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Your portfolio's asset mix is a key factor in whether it's profitable. Find out how to get this delicate balance right.
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Blitzkrieg? Dawn raids? Sounds like the markets and the battlefield have a few things in common.
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Most mutual funds don’t come close to beating the indexes they’re compared against. And yet they carry steep fees for active management. Find out how a little research and effort can cut your mutual fund fees.
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Learn how to make money off failing shares.
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Use a global view to determine which stocks belong in your portfolio.
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This rate is rarely questioned - unless the economy falls into disarray.
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There are numerous ways to value investments, and many investors prefer a specific valuation method. Yield investing is one way to value a stock by comparing the current price to various factors. Yield by definition means to give way to or produce. There are many ways to measure yield - three common ones are dividend yield, earnings yield and free cash flow yield.
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Here we look at some of the landmark incidents of insider trading.
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Find the middle ground between conservative and high-risk option strategies.
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Find out what problems arise for financial representatives when they start to diversify their client offerings.
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Learn which tools you need to manage the risk that comes with changing rates.
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Investing overseas begins with determining the risk of the country's investment climate.
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We look at the Sage of Omaha's methodology for evaluating value stocks.
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You’ve probably been told to shop around for the best rate, but what exactly does that entail? Find out how to ensure you're getting the best possible rate on your mortgage.
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Before you try to profit from their theories, you should learn about the creators themselves.
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There are many ways to profit in both bear and bull markets. The key to success is using the tools for each market to their full advantage.
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The stigma that a sin stock receives seems to be more concentrated among individual investors who are certainly entitled to avoid them. The overall market, on the other hand, seems to look favorably on the stability that these companies’ products possess and values them appropriately over the long run.
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Why are dividend payout and retention ratios important to consider when investing in company stock? What companies have high ratios?What constitutes a high dividend payout and retention ratio? Is a high or low ratio good or bad for a company?
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Investment opportunity is huge in China. However, investors should consider the pitfalls, understand the risks and rewards, focus on shareholder-friendly companies and stick to investments they understand.
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Writing down a thesis for every investment may seem almost too simple to be effective, but lessons from behavioral finance tell us that bias and fear of loss often cloud our views, even for the most disciplined investors.
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A perpetual bond makes interest payments to the investor forever. This type of bond holds a certain appeal to both the issuer and buyer.
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For Canadian RRSP accounts, washing same-day trades and using money market funds to bridge the gap over a multi-day trading period saves investors the exchange fee and will help their bottom line while rebalancing securities. Read on to find out how to wash your trade.
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STRIPS provide an alternative form of bond for fixed-income investors who need definite cash flows at specific times. Read the article to find out how.
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Despite the recessions, citizens continue to take financial risks and spend outside of their means without fully appreciating the potential consequences for both themselves and the wider economy.
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The temptation and perils of being over leveraged is a major pitfall of spread betting. However, the low capital outlay necessary, risk management tools available and tax benefits make spread betting a compelling opportunity for speculators.
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Interest rates can be broken down into several subcategories that incorporate various factors such as inflation. Smart investors know to look beyond the nominal or coupon rate of a bond or loan to see whether it really fits their investment objectives.
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While it may sound good in theory to attempt to mimic the investment style and profile of a successful institution, it is often much harder (if not impossible) to do so in practice.
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Investors should look beyond the confines of the U.S. borders to diversify and maximize returns. ADRs are one way to diversify your portfolio and help you achieve better returns when the U.S. market is in a slump.
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Taking corrective action before your losses worsen is always a good strategy. Find out how to keep your capital losses small and let your winners run.
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Your reasons for investing are bound to change as you go through the ups and downs of life. Setting goals is the first step in determining which investment vehicles are right for you.
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Your lifestyle, level of commitment and the trade-offs need to be carefully weighed.
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The short squeezed strategy can be risky - but also very rewarding - for those who master it.
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The inability to forecast future events can turn the markets upside down. Find out how to stay right-side up.
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Accurately predicting the stock market’s opening moves can be a useful tool. If your projection is accurate, you have opportunity to profit. Of course, the first step is to correctly gauge the market direction. You also need to select an investment and successfully gauge the resulting impact the market’s move will have on your investment in order to make money.
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Want to own a mutual fund that will double its reported return in the next six months? Chances are, you already do.
Every equity mutual fund on the planet is about to report a big jump in its five-year performance. That’s not a prediction; it’s a mathematical certainty—unless the market crashes.
The Spike in Five-Year Performance…
September 13, 2013 is the fifth anniversary of Lehman Brothers’ bankruptcy, an event that drove prices of almost every asset class except U.S.
