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3 Balanced Mutual Funds to Sail Through Volatility

Below, we share with you three top-ranked balanced mutual funds, viz. AMFAX, AQMIX and FBPBX. Each has a Zacks Mutual Fund Rank #1. Balanced funds offer investors the convenience of buying into a single fund rather than holding both equity and bond funds. This category of funds also reduces a portfolio’s volatility, while providing higher returns than pure fixed-income investments.The fund managers also enjoy the flexibility of changing the proportion of equity and fixed income investments in response to market conditions. An upswing may prompt them to hold a relatively higher share of equity to maximize gains, whereas a downturn will see them shifting loyalties toward fixed-income investments to stem losses.Below, we share with you three top-ranked balanced mutual funds, viz. AlphaSimplex Managed Futures Strategy Fund Class A AMFAX, AQR Managed Futures Strategy Fund Class I AQMIX and Cantor FBP Appreciation & Income Opportunities Fund FBPBX. Each has a Zacks Mutual Fund Rank #1 (Strong Buy) and is expected to outperform its peers in the future. Investors can click here to see the complete list of funds.AlphaSimplex Managed Futures Strategy Fund Class A seeks capital appreciation by investing most of its net assets in money market and other short-term, high-quality securities in the financial services industry. AMFAX advisors retains a small portion of its net assets for initial and variation margin payments relating to the fund's derivative transactions.AlphaSimplex Managed Futures Strategy Fund Class A has three-year annualized returns of 19.2%. As of the end of June 2022, AMFAX had 95.89% of its net assets invested in short-term investment.AQR Managed Futures Strategy Fund Class I allocates most of its net assets in commodities, currencies, fixed-income and equities. AQMIX invests in instruments like futures, futures-related instruments, forwards, swaps and index futures.AQR Managed Futures Strategy Fund Class I has three-year annualized returns of 11.9%. AQMIX has an expense ratio of 1.25% compared with the category average of 1.68%.Cantor FBP Appreciation & Income Opportunities Fund invests most of its net assets in a portfolio of both equity, ets’s and fixed income securities. FBPBX advisors invests in fixed income securities like corporate debt obligations, U.S. government obligations and shares of ETFs that invest in corporate debt obligations and U.S. government obligations.Cantor FBP Appreciation & Income Opportunities Fund has three-year annualized returns of 9.5%. John T Bruce has been one of the fund managers of FBPBX since July 1989.To view the Zacks Rank and the past performance of all balanced mutual funds, investors can click here to see the complete list of funds.Want key mutual fund info delivered straight to your inbox?Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing mutual funds, each week. Get it free >> This Little-Known Semiconductor Stock Could Be Your Portfolio’s Hedge Against Inflation Everyone uses semiconductors. But only a small number of people know what they are and what they do. If you use a smartphone, computer, microwave, digital camera or refrigerator (and that’s just the tip of the iceberg), you have a need for semiconductors. That’s why their importance can’t be overstated and their disruption in the supply chain has such a global effect. But every cloud has a silver lining. Shockwaves to the international supply chain from the global pandemic have unearthed a tremendous opportunity for investors. And today, Zacks' leading stock strategist is revealing the one semiconductor stock that stands to gain the most in a new FREE report. It's yours at no cost and with no obligation.>>Yes, I Want to Help Protect My Portfolio During the RecessionView All Zacks #1 Ranked Mutual FundsWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Get Your Free (FBPBX): Fund Analysis Report Get Your Free (AMFAX): Fund Analysis Report Get Your Free (AQMIX): Fund Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research.....»»

Category: topSource: zacksNov 24th, 2022

Grab These 3 Balanced Mutual Funds for Solid Returns

Below we share with you three top-ranked balanced mutual funds. Each has a Zacks Mutual Fund Rank #1 (Strong Buy). Investors interested in maintaining exposure to both equity and fixed-income securities may consider investing in balanced mutual funds. Also, these mutual funds are believed to provide greater returns than pure, fixed-income investments while maintaining a low volatility level.The proportion of equity and fixed-income investments in these funds may also vary in response to market conditions. While managers may increase the share of fixed-income securities during a downturn to avoid losses, the share of equity securities may be increased in a bullish market. Hence, these funds are expected to harness the inherent strengths of both classes of investments.Below we share with you three top-ranked balanced mutual funds, namely Fidelity Balanced Fund FBALX, State Farm Balanced Fund STFBX and Schwab MarketTrack All Equity Portfolio SWEGX. Each has earned a Zacks Mutual Fund Rank #1 (Strong Buy) and is expected to outperform its peers in the future. Investors can click here to see the complete list of funds.Fidelity Balanced Fund aims for income and capital growth that is on par with reasonable risk by investing the majority of its assets in stocks and other equity securities and the rest in bonds and other debt securities. FBALX has returned 9.7% in the past three years.FBALX has an expense ratio of 0.49% compared with the category average of 0.84%.State Farm Balanced Fund invests the majority of its total assets in common stocks, usually in companies with a market capitalization of at least $1.5 billion at the time of investment. STFBX also invests part of its assets in fixed-income securities. The fund has returned 9.1% over the past three years.As of March 2022, STFBX held 158 issues, with 15.6% of its assets invested in TOTAL US TREASURY BONDS.Schwab MarketTrack All Equity Portfolio maintains a defined asset allocation in stock investments, with certain percentages for different segments of the stock market. SWEGX invests the majority of its net assets in common stock. The fund has returned 8.5% over the past three years.Zifan Tang has been one of the fund managers of SWEGX since 2012.To view the Zacks Rank and the past performance of all balanced mutual funds, investors can click here to see the complete list of balanced mutual funds.Want key mutual fund info delivered straight to your inbox?Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing mutual funds, each week. Get it free >> Free Report Reveals How You Could Profit from the Growing Electric Vehicle Industry Globally, electric car sales continue their remarkable growth even after breaking records in 2021. High gas prices have fueled his demand, but so has evolving EV comfort, features and technology. So, the fervor for EVs will be around long after gas prices normalize. Not only are manufacturers seeing record-high profits, but producers of EV-related technology are raking in the dough as well. Do you know how to cash in?  If not, we have the perfect report for you – and it’s FREE! Today, don't miss your chance to download Zacks' top 5 stocks for the electric vehicle revolution at no cost and with no obligation.>>Send me my free report on the top 5 EV stocksView All Zacks #1 Ranked Mutual FundsWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Get Your Free (SWEGX): Fund Analysis Report Get Your Free (FBALX): Fund Analysis Report Get Your Free (STFBX): Fund Analysis Report To read this article on Zacks.com click here. Zacks Investment Research.....»»

Category: topSource: zacksSep 15th, 2022

When Do Immediate Annuities Start Paying

How do you plan on spending your golden years? Perhaps exploring exotic locations or embracing the culture? Or, maybe you want to spend as much time as possible with the grandkids. No matter your retirement plans, even the most adventurous seniors may consider investing in something commonly referred to as “plain vanilla”: fixed immediate annuities. […] How do you plan on spending your golden years? Perhaps exploring exotic locations or embracing the culture? Or, maybe you want to spend as much time as possible with the grandkids. No matter your retirement plans, even the most adventurous seniors may consider investing in something commonly referred to as “plain vanilla”: fixed immediate annuities. There is no question that the fixed immediate annuity is the simplest of all the annuity options. In most cases, the contract begins delivering steady income within 30 days of the investor buying it. And in all cases, within 13 months after purchase. if (typeof jQuery == 'undefined') { document.write(''); } .first{clear:both;margin-left:0}.one-third{width:31.034482758621%;float:left;margin-left:3.448275862069%}.two-thirds{width:65.51724137931%;float:left}form.ebook-styles .af-element input{border:0;border-radius:0;padding:8px}form.ebook-styles .af-element{width:220px;float:left}form.ebook-styles .af-element.buttonContainer{width:115px;float:left;margin-left: 6px;}form.ebook-styles .af-element.buttonContainer input.submit{width:115px;padding:10px 6px 8px;text-transform:uppercase;border-radius:0;border:0;font-size:15px}form.ebook-styles .af-body.af-standards input.submit{width:115px}form.ebook-styles .af-element.privacyPolicy{width:100%;font-size:12px;margin:10px auto 0}form.ebook-styles .af-element.privacyPolicy p{font-size:11px;margin-bottom:0}form.ebook-styles .af-body input.text{height:40px;padding:2px 10px !important} form.ebook-styles .error, form.ebook-styles #error { color:#d00; } form.ebook-styles .formfields h1, form.ebook-styles .formfields #mg-logo, form.ebook-styles .formfields #mg-footer { display: none; } form.ebook-styles .formfields { font-size: 12px; } form.ebook-styles .formfields p { margin: 4px 0; } Get The Full Henry Singleton Series in PDF Get the entire 4-part series on Henry Singleton in PDF. Save it to your desktop, read it on your tablet, or email to your colleagues (function($) {window.fnames = new Array(); window.ftypes = new Array();fnames[0]='EMAIL';ftypes[0]='email';}(jQuery));var $mcj = jQuery.noConflict(true); Q2 2022 hedge fund letters, conferences and more   On the other hand, variable immediate annuities provide income quickly as well. But their payments vary. The reason? Depending on the performance of the underlying portfolio, the amount fluctuates. A lump-sum payment is exchanged for regular income with an immediate annuity, regardless of the type. In most cases, these income payments will last for as long as the contract holder is alive, whether paid monthly, quarterly, semiannually, or annually. It could also be for a set period of time, such as 10 or 20 years, depending on the terms of the contract. Overall, purchasing an immediate annuity can provide you with a consistent source of income if you don’t have a pension plan when you retire. However, you should read the following information before signing any contracts for an immediate annuity to understand how they work. Most importantly, when immediate annuities start paying out. What is an Immediate Annuity, and How Does it Work? Here’s what we need to clarify. First, an immediate annuity isn’t as liquid as, let’s say, your emergency funds. In other words, it cannot be accessed as easily as an emergency fund. However, the annuity contract lets you start receiving payments immediately after purchase, so once you’ve purchased it, you can begin accepting payments right away. As a result, if you’re already retired and need a guaranteed income to cover living expenses or medical costs, you’d be better off with an immediate annuity rather than a deferred annuity. I understand. There might be something fishy about this type of annuity contract. Let’s explore immediate annuities in more detail. In the insurance world, this is known as a single premium immediate annuity (SPIA). An insurance agent/company, broker, or financial advisor will receive regular payments after you pay a lump sum, aka premium. A deferred annuity involves delaying payments for a year or more – unlike an immediate annuity, where payments are distributed immediately after purchase. As an annuitant, you can also decide how often payments are made. Depending on the “mode,” you can receive payments every month, quarterly, or even annually. Many people supplement their retirement income with immediate payment annuities. Buying an immediate annuity is an excellent way to secure a steady income for life or a set period of time. Your monthly payments will vary depending on factors such as your age, interest rates, and how long you wish to continue making payments. For example, a fixed interest rate is usually associated with immediate annuities, but only for a limited period of time. An immediate variable annuity is available from some insurers, however. They fluctuate based on underlying portfolio performance, just like variable deferred annuities. Another option is an inflation-indexed or inflation-protected annuity, which increases payments based on inflation. Types of Immediate Annuities The decision to purchase an immediate annuity is based on various factors, such as your age and financial situation. However, how immediate annuities are classified often determines that different types can be identified. Therefore, to choose the type that best suits your retirement plan, you need at least a basic understanding of these classifications. First of all, annuities are classified according to the returns they promise. Depending on the type, this can either be fixed, variable, or index. In addition, annuities can be classified according to their length of payment. Payments for annuities are typically made throughout a lifetime or for a specified period of time. There is no doubt that this can get very confusing very quickly. So now, let’s explore each annuity category in more detail. Variable Immediate Annuities A variable annuity’s payout rate depends on market performance, whether deferred or immediate. Due to this, they are similar to investment accounts such as 401(k)s and IRAs. A lump-sum payment is required to purchase a variable annuity. You will then select one of the subaccounts you wish to invest in. For example, mutual funds, like subaccounts, contain stocks, bonds, and money market funds. As a result, your annuity payout will increase when your investments perform well. Conversely, investing in bad investments will result in decreased annuity payments. Shortly put, variable annuities have growth potential. Historically, annuities of this kind have outperformed inflation and are tax-deferred. Despite this, it is also possible to lose money, and premature death is not protected. If you can handle short-term changes, you may want to consider a variable annuity. Also, if the market takes a turn for the worse, having a diverse portfolio would help cushion the blow. Fixed Immediate Annuities An annuity of this type works similarly to a CD. Your upfront payment is exchanged for regular income. Since you’re not playing the market, fixed immediate annuities do not carry the same risk as variable annuities. In turn, this creates a more predictable and stable annuity payment. There are, of course, some disadvantages to fixed annuities as well. Generally, you can expect lower returns from a fixed annuity. Additionally, because your money is locked up in a fixed interest rate, you can’t invest in more profitable investments. Finally, the value of your funds can also be diminished by inflation. However, your income will be reliable, and you will be protected against market volatility. Index Immediate Annuities This type of annuity is sometimes referred to as a hybrid between a variable and a fixed one. Your payments are based on a market index, like the S&P 500. As is the case with variable annuities, you can expect to receive a larger payment when the index performs well. Your payments will decrease, however, if the index drops. In addition, index immediate annuities come with caps and potential gains and losses. As a result, there’s less volatility than with variable annuities. As a result, your earning potential isn’t going to be as high in the good years. Nevertheless, the bad years won’t be as painful as they once were. Losses on immediate annuities are usually also capped. As such, your initial investment in the index annuity is secure. Term Immediate Annuities There are some people who do not need lifetime incomes. They could, however, pay off excessive debt or medical bills with an income stream over the next five to 20 years. But, on the other hand, perhaps you just need a little bit of time to prepare for another income source, like a pension or Social Security. A term annuity would be your best option in this situation. The premium is purchased with a lump sum, like other annuity types. You’ll receive payments over a specified period of time in exchange. In most cases, terms range from five to twenty years. As soon as the term ends, the payments end as well. If you pass away during the time period, the schedule payments will be transferred to your beneficiary if you pass away during the time period. People who need an income for a certain period of time are eligible for term immediate annuities. Additionally, they can be used to fund a life insurance policy, as this typically requires a fixed funding arrangement. Lifetime Immediate Annuities Is it possible to receive lifetime payments if you have your heart set on this? No problem. In addition, a lifetime annuity is available. Buying this contract will provide you lifetime payments, as you’ve probably guessed from the name. So, for example, you could set up a joint lifetime annuity that covers both of you for the rest of your lives. As long as at least one of you is alive, joint lifetime annuities will continue to pay lifetime payments. However, because this covers two lifespans, the likelihood that both of you will live a long and fulfilling life increases. A lifetime immediate annuity provides a reliable source of income during retirement, whether joint or single. The Advantages of Immediate Annuities What is the most significant advantage of an immediate annuity? What about a little peace of mind? In addition to providing a safe and dependable income, immediate annuities can provide lifelong benefits as well. Aside from these perks, immediate annuities also offer; There is no accumulation phase. In contrast to deferred annuities, immediate annuities don’t require accumulation. This means you can access your money within a month of purchasing the premium. Because of that, it is perfect for those who need funds immediately. Keep it simple. In most cases, you can set it and forget it with an immediate annuity. For instance, purchasing a fixed immediate annuity means you know exactly what the payments will be. Stabilizes your portfolio. An immediate annuity can even out assets whose values fluctuate if they are in a balanced portfolio. Investments that generate higher returns than certificates of deposit or Treasury bills. As long as your principal is protected, you may not earn as much as with riskier investments. There is no market exposure. You are protected from market volatility unless you choose a variable immediate annuity. Keeping your taxes under control. The tax-deferred nature of annuities means that you do not have to pay taxes until you begin withdrawing funds. There are no sales or administrative costs. In addition, an immediate annuity does not charge annual account management fees. Therefore, your monthly income will be credited with 100% of your premium. Easily customized. The amount and length of your payment are up to you. Additionally, you can choose between “Single” and “Joint” annuities. You can also attach a death benefit or protect yourself against inflation with riders. The Disadvantages of Deferred Annuities There are, however, some flaws in immediate annuities. In regards to immediate annuities, the following criticisms have been raised. Upfront costs are high. An immediate annuity is paid upfront in one lump sum. So, a deferred annuity might be a good choice if you don’t have enough money. It is irrevocable. I cannot emphasize this enough. There is no liquidity with annuities. The amount and frequency of payments you receive are determined after the annuity is fully set up. The annuity may not be available if you have an emergency. You may only be able to withdraw a percentage or pay surrender charges if you can make a withdrawal. Inflation can reduce their value. For example, a fixed annuity with an immediate payout could lose value due to inflation. To address this issue, you may want to consider purchasing a cost of living adjustment rider. It is possible for payments to decrease or cease. For example, upon your death, the annuity benefit will cease. But, beneficiaries can receive payments if a death benefit is added. It is possible, however, that their returns will be lower. When Does An Immediate Annuity Begin Making Payments? An immediate annuity is irrevocable, which means you cannot reverse the decision once you start the policy. The term “annuitization” or “annuitizing” refers to these irreversible income streams. Using SPIAs, you can either receive your annuity checks within 30 days or defer them for up to 12 months. If you wish to defer the income for more than 12 months, you might be interested in buying a Deferred Income Annuity or a QLAC. If you’d like retirement income for life but prefer more flexibility and control, consider a Guaranteed Lifetime Withdrawal Benefit. As a result of the income rider, the results will be comparable to the SPIA annuity but generally better. Immediate Annuity Payouts An immediate annuity is a series of payments made over time. Below you will find a brief description of how income annuities are paid out. Life Income A lifetime immediate annuity pays income for the life of the Annuitant. But no payments after the death of the Annuitant. So, choosing this option is not recommended if you want someone to receive payments after the Annuitant passes away. Joint and Contingent Life Income Income payments will continue as long as either the annuitant or contingent annuitant lives. Therefore, the joint-life income amount will be paid in full to the Annuitant for as long as they live. Contingent annuitants are paid for as long as they live, regardless of whether the Annuitant dies before them. However, payments will cease at the death of either the Annuitant or the contingent Annuitant. Income for a Fixed Period Guaranteed payments are available based on the number of years and months selected in the application. In addition, annuitants who die in a fixed period are entitled to a death benefit consisting of a lump sum equal to the commuted value. The death benefit recipient may elect to receive the remaining guaranteed annuity payments as an alternative to receiving the commuted value. An ordinary annuity or period certain annuity can also be called a fixed period annuity. Life Income with a Guaranteed Period Annuitants receive income payments for as long as they live. Should the Annuitant pass away during the guaranteed period, though, the remaining guaranteed payments will be paid to you or your beneficiary. Life Income with Installment Refund Annuitants receive monthly payments beginning on the income start date and will continue for as long as they live. Payments can continue to the primary beneficiary before the total payments equal the original purchase price if the Annuitant dies before receiving the annuity payments equal to the original purchase price. Life Income with a Cash Refund The Annuitant’s payments are guaranteed to continue for the duration of their life after the income start date. At the same time, annuitants who die before receiving at least the purchase price of an annuity will be compensated in a lump sum if they don’t receive the difference in the total annuity payments. Inflation Adjusted (Cost of Living Adjustment) This feature allows you to select an initial income amount less than the current inflation rate with annual increases. Immediate Annuity FAQs How can you fund an immediate annuity? Purchasing an immediate annuity requires a lump sum payment. Therefore, upon signing, you must pay the entire lump sum or premium upfront. Fortunately, various options are available for funding an immediate annuity. The first option is to use non-qualified sources of funding. In this category, you’ll find items for which you’ve already paid taxes, such as; Certificate of deposit (CD) Mutual fund proceeds Money market accounts Inheritance Life insurance settlement After-tax savings Deferred compensation A deferred annuity that was funded with the sources above In addition, qualified sources that you haven’t yet taxed can be used to fund the annuity, such as; 401(k) plans IRAs Simplified Employee Pension (SEP) plans Corporate-sponsored defined contribution plans Section 403(b) tax-sheltered annuities Section 1035 annuity exchanges Annuities previously funded with the sources above In case you’re wondering, the cost of an immediate annuity varies on your age and interest rates. Additionally, it’s not unusual for agents who sell immediate annuities to charge a 3% commission. What does “annuitization” mean? In annuitization, your premiums are transformed irrevocably into guaranteed income streams. In addition, when you annuitize your money, you receive certain benefits. A significant benefit of annuitization is that it disperses your interest over time. As opposed to disbursements, in which interest is paid before the principal, this type of payout is available through numerous annuity products. If your growth-based annuity has appreciated significantly tax-deferred, annuitization can be a powerful tool. Annuitizing can help you disperse your tax burden while generating an income stream that is guaranteed. Fixed immediate annuities require a minimum accumulation period of 30 days, while deferred immediate annuities require a maximum accumulation period of 12 months. What’s the return rate/payout on an immediate annuity? There are several factors to consider, such as the number of monthly payments the owner receives, age, gender, premium amount, and whether they have a single or joint life insurance policy. If you choose a fixed annuity such as Due, your money will earn a guaranteed 3% interest rate. That may sound too good to be true. But it’s not. How is my immediate annuity taxed? The source of funding and the type of annuity you are taking income from determine this. IRAs and 401(k)s are pretax retirement vehicles, so all their earnings are taxable because they haven’t been taxed before. However, due to the special Roth tax treatment, you do not have to pay taxes on income from a Roth IRA annuity. When using regular post-tax funds, it depends on what kind of income you have. Annuitized annuities consist of the return of premium and interest, as would be the case with immediate or deferred income annuities. However, taxes are imposed on the interest portion of the loan. You are fully taxed at first if you take distributions from a Multi-Year Guarantee Annuity or a Fixed Index Annuity. However, you’ll start receiving your original premium back once you’ve received all of your earnings from distributions. Since you will be earning interest again if you receive all your premiums back, your income will be taxable again. When should you consider an immediate annuity? Depending on your situation, an immediate annuity might be a viable option for you: As a retiree, you will need a reliable source of income. You begin receiving payments immediately, and you can rely on them for the rest of your life. During retirement, you want to generate a secure income. Article by John Rampton, Due About the Author John Rampton is an entrepreneur and connector. When he was 23 years old, while attending the University of Utah, he was hurt in a construction accident. His leg was snapped in half. He was told by 13 doctors he would never walk again. Over the next 12 months, he had several surgeries, stem cell injections and learned how to walk again. During this time, he studied and mastered how to make money work for you, not against you. He has since taught thousands through books, courses and written over 5000 articles online about finance, entrepreneurship and productivity. He has been recognized as the Top Online Influencers in the World by Entrepreneur Magazine and Finance Expert by Time. He is the Founder and CEO of Due. Updated on Aug 19, 2022, 4:50 pm.....»»

