Thursday, November 21, 2024
You have likely seen the news that the S&P 500 has recovered 100% of the losses from the COVID crash. What you won’t see in the press is the broad range of returns from the different industrial sectors used by S&P Global Ratings (formerly Standard & Poor’s). The 500 S&P stocks are subdivided into 11 […]
Casual investors will be aware of what happens in the stock market, but may not be as well informed about the current state of interest rates. Retirement plan experts recommend allocating a large portion of 401(k) accounts to bonds, and those building for retirement using their company 401(k) plans may not be aware of how […]
At the start of the pandemic-triggered economic crisis, a large portion of stocks in the high-yield sectors slashed or suspended dividend payments. For example, Hoya Capital Real Estate reports that 31 of 42 mortgage real estate investment trusts (REITs) cut or suspended dividends from March through June. Other sectors, such as equity REITs, business development […]
2020 has been a wild ride for investors in energy infrastructure stocks. A range of factors, including energy demand destruction due to COVID-19, a meltdown of the high-yield investment sectors, and a perception that new, renewable energy technologies, will quickly replace oil and gas usage. Energy infrastructure, sometimes called energy midstream, are the services that […]
I get to interact with hundreds to thousands of individual investors, and I have observed that many investors are not aware that shares of closed-end funds (CEFs) are not the same as common stock shares. CEFs are risky in a separate and distinct way from common stock risks. CEFs attract new investors because many of […]
The effects of the COVID-19 pandemic on the economy and business resulted in a stock market crash and severe business disruption for many companies. One impact of the economic slowdown/shut-in was that many companies were forced or chose to slash common stock dividends. For example, out of the 165 equity REITs tracked by Hoya Capital […]
It was just a handful of months ago that the coronavirus pandemic took hold of the U.S. population and economy. Most states put their populations into lockdown for much of April and May, which did slow the spread of the virus. Still, people can’t stay at home forever, and reopening of much of the economy […]
In March and April, the pandemic-triggered stock market crash hit the high-yield investment sectors, especially hard. Exchange-traded funds and notes (ETFs, ETNs) lost up to 90% of their value in a very short time. UBS to Redeem Two Leveraged Mortgage ETNs After 95% Plunge “Leveraged” is the word to note. Before the COVID crisis, there […]
The stock market crash at the start of the so-called “coronacrisis,” was especially devastating to share prices in high yield sectors. I attribute the extra steep declines to what I have labeled a “liquidity event,” in which leveraged funds using the high yield investments were forced to sell, sell, sell, to avoid becoming leveraged into […]
Outside of a personal residence, real estate is an asset class that often is underrepresented in investor portfolios. One reason is that it takes a lot of capital or taking on a lot of debt to buy an apartment building, office building, or a farm. Real estate investment trusts (REITs) offer a stock exchange-traded way […]
