As most of us been spending more time at home over the past year due to the restrictions of a global pandemic, pets have increasingly become a source of companionship and company. Behavioral trends like this provide opportunities for an investor who can identify the beneficiaries and invest accordingly. Puppies and kittens need…
A product is only as good as its inputs, and when it comes to investing in cutting-edge technology, the availability and affordability of product inputs can make the difference between an exceptional return on investment and a bankrupt company. One such example is the case of the semiconductors required for new auto and truck models…
Purchasing a home is a transaction that, for many, embodies the epitome of the American dream. In the wake of a year that delivered the steepest increase in housing market value of any year since 2005, however, as this article notes, it’s worth assessing the financial considerations involved in the decision to buy versus rent a home…
The Securities and Exchange Commission (SEC) typically experiences a change of top leadership under a new administration, and accompanying the incoming leadership is a regulatory approach that potentially diverges from the approach taken by the previous administration. Thanks to extensive discretionary enforcement authority that the SEC wields in regards to companies and financial markets…
The temptation to frequently trade stock positions can be alluring to investors who see sensational news headlines about various companies and observe other individuals making the occasional large capital gain on a short-term position. This tendency is understandable, given that many endeavors in life require frequent effort and action to achieve success. Perhaps counterintuitively, however…
During an economic recovery, U.S. Treasury yields tend to rise as investors sell “safe” assets like government bonds and move into growth-focused equities and other more aggressive, economically sensitive investment assets. As the demand for Treasuries decreases, the price generally decreases accordingly, driving up yields that move inversely to price. While economic recovery can be very beneficial…
Investors have until April 15, 2021 to make contributions to their Roth and traditional IRA accounts under the maximum allowances for tax year 2020. Tax-advantaged retirement accounts are one of the best ways to save and invest money, due to the fact that taxes can detract significantly from investment gains with short-term and long-term capital gains tax, dividend tax, and interest tax. This benefit is meaningfully amplified over time due to…
The share prices of several companies, including GameStop and AMC, recently appreciated rapidly to levels that are seemingly disconnected from the companies’ intrinsic value as estimated by most traditional stock valuation metrics. These price increases were driven largely by two factors: social media conversations and…
The geographic optionality stemming from corporate work-from-home policies has hastened an economic and lifestyle trend that has seen many individuals and families moving from states with high taxes and high costs of living to less expensive states. Many professionals have gained the flexibility to work from anywhere with…
Inflation has a significant impact on financial planning because it can meaningfully lower the value of a future investment portfolio. In fact, inflation is one of several reasons that holding excess cash can be disadvantageous; in modern times, cash has overwhelmingly lost value in terms of purchasing power. In order to simply…
As we approach the end of 2020, investors have the opportunity to assess their objectives, risk tolerance, and investment strategy going into the new year. Financial goals often evolve over time, as families grow, careers progress, and preferences change. The end of the year is…
This week Tesla was added to the S&P 500 Index, which serves as a widely used benchmark for passive investing and as a simplified proxy the performance of the broader U.S. stock market. Tesla’s nascent inclusion in the index is a reminder to investors to be aware of…
While it may be tempting for investors to attempt to identify the “best” companies and to create a concentrated portfolio with those stocks, even the most stalwart and profitable companies can carry significant idiosyncratic risk. Changing consumer trends and ill-timed capital expenditure decisions, for example…
As negotiations regarding Brexit terms between the United Kingdom and the European Union continue to evolve, the probabilistic implications for investors are also evolving. Foreign developed markets rightfully account for a meaningful portion of most well-diversified investment portfolios, and the terms of the final Brexit deal…
Many investors depend on interest and dividend cash flow from a tailored income portfolio as they transition into retirement. A diversified allocation of bonds and high-yield stocks, in addition to a selection of growth-focused equities to keep pace with inflation, can provide the consistent cash flows necessary to transfer from a steady paycheck to a sustainable high quality of life in retirement. A portfolio income strategy, however…
As pharmaceutical companies including AstraZeneca, Pfizer, Moderna, and BioNTech make strides toward developing and producing viable vaccines to provide immunization against the Covid-19 virus, it’s worthwhile from an investment perspective to assess which countries and economic sectors may…
Retirement plan tax shelters provide investors with one of the most advantageous opportunities to build wealth by protecting capital gains, dividends, and interest from taxes and amplifying the powerful force of compound growth. To adjust for inflation, the IRS has updated several…
International stocks comprise a meaningful portion of most appropriately allocated diversified investment portfolios, which serves to mitigate idiosyncratic geographic risk. For countries that engage in extensive trade with the United States, such as China, tariff policies can…
As all investors know, election results have an impact on markets, whether by maintaining the status quo, providing a mandate for massive change, or something between the two extremes. The precise impact can often be difficult to determine. For instance…
In the current environment of ultra-low interest rates, which are often negative real rates after accounting for the impact of inflation, income-seeking investors are often faced with a decision regarding whether to accept increased volatility and risk in order to pursue higher yields. These yields can…
