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A few popular ETFs you should know about

A few popular ETFs you should know about

An exchange-traded fund or ETF is a form of an index fund that provides investors with a standard return at a minimal cost though it differs from index funds in that trading in ETFs is commission free while index funds make for expensive trading. An ETF is also like a mutual fund except that it trades on major stock exchanges. ETFs make for appealing investments because of their low costs, tax efficiency, and features that resemble stocks in trading and functionality. From the time that they were first introduced in 1993, they have caught on like wildfire with about $2 trillion invested in them. As of 2015, ETFs have 1,800 products on offer across every market sector, niche and trading strategy. The best ETF funds are not expensive. A difference of a few dollars, however insignificant they may seem at the time, will make a sizeable difference in the long-term returns. The expense ratio determines the cost of an ETF. For instance, an expense ratio of 0.5% signifies that $5 has to be paid every year for every $1,000 invested. The best ETF funds also have to do a good job of tracking the market index they are intended for.
An overview of stock market basics for beginners

An overview of stock market basics for beginners

The stock market for beginners makes for an equally alluring and lucrative investment opportunity as much as it appears to be confusing and risky. The steep rise and fall of the markets are enough to send shivers down the spines of beginners. However, history has shown that investing in stocks has been one of the most profitable and easiest methods of building wealth over a long period. Hence, studying a few stock market basics can help beginners go a long way in investing wisely and correctly in building wealth. This stock market for beginners’ guide will explain the what, how, when and how much of investing in stocks – What is stock? A share of stock essentially denotes legal ownership (equity) in business. Stocks, which are also called as ‘equities’ and ‘securities,’ are usually of two types – common stocks and preferred stocks. Common stocks (or the stocks we hear about in investing) entitle owners to a proportional share of the particular firm’s gains or losses. Preferred stocks are economic equivalents of a quasi-bond/stock, and owners aren’t entitled to a cut of the gains and losses. However, they receive a specific dividend at predetermined times. Another important difference is that preferred stockholders are paid dividends before common stockholders, and in the event of the company going bankrupt, the preferred stockholders outrank common stockholders for recouping of investments.
The best stocks to invest in and hold on to

The best stocks to invest in and hold on to

The general advice of the stock market always has been – buy stocks for the long-term. One will ask what the ‘length’ of the term should be. When you buy a stock, think of yourself as a business partner forever – that is, until you need the cash. Still, thinking about forever even in terms of, say, 30 years is quite inconceivable. A more manageable term seems 15 years. So, let’s say if you invest $20,000 today in 2017 in a stock that gives average returns of 12% p.a., you’ll end up with about $1,09,000. Buying a stock and holding on doesn’t seem like a bad idea now, does it? However, not all stocks are suited to be good long-term buys. The best stocks to invest in and hold on for a long time must have 6 unique characteristics – they should have sustainable products/services and shouldn’t be fads, leaders of the company should be adaptable, balance sheet should be strong, the competitive environment should be benign, the strategy should be long-term and look beyond the next year, and the company should have a track record of innovation while being vigilant about not taking a lot of risk. While it is hard to find all characteristics in one single company, you can start here.
Top 5 stock investments for 2017

Top 5 stock investments for 2017

Investing in stocks is one way of investing money for the future. Some of the top stock investments for the year 2017, include: General Motors (GM) People are under the impression the business cycle for automobile manufacturers has currently reached its zenith. However, that does not necessarily mean that things will only spiral downward from now on. Earnings might not be badly affected. Also, rapidly evolving technology that has electric and self-driven vehicles as the next big thing means General Motors is bound to benefit from it. General Motors, in fact, has both the market and the technology to beat Tesla at electric and hybrid vehicle manufacturer. General motors, as of now, trades at a P/E (price to earning ratio) of 4.3 and it is understood that the ratio will expand in the near future to almost ten, causing GM stocks to rise substantially. Should this happen, the company will double in value. From the current price of $38, it can go as high as $80 in a year or two. This is one of the top stock investments. ONE Gas (OGS) Natural gas has been a light at the end of the tunnel in an energy sector that was increasingly running out of natural resources.
The best REIT ETFs to invest in 2017

The best REIT ETFs to invest in 2017

Real estate investment trusts, or REITs as they are known and denoted, are one of the chief considerations when it comes to constructing any fixed-income or equity portfolio. REITs provide not only lower overall risk but also potentially higher returns as well as greater diversification. Basically, REITs have the ability to generate high dividend income as well as guarantee capital appreciation. These make REITs an exceptional offset to cash, bonds, and stocks. REITs usually own and/or manage a commercial real estate that produces high income, whether it’s the properties on their own or the mortgages on those specific properties. Investors can invest in the firms individually or via a mutual fund or an exchange-traded fund (ETF). This article talks about REIT ETFs. As everyone knows, leverage is the key to investing in real estate. However, real estate investment trust (REIT) ETFs aren’t like that. Herein, investors invest in and buy shares, and they reap dividend distributions and a total return that is based only on the amount that they invested. Lower risk being the tradeoff for this, a REIT ETF invests in multiple and numerous real estate firms all at once, much unlike a person investing in and betting on just one property. What’s more, since investors don’t have to borrow funds to pay for the real estate, there exists no debt that they need to pay back.
Top 20 dividend stocks in the USA

