Tag Archives: Stocks

Over half of Americans aren’t taking this simple step to grow wealth | CNBC

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Over half of Americans, 55%, say they are not participating in the stock market, according to a new poll from MetLife of over 8,000 U.S. adults over the age of 18. The survey finds that age is definitely a factor. Gen Z (ages 18 to 24) and millennials (defined here as ages 25 to 34) are opting out in far greater numbers than older Americans.

But gender also plays a role — 44% of men report they aren’t investing, compared to 59% of women. And men tend to be more likely to invest in some type of mutual or index funds and stocks.

Yet when it comes to building long-term wealth, saving alone typically isn’t enough.
— Read on www.cnbc.com/2019/10/09/over-half-of-americans-arent-taking-this-simple-step-to-grow-wealth.html

10 BDCs to Buy for Big-Time Income

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Business development companies (BDCs) were literally designed with dividends in mind. These 10 BDCs to buy yield up to 10.9%.

Business development companies provide firms with debt and equity capital, or a combination of the two, to help them grow. Many of the largest BDCs available to investors today provide equity and debt financing to middle-market companies, a considerable number of which operate industrial businesses with stable cash flows.

They first came to be in 1980 when Congress passed an amendment to the Investment Act of 1940 that created a new category of closed-end investment company: BDCs.

For tax purposes, BDCs must pay out 90% or more of their taxable income in the form of dividends so they can retain the tax benefits of regulated investment companies. BDCs may raise their dividends in boom times, however it’s not uncommon for some to cut their payouts depending on the business environment.

BDCs have become popular with retail investors over the past decade because of the significant income they generate. These companies often yield more than 8% on their distributions.

One thing to pay attention to when evaluating BDCs is costs. Externally managed BDC pay advisory fee and typically pay a low double digit percentage of returns or profits to the fund advisory manager. Internally managed BDC do not pay advisory fees. It does, however, incur the operating expenses of employing investment professionals to do investment analysis, research and other duties.

— Read on www.kiplinger.com/slideshow/investing/T018-S001-10-bdcs-to-buy-for-big-time-income/index.html

7 Secrets of Highly Successful Investors | Kiplinger’s Personal Finance

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Prosper in this volatile market (or any other) by focusing on fundamentals.

In investing, it’s as important to practice good habits as it is to avoid bad ones, and the stakes have rarely been higher. The longest bull market on record is in its 11th year, volatility is sky-high, the economy is uncertain and market sentiment is skittish.

But long-term investors should rise above the fray and focus on the fundamentals. You already know you shouldn’t buy stock on a tip from your Uncle Fred. But it’s even more important to set appropriate goals, save regularly and monitor your progress. Don’t beat yourself up for the occasional mistake. But if you follow the seven steps below, you’re likely to feel good about your portfolio over the course of a long investing career.

— Read on www.kiplinger.com/article/investing/T023-C000-S002-7-secrets-of-highly-successful-investors.html

Retirement Planning: The Big Lesson of 2016 for Investors | Money

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Don’t let the constant flow of predictions and prognostications about the markets and the economy—no matter how prescient they may seem—divert you from a comprehensive plan designed to achieve success over the long term.

If you’ve ever been inclined to try to improve your retirement prospects by closely tracking the financial news and then shifting your strategy to stay a step ahead of the market’s twists and turns, 2016 seemed to provide a bounty of opportunities.

— Read on money.com/money/4618089/big-lesson-from-2016-retirement-planning-investing/

Women’s Other Economic Gap: Financial Acumen – WSJ

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A recent survey conducted by UBS found that only 23% of women globally take charge of long-term financial-planning decisions. And it isn’t a generational problem: 56% of women aged 20 to 34 defer to their spouse compared with 54% of women over 51 years of age.

A report from the Financial Industry Regulatory Authority suggests that women’s financial understanding is going in the wrong direction, too. Baby boomer and Generation X women revealed higher levels of financial literacy than millennial women based on a five-question quiz.

— Read on www.wsj.com/articles/womens-other-economic-gap-financial-acumen-11567432800

Here’s What Warren Buffett Really Thinks About the Economy | Money

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The Oracle of Omaha says the U.S. economy has plenty of runway left before the next recession. “Right now, there’s no question: It’s feeling strong. I mean, if we’re in the sixth inning, we have our sluggers coming to bat right now,” Buffett said in an interview with Becky Quick on CNBC’s “Squawk Box” Thursday morning.

Buffett added: “Business is good. There’s no question about it.”
— Read on money.com/money/5304816/warren-buffett-just-made-a-surprising-prediction-about-the-economy/

Should You Try Timing to Avoid Bad Markets? – Retirement Researcher

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Everyone likes the markets when stocks are going up. We’re all getting the returns that we are “supposed” to be receiving for putting our money at risk. Naturally, we aren’t big fans of the market when stocks start falling. Unfortunately, stocks are “supposed” to go up and down – a lot.

The financial markets are based on the relationship between risk and return. We wouldn’t be able to harvest the long-term returns we expect without the risk. And, well, this is what risk looks like.
— Read on retirementresearcher.com/occams-should-you-try-timing-to-avoid-bad-markets/

The Art of Disciplined Investing – Retirement Researcher

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Disciplined investing is rewarded by the financial markets because capitalism, by and large, works. For investors to put their capital at risk, there needs to be a commensurate expected return. This is finance. Everything else is just details.

Investors are rewarded for taking risks. That means that sometimes that return doesn’t appear. In fact, if you look at the equity premium, or the returns stocks minus the returns of short term US Treasury bills, it’s actually pretty rare for the premium to be close to the average.
— Read on retirementresearcher.com/the-art-of-disciplined-investing/

If you want to understand how the world works, you need to understand bonds – MarketWatch

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The stock market is quite a bit smaller, and frankly, it isn’t that important. People focus on it because stocks are easy to understand. But if you want to understand how the world works, you need to understand bonds.
— Read on www.marketwatch.com/story/if-you-want-to-understand-how-the-world-works-you-need-to-understand-bonds-2019-08-22