Category: blogSource: valuewalkAug 20th, 2022

3 Balanced Mutual Funds Worth Betting On

Below, we share with you three top-ranked balanced mutual funds, viz. MFTFX, AQMIX and FBALX. Each has a Zacks Mutual Fund Rank #1. Balanced funds offer investors the convenience of buying into a single fund rather than holding both equity and bond funds. This category of funds also reduces a portfolio’s volatility, while providing higher returns than pure fixed-income investments.The fund managers also enjoy the flexibility of changing the proportion of equity and fixed income investments in response to market conditions. An upswing may prompt them to hold a relatively higher share of equity to maximize gains, whereas a downturn will see them shifting loyalties toward fixed-income investments to stem losses.Below, we share with you three top-ranked balanced mutual funds, viz. Arrow Managed Futures Strategy Fund Class A MFTFX, AQR Managed Futures Strategy Fund Class I AQMIX and Fidelity Balanced Fund FBALX. Each has a Zacks Mutual Fund Rank #1 (Strong Buy) and is expected to outperform its peers in the future. Investors can click here to see the complete list of funds.Arrow Managed Futures Strategy Fund Class A seeks its investment objective by investing in a fixed-income strategy and a managed-futures strategy. Using its fixed-income strategy, it invests most of its net assets in U.S. government securities, fixed-income securities, money-market instruments, overnight and fixed-term repurchase agreements, cash, and other cash equivalents with maturities of one year or less. MFTFX also invests a small portion of its net assets in a wholly-owned and controlled subsidiary to seek returns through its managed futures strategy.Arrow Managed Futures Strategy Fund Class A has three-year annualized returns of 11.6%. As of the end of January 2022, MFTFX had 1 issue, with 51.03% of its net assets invested in short-term investments.AQR Managed Futures Strategy Fund Class I allocates most of its net assets in commodities, currencies, fixed-income and equities. AQMIX invests in instruments like futures, futures-related instruments, forwards, swaps and index futures.AQR Managed Futures Strategy Fund Class I has three-year annualized returns of 9.0%. AQMIX has an expense ratio of 1.24% compared with the category average of 1.68%.Fidelity Balanced Fund invests most of its net assets in stocks and other equity securities. FBALX also invests a small portion of its assets in high-yield debt securities or junk bonds and other lower-quality debt securities.Fidelity Balanced Fund has three-year annualized returns of 8.8%. Steven Kaye has been one of the fund managers of FBALX since September 2008.To view the Zacks Rank and the past performance of all balanced mutual funds, investors can click here to see the complete list of funds.Want key mutual fund info delivered straight to your inbox?Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing mutual funds, each week. Get it free >> Profiting from the Metaverse, The 3rd Internet Boom (Free Report): Get Zacks' special report revealing top profit plays for the internet's next evolution. Early investors still have time to get in near the "ground floor" of this $30 trillion opportunity. You'll discover 5 surprising stocks to help you cash in.Download the report FREE today >>View All Zacks #1 Ranked Mutual FundsWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Get Your Free (FBALX): Fund Analysis Report Get Your Free (MFTFX): Fund Analysis Report Get Your Free (AQMIX): Fund Analysis Report To read this article on Zacks.com click here. Zacks Investment Research.....»»

Category: topSource: zacksAug 10th, 2022

3 Balanced Mutual Funds to Buy for Spectacular Returns

Below, we share with you three balanced mutual funds, viz. DXSLX, MIAGX, and AMFAX. Each has a Zacks Mutual Fund Rank #1. Investors interested in maintaining exposure to both equity and fixed-income securities may consider investing in balanced mutual funds. Also, these mutual funds are believed to provide greater returns than pure, fixed-income investments while maintaining a low volatility level.The proportion of equity and fixed-income investments in these funds may also vary in response to market conditions. While managers may increase the share of fixed-income securities during a downturn to avoid losses, the share of equity securities may be increased in a bullish market. Hence, these funds are expected to harness the inherent strengths of both classes of investments.Below, we share with you three top-ranked balanced mutual funds, viz. Direxion Monthly S&P 500 Bull 2X Fund Investor Class DXSLX, MFS Aggressive Growth Allocation Fund MIAGX, and AlphaSimplex Managed Futures Strategy Fund Class A AMFAX. Each has a Zacks Mutual Fund Rank #1 (Strong Buy) and is expected to outperform its peers in the future. Investors can click here to see the complete list of funds.Direxion Monthly S&P 500 Bull 2X Fund Investor Class invests most of its assets along with borrowings, if any, in securities that provide monthly exposure to the index and exchange-traded funds "ETF"). DXSLX uses a float-adjusted and market capitalization-weighted index.Direxion Monthly S&P 500 Bull 2X Fund Investor Classhas three-year annualized returns of 26.9%. As of the end of February 2022, DXSLX had 1 issue.MFS Aggressive Growth Allocation Fund seeks diversification among different asset classes by investing most of its net assets in other mutual funds irrespective of their geographical location and market capitalization. MIAGX invests in growth and value funds.MFS Aggressive Growth Allocation Fundhas three-year annualized returns of 11.7%. MIAGX has an expense ratio of 0.13% compared with the category average of 0.74%.AlphaSimplex Managed Futures Strategy Fund Class A seeks capital appreciation by investing most of its net assets in the money market and other short-term, high-quality securities along with initial and variation margin payments relating to the fund's derivatives transactions. AMFAX generally invests in the financial services industry.AlphaSimplex Managed Futures Strategy Fund Class Afundhas three-year annualized returns of 15.6%. Robert S. Rickard has been one of the fund managers of AMFAX since July 2010.To view the Zacks Rank and the past performance of all balanced mutual funds, investors can click here to see the complete list of funds.Want key mutual fund info delivered straight to your inbox?Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing mutual funds, each week. Get it free >> 5 Stocks Set to Double Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2021. Previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%. Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.Today, See These 5 Potential Home Runs >>View All Zacks #1 Ranked Mutual FundsWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Get Your Free (MIAGX): Fund Analysis Report Get Your Free (DXSLX): Fund Analysis Report Get Your Free (AMFAX): Fund Analysis Report To read this article on Zacks.com click here. Zacks Investment Research.....»»

