When companies want to raise funds, they sell shares to investors. When these shares trade on an exchange, the public can buy into these companies and become shareholders. Investing in stocks is a way for investors to participate in the growth of companies and the economy as a whole. Wealth is ultimately generated from owning shares of valuable businesses, not earning a paycheck. Through careful analysis, investors can own and participate in growing businesses as part owners. Of course, as in any business, success is not guaranteed and thorough research must be conducted before any investment is made.
The growth of the Internet has been one of the top advancements in history. But with this good news comes the darker side, namely cyber attacks that cost billions of dollars in damages along with non-monetary impacts. Millions of Americans have gotten their personal data stolen over the past few years, and it will likely only worsen. There’s also the threat of cyber attacks on key government and intellectual assets. But with the threat also comes a potential investment opportunity in cyber defense. President Obama just requested another $14.0 billion to improve the government’s safeguards. Could you imagine foreign threats hacking into our nuclear installations and mili ... Read More
The performance of many blue chips—consumer staples stocks, in particular—is really stunning. And looking at the shares and how much they’ve moved on the stock market, even since the beginning of the year, you really have to wonder how sustainable this stock market rally is. I am a big believer in blue chips and investing in stocks that pay growing dividends over time. But right now, we have so many companies trading right at their all-time record highs. I wouldn’t say that the stock market is expensively priced, but realistically, other than momentum players, would individual investors be buying these stocks at their all-time record highs? I find that unlikely. The stock market breakout really i ... Read More
The housing slump in 2007 and the financial crisis following it left the U.S. economy in sorrow. Millions of Americans lost their savings due to the stock market collapsing to the lowest levels experienced in a while. Key stock indices in the U.S. have shed more than half of their value, and some of the well-known companies went underwater. Having said that, the key stock indices in the U.S. are back to where they were before the financial crisis began. But while the stock markets have recovered, many investors have lost courage to get back into the markets. What should investors do if they are unsure about investing in the stock market again? The most important thing investors need to keep in mind is ... Read More