At some point this year, interest rates should go up. What will happen then to dividend-paying stocks? Because they benefited when fixed-income rates were low, they will dip – and some already have, in anticipation. Over the long pull, however, dividend payers do well.
Diversification gets a bad rap when almost everything falls at once (2008) or one sector vastly outpaces others (tech in the late 1990s). But a comparison of last year and this year shows how, once again, diversifying always makes sense over the long pull.
Amid good U.S. economic news and lower oil prices, growth stocks are finally showing a recovery.
Being a proactive investor means paying attention to more than just your investments’ fees and expenses. What your dividends yield is very important. And their tax situation is, as well, as dividends are taxable income.
The question of how we array our investments is vital to our future financial well-being. Key to this is knowing the different between asset allocation and diversification.
We hear all the time that spreading our portfolio’s holdings across many classes of assets is the best defense against losses when the bears hit Wall Street. There’s a good chance your diversification strategy may now not work as you intended, though.
When a financial genius invests in you, that’s usually a good sign. This seemed to be the case recently when George Soros invested $500 million with Bill Gross at the latter’s new firm. The Soros money went into a separate account that follows Gross’ new Janus Global Unconstrained fund.
Despite a good 2014, the stock market went through some tough days. At one point in October the Standard & Poor’s 500 was down about 8% from its all-time high reached just a month before, then a few weeks later rebounded to set records.
You don’t hear much about them, but closed-end funds offer a way to buy a good portfolio of securities, often for cheap. When markets fall (as they recently did and will again) CEFs can be attractive alternatives.
We can’t control the markets; we can control the costs that help or hinder our investment strategy. What may seem like only a slightly higher fee today can add up to a significant cut of your net return over time. And the first step in minimizing fees is spotting them.