Category: topSource: zacksJul 7th, 2022

4 Balanced Mutual Funds to Traverse Troubled Waters

AAAUX, BLPAX, CBALX and FABLX are four balanced mutual funds that can lend the much-required stability to one's portfolio in uncertain times. As the U.S economy is reeling under the effects of four-decade high inflation and braces for a looming economic downturn, investors are looking for an investment strategy wherein they can generate a steady flow of income while minimizing risk. Informed and educated diversification is the order of the day, and maintaining a balance between debt and equity segments to ensure capital appreciation in the near term alongside a safety net against risks has become a priority.Investors, thus, should invest in balanced mutual funds as it helps in spreading your money across a diversified portfolio of stocks and bonds. This reduces the risk element in a portfolio, alongside providing higher returns than pure fixed-income investments. Balanced mutual funds are broadly of two types, equity-oriented balanced funds and debt-oriented balanced funds. However, they are extremely flexible in managing in accordance with market volatility. When the market is on an upswing, investment focus is on the equities side to milk the market, and during a downturn, fund managers concentrate on bonds to ensure stability and reduce risk. Thereby, these funds harness the strengths of both classes of investments.In summary, balanced funds provide a much-required canopy when things get too hot and maximize income in good times because of the inherent nature of their diversification.Hence, with the recession looming large in the U.S economy, astute investors should invest in balanced mutual funds at present. Mutual funds, in general, reduce transaction costs and diversify portfolios without an array of commission charges that are mostly associated with stock purchases (read more: Mutual Funds: Advantages, Disadvantages, and How They Make Investors Money).We have thus selected four such balanced mutual funds that boast a Zacks Mutual Fund Rank #1 (Strong Buy), 2 (Buy), have positive three-year and five-year annualized returns, minimum initial investments within $5000 and carry a low expense ratio.American Century Strategic Allocation: Aggressive Fund AAAUX usually invests 79% of its net assets in stocks, 20% in bonds and 1% in cash equivalents. AAAUX also invests in a variety of debt securities payable in U.S. and foreign currencies, that meet certain fundamental and technical standards.Currently 14.8% of AAAUX is invested in large-cap growth stocks, 33.3% in large-cap value stocks, and 11.4% in foreign bonds. Scott A. Wilson has been the lead manager of AAAUX since Mar 31, 2011.AAAUX’s 3-year and 5-year annualized returns are 11.3% and 8.9%, respectively. Its net expense ratio is 0.27% compared to the category average of 0.71%. AAAUX has a Zacks Mutual Fund Rank #1. To see how this fund performed compared in its category, and other 1 and 2 Ranked Mutual Funds, please click here.American Funds Moderate Growth and Income Portfolio Class A BLPAX seeks to generate current income and long-term growth of capital by investing in growth, growth-and-income, equity-income, balanced and fixed income funds. BLPAX usually invests at least 45% of the value of its net assets in common stocks and other equity investments and 25% in bonds and other debt securities.Currently, 39% of its portfolio is invested in large-cap value stocks and 18.3% in intermediate bonds. Wesley K. Phoa has been the lead manager of BLPAX since May 17, 2012.BLPAX’s 3-year and 5-year annualized returns are 9.2% and 7.4%, respectively. Its net expense ratio is 0.34% compared to the category average of 0.84%. BLPAX has a Zacks Mutual Fund Rank #2.Columbia Balanced Fund CBALX seeks to invest in equity and debt securities based on their relative risk and return. CBALX usually invests between 35% and 65% in each asset class, but not less than 25% or more than 75% in any of them.Currently, 34.6% of the portfolio is invested in large-cap growth stocks, 34.4% in large-cap value stocks, and the balance 29% in intermediate bonds. Ronald J. Stahl has been the lead manager of CBALX since Mar 17, 2005.CBALX’s 3-year and 5-year annualized returns are 11% and 8.5%, respectively. Its net expense ratio is 0.67% compared to the category average of 0.84%. CBALX has a Zacks Mutual Fund Rank #2.Fidelity Advisor Balanced Fund Class A FABLX seeks income and growth of capital by investing in approximately 60% of assets in stocks and other equity securities and the remainder in bonds and other debt securities, including lower-quality debt securities.Currently, 34.1% of FABLX is invested in large-cap growth stocks, 37.5% in large-cap value stocks, and 21.4% in intermediate bonds. Douglas E. Simmons has been the lead manager of FABLX since Sep 15, 2008.FABLX’s 3-year and 5-year annualized returns are 12.6% and 9.8%, respectively. Its net expense ratio is 0.81% compared to the category average of 0.84%. FABLX has a Zacks Mutual Fund Rank #1.Want key mutual fund info delivered straight to your inbox?Zacks' free Fund Newsletter will brief you on top news and analysis, as well as top-performing mutual funds, each week. Get it free >> Zacks Names "Single Best Pick to Double" From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all. It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time. This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.Free: See Our Top Stock and 4 Runners Up >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Get Your Free (AAAUX): Fund Analysis Report Get Your Free (CBALX): Fund Analysis Report Get Your Free (BLPAX): Fund Analysis Report Get Your Free (FABLX): Fund Analysis Report To read this article on Zacks.com click here. Zacks Investment Research Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report.....»»

Category: topSource: zacksJun 30th, 2022

3 Balanced Mutual Funds to Beat Volatile Market Conditions

Below, we share with you three top-ranked balanced mutual funds, viz. CVTRX, FPURX, and GDGIX. Each has a Zacks Mutual Fund Rank #1 Balanced funds offer investors the convenience of buying into a single fund rather than holding both equity and bond funds. This category of funds also reduces a portfolio’s volatility, while providing higher returns than pure fixed-income investments.The fund managers also enjoy the flexibility of changing the proportion of equity and fixed income investments in response to market conditions. An upswing may prompt them to hold a relatively higher share of equity to maximize gains whereas a downturn will see them shifting loyalties to fixed income investments to stem losses.Below, we share with you three top-ranked Nuveen mutual funds, viz. Calamos Growth & Income Fund Class A CVTRX, Fidelity Puritan Fund FPURX, and Sit Global Dividend Growth Fund Class I GDGIX. Each has a Zacks Mutual Fund Rank #1 (Strong Buy) and is expected to outperform its peers in the future. Investors can click here to see the complete list of funds.Calamos Growth & Income Fund Class A seeks high long-term returns along with current income by investing most of its net assets in a diversified portfolio of convertible equity and fixed-income securities of U.S companies with a long maturity period regardless of market capitalization. CVTRX advisors allocate the funds in various proportions to balance the risk and reward ratio.Calamos Growth & Income Fund Class A has three-year annualized returns of 12.2%. As of the end of January 2022, CVTRX had 174 issues, with 6.25% of its assets invested in Apple Inc.Fidelity Puritan Fund allocates most of its net assets in stocks and equity securities and the rest in bonds and other debt instruments including high-yield debt securities or junk bonds. FPURX advisors also invest a small portion of its net assets in fixed-income senior securitiesFidelity Puritan Fund has three-year annualized returns of 10.8%. FPURX has an expense ratio of 0.52% compared with the category average of 0.84%.Sit Global Dividend Growth Fund Class I invests most of its net assets in dividend-paying common stocks of U.S. and foreign companies. GDGIX advisors choose to invest in high dividend-paying companies from different countries with favorable market conditions to diversify their investments.Sit Global Dividend Growth Fund Class I fund has three-year annualized returns of 10.5%. Roger J. Sit has been the fund manager of GDGIX since September 2008.To view the Zacks Rank and the past performance of all balanced mutual funds, investors can click here to see the complete list of funds.Want key mutual fund info delivered straight to your inbox?Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing mutual funds, each week. Get it free >>  How to Profit from the Hot Electric Vehicle Industry Global electric car sales in 2021 more than doubled their 2020 numbers. And today, the electric vehicle (EV) technology and very nature of the business is changing quickly. The next push for future technologies is happening now and investors who get in early could see exceptional profits. See Zacks' Top Stocks to Profit from the EV Revolution >>View All Zacks #1 Ranked Mutual FundsWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Get Your Free (FPURX): Fund Analysis Report Get Your Free (GDGIX): Fund Analysis Report Get Your Free (CVTRX): Fund Analysis Report To read this article on Zacks.com click here. Zacks Investment Research.....»»

Category: topSource: zacksJun 1st, 2022

3 Balanced Mutual Funds for a Steady Portfolio

Below we share with you three top-ranked balanced mutual funds. Each has a Zacks Mutual Fund Rank #1 (Strong Buy). Investors interested in maintaining exposure to both equity and fixed-income securities may consider investing in balanced mutual funds. Also, these mutual funds are believed to provide greater returns than pure, fixed-income investments while maintaining a low volatility level.The proportion of equity and fixed-income investments in these funds may also vary in response to market conditions. While managers may increase the share of fixed-income securities during a downturn to avoid losses, the share of equity securities may be increased in a bullish market. Hence, these funds are expected to harness the inherent strengths of both classes of investments.Below we share with you three top-ranked balanced mutual funds, namely Fidelity Balanced Fund FBALX, State Farm Balanced Fund STFBX and Schwab MarketTrack All Equity Portfolio SWEGX. Each has earned a Zacks Mutual Fund Rank #1 (Strong Buy) and is expected to outperform its peers in the future. Investors can click here to see the complete list of funds.Fidelity Balanced Fund aims for income and capital growth that is on par with reasonable risk by investing the majority of its assets in stocks and other equity securities and the rest in bonds and other debt securities. FBALX has returned 15.7% in the past three years.FBALX has an expense ratio of 0.52% compared with the category average of 0.84%.State Farm Balanced Fund invests the majority of its total assets in common stocks, usually in companies with market capitalizations of at least $1.5 billion at the time of investment. STFBX also invests part of its assets in fixed-income securities. The fund has returned 13.5% over the past three years.As of December 2021, STFBX held 165 issues with 15% of its assets invested in TOTAL US TREASURY BONDS.Schwab MarketTrack All Equity Portfolio maintains a defined asset allocation in stock investments, with certain percentages for different segments of the stock market. SWEGX invests the majority of its net assets in stock investments. The fund has returned 13.3% over the past three years.Zifan Tang has been one of the fund managers of SWEGX since 2012.To view the Zacks Rank and the past performance of all balanced mutual funds, investors can click here to see the complete list of balanced mutual funds.Want key mutual fund info delivered straight to your inbox?Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing mutual funds, each week. Get it free >> Bitcoin, Like the Internet Itself, Could Change Everything Blockchain and cryptocurrency has sparked one of the most exciting discussion topics of a generation. Some call it the “Internet of Money” and predict it could change the way money works forever. If true, it could do to banks what Netflix did to Blockbuster and Amazon did to Sears. Experts agree we’re still in the early stages of this technology, and as it grows, it will create several investing opportunities. Zacks’ has just revealed 3 companies that can help investors capitalize on the explosive profit potential of Bitcoin and the other cryptocurrencies with significantly less volatility than buying them directly. See 3 crypto-related stocks now >>View All Zacks #1 Ranked Mutual FundsWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Get Your Free (SWEGX): Fund Analysis Report Get Your Free (FBALX): Fund Analysis Report Get Your Free (STFBX): Fund Analysis Report To read this article on Zacks.com click here. Zacks Investment Research.....»»

