Investing Guide

Introduction As the world keeps changing, the capital markets reflect this dynamic ebb and flow. In 2023, while the U.S. equity indexes have shown remarkable resilience, there’s an underlying truth that remains unshaken: “Buy protection when you can, not when you’re forced to.” As we step towards the close of 2023, it’s imperative to reevaluate your investment strategy, especially concerning index options. The Cost of Protection: Understanding the Basics In the world of options, the cost of protection is often overlooked when the markets are calm. The catch is that…

In a world where geopolitical tension, supply chain disruptions, and concerns over energy security are increasingly becoming the norm, the globalised order of the last three decades is facing an unprecedented challenge. The evolving landscape of deglobalisation is set to profoundly impact various investment themes, with an emphasis on smart manufacturing, energy transition and climate change, and the circular economy. Riding the Tide of Manufacturing Reshoring Over recent years, we’ve seen a significant shift in manufacturing trends. Manufacturers have been reshoring, or “near shoring”, their production processes to bring them…

The global commodity market is an intricate, complex ecosystem that impacts every aspect of our lives – from the cars we drive to the homes we build. It is a challenging environment where a level of caution is often warranted. However, there are several reasons for an optimistic outlook, particularly within the energy sector. In June, we saw an encouraging expansion in the market breadth, with cyclical sectors adding to the rally initiated by technology shares. This was fueled by indications of tempering inflation in the face of largely resilient…

When it comes to investing, many might eagerly anticipate expert analysis and insider tips, anxiously trying to stay ahead of the stock market curve. However, there’s an underrated, often unnoticed hero silently at work in your portfolio – the power of compounding. This principle, despite not making regular appearances in mainstream finance dialogue, arguably stands as the most potent tool in wealth creation. Through various examples, let’s delve into the concept of compounding, how it works, its benefits, and how it can become the game-changer in your financial journey. The…

Today, we live in a world that is rapidly changing and evolving. Technological advancements are sweeping across every industry, reshaping them and presenting numerous investment opportunities. In the realm of health care, an industry known for its innovation-driven growth and resilience, these changes have been especially transformative. This transformation makes health care a compelling field for dividend growth investors, according to the Franklin Equity Group. Health care has always been an arena where technology has spurred wide-ranging innovation, from the simplicity of the doctor’s office to the complexity of the…

Fixed income investments, including bonds, are often seen as a safer harbor compared to equities due to their perceived lower volatility and more predictable income streams. However, this doesn’t mean they’re free from risks. As a prudent investor, understanding these potential risks is key to shaping an effective investment strategy. Let’s delve into the various risks associated with fixed income investing. Diversification and Fixed Income Investing Firstly, an essential strategy to manage inherent risks in fixed income investing is diversification. This involves investing in bonds with varying characteristics such as…

The IPO market has witnessed a significant slowdown over the past year and a half. Q2 2023 marked the seventh consecutive quarter of year-on-year decline in IPO activity, and the April-June stretch stands as the weakest since early 2016. With higher borrowing rates and the regional banking turmoil of last March, investment bankers and young private firms have had their share of difficulties. However, the ever-optimistic Wall Street bulls are starting to see a silver lining. An intriguing dynamic in the second half of 2023 is the anticipated surge in…

As Franklin Mutual Series suggests, the world of global investing is about to undergo a sea change. After years of lagging behind the tech-centric US market, international value stocks are showing signs of a revival. Decades of low interest rates, minimal inflation, and substantial central bank support have boosted US growth stocks to towering heights. However, the companies that fuel the traditional global economy – those international enterprises involved in finance, construction, and power – appear to be in the early stages of overtaking US firms that once dominated market…

As any seasoned value investor knows, the specter of value traps haunts every investment decision. A value trap is essentially a stock that seems cheap, enticing the investor with visions of untapped potential and significant returns, but the anticipated appreciation never materializes. The stock, cheap for a reason, might even depreciate, leading to losses. Understanding these value traps is critical for value investors. The Academic Perspective on Value Traps Value investing generally works on two premises. First, value stocks offer excess returns due to the inherent risk associated with them….

In the rapidly evolving world of finance, change is the only constant. As we journey into the second half of 2023, the landscape is shifting more dramatically than ever. Amidst a rising tide of financial instability and a chorus of dissent against leading global financial institutions, one investment avenue shines as a beacon of relative safety: the Treasury Bond ETF (TLT). This article will explore five compelling reasons why TLT might be your most prudent bet in navigating 2023’s financial maelstrom. Global Financial Systems on Shaky Grounds We live in…