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Commodities markets, both historically and in modern times, have had tremendous economic impact on nations and people. Investing in commodities can quickly degenerate into gambling or speculation when a trader makes uninformed decisions. However, by using commodity futures or hedging, investors and business planners can secure insurance against volatile prices.
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Ever wondered what exactly a convertible bond does? Read the features of a convertible bond and learn how important the conversion factor is to you as an investor.
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If a company decides to pay dividends, it will choose one of three approaches: residual, stability or hybrid policies. Which a company chooses can determine how profitable its dividend payments will be for investors - and how stable the income. Before we begin describing the various policies that companies use to determine how much to pay their investors, let's look at different arguments for and against dividend policies.
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The art market is fickle, and there are no guarantees of profitability, but with a little legwork and forethought you can fill your home with images that may prove worthy investments down the line. Consider these tips for choosing fine art and identifying the Michelangelo from the macaroni.
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They don't call him "The Oracle" for nothing. Learn how Buffett comes up with his winning picks.
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Inflation - defined as a sustained increase in the price of goods and services - seems to be inevitable. While rising prices are bad news for consumers, as it takes an ever-increasing amount of money to purchase the same basket of goods and services year after year, inflation can be quite profitable for investors.
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Few people have much sympathy for the woes of those earning six figure or more each year. But, given that high-income earners drive economic expansion, the risks and problems facing high earners must be addressed if the U.S. is to sustain a long-term recovery.
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If you fail to uncork profits in this market, you can always toast your loss.
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Investors who buy stocks generally seek one of three criteria: undervalued holdings, growth potential or steady income. The characteristics of stocks in each of these categories differs accordingly.
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Leverage is an investment strategy of using borrowed money to generate outsized investment returns. Before getting into greater detail on how leverage works in an investment context, it is useful to have a broad understanding of the general topic.
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Purchasing bonds that are backed by the full faith and credit of the U.S. government can provide steady guaranteed income and peace of mind. Knowing the characteristics of each type of treasury security will allow you to pick those that are right for you.
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On the whole, these sinful stocks offer little value to society, that doesn't mean they don't have value for investors.
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The trouble with gold is that even as stocks are going up and the gold price is hurting, investors and central banks are loading up on gold and silver like never before. There’s a disconnect here and one of these sides is right and one is wrong.
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Recent legislation has added a few new items to the list of tax forms that taxpayers must use to report their investment income. Know which forms you will need to file your taxes this year.
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The U.S. government has two primary methods of raising capital. One is by taxing individuals, businesses, trusts and estates; and the other is by issuing fixed-income securities that are backed by the full faith and credit of the U.S. Treasury.
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Companies have been paying dividends to their shareholders since the 1600s and have given investors good reason to hold onto their shares for long time periods. For many investors, dividends not only provide a steady stream of income, they reinforce the reasons they invested in those companies in the first place and create a bond.
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It's high time investors heed the yellow caution flags waving in front of their margin accounts. Much like the NASCAR driver who pumps his brakes to avoid disaster when he sees the caution flag, it's time for us to slow down.
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Nothing can be said to be certain, except death and taxes even in your investments.
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Sometimes beginning investors forget the trick to success when it comes to investing money: you need to match your future financial goals to the right kind of investment.
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These fraudsters were the first to commit fraud, participate in insider trading and manipulate stocks.
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Should you leave it all up to your broker or take the reins yourself? Striking a happy medium will provide the best returns.
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Gone are the days when consumers lined up en masse to purchase $600 phones. Today, the consumer is looking towards more budget-minded solutions.
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We take a closer look at the theories that attempt to explain and influence the market.
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If bank rates follow the pattern that yields in the bond market have already begun to set, CD rates may be the first deposit rates to benefit from rising interest rates.
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The OTC Pink offers a variety of investment candidates including many good companies waiting to be discovered. Recently, the OTC Pink has worked hard to improve the service by tiering companies based on level and timeliness of information. This helps investors steer clear of the defunct and toxic companies that are often no more than scams.
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Trading in the financial markets is stimulating, exciting and engrossing. But one can become addicted, just like with actual casino gambling or illegal drugs. Like any severe addiction, this can cost you your job, relationships and, of course, your financial resources.
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Because of the non-public nature of private equity, it can be difficult to the learn the lingo. We break it down here.
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Deregistration can provide opportunities for savvy investors. We'll show you how to cash in.
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The benefits of these securities abound, but high leverage also magnifies potential losses.
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Understanding portfolio performance, whether for a self-managed, discretionary portfolio or a non-discretionary portfolio, is vital to determining whether the portfolio strategy is working or needs to be amended. There are numerous ways to measure performance and determine if the strategy is successful.