Category: topSource: zacksApr 26th, 2022

Are Annuities Good Investments

When it comes to investing, what images first pop up. Is it the chaotic New York Stock Exchange trading floor? Maybe it’s the stock symbols you anxiously keep an eye on? Or, perhaps, it’s your annual mutual fund report that probably can help you drift off the sleep. Q4 2021 hedge fund letters, conferences and […] When it comes to investing, what images first pop up. Is it the chaotic New York Stock Exchange trading floor? Maybe it’s the stock symbols you anxiously keep an eye on? Or, perhaps, it’s your annual mutual fund report that probably can help you drift off the sleep. if (typeof jQuery == 'undefined') { document.write(''); } .first{clear:both;margin-left:0}.one-third{width:31.034482758621%;float:left;margin-left:3.448275862069%}.two-thirds{width:65.51724137931%;float:left}form.ebook-styles .af-element input{border:0;border-radius:0;padding:8px}form.ebook-styles .af-element{width:220px;float:left}form.ebook-styles .af-element.buttonContainer{width:115px;float:left;margin-left: 6px;}form.ebook-styles .af-element.buttonContainer input.submit{width:115px;padding:10px 6px 8px;text-transform:uppercase;border-radius:0;border:0;font-size:15px}form.ebook-styles .af-body.af-standards input.submit{width:115px}form.ebook-styles .af-element.privacyPolicy{width:100%;font-size:12px;margin:10px auto 0}form.ebook-styles .af-element.privacyPolicy p{font-size:11px;margin-bottom:0}form.ebook-styles .af-body input.text{height:40px;padding:2px 10px !important} form.ebook-styles .error, form.ebook-styles #error { color:#d00; } form.ebook-styles .formfields h1, form.ebook-styles .formfields #mg-logo, form.ebook-styles .formfields #mg-footer { display: none; } form.ebook-styles .formfields { font-size: 12px; } form.ebook-styles .formfields p { margin: 4px 0; } Get The Full Henry Singleton Series in PDF Get the entire 4-part series on Henry Singleton in PDF. Save it to your desktop, read it on your tablet, or email to your colleagues (function($) {window.fnames = new Array(); window.ftypes = new Array();fnames[0]='EMAIL';ftypes[0]='email';}(jQuery));var $mcj = jQuery.noConflict(true); Q4 2021 hedge fund letters, conferences and more Regardless of what you exactly think of when it comes to investing, I highly doubt that you would lump in annuities. And, for good reason. An annuity is a long-term policy contract between you and an insurance company, not an investment. At the same time, annuities sometimes have characteristics of investments. And, they may still be able to play a role in your investment portfolio. However, it’s ultimately determined by factors such as your investment goals, your age, lifestyle, risk tolerance, and time horizon for investing. So, are annuities good investments or not? Well, let’s help you answer that question. Annuities 101 The concept of annuities is confusing for many people. In fact, according to a Secure Retirement Institute (SRI) study, only 25% of consumers managed to pass an annuity knowledge quiz (70%). As such, this can make it difficult to determine whether or not an annuity is a good investment. With that in mind, before committing to an annuity, you should at least be familiar with the basics. In the simplest terms, an annuity is simply a contract between you and an insurance provider. With an annuity, you can protect your principal, generate lifetime income, plan for your legacy, and pay for long-term care costs. With annuities, you can make a premium payment to the issuer in one lump sum or through a series of over a period of time. Similarly, annuity payments can either be one lump sum payment or a series of recurring payments. Among the companies that sell annuities are insurance companies, banks, brokerage firms, and mutual fund companies. The different types of annuities. It’s also important to note that all annuities aren’t alike. In fact, there are many types of annuities, and they each have their own benefits and drawbacks. As soon as you know the types of annuities available, you can ask the right questions about them. A deferred annuity begins paying out after a certain period of time, whereas an immediate annuity pays out immediately. Depending on the individual’s needs, annuities can also be structured differently. You can choose to payout over the course of a lifetime, or you can choose to payout for a set period of time. There are also three other annuity structures; Fixed annuities. During the duration of a fixed-rate annuity, owners receive a fixed rate of interest. For example, every deposit you make with Due will earn you 3%. Therefore, this is the equivalent of a certificate of deposit. Despite the fact that the interest rate won’t change when the market performs well, it is a safe and predictable solution. Variable annuities. Variable annuities, in contrast to fixed annuities, fluctuate in value with the market. This makes it a riskier and less predictable option because gains and losses are based on performance. Fixed indexed annuities. This annuity combines the advantages of a variable and a fixed annuity in one package. As with a fixed annuity, it offers investors a guaranteed minimum rate of return. A fund may also follow a benchmark index, such as the S&P 500). If the market rises, the fund may enjoy greater gains. You should always read the fine print because caps, spreads, and participation rates will affect the upside. Why do people buy annuities? Most people decide to purchase an annuity because it offers the following perks; It can be comforting to have an annuity. This is especially true for retirees who are worried about stock market volatility or outliving their savings. It is possible to earn tax-deferred interest on an annuity. You can make unlimited annual contributions to an annuity — unlike 401(k)s or IRAs. When compared to traditional retirement accounts, annuities don’t require you to start withdrawing money at 70 ½. Generally, even if you haven’t withdrawn any money from your annuity, your beneficiaries can receive payments after you die. At the same time, there are some valid criticisms regarding annuities. Most notably, they can be expensive and complex. What’s more, they aren’t federally insured. And, if you make a withdrawal before the age of 59 ½, you can expect a 10% penalty from the IRS, as well as a surrender charge from the annuity company. When Annuities are Good Investments An annuity can be a good addition to your portfolio depending on your financial plan and your grasp of the key differences between annuities and equity investments. Remember, annuities are insurance while equity investments are growth vehicles. Nevertheless, the National Bureau of Economic Research states that “standard economic models of life-cycle spending patterns imply that the portfolio of a risk-averse individual should include a substantial portfolio share in life annuities as a hedge against uncertainty about length of life.” Combined with the notion that annuities are investments, rather than insurance, this statement indicates that annuities can be a valuable addition to a balanced portfolio. But, again, this will depend on your specific financial situation and investment goals. Need a starting point? First, you should understand how the different types of annuities and how they play a role in your investment strategy. After that, according to annuity expert Stan Haithcock, you can utilize the P.I.L.L. acronym. Premium protection Income for life Legacy Long-term care Annuities do not offer aggressive growth or capital appreciation, according to Haithcock. The growth potential of certain annuities may be higher than that of securities and other growth investments, though annuities do not provide comparable returns to securities. In this case, you may lose your premium, negating the benefit that first attracted you to annuities. Variable annuities, for example, have characteristics of both stocks and bonds, with the exception that they possess the same features as fixed annuities. These periodic payments, tax deferrals, and mutual fund growth potential. Due to their varying payments, variable annuities are classified as securities in the United States and regulated by the U.S. Securities and Exchange Commission. Unlike variable annuities, fixed index annuities offer a guaranteed minimum return. That makes them not as risky, but still riskier than a fixed annuity. When Annuities are Bad Investments Traditionally, annuities have provided higher returns than other conservative investments. The reason is that they’re backed by insurance companies. Why, then, do annuities make such poor investments? In the event of early withdrawal, annuities incur penalties. If you break an annuity, you’ll be subject to penalties. The reason is that they’re long-term contracts designed to last between 3 and 20 years. However, annuities may permit penalty-free withdrawals. Annuitants who withdraw more than the allowable amount will, however, incur penalties. Annuities can earn little interest or none at all. Certain annuities are not intended to provide sufficient growth potential. Therefore, you retire with less money in the retirement plan since its growth is too slow. Certain annuities do not keep up with inflation. Investing in annuities offers a steady income for life. Annuities do not all provide inflation-adjusted income, however. The earlier you start your lifetime income, the less money you will have in later years since the cost of living will increase too quickly. Your beneficiaries might not receive a death benefit from the annuity. In certain annuities, annuitants may choose to receive a higher monthly income in place of a death benefit for their beneficiaries. There is only limited liquidity offered by annuities, and sometimes none. You might only be able to access a limited amount of liquidity each year in an annuity without incurring penalties or fees. In some cases, annuities provide no liquidity at all. Fees can be high in investment-based annuities. In most cases, annuities don’t come cheap thanks to fees. As such, a cheaper alternative could be just as good. In order to withdraw annuity funds, you must be at least 59 ½ years old. If income is taken from an annuity too early, the IRS can impose a penalty. How Do Annuities Compare to Other Retirement Options? In terms of retirement planning, you have a number of possibilities. Generally, an annuity is a solid retirement planning option because it has specific benefits, like tax-deferred growth and guaranteed income. An asset portfolio for retirement should, however, be diversified consisting of various financial instruments like the following. Certificates of Deposit (CDs) Certificates of Deposit (CDs) are similar to annuities in the sense that they are very low-risk investments. And, the interest rates on most CDs are guaranteed. An important difference between CDs and fixed annuities is their tax treatment. CD earnings are usually taxed as capital gains by the IRS. Meanwhile, annuity payments are taxable as ordinary income. Furthermore, CD income is taxable in the year it is earned, regardless of whether the funds stay in the CD. On the other hand, annuities offer tax deferral, so you will not pay taxes until you withdraw your earnings. Annuities are typically more advantageous than CDs. CDs, however, have the advantage of being offered for short- and medium-term times. For investors wishing to grow their money in a shorter timeframe, CD’s have the edge. Also, this makes CDs more liquid than annuites. 401(k)s This is an employer-sponsored plan for retirement. Every month, a portion of your paycheck is deducted and invested. In some cases, they even contribute directly to your account. But, how are 401(k)s different from annuities? 401(k)s are employer-sponsored, so if your company does not offer one, you may not be able to participate. The amount you can contribute is limited as well. If you’re trying to build up a significant retirement fund, that’s not the best strategy. In addition, your earnings are tied to your asset selection. As such, you might earn very little or even lose money depending on the performance of your portfolio. Annuities, by contrast, aren’t tied to a specific employer — everyone can partake. Additionally, contributions aren’t capped. Additionally, you’ll receive steady earnings if you purchase a fixed annuity. IRAs Some people confuse individual retirement accounts (IRAs) with annuities, but they aren’t the same. IRAs do not qualify as financial products or investments. Rather, an IRA account simply holds your retirement savings and investments. You can also hold stocks, bonds, mutual funds, and even annuities via IRAs. Tax advantages are given to these accounts by the IRS since they are intended for retirement savings. These accounts are subject to certain rules, however. According to the IRS, you must withdraw your money by a certain date, know what you are allowed to invest in, and how much you can contribute. Another downside? IRAs, like 401(k)s, have contribution limits. If you recall, this is not true of annuities. In addition, IRAs do not have a guaranteed minimum interest rate, as fixed annuities do. Furthermore, they cannot guarantee retirement income. For investors who are looking for tax-advantaged retirement savings and investments, IRAs are an excellent option. Those who want a steady retirement income or to ensure their retirement savings grow should consider annuities. Stock Mutual Funds You can invest in stocks using mutual funds rather than choosing individual stocks. Instead, money managers are responsible for choosing stocks within each mutual fund and generally select a diverse group of holdings to maximize interest rate returns. Unlike annuities, mutual funds can lose money, and they don’t guarantee a minimum rate of return. In addition, they charge annual fees called “loads,” which is not the case with most annuities. Stocks The market has averaged a 10% return since 1976. As such, this makes stocks a valuable component of an overall retirement plan. TD Ameritrade and Schwab are just two examples of public platforms that allow you to invest directly in stocks. And, as a stockholder, you become a partial owner of the company. It is, however, time-consuming and risky to buy stocks. Unlike minimum returns and state guarantee associations, there are no provisions for safety. Social Security Some retirees receive supplemental income from social security, a government program. Although this is a useful assistance program, we can’t stress the word “assistance” enough. In other words, Social Security is not meant to be the sole source of an individual’s retirement income. In the first place, not everyone is eligible to receive social security benefits. What’s more, many people receive only about 40% of what they earned before they retired. As a consequence, you might struggle to survive on that amount. In order to maintain their standard of living in retirement, many retirees have additional savings. With that in mind, an annuity can provide supplemental income to what you receive from Social Security. Does It Make Sense to Add an Annuity to Your Retirement Portfolio? You may want to consider an annuity if you are consistently making the maximum contribution to your 401(k), IRA, or other retirement accounts, as it may provide you with another way to save for retirement. You may be able to find steady income in this way if you are nearing retirement. If you choose to purchase an annuity, be sure you know exactly what you’re getting into. Different annuities invest and payout funds in different ways. Also, annuity charges tend to have higher fees than a 401(k) — or other retirement investments that compose your portfolio. Annuity Invest FAQs Are there disparities between the potential sources of retirement income and retirement expenses? Assess projected retirement expenses and unexpected costs (e.g., medical expenses) against retirement savings and portfolio investment mix. Retirement expenses may exceed income in retirement, in which case an annuity might be useful. In the event that you outlive your savings, an annuity may provide some protection. By paying into an annuity, you receive a guaranteed income stream from the insurance company. In some types of annuities, the guaranteed income continues throughout the annuity owner’s life despite market fluctuations. You may be able to apply for an annuity to help fill gaps in your retirement income plan with the help of a financial professional. What kind of annuity is it? Depending on the type of annuity you choose, you’ll experience different volatility levels and receive different returns. Every investor must analyze risk and return, so this is an important consideration. Generally, you will choose between a fixed, variable, or indexed annuity. Are annuities suitable as investments for elderly people? As an elderly person’s principal and interest rate are protected, fixed and fixed indexed annuities deserve consideration. In addition, beneficiaries can avoid probate by receiving a death benefit. Moreover, nursing homes, assisted living facilities, and home health care expenses are a fraction of the cost when long-term care annuities are purchased. And, for married couples with an elderly spouse who needs long-term care, Medicaid annuities can be an excellent investment. This is because the married couple can still have assets while drawing Medicaid benefits. As for variable annuities, they might not make sense for the elderly. Mainly, this is because they can lose money if the market performs poorly. And, due to the fact that the contract owner must surrender control over their money, immediate annuities also don’t make sense. Do additional tax-deferred options make sense? Retirement savings vehicles like IRAs and 401(k)s provide tax-deferred growth of money without triggering an income tax bill until the money is withdrawn. You can also invest in annuities to earn tax-deferred income in retirement. Take deferred annuities as an example. There are funded with after-tax money. That means any growth that’s generated is tax-deferred until it’s withdrawn. It’s also taxable as ordinary income. And, always remember, there may be a 10% federal tax penalty for withdrawals from an annuity prior to age 59 ½. Work with a financial professional to identify the best tax-favored options for your retirement savings. How can you reduce the impact of negative market performance within your financial portfolio? Market downturns can significantly impact retirement savings, especially early in retirement when people are beginning to withdraw. Afterward, it may be difficult to regain the account value – and the account value may never catch up to what it would have been if the market had not fallen. Annuities can mitigate the volatility of the markets. How? Because annuities typically guarantee a minimum annual return or minimum income rate. Even better this is regardless of market performance. Or, at the very least it can cushion the account value from a portion of market losses. It is impossible to find one solution for planning for retirement income. If you are using an annuity as part of your overall financial plan, your financial advisor can assist you. Article by John Rampton, Due About the Author John Rampton is an entrepreneur and connector. When he was 23 years old while attending the University of Utah he was hurt in a construction accident. His leg was snapped in half. He was told by 13 doctors he would never walk again. Over the next 12 months he had several surgeries, stem cell injections and learned how to walk again. During this time he studied and mastered how to make money work for you, not against you. He has since taught thousands through books, courses and written over 5000 articles online about finance, entrepreneurship and productivity. He has been recognized as the Top Online Influencers in the World by Entrepreneur Magazine, Finance Expert by Time and Annuity Expert by Nasdaq. He is the Founder and CEO of Due. Updated on Feb 24, 2022, 1:11 pm (function() { var sc = document.createElement("script"); sc.type = "text/javascript"; sc.async = true;sc.src = "//mixi.media/data/js/95481.js"; sc.charset = "utf-8";var s = document.getElementsByTagName("script")[0]; s.parentNode.insertBefore(sc, s); }()); window._F20 = window._F20 || []; _F20.push({container: 'F20WidgetContainer', placement: '', count: 3}); _F20.push({finish: true});.....»»

Category: blogSource: valuewalkFeb 24th, 2022

Market Correction Before The Santa Rally Has Started

Market Correction Before The Santa Rally Has Started Authored by Lance Roberts via RealInvestmentAdvice.com, Last week, we asked if there would be a market correction before “Santa visits Broad and Wall?” “Investors’ ‘wish lists’ are hung by the chimney with care, hopeful the ‘Santa Claus rally’ will soon be there. While they remain ‘snug in their beds, the historical data dances in the heads.’ The chart below from @themarketear shows the annual “seasonality” from 1985 through 2019. It certainly seems there is little to worry about. However, notice that dip at the beginning of December.“ We made the case that mutual fund distributions would provide additional selling pressure on a market already plagued by weak internals. To wit: However, there is potentially a negative impact on the market. Such is particularly the case when volumes are weak, liquidity is low, and breadth is poor. As shown, during the entire advance from the September lows, the volume declined. Importantly, over the last week, breadth deteriorated. All that was missing was a catalyst to create a market correction. “Over the last couple of weeks, the market has been warning to the risk of a downturn, all that was needed was a catalyst to change sentiment.” – The Real Investment Report Chart updated through Friday. The Lack Of Liquidity On Friday, news of a new “Covid” variant broke, and stocks marked “Black Friday” by plunging firmly through the 20-dma and support at recent lows. “Notably, that downside break broke the consolidation pattern (blue box in the chart below) that began in early November. While there is some minor support around 4550, critical support lies at the 50-dma at 4527. That support level also corresponds to the September peak.” – Real Investment Report As you will note, the market correction was swift. Such is because of the “lack of liquidity” in the markets. As discussed previously, the stock market is a function of buyers and sellers agreeing to a transaction at a specific price. Or rather, “for every seller, there must be a buyer.” The chart from last week’s discussion showed there was a lack of volume a lower prices. As I wrote: “Buyers appear to be ‘living’ closer to the 50-dma (orange dashed line.) As the Wall Street axiom goes: ‘Sellers live higher. Buyers live lower.'” These “gaps” between buyers and sellers lead to sharp price reversions in markets. Breadth Suggests There May Be More Work To Do While the market correction last Friday was sharp and did push several of our short-term indicators into oversold territory, any bounce this week could lead to more selling pressure near term. While we previously noted our concerns about the “bad breadth” of the market, SentimenTrader also suggests such may lead to a pause in the rally. To wit: “For only the 6th time since 1926, declining issues outnumbered advancing issues for 7 consecutive days when the S&P 500 closed 2% or less from its 252-day high. If I eliminate the distance below the high condition, the study returns 123 instances when screening out repeats. Almost half of those signals occurred when the S&P 500 was down 10% or more from its 252-day high.” “This signal triggered 5 other times over the past 96 years. After the others, future returns and win rates were weak in the 2-to-8-week time frame. If I optimize a short signal, the test returns 27 days as the best time frame to hold a negative view of the market. And, the S&P 500 closed down in 5 out of 6 instances. The sample size is small.” Notably, weak breadth, light volumes on rallies, and speculative behaviors make the market vulnerable to sharp reversals. Moreover, as noted last week, with mutual funds adding to the selling pressure over the next two weeks, there is a risk of further downside. However, such will provide a trading opportunity for year-end “window dressing.” Trading The Santa Rally I agree with Doug Kass’ recent comment: “While I am not bullish, I am less bearish. On a (tactical) trading and investing basis, markets probably overreacted to the Omicron news on Friday, It is likely time to consider being a bit more greedy when others are fearful. Many stocks, away from “The Nifty Seven,” have fallen dramatically and may represent both shorter and longer-term value“ We agree. After previously taking profits in overbought and extended equities, we are now looking for discounted positions in technology, energy, consumer, and financial-related sectors. One other comment is that the “Omicron variant” could provide “cover” for the Federal Reserve to slow their monetary tightening. The majority of the rally on Monday was likely bulls coming around to this idea. As such, it was no surprise to see Jerome Powell already pivoting towards a more dovish stance in prepared remarks for the CARES Act Hearing. “The recent rise in COVID-19 cases and the emergence of the Omicron variant pose downside risks to employment and economic activity and increased uncertainty for inflation. Greater concerns about the virus could reduce people’s willingness to work in person, which would slow progress in the labor market and intensify supply-chain disruptions.” – Powell Of course, this is the excuse Powell needs to slow tapering of the balance sheet and delay hiking interest rates. For now, that keeps the bullish bias in stocks. But as we head into 2022, I would not be surprised to see a pick up in volatility as liquidity flows decline along with economic growth. As an investor, always remember that making money in the market is only one-half of the job. Keeping it is the other. “We can not direct the wind, but we can adjust the sail.” – Anonymous Tyler Durden Tue, 11/30/2021 - 08:05.....»»

