a-home-security-system/">How Should you Choose a Home Security System</a> &mdash; When choosing an home security system, consult reviews and consider whether or not you want motion sensors. [Green Panda Treehouse]</p> <p><a href="http://onecentatatime.com/becoming-successful-freelancer/">Becoming a Successful Freelancer</a> &mdash; To become a successful freelancer, let your presence be felt. [One Cent At A Time]</p> <br /><div id="custom_wisebread_footer"><div id="rss_tagline">This article is from <a href="http://www.wisebread.com/ashley-jacobs">Ashley Jacobs</a> of <a href="http://www.wisebread.com/best-money-tips-ways-to-beat-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-6"> <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/who-cares-about-where-the-stock-market-is-headed">Who Cares About Where The Stock Market Is Headed?</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/survive-the-bear-market-10-steps-to-ride-the-downturn">Survive The Bear Market: 10 Steps To Ride The Downturn</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/its-time-to-purchase-like-its-1999">It&#039;s Time to Purchase Like It&#039;s 1999</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/how-to-avoid-gambling-away-your-investments">How To Avoid Gambling Away Your Investments</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-social-media-is-still-a-smart-investment">5 Reasons Social Media is Still a Smart Investment</a></span> </div> </li> </ul> </div> </div> </div> </div><br/></br> Investment best money tips investing stock market Tue, 12 Nov 2013 09:48:03 +0000 Ashley Jacobs 1093854 at http://www.wisebread.com Life Is Like Investing in the Stock Market http://www.wisebread.com/life-is-like-investing-in-the-stock-market <div class="field field-type-filefield field-field-blog-image"> <div class="field-items"> <div class="field-item odd"> <a href="/life-is-like-investing-in-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/3573894263_1fafd0afa1_z.jpg" alt="stock market" title="stock market" class="imagecache imagecache-250w" width="250" height="166" /></a> </div> </div> </div> <p>Remember that famous quote in &quot;Forrest Gump&quot;? Forrest said, &quot;My momma always said, 'Life was like a box of chocolates. You never know what you're gonna get.'&quot;</p> <p>While I believe there's lots of truth to that statement, I'm going to modify that quote to try and get you to think differently. Here's my version &mdash; &quot;Life is like investing in the stock market. You'll go through your share of ups and downs. But as long as you're able to persevere through them, in the long run you'll come out on top.&quot; (See also:&nbsp;<a href="http://www.wisebread.com/why-invest-in-the-stock-market">Why&nbsp;Invest in the Stock Market?</a>)</p> <p>Let's review some stock market history. There's no doubt that investing in the stock market is risky. To illustrate, take a look at the returns from the <a href="http://www.moneychimp.com/features/market_cagr.htm">S&amp;P 500</a> over the past 15 years:</p> <ul> <li>2011: 2.05%</li> <li>2010: 14.87%</li> <li>2009: 27.11%</li> <li>2008:&nbsp;-37.22%</li> <li>2007: 5.46%</li> <li>2006: 15.74%</li> <li>2005: 4.79%</li> <li>2004: 10.82%</li> <li>2003: 28.72%</li> <li>2002:&nbsp;-22.27%</li> <li>2001:&nbsp;-11.98%</li> <li>2000: -9.11%</li> <li>1999: 21.11%</li> <li>1998: 28.73%</li> <li>1997: 33.67</li> </ul> <p>As you can see, in some years the stock market did really well. But in others, it performed horribly. How does this relate to life?</p> <p>I'm sure that in your own life, you've had your good days when everything seems to go right. But you've also had your bad days, where a lot of things seem to go wrong.</p> <p>How do you get through the hard times? Before I try to answer that, let's take a look at the stock market's approach.</p> <h2>Don't Put All Your Eggs in One Basket</h2> <p>The S&amp;P 500 is named as such because the list includes 500 of the biggest companies in the U.S. As we invest in the index, all of the companies work together to provide us with the wealth we seek.</p> <p>But not all companies perform at the same level. Companies that do well help carry the weight for other companies that perform poorly, so that the overall value of the index has increased over time.</p> <p>For instance, in 2009, MetroPCS opened at a price of $14.86 per share, but closed the year by dropping all the way down to $7.63. Amazon, however, opened the year at $54.36, and closed the year at an astounding price of $134.52 per share. Yet as a result of the contributions of all 500 companies, the S&amp;P 500 grew by an amazing 27.11 percent in 2009.</p> <h2>What's the Point?</h2> <p>Don't go through life alone. Just as the S&amp;P 500 can be seen as a community of 500 companies, you need to be a part of a larger community as well.</p> <p>Life can get hard. When it does, sometimes we need someone to cry with us when we cry. <a href="http://www.wisebread.com/10-fun-practically-free-ways-to-make-new-friends">We need friends</a> to help bear our burdens.</p> <p>Other times, when life is good, we want others to celebrate with us in our victories. We want our friends by our side to thank them for sticking with us through thick and thin.</p> <p>Let's get back to the stock market. Looking at stock market returns year-by-year may cause you to lose sleep at night. But if you invested for the long haul, you'd end up a winner.</p> <p>Over the past 40 years, from 1972 to 2011, the S&amp;P 500 had an annual growth rate of 9.86%. This means that if you started investing back in January 1972 with just $1,000, by December 2011, you'd have $42,990!</p> <p>This shows the power investing through thick and thin, and having a long-term perspective.</p> <h2>Your Own Growth</h2> <p>Similarly, you can experience tremendous growth in your own life. If you're at a low point in life right now, you can position yourself for a brighter future. How?</p> <p>Seek the help of friends and mentors. There are lots of people who have been further along on the road of life than you. They've faced the same challenges you're facing. And the good news is that many of them are willing to offer guidance and help you get out of your rut.</p> <p>I'm also a big advocate of reading good books and learning valuable skills. The <a href="http://personalmba.com/best-business-books/">Personal MBA reading list</a> is a great place to start. If cost is a concern, you can always borrow these books for free from <a href="http://www.wisebread.com/4-reasons-why-you-should-support-your-local-library">your local library</a>.</p> <p>If you take action now, I'm sure that good things will come to you later.</p> <br /><div id="custom_wisebread_footer"><div id="rss_tagline">This article is from <a href="http://www.wisebread.com/darren-wu">Darren Wu</a> of <a href="http://www.wisebread.com/life-is-like-investing-in-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-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-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-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/6-sobering-facts-about-the-stock-market">6 Sobering Facts About the Stock Market</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/who-cares-about-where-the-stock-market-is-headed">Who Cares About Where The Stock Market Is Headed?</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-greatest-stock-reversals-in-the-last-decade">The 4 Greatest Stock Reversals in the Last Decade</a></span> </div> </li> </ul> </div> </div> </div> </div><br/></br> Investment Personal Development build community stock market support Tue, 09 Oct 2012 10:24:41 +0000 Darren Wu 954801 at http://www.wisebread.com