Top 20 dividend stocks in the USA

Investing in the stock market correctly and wisely today could earn one handsome returns. There are several good dividends stocks in the market today, out of which details of top 20 dividend stocks are detailed below: Comcast Comcast has increased its dividend at a 20% clip since past five years and still plans to improve. It then combines with the stock buybacks as well as the increased price. Costco The Costco has got a yield in line which has got its frugal prices which is about 1.2%. But the same dividend has been increasing 24% a year for the past 10 years. Especially dividend stocks raised to +0.59% in the year 2017. Microsoft Microsoft’s price or earnings ratio has surged to 18.3 shortly. But, even at that level, the shares usually provide a substantial yield (2.6%), as well as the dividend, is increased 12 years. Union Pacific For the sake of crude prices, the grain inventories as well as the coal, and a reduced regimen have all started to work in Union Pacific’s favor. Since then, the stocks got increased by 17.5% in the past year. PepsiCo PepsiCo, strong mix of beverages, as well as snacks, has been providing easy and free cash flow which is derived with 10% annual dividend and jumps for the past 10 years.
Top 10 hot stocks to buy

Top 10 hot stocks to buy

The markets have been good so far. Most stocks are pushing their valuation. It is better to pick and choose stocks which are on the list due to bargains, technical reasons and others due to growth. The ten mentioned below are there because they are better than most of the well-known names. The advice you would like to follow does not waste your money on risky startups and IPOs that do not deliver. Check these 10 hot stocks to buy which are likely to outperform in the next term, tripling your valued investment. Textron Inc. (NYSE: TXT) – Aerospace and Defense With a market cap of $12 billion, it is a gem hiding in the world of defense. It is the name of Bell helicopters, Cessna and Beechcraft aircraft and it also makes drones, electronic warfare systems, armored military vehicles. In the light of continuing war with the terror and their regimes makes the stocks more are attractive. This is one of the best 10 hot stocks to buy. Alphabet Inc (NASDAQ: GOOG) The company revenue history reveals a consistent growth and hence it is a part of the 10 hot stocks to buy. This is its 12 th year of growth revenue not annually, but every quarter it has shown their sales growing.
4 essential things to know about crude oil pricing

4 essential things to know about crude oil pricing

Crude oil prices are influenced by its supply and demand globally. Economic growth has the biggest impact on the demand for certain things, and growing demands require energy. Petroleum products comprise a third of the total energy consumption in the world; these products are made from crude oil and other hydrocarbon liquids. The supply, demand, and the market price of crude oil are affected by the seasonal changes in demand for petroleum products. Influence of the OPEC in oil supplies and pricing By setting certain targets of production for its members, the Organization of the Petroleum Exporting Countries (OPEC) have a major influence on the present prices as well as the futures forecast of crude oil. Some of the countries in the world that have the most oil are members of this organization. The largest producer of crude oil within the OPEC is Saudi Arabia; it is also one of the world’s largest oil exporters. All countries in the OPEC combined, control about 73% of the world’s total proved oil reserves. In the year 2016, around 44% of world’s crude oil was produced by these member nations. Three key factors that help in determining how the OPEC influences oil prices are as follows:
6 popular tech stocks to buy now

6 popular tech stocks to buy now

Many believe that you can build long-term wealth if you carefully and responsibly choose to invest in the right stocks at the right time. While new investors may want to steer clear of the stock market, familiar stock market players may vouch for its returns and long-term gains. The most reliable way to ensure you get good returns on your investment is diversifying your options among several types of industries, companies, and securities. One good type of share to count on includes technology stocks as these are fast changing and are constantly striving to improve and innovate. What’s more, these give great returns if chosen wisely. Here are six popular tech stocks to buy now. Netflix Investors have had high expectations from Netflix, and the company has successfully delivered up to it. Quite like last year, when their stocks gained over 100%, Netflix continues to conquer the world and is indeed one of the best tech stocks to buy now. The reason being the company’s ever-increasing enormous global opportunity that exhibits no signs of declining at the moment. With a whopping number of 130 countries in its streaming kitty, this global giant is set to soar higher and swiftly reach its overwhelming target.
4 popular money market funds to choose from

4 popular money market funds to choose from

Fixed income mutual funds that are invested in debt securities are known as money market mutual funds. The main characteristics of money market funds are that they have short maturities and the credit risk is also minimal. They also are a part of the lowest-volatility types of investment. Depending on the type of securities the fund invests in, money market funds are either taxable or exempted from tax. The U.S. Securities and Exchange Commission (SEC) divides money market funds into three major categories based on an investment of the fund. The three main categories are government, municipal, and prime. Moreover, the SEC further classifies municipal and prime funds as retail or institutional on the basis of the investors in the fund. Money market funds should be considered by investors who have a short-term time horizon for investment. Investors who need their investments to be extremely liquid, to diversify their portfolio with some conservative investment, and have a low tolerance for volatility should ideally opt for money market funds.  Even the best money market funds do not usually provide returns as high as other types of fixed income funds, such as bond funds; however, money market funds majorly provide stability. Therefore, it is always suggested to have some stable investments as a part of the portfolio.