Category: blogSource: zerohedgeNov 30th, 2021

Interview With Robinhood CEO Vlad Tenev From The CNBC Disruptor 50 Summit

Following is the unofficial transcript of a CNBC interview with Vlad Tenev, Robinhood Co-Founder & CEO, live during the CNBC Disruptor 50 Summit today. Q3 2021 hedge fund letters, conferences and more Interview With Robinhood Co-Founder & CEO Vlad Tenev JIM CRAMER: Thank you so much, Vlad. I am so glad you’re with us. How […] Following is the unofficial transcript of a CNBC interview with Vlad Tenev, Robinhood Co-Founder & CEO, live during the CNBC Disruptor 50 Summit today. if (typeof jQuery == 'undefined') { document.write(''); } .first{clear:both;margin-left:0}.one-third{width:31.034482758621%;float:left;margin-left:3.448275862069%}.two-thirds{width:65.51724137931%;float:left}form.ebook-styles .af-element input{border:0;border-radius:0;padding:8px}form.ebook-styles .af-element{width:220px;float:left}form.ebook-styles .af-element.buttonContainer{width:115px;float:left;margin-left: 6px;}form.ebook-styles .af-element.buttonContainer input.submit{width:115px;padding:10px 6px 8px;text-transform:uppercase;border-radius:0;border:0;font-size:15px}form.ebook-styles .af-body.af-standards input.submit{width:115px}form.ebook-styles .af-element.privacyPolicy{width:100%;font-size:12px;margin:10px auto 0}form.ebook-styles .af-element.privacyPolicy p{font-size:11px;margin-bottom:0}form.ebook-styles .af-body input.text{height:40px;padding:2px 10px !important} form.ebook-styles .error, form.ebook-styles #error { color:#d00; } form.ebook-styles .formfields h1, form.ebook-styles .formfields #mg-logo, form.ebook-styles .formfields #mg-footer { display: none; } form.ebook-styles .formfields { font-size: 12px; } form.ebook-styles .formfields p { margin: 4px 0; } Get The Full Walter Schloss Series in PDF Get the entire 10-part series on Walter Schloss in PDF. Save it to your desktop, read it on your tablet, or email to your colleagues. (function($) {window.fnames = new Array(); window.ftypes = new Array();fnames[0]='EMAIL';ftypes[0]='email';}(jQuery));var $mcj = jQuery.noConflict(true); Q3 2021 hedge fund letters, conferences and more Interview With Robinhood Co-Founder & CEO Vlad Tenev JIM CRAMER: Thank you so much, Vlad. I am so glad you're with us. How have you been? VLAD TENEV: I'm glad to be with you, Jim. Good to see you again. CRAMER: Alright, so let's get the zeitgeist of Robinhood. When I first met you, had a great app, you thought that people would be attracted to, it younger people. Younger people have been completely turned off from the market for years. Where are we now between when I saw you as a disruptor multiple years ago and your current status of business? TENEV: Well I think it's fair to say that investing has become culturally relevant. It's everywhere. People are talking about investing like they do their other financial needs – spending and saving. And Robinhood has grown tremendously. Over 22 million customers use the platform as of Q2 and, you know, despite the growth, we still feel like we're just at the beginning and there's so many people out there that are still not investing. Over half of Americans don't have any investments outside of their individual retirement accounts or 401ks. And nearly 70% of 18 to 29 year-olds have no investments whatsoever, not to mention a lot of people globally who lack access to a functional banking system. So I think the trends are going in the right direction and we see a huge opportunity to continue democratizing and democratizing safely. And we see a world where nearly everyone is investing in some form or fashion. CRAMER: You and I have both agreed that democratization is the greatest force in finance in this period, but I want to be sure it's democratizing correctly. You mentioned people are investing. If you looked at your book of business, we learned from Gary Gensler, the Chairman of the SEC, this week average customer 31 years old, median account balance $240. How much of that money, and it's all hard earned of course, is in option trading, in crypto trading, or investing in common stocks? TENEV: Yeah, so the bulk of the activity has been investing in common stocks in terms of assets on the platform. Relatively few customers are pattern day traders, I think the number is 2% or so. We have customers trading options, but that's a relatively small percentage as well. A little bit over 10% on a typical month. So, the bulk of the activity is equities. And, you know, we definitely see an increasing interest this year in cryptos as well as that asset has become a little bit more mainstream. And the philosophy is to allow access to these assets at the lowest possible cost, make it available to people on a level playing field, but also do that safely. You know, it's incredibly important to provide the customer support, the stability, the high quality infrastructure and the educational content to make sure that the people that are investing, a large portion of whom are first time investors, are in the best possible position to succeed. So we absolutely believe in democratization. And you've heard me say this a bunch of times, but it has to be done safely and we recognize that responsibility. We've actually spent a lot of effort this year, and all the way through the pandemic, in making sure that we make lots and lots of investments to put our customers in the best possible position to succeed. In fact, just a couple of weeks ago, we announced rolling out 24/7 customer support via voice for everyone using the app and doing that across every issue for logged in customers. And I think it's hard to overstate how challenging it is to do that at scale, and do it in a high quality way. And I believe we also became one of the first, if not the first, in the cryptocurrency market to offer 24/7 voice support to all customers. CRAMER: Well let’s talk about, before we talk about the single source of truth and safety, which I know you have adopted to because you had to after what happened in the events in January. We'll get to those in a moment. How do we, you and I, if we were brainstorming, keep people doing responsible things when it comes to crypto? We've got some cryptos that are named after dogs and then we have actually dog variations. There's mutts, I mean, there's some of this stuff you put to sleep? I’m against that, I own a lot of adopted dogs. But I am concerned that you and I both know that a market itself could be irresponsible and there's nothing you can do. You can't tell people, I don't want you to buy a slice of crypto. How are you engaged in trying to make people more wise and how much of what you see in crypto would you describe as speculation as opposed to investment? TENEV: Yeah, I think this is a tricky balance in the business, right. And, you know, a lot of things that end up being quite serious in a bigger and bigger part of the financial system started out being underestimated and, you know, made fun of and ridiculed in some sense. So I think it's important to have that perspective and be balanced. And the way that we approach it is of course by clearly articulating what our values are. And you've heard me mentioned, our value of safety first, our top value. And, you know, the way we operationalize that through the product is to make sure that of the assets we list, we make it clear to customers what the asset is, in certain cases, this year earlier, we launched information labels on certain assets like volatile, exchange traded products, or companies that have entered bankruptcy or companies or products that are undergoing volatility. So it's important to inform people of what's going on and give people that information and it's a delicate balance because some people, a lot of people, actually do understand what they're doing and they know exactly what these products are, and they'd like to have exposure to them, alongside their other investments. And we have to make sure we allow that and sort of make sure the happy path of people who are responsibly interested in diversifying and having exposure to cryptocurrencies and different assets have the ability to do that through our product and have an excellent experience doing it as well. CRAMER: Alright, I know that is definitely your duty and you're fulfilling it. Let's talk about the report that came out. This is the staff report on equity and options market structuring conditions early 2021. I’m calling it the report. You and I have both read it. I want to dive into my first takeaway is that a lot of people who felt that there was a vast conspiracy of people – Citadel, for instance. You, me. That we were all somehow in on it to hurt people. I think that this report represents a complete vindication of that and if you feel that way, tell me why you think so. TENEV: Well, of course. You and I probably already knew that. And there's a lot of people on the internet that are going to be difficult to convince one way or another. I think, misinformation on the internet has been a big issue of our time. Of course, as I said and a bunch of TV interviews around that time and I know you and I have made it into some memes together on the internet over the last couple of months as well. Which, you know, has it's good and it's bad, as I'm sure you know. But the sort of cause for these restrictions that we had to impose, along with other brokers, was crystal clear. It was an unprecedented time where you had lots and lots of people that wanted to invest in a small handful of stocks at around the same time. And you know, the market wasn't really built for that. If you look at the core infrastructure of the market and the clearing and settlement system, and the way that everything works, I'm sure that when everything was built over the course of the past few decades, they just didn't anticipate social media people getting together and funneling money into a small number of stocks. So, I actually, I'm not really making a value judgment on whether that's good or bad. I think people should be allowed to communicate with each other and buy the stocks that they're interested in buying. And moreover I think what's interesting is a lot of these companies a lot of these meme stocks are companies that have been hit hard by the pandemic. You have, you know, retailers, brick and mortar stores. You had the airlines getting the attention of retail customers in the early part of the pandemic. And you could argue, you know, the government hasn't stepped in to help them in this difficult time, and retail investors have come in and supplied them with capital and allowed them to grow their management teams. So it is a very interesting thing that I don't think we've entirely unpacked. But I did appreciate that the report mentioned my policy suggestion of shortening the settlement time. I think regardless, that's the right move for the industry, and the right way to move forward our financial system and reduce systemic risk. So, I was really happy to see that, alongside a number of other policy proposals that Robinhood and myself personally have made. CRAMER: Now they didn't really – when I spoke to Chairman Gensler it was clear that he is concerned about two issues we have to speak about. One is payment for order flow and whether people know about it and the other is the game like features. Now I was out last night with a big Robinhood fan. 19 year old gentleman. And I said what draws you to Robinhood? And he said, because the app is so much like Candy Crush. It was not the answer I expected. Is the app too much like Candy Crush, Vlad? TENEV: No, I think that's – as someone who played Candy Crush maybe 10 years ago or so, I can tell you that I don't see any similarities whatsoever. And I will say this – CRAMER: But the customer can’t always be right. Maybe something needs to be done to dissuade people from thinking this is as easy and as fun as Candy Crush because I've not seen people borrow money and lose money on Candy Crush. TENEV: I think it's important for it to be easy and accessible, and there's a big difference between that and so called gamification. And if you look at Robinhood right now, we do pride ourselves on having a simple onboarding, on having pioneered a cost structure and a business model with no account minimums and no commissions that has brought in a ton of new investors, a lot of whom are from diverse backgrounds that otherwise wouldn't have been even thinking about investing. And that's something we're incredibly proud of and we stand behind. I think it's a very, very powerful force. And there is this notion that you hear thrown around that, you know, when wealthy people or institutions are buying stocks, then that's investing. But when poor people do it, it's gambling. And I think we just have to move away from that. I think we reject that. We're proud of bringing all these new customers in. We're also proud of the educational content and a lot of the recent features. You know, not just the 24/7 support, but improvements we've made in app learning modules. CRAMER: I could not agree with you more. TENEV: Go ahead. CRAMER: I have spent an inordinate amount of time in my life trying to explain to people that just when someone – just because someone who doesn’t have any money is trying to make something of themselves in the stock market does not mean they are fools. That does not mean they don't know what they're doing. And until you came along, I felt no one in the industry believed in me. And that's one of the reasons why I've supported you from the day I met you. Because you do want to give people a chance. You do not discourage. Now shouldn't it be celebratory? I don't know. Should confetti go down? TENEV: Amen. CRAMER: What matters is that you have – you do not look down upon people who aren't that wealthy. Now sometimes I think, and my wife does too since she met you, think that perhaps it's because it’s your immigrant upbringing. Some of it is because I think you're just a good guy trying to get people involved. And some of it is because you realize technology can – a lot of barriers. At the same time, there are issues that the Commission brings up. Issues about like payment for order flow, where to me, it would seem like you're willing to tell anybody anything. I mean, you're willing to inform. You have become a person involved with safety and truth. Should you just give everybody a caveat that just says look, you know, there's other ways to trade, you can pay commission, some people think you get better. I don't know if you get better. We think you can get better. Something that indicates that the Commission's issues about this payment for order flow could go away and instead we focus on the fact that there are 22 million people who are trying to make something of themselves. TENEV: Well, I'll put it this way. I think that payment for order flow and digital engagement practices are what you call gamification in the report. It was a little bit confusing to me to see it in there because first of all, it had nothing to do with restricting the handful of stocks that were restricted in January. So it was sort of like a policy position that was kind of thrown in there a little bit as an aside with no connection to the restrictions or the underlying issues and I think the rest of the report supported that. I think some of the criticisms of payment for order flow, and the business model, frankly, don't make sense to me. I mean, you look at what the industry was like three years ago, pretty much all of the large brokerages were charging commissions and making revenue from payment for order flow as an addition, right. And Robinhood forced that to zero. Forced Commission's to zero and the payment for order flow model has become kind of the standard transaction base model for offering brokerage services in that space. And alongside that, you've had the best conditions for being a retail investor ever. By far the lowest cost of execution, across the board, whose spreads have been have been tighter. And I think it's a great time to be a retail investor in America and there's actually a lot of competition. Now I will say, I do support – I came out with a policy proposal a couple of months ago about the Sub-Penny Rule, and there has been some criticism about whether our exchanges can fairly compete with off exchange market makers like Citadel securities and Virtu. And I think there are opportunities to make the system better and to encourage more flow to go to the exchanges, and to strengthen the NBBO, and I think we should look at doing that. But I think the – CRAMER: Well, remember, we don't want people running ahead. We don't want rich people running ahead of the people who are trying to make something of themselves, correct? TENEV: We certainly don't want to do that, but I think by and large, this business model has helped pioneer commission free trading and make it possible. And certainly what we wouldn't want is the return to a commission structure in the industry that'll just keep people out especially those people of lower incomes and less means. CRAMER: Now how – if you were to look at the breakdown of what kind of common stocks people are buying, how much are these stocks that are say jumping 50% in one day – more than even GameStop – and how much are these days because we don't get to see them run like we used to. And I used to love that run. Where people are buying the great American industrials or they're buying the FAANGs, or buying fractions of the FAANGs because they cost too much. What is your –  just if you want to break up the mosaic of what you're seeing, how many people are really investing in America? TENEV: Well I think a lot of people are interested in buying the stock of companies that they believe in. You know, companies that make products that they use and understand. So you'll have, you know, the big technology companies, the consumer companies that are among the 100 most popular at Robinhood at any given time. And that's actually, you know, some information that we provide for customers within the app. There's also, you know, certain events that happen, so cryptocurrency entering the mainstream this year I think got a lot of people interested in cryptocurrencies and we offer seven different coins on our platform. And from time to time, you will see sort of shifts from one sector to another. When I was on your show last year – CRAMER: Is bitcoin the most popular? Or are they starting to buy like the dogecoin? The cocker spaniel coin, whatever it is. I mean, where are they – are they buying like the most steady of them? Or you're seeing people buying whatever is the least -- lowest value? Lowest dollar value. TENEV: You will have a range of activity. I think, generally speaking, people do buy larger companies, especially with fractional shares now making those companies more accessible, you'll see people investing smaller amounts into these companies, and with some of the tools that we've rolled out like recurring investments and drip, you'll see people automating a lot more of that activity, and actually dollar cost averaging into these names so that they don't have to watch day to day and keep track of the prices so closely. CRAMER: Okay, we like that. Are they dollar cost averaging into things like what people are chatting about Shiba. Now I feel somewhat embarrassed to say that they're talking about Shiba, but that's what they're doing. Are you seeing Shiba being traded? Is it on your platform? Or will you recognize it on your platform? TENEV: Well, I’ve heard a lot of people in that community – CRAMER: Are you thinking about adding it? TENEV: We actually don't offer. CRAMER: You don’t. TENEV: We only offer seven coins currently. And I think it goes back to safety first, right. So we're not generally going to be the first to add any new asset. We want to make sure that it goes through a stringent set of criteria. And, you know, we're very proud of our cryptocurrency platform, and giving people more utility with the coins they have. As a matter of fact, we rolled out our wallets waitlist. A lot of people have been asking us for the ability to send and receive cryptocurrencies, transfer them to hardware wallets, transfer them onto the platform to consolidate. And you know, the crypto wallets waitlist is well over a million people now, which is very exciting. We see an opportunity to continue growing that business. CRAMER: There was this bad old days period that fortunately did not last long, where there was kind of a, let’s call it a hate Vlad movement. And I'd like to think that the hate Vlad movement actually peaked on the night that you were willing to go on Twitter and debate Dave Portnoy. Where people thought you would be a no show. People thought that you didn't feel that safety had become paramount. That you were gamifying or whatever. And you showed. And it pretty much ended. Do you see that the way I did? TENEV: Well, it's been certainly an adventure over the past nine months, you know, to put it mildly – CRAMER: What do you mean? What are you, a diplomat? Give me some old Vlad, will you? Give me some old Vlad. Like the pre-Marc Benioff Vlad. I mean the guy who says yeah well I showed up I was willing to take the heat because I knew I did nothing wrong. What happened to that Vlad? TENEV: I'm surprised my hair is still dark and I don't have I don't have grays or it hasn't fallen out, put it that way. CRAMER: Watch yourself. You know, we don't like that our show. But no I mean, it did peak. And I think it peaked because you recognized that things – you didn't want things to get out of hand. I remember in the midst in the darkest moment, you were saying, look, no system was built for this. Which is true. That was one of the things that came out in the report. But I think that your democratization got challenged. And you never wavered, but you did have to change what was the most important value. And since you've done that Vlad – have you noticed that Vlad Tenev has become and Robinhood have become major I don't want to say you're, I hate to say this, but you're not a disruptor anymore. You're the norm. Do you mind being the norm? TENEV: I think there's always opportunities to continue along our mission, and, you know, I know that a lot of people talk about Robinhood as being a disruptor, and we certainly have been. We changed the industry and people used to be paying commissions and now we're not anymore, but I don't think that's done by any means. I think that, you look at cryptocurrencies, for instance, people are still paying 3%, 4% fees to access that market. You see a lot of opportunities to serve more customers that have even less money, who are even more underserved than the people we have now. So I think the mission has always been to democratize finance for all and to do that safely. And, you know, in some cases that might require disruption, in other cases is just going to be continual improvements to the product and just getting, you know, getting better and better each and every day with things like 24/7 support, improving our educational content, and really just helping customers be successful on the platform. I think that's a big part of it and we have really made incredible strides. I mean, the team has been working very, very hard to make the platform as reliable as possible for it to stand up to heavy volume and days where customers need us most. And to be there for customers if they need help, specifically for the first timers who can benefit the most. CRAMER: If you’ve got this set up – you’ve got the robust system, you've got 24/7 help, which most people don't. Is it time to start thinking bigger? For instance, right now we're hearing that perhaps PayPal is going to merge with Pinterest. But we see what some of the companies are doing – Square is doing. Not willing to be bound by the initial mission. I think that you have 22 million people who want more from Robinhood. Maybe they want to get some of the things that SoFi has, some of the things that Square has, is it time to be thinking about the next big leg up for Robinhood? TENEV: Well I think that there's always an opportunity to keep serving our customers and we have been expanding quite a bit over the past few years, especially getting into becoming one of the first to offer cryptocurrency trading, sort of, alongside traditional asset as a brokerage, our cash management product which allows customers to earn high yield and spend. And then, with cryptocurrencies, getting more into cryptocurrencies as a means of transacting with our new wallets waitlist that we announced and are rolling out shortly. So we're going to continue to do these things. I do think that investing and making people owners of our global economy is an incredibly powerful thing. And despite all the progress that we've made, there's still a lot of people that don't invest, and we see it as being very, very important to serve those people. I think it's not just good for them in their wealth building but also important for society. A society where more of us feel like owners in the common enterprise is one that's just going to be healthier. And I think, you know, we started this company in the wake of the financial crisis, there were a lot of protests, a lot of people were unhappy at the status quo, and just felt like the financial system wasn't working for them. And hopefully, bit by bit we can improve that and make it an inclusive system and one that really serve the needs of the people, as well as it possibly can. CRAMER: I know Chairman Gensler was very concerned about suitability. You have 1 million people who are 19. What do we tell the 19 year-olds to be sure that they understand that they're doing something that is in keeping with their suitability which by the way Vlad, they may not even know the word. How do we get 19 year-olds to be investing what you and I would say responsibly and not blow their heads off on shorting calls? TENEV: I think it's the things that we've been building and of course suitability is – there's very strict rules by FINRA and brokerages have to follow them, and Robinhood is always committed to following the rules of the road there. There's also educational content. You know, I think, investment products are not suitable for everyone. They involve risk, especially when you're talking about options, and having people understand the risks and understand all of the information of how they work, assuming they’re willing to take those risks and are suitable is something that's incredibly important as well. So we are continuing to do a lot more in product and through Robinhood Learn to educate people. CRAMER: Yeah, that's why we started our investing club here. Right because people don’t get enough. I think that, you know, we do investment club basically just to be able to teach. And I think that you're doing teaching now and I think it's absolutely terrific because we need to do that because we don't, as much as we're thrilled that you have – the average customers age 31, we've got to get this median account balance up to 240. Now how do we do that? And do these people own mutual funds away or index funds which I think is a very responsible way to start investing. And then they use their so called Mad Money $240 with you. Have you seen that grow? I mean, because you know that's not enough. And we all work hard. I started with $200. I know you started with nothing, which it is terrific to start with nothing. But I do believe that we need to get that balance up and I'm trying to figure out how to make people wealthier. How do we make people wealthy? TENEV: I think the best way to do it is to have a long term perspective and put aside a little bit at a time and really start young and you'll see kind of the magic of compounding and compound returns happen over a longer period of time. And I think there's ways we can continue to make that process easier with recurring, with drip, with fractional shares, we have a lot of the building blocks. And, you know, we're excited to see more and more people adopting those products and we believe that in the future, they'll be a larger and growing percentage of the activity on the platform. CRAMER: Now is the average investor, making I don't want to call it necessarily progress, but I would like to see the average investor not just suddenly go crypto. I mean are you saying people –people used to be say 90% stock, now 90% crypto? TENEV: It's certainly an interesting trend. I think there's certain advantages that crypto has for especially interoperability, and the ability to be global by default. So, you know, regardless of where you are in the world whether you're in the U.S. or overseas, you can have a wallet, you can send people cryptocurrencies from that wallet to their wallet. And so there there's certain advantages that are in the technology that make it kind of global and accessible by default and that makes it very interesting. Now of course, we also have, you know, the equities market in the US has really been where the best companies list over time. It's been a tremendous source of wealth creation, and there is an opportunity to kind of make that easier and make that more accessible as well. So I, generally agree with you, I think it's important for people to be diversified, for them to build up portfolios over time and invest for the long term. And you know what that specific mix is, I think, you know, we can probably debate, but crypto certainly is here to stay as an asset class, and the ease of use and the global nature of it, I think, has made it attractive to lots of people, not just in the U.S. but overseas in particular what you are seeing is very interesting. CRAMER: But Vlad, people are starting to come back to work. It's also football season, which is a DraftKings FanDuel situation. Are you seeing fewer people sign up? Is the app going down in popularity at all? As people then switch to football gambling, we know that – we're not saying that they're doing Robinhood  gambling with the football game, but these are various ways that people want to be able to make money. And the return to work means that most people can’t sit there and trade or invest during the day. Are you seeing those two trends which is gambling and back to work, cutting into the growth of Robinhood? TENEV: What I've always said and, you know, I think in our last conversation you've heard me say this as well. We're not paying too much attention to short term trends. The way that we're going to make progress and serve our customers and go after this opportunity of making as many people long term investors as possible is by focusing on the products. And so we're going to continue to roll out new products, improve the service, make sure that it's as easy as possible for first time investors to become long term investors and get all the support that they need. So, you know, whether short term fluctuations, Covid, reopening not something that we're going to spend too much time commenting on. CRAMER: By the way, did you see former President Trump’s SPAC today? Up 40 points. Do you follow any of these trends that some of the younger people really get a kick out of, too? TENEV: I heard about the product, the new social media platform. But I haven't been watching the stock too closely. CRAMER: No, no, it's a what I call a newer public offering, so to speak. Definitely newer. Well Vlad, look. I think you've come through Hades and back. I love the theme that I know you do care about passionately is safety. Any last words for people who are young who are watching who are thinking about taking the so called plunge into common stocks? TENEV: Yeah look I think that it's important to invest for the long term and to be educated. And we want to make sure to meet our customers where they are, and especially for young people, a lot of that educational content has to be contextual. It has to be in the form that customers expect. And we're going to continue to provide that through Snacks, on Snap and in in-product, which is our podcast and newsletter. We're going to continue to increase the tools and the functionality and the support that's available to customers. And we're going to continue to roll out products that democratize finance safely by giving you the lowest possible cost that we can offer, and the lowest barriers to entry with a great experience. So that's what Robinhood is all about and over the coming decades, I think we'd like to see more and more people globally become investors and we'd like to be a part of that and really driving that transition to where everyone becomes an owner of our economy and our society. CRAMER: Well I want to congratulate you for everything. For being 2021’s top disruptor, for the journey you have taken, for the maturity that we all had to have because so many new people have come in. And for your advice and counsel, particularly as far as I am concerned, in light of what happened at the end of January, shows that you never lost the flame. Some people thought you did. The report vindicates you. And I'm thrilled that you came to our Disruptor conference and to Mad Money. And it's always good to see you, Vlad. TENEV: It's always a pleasure. Thank you. Thank you for the time, Jim. Updated on Oct 22, 2021, 10:21 am (function() { var sc = document.createElement("script"); sc.type = "text/javascript"; sc.async = true;sc.src = "//mixi.media/data/js/95481.js"; sc.charset = "utf-8";var s = document.getElementsByTagName("script")[0]; s.parentNode.insertBefore(sc, s); }()); window._F20 = window._F20 || []; _F20.push({container: 'F20WidgetContainer', placement: '', count: 3}); _F20.push({finish: true});.....»»

