All articles tagged with #portfolio diversification
Bond ETFs are gaining popularity due to higher interest rates and a broader range of options, including core, multisector, and high-yield funds, offering investors new opportunities to manage risk and enhance returns in their portfolios by 2026.
Logan Paul has invested $5.3 million in a rare Pokémon card and suggests collectibles could be a risky but potentially rewarding addition to a portfolio, though financial experts generally advise keeping such assets a small part of overall investments due to their illiquidity and volatility.
Ray Dalio recommends investors allocate up to 15% of their portfolios to gold, citing its role as a safe haven amid economic uncertainty similar to the early 1970s, with gold prices reaching over $4,000 an ounce due to inflation and geopolitical tensions.
Gold prices have surged nearly 40% this year and are expected to reach $3,900 an ounce by June 2026 due to falling real yields, a weakening dollar, and ongoing geopolitical risks, making it a strong candidate for portfolio diversification. Meanwhile, U.S. stocks are optimistic, driven by AI advancements, though some experts remain skeptical about the technology's macroeconomic impact. Emerging markets continue to outperform, with robust growth and attractive valuations, especially in China, supported by a potential decline in the dollar and favorable economic conditions.
Whetstone Capital achieved a 21% return in May by investing in undervalued and neglected 'left-for-dead' stocks, driven by opportunities in software, fintech, healthcare, and financial data sectors, with a focus on management credibility and market dislocation, aiming to smooth out volatility through diversification.
The price of gold has recently declined from its record high, offering investors a potential entry point. After reaching $2,776.10 per ounce on October 29, it has dropped nearly 6% to $2,611.53 by November 12. Investors are advised to explore various gold investment options such as gold IRAs, ETFs, futures, and stocks, and consider investing more than initially planned due to the lower price. It's important to remember that while gold can diversify a portfolio and hedge against inflation, it should not be relied upon as a primary income source. Investors should aim for a balanced portfolio to capitalize on gold's potential benefits.
Olivier Le Moal's monthly series on Dividend Stocks aims to shortlist five relatively safe stocks with solid dividend history, low debt, and attractive valuations from a universe of 7,500 U.S. listed stocks. The article provides detailed insights into the selection process, methodology, and criteria used to filter the stocks, ultimately presenting three groups with different risk and yield profiles. The final A-List for conservative income includes Microsoft, Visa, Bristol-Myers Squibb, Archer-Daniels-Midland, and Enbridge, offering an average yield of 3.53% and emphasizing the importance of diversification and due diligence in stock selection.
The article discusses two high-yield funds, BIZD and BGR, as essential tools for a retiree's portfolio, emphasizing the importance of being prepared for various market conditions. BIZD, a Business Development Companies (BDCs) fund, benefits from rising interest rates and strong cash flow, while BGR, a Closed-End Fund (CEF) focused on energy companies, offers diversification and income stability. The author advocates for a balanced portfolio that can weather market volatility and generate consistent income, providing retirees with financial security and peace of mind.
Three dividend stocks, Franco-Nevada, Diamondback Energy, and Energy Transfer, are recommended by Fool.com contributors to enhance a dividend stock portfolio. Franco-Nevada offers diversification benefits with a 1.2% yield and a history of annual payout increases. Diamondback Energy provides a 2.2% dividend yield with potential for variable dividends, while Energy Transfer yields 8.7% and aims for 3-5% annual dividend growth, supported by its balanced asset mix and capital allocation policy.
Investing $135,000 equally among Energy Transfer LP, Enterprise Products Partners L.P., Enbridge, and Kinder Morgan, with dividend yields of 9.1%, 7.5%, 7.4%, and 6.4% respectively, could generate $10,000 in passive income. These energy companies have shown consistent distribution growth and resilient business performance, making them attractive for portfolio diversification. With favorable valuations and potential for future growth, they present an opportunity for investors seeking high-yield dividend stocks in the energy sector.
Market professionals suggest investing $50,000 heading into 2024 by diversifying one's portfolio with a mix of long-term investments and following investment strategies recommended by experts.
Investing experts suggest that now is a great time to add small- and midsize-company stocks to your portfolio. Large-cap stocks have been outperforming smaller stocks in recent years, but smaller stocks are currently trading at a relative bargain compared to their historical valuations and large-cap stocks. Additionally, historical data shows that smaller stocks tend to outperform larger stocks over the long term. While smaller stocks may come with more volatility, diversifying your portfolio with a mix of large and small stocks can help capture gains when different types of companies perform well. It is recommended to consult with a financial advisor to determine the best allocation for your portfolio.
Mark Spitznagel, chief investment officer of Universa Investments, warns that the US is in the "greatest credit bubble of human history" due to the Federal Reserve's monetary policy, and predicts a major market crash in the next few years. He likens the Fed's intervention to suppressing forest fires, stating that the economy is now a "tinderbox" where any attempt to let things go back to normal could result in the destruction of the entire ecosystem. Spitznagel advises investors to diversify their portfolios with a mix of assets, keep cash reserves, and be prepared for both market downturns and potential buying opportunities during a crash.
The traditional 60/40 investing strategy, which allocates 60% to stocks and 40% to bonds, is facing challenges as the correlation between stocks and bonds has increased. The Federal Reserve's fast rate hiking cycle and the unexpected strength of the US economy have disrupted the effectiveness of this strategy. However, experts believe that diversification, including alternative assets like gold or private credit, and the recent rise in bond yields make the 60/40 portfolio more compelling in the long term. Despite short-term pain, the risk-reward balance may improve after a difficult period.
Investors seeking to accelerate their passive income snowball can consider high yield, high dividend growth stocks that also offer relatively low risk. Two such opportunities are Brookfield Asset Management (BAM) and Plains All-American (PAA)(PAGP). BAM, with a forward dividend yield of 4.1%, a debt-free balance sheet, and a strong growth profile, has the potential to deliver robust growth and consistent dividends. Plains, despite its checkered past, has sold off non-core assets, deleveraged its balance sheet, and offers an 8.1% yield that is well covered by distributable cash flow. With a promising distribution growth plan, Plains presents an attractive opportunity for maximizing current yield and growth.