Stocks

  • 11 Oct
    Under 30? How To Invest Now For Incredible Future Returns

    Under 30? How To Invest Now For Incredible Future Returns

    • This post is essential reading for young investors, while also valuable for investors of any age. If you’re a more mature investor, pass this along to your kids or grandchildren.
    • Investing regularly month after month is going to get you a long way.
    • The younger you start, the better. As life expectancy is getting longer and longer, if you are under 50, you can still grasp the benefits of investing in stocks for the long term.
    • As the current market looks overvalued, don’t be afraid to start dollar cost averaging. Follow along with Investiv Daily for great investment choices.

    Introduction

    An essential concept in investing often shunned by mainstream media is connecting your investment strategy with your specific goals. The majority of the content we see is about one investment type, i.e. stocks, bonds, gold or real estate.

    All investment tools have their pros and cons which are emphasized when we specify the age and goal of the investor. Today we’ll discuss why investing in stocks is essential for young investors, and a low risk way for doing so. More →

  • 10 Oct
    You Might Want To Sell Your Dividend Yielders…

    You Might Want To Sell Your Dividend Yielders…

    • Fundamentals aren’t the reason behind your dividend yielders’ excellent performances.
    • Yields have marginally increased and the impact on dividend stocks is significant.
    • Do you think about risk when thinking about dividend income?

    Introduction

    A chase for yields has pushed the price of dividend yielding stocks to extreme levels.

    Looking at the S&P 500 Low Volatility High Dividend Index—which tracks the performance of the 50 least-volatile high dividend-yielding stocks in the S&P 500—you can see it has almost been a four bagger (3.7x) since the Great Recession, growing from 1,720 points to its current 6,395 points. More →

  • 06 Oct
    Is Your Brain Wired For Investing?

    Is Your Brain Wired For Investing?

    • Recency bias, probability neglect and aversion loss are just a few of the concepts that we, as humans, find difficult to avoid in our investing.
    • The average U.S. investor underperformed the market by 7.4% per year in the last 30 years as a result of taking action under the influence of emotions.
    • Fundamentals, valuations and dollar cost averaging can help you put your emotions aside.

    Introduction

    Today we’ll discuss how humans aren’t really mentally prepared for investing. We are wired to survive in the woods with a freeze, fight or flight system, which has nothing do to with the markets. There is no threat of death when it comes to investing in the markets. More →

  • 30 Sep
    Index Funds: It’s Time To Stop & Reflect

    Index Funds: It’s Time To Stop & Reflect

    • Thinking for yourself and not doing something just because everybody else is doing it can get you far, especially in investing.
    • Equally weighted indexes have outperformed market capitalization weighed ones.
    • The solution is to look for common sense in investing and to look at valuations.

    Introduction

    Mutual funds and ETFs that track indices are very popular these days. The prevailing attitude is that only a handful of active investment managers can consistently beat the market and therefore it is best to just invest in the whole market. Investing in the whole market means buying a small piece of every company, or at least that is how it should be. In this article we’ll explain the biases behind index investing. More →

  • 22 Sep
    Enjoy Your Organic Apple, But Think Twice Before Investing In Organics

    Enjoy Your Organic Apple, But Think Twice Before Investing In Organics

    • As growth slows down, investors panic and sell stocks of good companies which can create a value opportunity.
    • Conventional food retailers are entering the organics market increasing general competition.
    • It all boils down to valuation and fundamentals.

    Introduction

    Organic food stocks have been very rewarding to investors who understood the trend from the beginning.

    High margins and a growing customer base has attracted many competitors, squeezing margins, lowering comparable sales, limiting growth and affecting profits. Such a situation is especially bad for growth stocks because as their growth slows down, the high valuations are no longer justified. The consequence is a sharp decline in stock prices as the first estimate misses arrive and guidance becomes more conservative. More →

    By Sven Carlin Investiv Daily Organics Stocks
  • 21 Sep
    Heavy Machinery & Auto Stocks – Is Now The Time To Buy?

    Heavy Machinery & Auto Stocks – Is Now The Time To Buy?

    • Heavy equipment seems to be in the midsts of a supply glut where the risks outweigh the rewards.
    • Emerging markets are the key for car manufacturers, and positioning for growth there is essential.
    • Car manufacturers offer the possibility for long term outperformance by proper due diligence and geographic growth analysis.

    Introduction

    Heavy equipment, machinery and automotive manufacturing are important parts of the economy, but the sector is a cyclical one. In periods of economic growth, the majority of people buy new cars, and new infrastructure and homes are built, which increases the demand for machinery. However, this demand only lasts up to a point after which people have already purchased their new car—and aren’t likely to replace it for 7 years—and there is an abundance of machinery available as machinery is typically made to last for more than 20 years. More →

  • 20 Sep
    7 Years In & Valuations Matter More Now Than Ever Before

    7 Years In & Valuations Matter More Now Than Ever Before

    • Volatility can tell you when to buy, but valuations tell you when to sell.
    • In the 2000s, faster than expected earnings growth, low transaction costs and reduced risks from lower volatility were considered factors of the “New Era” for stocks.
    • These days, low interest rates and low inflation are new factors that create the “New Era,” while the PE ratios just grow and grow. Does this sound familiar?

    Introduction

    Apart from professionals, you rarely find investors who are passionate enough about their investments to make it their day-to-day and weather through the peaks and troughs in the market.

    There are many traders, especially young ones, who were unaware of what stocks were back in 2009 that now believe they are the kings of the world as a result of the tailwinds of the current bull market. In such an environment, valuations are ignored and investors become euphoric which makes them believe, for example, that the merging of Tesla and Solar City is a good idea, or that Facebook will have everlasting growth. In reality, our “new normal” is one of negative interest rates and low yields. More →

  • 19 Sep
    Beware The House Of Cards

    Beware The House Of Cards

    • Stocks and bonds don’t provide diversification, while gold only does sometimes.
    • Alternative assets are better, but not all of them are equal.
    • Hedge funds perform well in bear markets but heavily underperform in bull markets.

    Introduction

    The increased market volatility after the quiet summer demonstrates how risky markets can be. The market falling by 2.5% in a few days on practically no news except for an increased probability of a small increase in in interest rates and no additional stimulus in Europe is a sign of the market’s fragility. More →

  • 16 Sep
    Want To Retire Comfortably? Do You Have $2,000,000?

    Want To Retire Comfortably? Do You Have $2,000,000?

    • The low yields we have now increase the amount necessary for a comfy retirement nest egg.
    • $500,000 is only estimated to last for a 13 year retirement. Most retirees will completely miss the mark.
    • Avoid risky assets no matter how tempting might the yield be.

    Introduction

    Last week we discussed the true cost of low interest rates with particular attention paid to pension funding. Many defined pension plans are underfunded, and it’s a situation that has to be dealt with now despite it being against human nature to think about a problem that will only arise in the distant future.

    On top of the problems in defined pension funds, low interest rates have a detrimental effect on general pensions and your retirement. More →

  • 13 Sep
    What To Expect From The Markets Now

    What To Expect From The Markets Now

    • The German bond’s 3% loss on a 12 basis point yield move shows how risky bonds are right now.
    • The value of the S&P 500 should be around 1,600 but could go lower with bad economic news.
    • Bonds and stocks seem very risky as they both have low yields and large downsides.

    Introduction

    Last Friday was a pretty scary day in the financial markets. The S&P 500 lost 2.45% and bonds also lost ground due to higher yields.

    Stocks and bonds are correlated and don’t provide quality diversification. We have been warning about the risks inherent to bond investing for a while with warnings that the low yields mean high risk and low returns. More →

1 4 5 6 7 8 9