Category: blogSource: valuewalkOct 22nd, 2021

Is FLARX a Strong Bond Fund Right Now?

MF Bond Report for FLARX On the lookout for a Mutual Fund Bond fund? Starting with Pioneer Floating Rate A (FLARX) should not be a possibility at this time. FLARX possesses a Zacks Mutual Fund Rank of 4 (Sell), which is based on nine forecasting factors like size, cost, and past performance.History of Fund/ManagerFLARX is a part of the Amundi US family of funds, a company based out of Boston, MA. Pioneer Floating Rate A debuted in February of 2007. Since then, FLARX has accumulated assets of about $83.82 million, according to the most recently available information. The fund's current manager, Jonathan Sharkey, has been in charge of the fund since February of 2007.PerformanceOf course, investors look for strong performance in funds. This fund has delivered a 5-year annualized total return of 1.48%, and it sits in the middle third among its category peers. But if you are looking for a shorter time frame, it is also worth looking at its 3-year annualized total return of 0.51%, which places it in the bottom third during this time-frame.When looking at a fund's performance, it is also important to note the standard deviation of the returns. The lower the standard deviation, the less volatility the fund experiences. FLARX's standard deviation over the past three years is 8.25% compared to the category average of 13.84%. The standard deviation of the fund over the past 5 years is 6.59% compared to the category average of 11.97%. This makes the fund less volatile than its peers over the past half-decade.FLARX carries a beta of -0.17, meaning that the fund is less volatile than a broad market index of fixed income securities. With this in mind, it has a positive alpha of 0.89, which measures performance on a risk-adjusted basis.ExpensesCosts are increasingly important for mutual fund investing, and particularly as competition heats up in this market. And all things being equal, a lower cost product will outperform its otherwise identical counterpart, so taking a closer look at these metrics is key for investors. In terms of fees, FLARX is a load fund. It has an expense ratio of 1.05% compared to the category average of 0.68%. So, FLARX is actually more expensive than its peers from a cost perspective.This fund requires a minimum initial investment of $1,000, and each subsequent investment should be at least $100.Bottom LineOverall, Pioneer Floating Rate A ( FLARX ) has a low Zacks Mutual Fund rank, and in conjunction with its comparatively similar performance, better downside risk, and higher fees, Pioneer Floating Rate A ( FLARX ) looks like a somewhat weak choice for investors right now.This could just be the start of your research on FLARXin the Mutual Fund Bond category. Consider going to www.zacks.com/funds/mutual-funds for additional information about this fund, and all the others that we rank as well for additional information. If you want to check out our stock reports as well, make sure to go to Zacks.com to see all of the great tools we have to offer, including our time-tested Zacks Rank. Zacks Names "Single Best Pick to Double" From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all. It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time. This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.Free: See Our Top Stock and 4 Runners Up >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Get Your Free (FLARX): Fund Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research.....»»

Category: topSource: zacksNov 25th, 2022

Is Spirit of America Energy A (SOAEX) a Strong Mutual Fund Pick Right Now?

Mutual Fund Report for SOAEX If you have been looking for Mutual Fund Equity Report funds, it would not be wise to start your search with Spirit of America Energy A (SOAEX). SOAEX possesses a Zacks Mutual Fund Rank of 5 (Strong Sell), which is based on nine forecasting factors like size, cost, and past performance.History of Fund/ManagerSOAEX finds itself in the Spirit of America family, based out of Syosset, NY. Spirit of America Energy A debuted in July of 2014. Since then, SOAEX has accumulated assets of about $226.64 million, according to the most recently available information. Douglas Revello is the fund's current manager and has held that role since January of 2020.PerformanceOf course, investors look for strong performance in funds. This fund has delivered a 5-year annualized total return of 2.1%, and is in the bottom third among its category peers. Investors who prefer analyzing shorter time frames should look at its 3-year annualized total return of 6.05%, which places it in the bottom third during this time-frame.When looking at a fund's performance, it is also important to note the standard deviation of the returns. The lower the standard deviation, the less volatility the fund experiences. Compared to the category average of 49.45%, the standard deviation of SOAEX over the past three years is 38%. The fund's standard deviation over the past 5 years is 31.66% compared to the category average of 33.02%. This makes the fund less volatile than its peers over the past half-decade.Risk FactorsWith a 5-year beta of 1.24, the fund is likely to be more volatile than the market average. Alpha is an additional metric to take into consideration, since it represents a portfolio's performance on a risk-adjusted basis relative to a benchmark, which in this case, is the S&P 500. Over the past 5 years, the fund has a negative alpha of -6.36. This means that managers in this portfolio find it difficult to pick securities that generate better-than-benchmark returns.ExpensesCosts are increasingly important for mutual fund investing, and particularly as competition heats up in this market. And all things being equal, a lower cost product will outperform its otherwise identical counterpart, so taking a closer look at these metrics is key for investors. In terms of fees, SOAEX is a load fund. It has an expense ratio of 1.29% compared to the category average of 1.46%. So, SOAEX is actually cheaper than its peers from a cost perspective.Investors should also note that the minimum initial investment for the product is $500 and that each subsequent investment needs to be at $50.Bottom LineOverall, Spirit of America Energy A ( SOAEX ) has a low Zacks Mutual Fund rank, and in conjunction with its comparatively weak performance, average downside risk, and lower fees, Spirit of America Energy A ( SOAEX ) looks like a somewhat weak choice for investors right now.Don't stop here for your research on Mutual Fund Equity Report funds. We also have plenty more on our site in order to help you find the best possible fund for your portfolio. Make sure to check out www.zacks.com/funds/mutual-funds for more information about the world of funds, and feel free to compare SOAEX to its peers as well for additional information. Zacks provides a full suite of tools to help you analyze your portfolio - both funds and stocks - in the most efficient way possible. Zacks Names "Single Best Pick to Double" From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all. It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time. This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.Free: See Our Top Stock and 4 Runners Up >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Get Your Free (SOAEX): Fund Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research.....»»

