- What Morgan Stanley Says to Do in a Bear Market Rally
By June 2022 the main indexes of U.S. stock had plunged at least 20% from their January 2022 peaks, meaning the market had tumbled into a bear market. However, on some days the market actually closed higher. In such circumstances… read more…
- How Long Do Bear Markets Typically Last?
A bear market marks a time of uncertainty for investors. It’s uncomfortable to watch your portfolio potentially free fall during a bear market. But knowing there is a light at the end of the tunnel can help. So, how long… read more…
- Understanding the 7 Types of Interest Rate
Interest is the money that someone pays for borrowing money. If you take out a loan, you pay interest in exchange for using that capital. If someone else borrows money from you, they do the same. Yet while interest is… read more…
- If Interest Rates Rise, What Happens to Bond Prices?
Interest rates and bond prices generally move in opposite directions. Thus, when interest rates go up, the price of fixed-rate bonds usually falls. Similarly, a fall in interest rates causes the price of fixed-rate bonds to increase. This dynamic is… read more…
- How to Invest in Digital Real Estate
As Web3 emerges, a new asset class can be found in digital real estate that many are considering as potential investments in their portfolios. There are many different ways to invest in digital real estate, but first it’s important to… read more…
- Disinflation vs. Deflation: Key Differences
Consumer prices for goods and services can often be a good indicator of what’s happening in an economy. Deflation and disinflation are two terms that some people mix up at times but mean very different things with regard to price… read more…
- 21 Investment Terms You Need to Know
The investing field has its own language that includes hundreds of specialized terms. Additional ones are being invented all the time to describe product innovations and new concepts. The study of investment terms is one that can last for as… read more…
- Understanding Risk-Free Assets: Guide
When the market fluctuates, some investors get scared and want to eliminate risk from their portfolios. Risk-free assets provide a safe harbor against market volatility, but that safety comes at a cost. These investments tend to have low rates of… read more…
- Understanding Risk-On Assets: Guide
An investor’s appetite for risk fluctuates over time. When the economy is performing well, and the market is rising, many investors want to buy riskier assets. This is known as a “risk-on” market. Understanding how risk-on assets work can help… read more…
- What Options You Can Trade in a Retirement Account
Trading options in a retirement account is uncommon because options are a fairly active asset and most people take a passive investing strategy when it comes to their retirement accounts. In part, it’s also because IRS rules foreclose most forms… read more…
- Non-Retirement Investments for Your Portfolio
Many people max out their 401(k) or IRA account each year and wonder what other investments they can utilize to growth wealth. These investments don’t require a special investment account as you’ll contribute post-tax dollars to these investments. However, you’ll… read more…
- Investing in Water Companies: Guide
When most people think about investments, they think about financial products and rare assets like gold. Water, of course, is anything but rare. But that doesn’t make it a bad investment. In fact, common resources can be some of the… read more…
- Risk-On vs. Risk-Off: Investment Guide
Risk-on and risk-off are descriptive terms referring to changes in the attitude and approach investors take toward risk during different economic scenarios. When investors are risk-on, they tend to put more money into riskier investments, such as stocks. When investors… read more…
- CDs vs. Mutual Funds: Key Differences
Investing is risky, especially amidst international strife and a volatile economy. However, it is possible to mitigate risk while preserving certain levels of return. For example, certificates of deposit (CDs) are low-yield accounts that provide a guaranteed interest rate over… read more…
- What Is a Follow-Through Day for Investing?
A follow-through day is a day of improved stock market performance after trading activity begins counteracting a slump. While it may not be a sure sign of sustained improvement, understanding a follow-through day and the market conditions surrounding it can… read more…
- Are We Heading for a Recession? Here’s How to Protect Your Portfolio
Gross domestic product in the U.S. fell 0.9% in the second quarter of 2022, marking the second consecutive quarter of negative growth, the commonly accepted definition of a recession. The National Bureau of Economic Research is the body that officially… read more…
- What Is Attribution Analysis?
Investing in actively managed funds might appeal to you if you’re hoping to beat the market. But before you invest, there’s just one thing to consider: the fund manager. The fund manager’s expertise and the overall allocation of the fund can play a key part in the type of returns you realize. Attribution analysis is… read more…
- What Is an Add-On CD?
An add-on certificate of deposit, or “add-on CD,” is a specialized type of certificate of deposit. It has the same term and withdrawal limits as a standard CD. It differs in that you can add to this account over time,… read more…
- Private Equity vs. Investment Banking
Private equity and investment banking both help businesses find, develop and grow capital, but each does it in a different way. A private equity firm buys assets itself, looking to grow those assets and profit off of each down the line when they are sold. An investment bank primarily sells assets for another party. While… read more…
- How to Use Inflation-Linked Bonds
Whether the stock market is soaring or the world is on edge due to international conflict, inflation can eat your investments. Fortunately, most nation’s governments sell inflation-linked bonds that grow by mirroring the inflation rate. If inflation causes your investments to suffer or significantly hurts your purchasing power in the market, inflation-linked bonds can strengthen… read more…
- Morgan Stanley Says the 60/40 Portfolio Will Make a Comeback
The first half of 2022 has not been kind to the classic 60/40 portfolio, but investment bank Morgan Stanley says there are still compelling reasons to consider this asset allocation. Part of the rationale for not dismissing this allocation has… read more…
- Are U.S. Savings Bonds a Good Investment?
U.S. savings bonds are ultra-safe offer tax advantages, especially when used for eligible education costs. However, other investments such as stocks and mutual funds typically produce higher rates of return, and the government also limits the amount of savings bonds… read more…
- How Does Inflation Affect Cryptocurrencies?
It’s difficult, if not impossible, to confidently say how inflation will affect cryptocurrency. This is because cryptocurrency as an asset has only existed for a little over 10 years. During most of that time, major economies experienced little significant inflation. As a result, the inflationary pressure of 2021/2022 is the first time that investors have… read more…
- 5 Predictive Technical Indicators to Consider
Technical analysis is one of the two main ways that investors consider their position. Technical indicators are the specific data points that make up technical analysis. These are mathematical models that analyze some aspects of an asset’s history, such as… read more…
- What Are Technical Indicators?
Technical indicators are the data points that show how an asset’s price has changed over time. They can reflect everything from straightforward information, such as a simple average or highs and lows, to complex market-wide analysis of how investors have traded the asset. Technical indicators are particularly useful for analyzing patterns. Investors can use information… read more…