Big-cap stocks are firms with a market capitalization of more than $10.0 billion. The market capitalization of a company is its value, which is determined by multiplying the company’s share price by its number of shares outstanding. Big-cap stocks are usually international in scope and are generally less risky than smaller firms. Big-cap stocks usually have multiple products in various parts of an economy, diversifying their income stream.
When it comes to big-cap stocks, very few are larger than Apple Inc. (NASDAQ/AAPL). But there’s one question many investors may be asking: is there an investment opportunity in Apple’s stock at current levels? I believe there may be, even after a strong move up since hitting a 52-week low in April at $385.10. You have to be careful when looking at big-cap stocks and whether or not there is a strong investment opportunity going forward. Just because a stock has moved up over the past year, that doesn’t mean it’s necessarily overvalued. There is one key question that you must ask yourself as an ... Read More
At the beginning of January, I was optimistic that 2014 would deliver some good results to the stock market. I suggested that small-cap stocks would also continue to return profits to investors after a wonderful 2013 as the economy continued to show progress. But after a disastrous January, in which the small-cap Russell 2000 attracted the most selling and was down more than nine percent from its 2013 record-high, concerns surfaced. At this stage last year, small-cap stocks were blossoming with the Russell 2000 up more than eight percent by February. Now there are co ... Read More
Another year is soon to draw to an end. In my final commentary prior to the holiday break, I’m going to talk about something that is often not considered by investors when formulating their investment strategy. But first, let me talk about my dad. He’s in his early 80s and is the most risk-averse investor I have met. He will invest in bonds, regardless of how they are doing. In high-yielding or low-yielding periods (which we are currently in), he will invest in the safety of bonds and squeeze out any last drop of interest. Yet while his investment strategy has always been status quo, this is not the way it should be. Let me explain. Your asset port ... Read More