Category: topSource: zacksNov 25th, 2022

4 Investment Management Stocks to Watch in a Prospering Industry

Higher interest rates and assets inflows will likely aid Zacks Investment Management stocks like BlackRock (BLK), Ameriprise (AMP), Affiliated Managers (AMG) and Prospect Capital (PSEC). Higher interest rates will benefit the Zacks Investment Management industry stocks, which bore the brunt of low rates during the pandemic. While elevated technology costs might hurt profitability, investment managers’ margins will no longer be under pressure given the rate hikes. This should aid revenue growth.Moreover, investment managers have benefited from higher volatility and client activity amid the pandemic. Although markets normalized in second-half 2021, client activity has gained momentum once again. Hence, BlackRock, Inc. BLK, Ameriprise Financial, Inc. AMP, Affiliated Managers Group, Inc. AMG and Prospect Capital Corporation PSEC should benefit from growth in assets under management (AUM).About the IndustryThe Zacks Investment Management industry consists of companies that manage securities and funds for clients to meet specified investment goals. They earn by charging service fees or commissions. Investment managers are also called asset managers, as they manage hedge funds, mutual funds, private equity, venture capital and other financial investments for third parties. By appointing an investment manager for one’s assets, investors get more diversification options than they would have if they managed their assets by themselves. Investment managers invest their clients’ assets in different asset classes, depending on their needs and risk-taking abilities. Hence, the diversification, which investors get by appointing asset managers to manage their assets, helps reduce the impact of volatility and ensures steady returns over time.3 Investment Management Industry Trends to ConsiderInterest Rate Hikes to Aid Margin Growth Despite Shift in Preferences: Similar to the past few years, demand for passive investing has been on the rise on the continued need for low-cost investment strategies. Thus, rising demand for passive investments is expected to negatively impact investment managers’ margin growth to some extent. Nevertheless, the interest rate hikes since the beginning of this year to tame the raging inflation will likely result in an improvement in margins in the near term. Also, the rise in industry consolidation witnessed since the beginning of 2020 is likely to support bottom-line growth.Growth in AUM Likely to Continue Despite a Volatile Trend in Asset Flows: In 2020 and the first half of 2021, there was a significant rise in equity market volatility and solid client activity, owing to the coronavirus-induced uncertainty, which aided total AUM growth. In the second half of 2021, markets began to normalize, with client activity remaining decent. Nevertheless, the first nine months of 2022 again witnessed an unexpected rise in volatility and relatively higher client activity, resulting in asset inflows for the majority of the industry players. Thus, despite a volatile trend in flows (seen recently), growth in AUM is expected to continue in the near term. Asset managers’ top lines are, therefore, expected to improve, supported by higher performance fees and investment advisory fees, which constitute the majority of their revenues.Elevated Costs Remain Concerning: The tightening of regulations to increase transparency has led to a rise in compliance costs for investment managers. Also, as wealth managers are constantly trying to upgrade technology to keep up with evolving customer needs, technology costs are expected to keep rising. These will likely lead to an increase in overall expenses, thus, hurting investment managers’ bottom line.Zacks Industry Rank Indicates Bright ProspectsThe Zacks Investment Management industry is a 44-stock group within the broader Zacks Finance sector. The industry currently carries a Zacks Industry Rank #89, which places it at the top 35% of more than 250 Zacks industries.The group’s Zacks Industry Rank, which is the average of the Zacks Rank of all the member stocks, indicates outperformance in the near term. Our research shows that the top 50% of the Zacks-ranked industries outperforms the bottom 50% by a factor of more than 2 to 1.The industry’s positioning in the top 50% of the Zacks-ranked industries is a result of bright earnings outlook for the constituent companies in aggregate. Looking at the aggregate earnings estimate revisions, it appears that analysts have just started gaining confidence in this group’s bottom-line growth potential. The industry’s current-year earnings estimates have been revised 1.3% higher since the end of October 2022.Thus, we present a few stocks from the prospering industry that you may want to keep an eye on. But before that, let’s check out the industry’s recent stock market performance and valuation picture.Industry Lags S&P 500 & SectorThe Zacks Investment Management industry has underperformed both the S&P 500 and its sector in the past two years.Stocks in the industry have collectively lost 2.4%. The S&P 500 composite has rallied 9.6% and the Zacks Finance Sector has appreciated 12.2%.Two-Year Price PerformanceIndustry's Current ValuationOne might get a good sense of the industry’s relative valuation by looking at its price-to-tangible book ratio (P/TB), which is commonly used for valuing finance companies because of large variations in their earnings results from one quarter to the next.The industry currently has a trailing 12-month P/TB of 3.90X. This compares with the highest level of 5.27X, the lowest level of 2.04X and the median of 3.59X over the past five years. Additionally, the industry is trading at a significant discount compared with the market at large, as the trailing 12-month P/TB for the S&P 500 composite is 10.30X, which the chart below shows.Price-to-Tangible Book Ratio (TTM)As finance stocks typically have a low P/TB ratio, comparing investment managers with the S&P 500 may not make sense to many investors. But a comparison of the group’s P/TB ratio with that of its broader sector seems more meaningful. When we compare the group’s P/TB ratio with the broader Finance sector, it seems that the group is trading at a decent discount. The Zacks Finance sector’s trailing 12-month P/TB of 4.69X for the same period is above the Zacks Investment Management industry’s ratio, which the chart below shows.Price-to-Tangible Book Ratio (TTM)4 Investment Management Stocks to Keep an Eye OnBlackRock: The New York, NY-based Zacks Ranked #3 (Hold) company is the largest asset manager by assets in the United States, with a market capitalization of $110.6 billion. The company’s diversified products, revenue mix and inorganic expansion efforts have been aiding AUM growth. As of Sep 30, 2022, BlackRock had total AUM worth $7.96 trillion.The company’s AUM has witnessed a seven-year (2015-2021) compound annual growth rate (CAGR) of 13.6%. While its AUM balance declined in the first nine months of 2022 due to the tough operating backdrop amid the macroeconomic concerns, the trend will likely reverse in the future.The company has been continuously strengthening its iShares and exchange-traded funds (ETF) operations. Its efforts to gain market share in the active equity business will likely keep aiding profitability.Supported by a solid balance sheet and liquidity position, BlackRock has expanded via acquisitions, both domestic and overseas. In June 2021, it acquired the Climate Change Scenario Model of Baringa Partners. In February 2021, it completed the acquisition of investment management services provider, Aperio Group. Apart from these, over the years, the company has acquired several firms across the globe, thus, expanding its footprint and market share.Moreover, in August 2022, BlackRock partnered with cryptocurrency exchange, Coinbase Global, to provide its institutional clients with access to digital currencies. Through the partnership, BlackRock’s institutional clients will have access to crypto trading, custody, prime brokerage, and reporting via Coinbase Prime, which is the exchange’s institutional platform, providing a wide range of features and tools.In the past three months, shares of BlackRock have gained 8.8%. Over the past 30 days, the Zacks Consensus Estimate for the company’s 2022 earnings has been revised marginally upward to $33.88 per share, whereas its 2023 earnings estimates have witnessed a downward revision of 1% to $34.08.Price and Consensus: BLKAmeriprise: Headquartered in Minneapolis, MN, Ameriprise has a market cap of $35.4 billion. Since 2005-end, the company has been operating independently of American Express Company. As of Sep 30, 2022, it owned, managed and administered assets worth $1.1 trillion.Ameriprise operates a well-diversified portfolio compared with its industry peers. It constantly modifies its product and service-offering capacity to keep pace with dynamic market needs. This strategy, along with asset growth, has helped the company witness a rise in total net revenues.Moreover, AMP has grown inorganically and restructured its business from time to time to remain profitable by focusing on its core operations. In November 2021, the company acquired BMO Financial Group’s EMEA asset management operations, which will bolster its wealth and asset management businesses and global diversification efforts. In July 2021, it closed a deal for RiverSource Life Insurance Company (its insurance subsidiary) with Global Atlantic’s subsidiary, Commonwealth Annuity and Life Insurance Company, to reinsure $7 billion of fixed deferred and immediate annuity policies.In 2019, it divested the Ameriprise Auto & Home business. These initiatives, along with a few others, are expected to continue supporting revenue growth. Notably, AMP maintains long-term issuer ratings of A- from S&P Global and Fitch, and A3 from Moody’s Investors Service, with a rating outlook of stable from all three agencies. The company currently carries a Zacks Rank #2 (Buy).You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.AMP’s shares have gained 21% over the past three months. Over the past 30 days, the Zacks Consensus Estimate for its 2022 earnings has been revised upward by 3% to $24.56 per share. Likewise, earnings estimates for 2023 have been revised upward by 2.1% to $29.09.Price and Consensus: AMPAffiliated Managers: Headquartered in Massachusetts, Affiliated Managers has equity investments in a large group of investment management firms or affiliates. The affiliates manage more than 500 investment products across each major product category — global, international and emerging markets equities, domestic equities, and alternative and fixed-income products. The company has a market cap of $5.9 billion.As of Sep 30, 2022, this Zacks Ranked #3 company had total AUM of $644.6 billion. AMG is expected to continue generating meaningful growth through new investments. Its successful partnerships and focus on strengthening the retail market operations will likely keep aiding profits.Affiliated Managers has been targeting investments in alternatives and global strategies, given the strong investor preference for the same. The acquisitions of the majority stakes in Parnassus Investments and Abacus Capital Group, along with the buyouts of minority stakes in OCP Asia, Boston Common Asset Management and Systematica, are steps in this direction.While Affiliated Managers’ affiliates have been witnessing overall net outflows over the past few years, the company’s differentiated product categories are likely to support cash flows across channels.AMG has appreciated 20.1% over the past three months. The Zacks Consensus Estimate for its 2022 earnings has been revised upward by 7.5% to $19.53 per share over the past 30 days. Likewise, earnings estimates for 2023 have been revised upward by 5.2% to $19.48.Price and Consensus: AMGProspect Capital: Headquartered in New York, NY, PSEC has a market cap of $3.1 billion. The company is a leading provider of private debt and private equity to middle-market companies in the United States, with a focus on sponsor-backed transactions and direct lending to established owner-operated companies. It currently sports a Zacks Rank #1.PSEC invests primarily in first-lien and second-lien senior loans and mezzanine debt, which in some cases include an equity component. Since its inception in 2004, Prospect Capital has invested $19.6 billion across 403 investments, exiting 274 of these investments.As of Sep 30, 2022, the company had investments in 128 long-term portfolio investments and CLOs, which had a fair value of $7.58 million.Over the last three fiscal years (ended June 2022), the company’s total investment income witnessed a CAGR of 6.8%. The upward trend continued in the Sep-end quarter.Given a solid balance sheet and liquidity position, the company is expected to enhance shareholder value through efficient capital deployment activities. On Aug 24, 2011, its board of directors approved a share repurchase plan to buy back shares worth up to $0.1 million. As of Sep 30, 2022, $65,860 worth of shares were available for repurchase under the authorization.PSEC’s shares have lost 0.2% over the past three months. Over the past 30 days, the Zacks Consensus Estimate for its current fiscal year earnings has been revised 5.2% upward to $1.01 per share. Likewise, earnings estimates for the next fiscal year have been revised 8.3% upward to $1.04.Price and Consensus: PSEC Zacks Names "Single Best Pick to Double" From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all. It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time. This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.Free: See Our Top Stock and 4 Runners Up >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report BlackRock, Inc. (BLK): Free Stock Analysis Report Ameriprise Financial, Inc. (AMP): Free Stock Analysis Report Affiliated Managers Group, Inc. (AMG): Free Stock Analysis Report Prospect Capital Corporation (PSEC): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research.....»»

Category: topSource: zacksNov 25th, 2022

Is TETON Convertible Securities AAA (WESRX) a Strong Mutual Fund Pick Right Now?

Mutual Fund Report for WESRX If investors are looking at the Mutual Fund Equity Report fund category, make sure to pass over TETON Convertible Securities AAA (WESRX). WESRX carries a Zacks Mutual Fund Rank of 5 (Strong Sell), which is based on nine forecasting factors like size, cost, and past performance.History of Fund/ManagerTETON is based in Rye, NY, and is the manager of WESRX. The TETON Convertible Securities AAA made its debut in September of 1997 and WESRX has managed to accumulate roughly $5.27 million in assets, as of the most recently available information. The fund's current manager is a team of investment professionals.PerformanceObviously, what investors are looking for in these funds is strong performance relative to their peers. WESRX has a 5-year annualized total return of 5.4% and is in the bottom third among its category peers. Investors who prefer analyzing shorter time frames should look at its 3-year annualized total return of 2.8%, which places it in the bottom third during this time-frame.When looking at a fund's performance, it is also important to note the standard deviation of the returns. The lower the standard deviation, the less volatility the fund experiences. WESRX's standard deviation over the past three years is 16.84% compared to the category average of 16.48%. Looking at the past 5 years, the fund's standard deviation is 14.3% compared to the category average of 14.38%. This makes the fund less volatile than its peers over the past half-decade.Risk FactorsInvestors should note that the fund has a 5-year beta of 0.67, so it is likely going to be less volatile than the market at large. Another factor to consider is alpha, as it reflects a portfolio's performance on a risk-adjusted basis relative to a benchmark-in this case, the S&P 500. WESRX's 5-year performance has produced a negative alpha of -1.87, which means managers in this portfolio find it difficult to pick securities that generate better-than-benchmark returns.ExpensesFor investors, taking a closer look at cost-related metrics is key, since costs are increasingly important for mutual fund investing. Competition is heating up in this space, and a lower cost product will likely outperform its otherwise identical counterpart, all things being equal. In terms of fees, WESRX is a no load fund. It has an expense ratio of 1.15% compared to the category average of 1.20%. WESRX is actually cheaper than its peers when you consider factors like cost.While the minimum initial investment for the product is $1,000, investors should also note that there is no minimum for each subsequent investment.Bottom LineOverall, TETON Convertible Securities AAA ( WESRX ) has a low Zacks Mutual Fund rank, and in conjunction with its comparatively weak performance, average downside risk, and lower fees, this fund looks like a somewhat weak choice for investors right now.Don't stop here for your research on Mutual Fund Equity Report funds. We also have plenty more on our site in order to help you find the best possible fund for your portfolio. Make sure to check out www.zacks.com/funds/mutual-funds for more information about the world of funds, and feel free to compare WESRX to its peers as well for additional information. For analysis of the rest of your portfolio, make sure to visit Zacks.com for our full suite of tools which will help you investigate all of your stocks and funds in one place. Free Report Reveals How You Could Profit from the Growing Electric Vehicle Industry Globally, electric car sales continue their remarkable growth even after breaking records in 2021. High gas prices have fueled his demand, but so has evolving EV comfort, features and technology. So, the fervor for EVs will be around long after gas prices normalize. Not only are manufacturers seeing record-high profits, but producers of EV-related technology are raking in the dough as well. Do you know how to cash in?  If not, we have the perfect report for you – and it’s FREE! Today, don't miss your chance to download Zacks' top 5 stocks for the electric vehicle revolution at no cost and with no obligation.>>Send me my free report on the top 5 EV stocksWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Get Your Free (WESRX): Fund Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research.....»»

Category: topSource: zacksNov 24th, 2022

Is Invesco Developing Markets R6 (ODVIX) a Strong Mutual Fund Pick Right Now?

Mutual Fund Report for ODVIX Mutual Fund Equity Report fund seekers should not consider taking a look at Invesco Developing Markets R6 (ODVIX) at this time. ODVIX holds a Zacks Mutual Fund Rank of 5 (Strong Sell), which is based on nine forecasting factors like size, cost, and past performance.History of Fund/ManagerInvesco is based in Kansas City, MO, and is the manager of ODVIX. Invesco Developing Markets R6 debuted in December of 2011. Since then, ODVIX has accumulated assets of about $9.37 billion, according to the most recently available information. Justin Leverenz is the fund's current manager and has held that role since December of 2011.PerformanceObviously, what investors are looking for in these funds is strong performance relative to their peers. ODVIX has a 5-year annualized total return of -4.08% and is in the bottom third among its category peers. Investors who prefer analyzing shorter time frames should look at its 3-year annualized total return of -8.28%, which places it in the bottom third during this time-frame.When looking at a fund's performance, it is also important to note the standard deviation of the returns. The lower the standard deviation, the less volatility the fund experiences. Compared to the category average of 17.13%, the standard deviation of ODVIX over the past three years is 19.55%. Over the past 5 years, the standard deviation of the fund is 17.82% compared to the category average of 15.13%. This makes the fund more volatile than its peers over the past half-decade.Risk FactorsInvestors should note that the fund has a 5-year beta of 0.75, so it is likely going to be less volatile than the market at large. Because alpha represents a portfolio's performance on a risk-adjusted basis relative to a benchmark, which is the S&P 500 in this case, one should pay attention to this metric as well. ODVIX's 5-year performance has produced a negative alpha of -10.95, which means managers in this portfolio find it difficult to pick securities that generate better-than-benchmark returns.ExpensesFor investors, taking a closer look at cost-related metrics is key, since costs are increasingly important for mutual fund investing. Competition is heating up in this space, and a lower cost product will likely outperform its otherwise identical counterpart, all things being equal. In terms of fees, ODVIX is a no load fund. It has an expense ratio of 0.84% compared to the category average of 1.15%. From a cost perspective, ODVIX is actually cheaper than its peers.Investors need to be aware that with this product, the minimum initial investment is $1 million; each subsequent investment has no minimum amount.Bottom LineOverall, Invesco Developing Markets R6 ( ODVIX ) has a low Zacks Mutual Fund rank, and in conjunction with its comparatively weak performance, average downside risk, and lower fees, Invesco Developing Markets R6 ( ODVIX ) looks like a somewhat weak choice for investors right now.Want even more information about ODVIX? Then go over to Zacks.com and check out our mutual fund comparison tool, and all of the other great features that we have to help you with your mutual fund analysis for additional information. And don't forget, Zacks has all of your needs covered on the equity side too! Make sure to check out Zacks.com for more information on our screening capabilities, Rank, and all our articles as well. This Little-Known Semiconductor Stock Could Be Your Portfolio’s Hedge Against Inflation Everyone uses semiconductors. But only a small number of people know what they are and what they do. If you use a smartphone, computer, microwave, digital camera or refrigerator (and that’s just the tip of the iceberg), you have a need for semiconductors. That’s why their importance can’t be overstated and their disruption in the supply chain has such a global effect. But every cloud has a silver lining. Shockwaves to the international supply chain from the global pandemic have unearthed a tremendous opportunity for investors. And today, Zacks' leading stock strategist is revealing the one semiconductor stock that stands to gain the most in a new FREE report. It's yours at no cost and with no obligation.>>Yes, I Want to Help Protect My Portfolio During the RecessionWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Get Your Free (ODVIX): Fund Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research.....»»

