Free stock trading leads to industry shift
Charles Schwab is buying rival TD Ameritrade in a $26 billion stock swap, a blockbuster agreement brought about by massive disruption in the online brokerage industry. Bowing to competitive pressure, brokerages have recently made it free for customers to trade U.S. stocks online. A combination of two of the biggest players in the industry would allow Schwab to save billions of dollars... READ MORE
When to go with your gut with investing
There are four ways to invest in stocks. You can buy a low-cost index fund, with holdings that reflect an entire market or a broad swath of one. You can buy a managed fund, hiring an expert to do the stock picking. You can conscientiously study data from individual companies and invest in their shares. Or you can buy stock in companies that appeal to you subjectively — that is, invest... READ MORE
Smaller stocks are doing well, for now
The stock market’s biggest gains are once again coming from its smallest companies, but the trend may not last much longer. Smaller-company stocks like Allegiant Travel and AK Steel have been soaring since late December and leading the rest of the market — a sharp reversal from much of the winter, when smaller stocks were plunging more than the rest of the market. The Russell 2000 ... READ MORE
How to handle stock market’s volatility
It’s normal to worry about your portfolio when the stock and bond markets become volatile and when you see your portfolio fall significantly in value. It’s natural to wonder what to do, if anything, to protect your portfolio. The best general advice is to keep focused on long-term objectives. Ideally, you have structured your portfolio based on long-term objectives. If so, you... READ MORE
When stocks dip, is that the time to buy?
Around the beginning of 2018, the volatility of the stock market suddenly picked up. It was a worrying development for most investors, who prefer a smooth ride to a turbulent one. But volatility is a necessary condition if you want to deploy a strategy known as buying the dips, or BTD. The idea is to purchase stocks when they have dropped sharply, anticipating that they will bounce... READ MORE
Expect 2019’s market ride to be stressful
No matter which way the stock market goes in 2019 — and Wall Street has ample arguments for either direction — expect it to be another gut-wrenching ride. The market is facing a long list of challenges this year, from expectations for slower economic growth around the world to the restraining effect of rising interest rates. And the global trade war is still creating uncertainty as... READ MORE
Companies pay investors record dividends
It pays more than ever to be an investor. U.S. companies sent a record amount of cash to their shareholders as dividends in 2018, as their profits continued to pile higher. The increase is key for shareholders, offering a bit of stability in what was a stomach-churning year for the stock market. The S&P 500 index twice plunged by 10 percent, and by Dec. 17 had lost 150 points for the ... READ MORE
Play defense: add utilities to your portfolio
Since the bull market began in 2009, shares in utilities — water, gas and power providers — have lagged Standard & Poor’s 500-stock index. But recent rockiness in the stock market bodes well for the traditionally defensive utilities sector. From the S&P 500’s peak in late September to mid-December, the index surrendered 13.1 percent, including dividends. But shares in... READ MORE
Is earnings growth as good as it will get?
Here’s the challenge when something’s as good as it gets: What comes next? Companies across industries are in the midst of reporting another quarter of gargantuan profit growth, driven by lower tax bills and a growing economy. Amazon said its net income surged more than tenfold during the summer from a year earlier, for example. Yet stock prices are not getting the boost that they ... READ MORE
A year that most of the markets struggled
Even the most balanced investors have gotten knocked on their heels this year. Typically, spreading one’s bets across several different types of investments (diversifying) has helped deliver steadier returns. When U.S. stocks slide, say, bonds and gold can hopefully help offset the losses. Or maybe stocks abroad will hold up better than their U.S. counterparts. Not so this year.... READ MORE
