Markets News Stocks 

A ‘tug-of-war’ is pulling the stock market in 2 distinct directions — and how investors combat it will determine whether they survive the next meltdown

“While global stocks have gained 11% this year, $46 billion has been pulled from equity funds, according to Bank of America Merrill Lynch” writes Akin Oyedele for businessinsider.com. This risk helps explain why some investors have stood on the sidelines of this rally, and even pulled money from equity funds.According to Alain Bokobza — Societe Generale’s head of global asset allocation and equity strategy — investors must posture for the ongoing “tug-of-war” between the bullish and bearish forces pulling on the stock market.Several investors have kept their enthusiasm tempered even…

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Markets News Stocks 

Are nightmares of the recession still haunting your investing dreams?

“Yet many Americans remain reluctant to invest in the stock market, a scary hangover from the 2007-09 recession” writes Anna-louise Jackson for marketwatch.com. Ignore short-term fluctuations (even bear markets) so you don’t second-guess your long-term investment strategy or worse yet, sell near the bottom.But the share of Americans with money invested in the stock market still hasn’t returned to prerecession levels, according to various studies. Source: marketwatch.com

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Wells Fargo’s equity chief declares the end of a 2-year drought in a corner of the stock market, and outlines the best ways to profit from its resurgence

“The shaded areas in the chart below highlight moments when investors favored value stocks and reined in the premium that expensive stocks commanded” writes Akin Oyedele for businessinsider.com. Beyond the extended spread between cheap and expensive stocks, Harvey observed late last year that macroeconomic conditions were lining up in favor of value.He’s calling the end of a two-year bear market for the value factor, which screens stocks that are trading at low prices relative to their fundamental value.Specifically, the median book-to-price ratio of “cheap” and “expensive” stocks rose last year…

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$10 trillion in corporate debt has become a ticking time bomb for the next credit crisis — but one group of stocks is best positioned to escape it

“But outstanding corporate debt, which now stands at nearly $10 trillion, is where the red flags are more frequently hoisted” writes Akin Oyedele for businessinsider.com. A decade after the crisis, investors’ biggest concern is no longer household debt.Their net-debt-to-EBITDA ratio has more than doubled since 2009 and was 1.5 times that of their S&P 500 peers at the end of 2018.Half of the small-cap companies have debt that comes due within the next five years, compared with 40% of the S&P 500. Source: businessinsider.com

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What you need to do in your 20s, 30s, 40s, and 50s to save enough money to retire, according to experts

“Regular contributions of monthly payments and consistently aiming to stay ahead of inflation are key, and it’s important to maintain the amounts you’re investing” writes H Ctor Chamizo for businessinsider.com. According to Castelo, the sooner you start investing, “the more time you have for investments to grow, based on the compound interest effect.”. When investing for retirement, you need to take into account the same criteria you would for any other investment.In fact, experts suggest that over this stage of life and the next is when you’ll be able to…

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We asked 7 Wall Street investment chiefs to outline the most pressing issues shaping markets right now, and what traders can do to capitalize on them

“The implication for investors is that Fed policy should support healthy financial markets and sound growth going forward, Rieder said” writes Akin Oyedele for businessinsider.com. A third unofficial mandate that reared its head in recent months is to keep financial markets stable.Judging by its current path, investors have priced in the start of a global recession at the end of 2018. Source: businessinsider.com

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Warren Buffett’s best investing idea is by far the simplest to understand

“In the column, Heath laid out the simple facts about long-term investing, as explained by Warren Buffett in his latest letter to shareholders” writes Mitch Tuchman for marketwatch.com. Yet everything worthwhile you could hope to learn about investing was captured recently by Tom Heath of The Washington Post in a single newspaper column.It never had been.” Our economic growth since 1942, the year of Buffett’s first-ever investment, has been “breathtaking,” he argues.And you didn’t have to pick the right stock, you just picked America,” Buffett said. “That isn’t a tailwind. Source:…

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Forget Elon Musk’s marijuana-smoking security-clearance troubles — just investing in cannabis stocks can cause you problems

“As of 2015, some 4.3 million people in the U.S. had security clearance, according to a Congressional Research Service Report” writes Personal Finance Reporter for marketwatch.com. Federal employees and contractors who simply own stocks in cannabis-related companies could have problems maintaining the security clearance required to do their jobs, experts told MarketWatch.Kuhn doesn’t think owning index fund shares would represent much of a threat to someone’s security clearance.Audricia M. Harris. “Any changes will be addressed through normal policy update procedures.” She added that security clearance investigators use what’s called the…

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Commentary: If we don’t close the economic gender gap, we’re leaving money on the table

“As the name implies, gender lens investing (GLI) is about layering another way of looking at investment over our traditional criteria” writes Amit Bouri for marketwatch.com. By investing intentionally in women and girls to close the persistent economic gender gap.The opportunity in closing the gender gap is enormous: we are leaving so much talent, resources and — let’s be honest — money on the table. Source: marketwatch.com

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