The philosophy called socially responsible investing claims that your investments should reflect your values. The most common implementation of SRI is to refuse to invest in certain companies because you disagree with one or all of their practices.
Despite their trailing the broad market lately, hedge funds continue to attract money. Why? Part of it may be snob appeal – they are reserved for upper-income folks. Yet they also are a good way to diversify your portfolio. And some actually do spectacularly well.
Both the stock and bond markets remain volatile as investors climb the proverbial “wall of worry.” Don’t worry. While something horrible always could crop up, it’s better to focus on the strong underlying growth trend in the U.S. economy and the influence of easy money policies abroad.
Investing has never been more accessible, more necessary or filled with many booby traps. You can never guarantee complete success on Wall Street, but knowing a few common blunders can improve your odds.
U.S. bull markets tend to draw all eyes upon the S&P 500, somewhat like a moth is attracted to a flame. As the poor moth finds out, the pull of the Standard & Poor’s 500 can be damaging: The index doesn’t cover a lot of important stocks, and tech titan Apple has a disproportionate effect on this storied benchmark, distorting its performance.
Does every company you invest with act in a way you support? Do you fund an oil company that shares your devotion to the environment? A retail chain in line with your political leanings? Here’s what to know to bring your investments in line with your beliefs.
Market volatility is back. Just as you started to hope that stock values only ever move in one direction (up), the pendulum swung the other way. Your probable response: anxiety. Acting on that emotion, though, can do you and your portfolio more harm than good.
Bad driving conditions often produce wrecks, but not every car on the road crashes in a snowstorm. With the exception of chronic worriers, most of us don’t ponder terrible events that could potentially happen. Such forethought, though, is precisely what risk management for your money involves – unexciting, yet vital for investing success.
Can you beat the market? Everyone with money to invest for whatever reason needs to ask this question. Your answer helps you decide what types of investments and investment advisors you want to use.
We pass many lessons on to our kids, from teaching them how to ride a bike to helping them deal with pressures at school. Yet we rarely discuss one of the best bits of lifelong wisdom: the importance of investing early and often.