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Fees associated with many mutual funds looks small. Some are barely over 1% or even lower. But over time those fees erode the overall value of your portfolio. And even in the near term, as in the example used in this article, you could end up paying nearly 20% of your gains just for the privilege of holding a fund.
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The best opportunities to maximize sheer earning power are in investment banking, private equity and hedge funds. Find out what it takes to succeed in these ultra-lucrative areas of finance.
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Warren Buffett made a bet with Protégé Partners, a fund of funds hedge fund manager, that the S&P500 would beat a group of hedge fund managers selected by Protégé. The bet officially started on January 1, 2008, and runs for a decade, ending on December 31, 2017.
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Find out what can cause a currency to collapse, and what central banks can do to help.
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Experience and hard work go a long way toward securing a position in this challenging field.
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Find out if classic films about Wall Street reflect what it's actually like to work there.
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Commercial paper is a short-term instrument that can be a viable alternative for retail fixed-income investors looking for a better rate of return on their money.
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When market volatility spikes or stalls, newspapers, websites, bloggers and television commentators all refer to the VIX®. Formally known as the CBOE Volatility Index, the VIX is a benchmark index designed specifically to track S&P 500 volatility.
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Want to know whether the stock market will open up or down? Check out the index futures.
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Both buyers and sellers can benefit from a real estate professional experienced in dealing with short sales and foreclosures.
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Credit card arbitrage is a way to make some money, but it's a major gamble with devastating risks.
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Find out how to structure your portfolio so you can maximize returns.
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When companies need to raise money, issuing bonds is one way to do it. A bond functions like a loan between an investor and a corporation.
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Investors include foreign bonds in their portfolios to take advantage of higher interest rates or yields, and to diversify their holdings. However, the higher return expected from investing in foreign bonds is accompanied by increased risk arising from adverse currency fluctuations, which can have a significant impact on bond returns.
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Being a fiduciary comes with a certain level of responsibility. These four steps will reduce your liability when managing other people's money.
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Learn how the U.S. found the perfect solution to its debt problems and ended up creating one of the largest markets in the world.
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Hyperinflation can destroy your life savings in a matter of months or less. We’ve seen again and again throughout history…Germany in the 1920s, Hungary in the 1940s, Yugoslavia in the 1990s and Zimbabwe just a few short years ago. Hardest hit are seniors who generally don’t have many employment options for boosting their income.
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Capital losses are never fun to incur, but they can reduce your taxable income. Knowing the rules for capital losses can help you maximize your deductions and make better choices about when to buy and sell securities or other investments.
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Many companies choose to issue rights or warrants as an alternative means of generating capital to avoid dilution of existing share value.
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Zero-coupon bonds are bonds that do not make any interest payments (which investment professionals often refer to as the "coupon") until maturity. For investors, this means that if you make an investment today in a zero-coupon bond that matures in 20 years, you won't put a single penny worth of income in your pocket for two decades.
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Find out how this financial visionary helped everyday people enter the world of finance.
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The Dow’s 354-point plunge Thursday was the worst drop since the presidential election. FOX Business Network stocks editor Elizabeth MacDonald weighs in below on what's behind the decline and what to expect when the market opens.
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Having a clear understanding of the fees charged by a mutual fund is a significant component to making an informed investment decision. Often the management fee is used interchangeably with the MER by business publications and financial professionals, but the two are not the same.
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Even Jay Gatsby's stubborn optimism in The Great Gatsby would be hard pressed to believe that rags-to-riches stories are possible in today's economy. Find out why the ever-increasing wealth gap is eroding the original American Dream and how we need to redefine our expectations for prosperity.
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A banker's acceptance, a common way of financing international trade activity, provides a relatively safe, short-term vehicle for investors. An acceptance is a negotiable time draft that a bank guarantees to pay at a predetermined date.
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Even though Dennis Miller spent well over three decades writing books and teaching the subject of negotiations, some of the best lessons he learned on the subject came from luck.
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Learn about the conspicuously disclosed fees that lurk within your 401(k) investments.
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Will a rising or falling dollar hurt you or your company? In this article we explore the impact of currency converisons on consumers, comanies, and countries.
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If you have ever heard "the trend is your friend" and believed it, you may be a fan of herd instinct mentality. This is an environment where, just like with fashion, masses of people follow a pattern that the majority of people around them are following … sometimes for no sensible reason.
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Understand how rate changes can affect home prices, and learn how you can keep up.
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You might know about different asset types, but do you know how each type contributes to a particular goal?
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Learn how a country's current account balance reflects the country's economic health.
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Property tax liens can be a viable investment alternative for experienced investors that are familiar with the real estate market.
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The balance of payments helps countries to track how much money is coming in and how much money is going out. Learn more about BOPs here.
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Understanding these investing tools will put the market in your hands.