Category: topSource: zacksNov 24th, 2022

Is LSBRX a Strong Bond Fund Right Now?

MF Bond Report for LSBRX If you have been looking for Mutual Fund Bond funds, it would not be wise to start your search with Loomis Sayles Bond Fund Retail (LSBRX). LSBRX possesses a Zacks Mutual Fund Rank of 4 (Sell), which is based on nine forecasting factors like size, cost, and past performance.History of Fund/ManagerLoomis-Sayles is based in Boston, MA, and is the manager of LSBRX. The Loomis Sayles Bond Fund Retail made its debut in May of 1991 and LSBRX has managed to accumulate roughly $966.99 million in assets, as of the most recently available information. The fund is currently managed by a team of investment professionals.PerformanceObviously, what investors are looking for in these funds is strong performance relative to their peers. This fund in particular has delivered a 5-year annualized total return of -0.69%, and is in the bottom third among its category peers. If you're interested in shorter time frames, do not dismiss looking at the fund's 3-year annualized total return of -3.26%, which places it in the bottom third during this time-frame.When looking at a fund's performance, it is also important to note the standard deviation of the returns. The lower the standard deviation, the less volatility the fund experiences. The standard deviation of LSBRX over the past three years is 9.09% compared to the category average of 14.5%. Over the past 5 years, the standard deviation of the fund is 7.44% compared to the category average of 12.63%. This makes the fund less volatile than its peers over the past half-decade.LSBRX carries a beta of 0.35, meaning that the fund is less volatile than a broad market index of fixed income securities. With this in mind, it has a negative alpha of -0.34, which measures performance on a risk-adjusted basis.RatingsInvestors should also consider a bond's rating, which is a grade ( 'AAA' to 'D' ) given to a bond that indicates its credit quality. With this letter scale in mind, LSBRX has 21.74% in high quality bonds rated at least 'AA' or higher, while 40.8% are of medium quality, with ratings of 'A' to 'BBB'. The fund's junk bond component-bonds rated 'BB' or below-is at 23.61%, giving LSBRX an average quality of BBB. This means that it focuses on medium quality securities.ExpensesCosts are increasingly important for mutual fund investing, and particularly as competition heats up in this market. And all things being equal, a lower cost product will outperform its otherwise identical counterpart, so taking a closer look at these metrics is key for investors. In terms of fees, LSBRX is a no load fund. It has an expense ratio of 0.92% compared to the category average of 0.78%. So, LSBRX is actually more expensive than its peers from a cost perspective.While the minimum initial investment for the product is $2,500, investors should also note that each subsequent investment needs to be at least $50.Bottom LineOverall, Loomis Sayles Bond Fund Retail ( LSBRX ) has a low Zacks Mutual Fund rank, and in conjunction with its comparatively weak performance, better downside risk, and higher fees, Loomis Sayles Bond Fund Retail ( LSBRX ) looks like a somewhat weak choice for investors right now.For additional information on the Mutual Fund Bond area of the mutual fund world, make sure to check out www.zacks.com/funds/mutual-funds. There, you can see more about the ranking process, and dive even deeper into LSBRX too for additional information. If you want to check out our stock reports as well, make sure to go to Zacks.com to see all of the great tools we have to offer, including our time-tested Zacks Rank. This Little-Known Semiconductor Stock Could Be Your Portfolio’s Hedge Against Inflation Everyone uses semiconductors. But only a small number of people know what they are and what they do. If you use a smartphone, computer, microwave, digital camera or refrigerator (and that’s just the tip of the iceberg), you have a need for semiconductors. That’s why their importance can’t be overstated and their disruption in the supply chain has such a global effect. But every cloud has a silver lining. Shockwaves to the international supply chain from the global pandemic have unearthed a tremendous opportunity for investors. And today, Zacks' leading stock strategist is revealing the one semiconductor stock that stands to gain the most in a new FREE report. It's yours at no cost and with no obligation.>>Yes, I Want to Help Protect My Portfolio During the RecessionWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Get Your Free (LSBRX): Fund Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research.....»»

Category: topSource: zacksNov 24th, 2022

Is American Funds Investor Company of America A (AIVSX) a Strong Mutual Fund Pick Right Now?

Mutual Fund Report for AIVSX Having trouble finding a Mutual Fund Equity Report fund? American Funds Investor Company of America A (AIVSX) is a possible starting point. AIVSX holds a Zacks Mutual Fund Rank of 3 (Hold), which is based on nine forecasting factors like size, cost, and past performance.History of Fund/ManagerAmerican Funds is based in Los Angeles, CA, and is the manager of AIVSX. The American Funds Investor Company of America A made its debut in December of 1933 and AIVSX has managed to accumulate roughly $63.95 billion in assets, as of the most recently available information. A team of investment professionals is the fund's current manager.PerformanceObviously, what investors are looking for in these funds is strong performance relative to their peers. This fund has delivered a 5-year annualized total return of 7.35%, and it sits in the bottom third among its category peers. Investors who prefer analyzing shorter time frames should look at its 3-year annualized total return of 8.12%, which places it in the bottom third during this time-frame.When looking at a fund's performance, it is also important to note the standard deviation of the returns. The lower the standard deviation, the less volatility the fund experiences. The standard deviation of AIVSX over the past three years is 19.28% compared to the category average of 16.65%. Over the past 5 years, the standard deviation of the fund is 17% compared to the category average of 14.66%. This makes the fund more volatile than its peers over the past half-decade.Risk FactorsThe fund has a 5-year beta of 0.91, so investors should note that it is hypothetically less volatile than the market at large. Because alpha represents a portfolio's performance on a risk-adjusted basis relative to a benchmark, which is the S&P 500 in this case, one should pay attention to this metric as well. With a negative alpha of -2.14, managers in this portfolio find it difficult to pick securities that generate better-than-benchmark returns.HoldingsInvestigating the equity holdings of a mutual fund is also a valuable exercise. This can show us how the manager is applying their stated methodology, as well as if there are any inherent biases in their approach. For this particular fund, the focus is principally on equities that are traded in the United States.Right now, 92.98% of this mutual fund's holdings are stocks, with an average market capitalization of $337.05 billion. The fund has the heaviest exposure to the following market sectors: Technology Finance Non-Durable Industrial Cyclical With turnover at about 36%, this fund makes fewer trades than its comparable peers.ExpensesFor investors, taking a closer look at cost-related metrics is key, since costs are increasingly important for mutual fund investing. Competition is heating up in this space, and a lower cost product will likely outperform its otherwise identical counterpart, all things being equal. In terms of fees, AIVSX is a load fund. It has an expense ratio of 0.56% compared to the category average of 0.92%. From a cost perspective, AIVSX is actually cheaper than its peers.Investors should also note that the minimum initial investment for the product is $250 and that each subsequent investment needs to be at $50.Bottom LineOverall, American Funds Investor Company of America A ( AIVSX ) has a neutral Zacks Mutual Fund rank, and in conjunction with its comparatively weak performance, average downside risk, and lower fees, this fund looks like a somewhat average choice for investors right now.For additional information on the Mutual Fund Equity Report area of the mutual fund world, make sure to check out www.zacks.com/funds/mutual-funds. There, you can see more about the ranking process, and dive even deeper into AIVSX too for additional information. Want to learn even more? We have a full suite of tools on stocks that you can use to find the best choices for your portfolio too, no matter what kind of investor you are. Special Report: The Top 5 IPOs for Your Portfolio Today, you have a chance to get in on the ground floor of one of the best investment opportunities of the year. As the world continues to benefit from an ever-evolving internet, a handful of innovative tech companies are on the brink of reaping immense rewards - and you can put yourself in a position to cash in. One is set to disrupt the online communication industry. Brilliantly designed for creating online communities, this stock is poised to explode when made public. With the strength of our economy and record amounts of cash flooding into IPOs, you don’t want to miss this opportunity.>>See Zacks’ Hottest IPOs NowWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Get Your Free (AIVSX): Fund Analysis Report To read this article on Zacks.com click here. Zacks Investment Research.....»»

Category: topSource: zacksNov 22nd, 2022

10 User-Friendly Personal Finance Tech Tools

Personal finance is a complicated part of life. For example, you can’t just take your income, subtract expenses, and see what’s left. Sure, that’s where it starts. But countless additional, nuanced elements also factor into a healthy budget and effective wealth generation strategy. Consequently, it helps immeasurably to add at least a few personal finance […] Personal finance is a complicated part of life. For example, you can’t just take your income, subtract expenses, and see what’s left. Sure, that’s where it starts. But countless additional, nuanced elements also factor into a healthy budget and effective wealth generation strategy. Consequently, it helps immeasurably to add at least a few personal finance tech tools to your toolbox. As inflation continues to bite down on budgets and a recession looms, it’s important to approach your personal finances with a comprehensive mindset. The best way to do that is by equipping yourself with the right tools. if (typeof jQuery == 'undefined') { document.write(''); } .first{clear:both;margin-left:0}.one-third{width:31.034482758621%;float:left;margin-left:3.448275862069%}.two-thirds{width:65.51724137931%;float:left}form.ebook-styles .af-element input{border:0;border-radius:0;padding:8px}form.ebook-styles .af-element{width:220px;float:left}form.ebook-styles .af-element.buttonContainer{width:115px;float:left;margin-left: 6px;}form.ebook-styles .af-element.buttonContainer input.submit{width:115px;padding:10px 6px 8px;text-transform:uppercase;border-radius:0;border:0;font-size:15px}form.ebook-styles .af-body.af-standards input.submit{width:115px}form.ebook-styles .af-element.privacyPolicy{width:100%;font-size:12px;margin:10px auto 0}form.ebook-styles .af-element.privacyPolicy p{font-size:11px;margin-bottom:0}form.ebook-styles .af-body input.text{height:40px;padding:2px 10px !important} form.ebook-styles .error, form.ebook-styles #error { color:#d00; } form.ebook-styles .formfields h1, form.ebook-styles .formfields #mg-logo, form.ebook-styles .formfields #mg-footer { display: none; } form.ebook-styles .formfields { font-size: 12px; } form.ebook-styles .formfields p { margin: 4px 0; } Get The Full Henry Singleton Series in PDF Get the entire 4-part series on Henry Singleton in PDF. Save it to your desktop, read it on your tablet, or email to your colleagues (function($) {window.fnames = new Array(); window.ftypes = new Array();fnames[0]='EMAIL';ftypes[0]='email';}(jQuery));var $mcj = jQuery.noConflict(true); Q3 2022 hedge fund letters, conferences and more   Find A Qualified Financial Advisor Finding a qualified financial advisor doesn't have to be hard. SmartAsset's free tool matches you with up to 3 fiduciary financial advisors in your area in 5 minutes. Each advisor has been vetted by SmartAsset and is held to a fiduciary standard to act in your best interests. If you're ready to be matched with local advisors that can help you achieve your financial goals, get started now. With that in mind, here are some recommendations for the best personal finance tech tools that provide user-friendly and effective support for efficiency-minded people. Veteran.com keeps you up to date. Often the best personal finance options adjust to your specific needs. If you spend too much, a spending tracker is useful. If you’re a saver, a retirement app is a good fit. Sometimes the applicability of a particular finance tool can be even more precise — as is the case with Veteran.com. The military-focused website provides a wide array of resources for both current military members and veterans. Along with blogs and resources on education, jobs, and housing, the popular site has an entire section dedicated to money and finance. This includes military pay charts, an updated military pay calculator, and even a VA Disability calculator. As veterans and active members of the armed forces navigate their personal finances, the site can provide a steady stream of useful information. Acorns helps with savings. Managing to save money is one of the most common personal struggles at any time. Trying to do so when inflation rates are high can feel impossible. The temptation to spend money on needs and wants alike can be hard to overcome. Empty bank accounts and crowded credit card statements can leave you feeling stressed. Enter Acorns. The financial technology company enables users to invest seamlessly in their future. Its online app and banking tools are user-friendly, keeping things simple and straightforward at every step. At the same time, they’re backed by experts from major investment firms like BlackRock and Vanguard. The revolutionary lender offers different tools to help individuals dominate their finances and build toward a better future. One of these tools is the company’s automatic savings and investment option. This rounds up each transaction that takes place, putting the extra money into well-balanced, expert-built portfolios. As a result, the result is better financial awareness and a slow-but-steady trickle into your savings. 3. Mint gives you a financial snapshot. Some people need targeted personal finance tech tools. Others need comprehensive solutions. If you find that you’re in the latter category and an eclectic fintech stack isn’t helping, you may want to try the Mint app. Mint is an application with a high reputation. It can link to multiple checking accounts, integrating your assets into a single dashboard. This gives you a unified financial snapshot that can help you see positive and negative tendencies before they get out of hand. The powerful software solution can also categorize transactions, predict spending patterns, and generate budget recommendations. This provides a steady stream of insights that can foster positive financial habits. Personal Capital is comprehensive finance defined. Another application similar to Mint is Personal Capital. The wealth management app provides a comprehensive and insightful financial overview. Once again, this piece of fiscally-minded software has the power to bring together multiple financial data sets. You can link up different personal checking and savings accounts to create an amalgamated snapshot of your current finances. Along with helping with budgeting and cash flow, Personal Capital also provides a savings planner and net worth options. The former helps create and monitor savings goals. The latter gives you an accurate view of your net worth at any moment. The app also has extensive retirement savings options, such as a retirement planner and a fee analyzer. These resources can help monitor any quiet or hidden costs to your long-term savings. You can even assess if you’re saving enough for future educational costs and can periodically conduct an investment checkup. Status Money gives you comparables. Comparing your personal success to others is a dangerous activity. You don’t want to stoke unnecessary levels of discontentment or jealousy. And yet, there are times when seeing how you stack up against others can provide useful information. Status Money is the perfect solution for those moments. You can input your various debts and assets into the app. From there, it analyzes them and then provides comparables to others in similar circumstances. Healthy doses of peer-to-peer comparisons can be a great way to stay motivated. Consequently, it can also provide perspective and help workaholics and the hyper-ambitious allow themselves some well-earned rest. GoodBudget goes back to budgeting roots. Finances can feel overwhelming. When that’s the case, sometimes the best option is a simple one. That’s where GoodBudget comes into the picture. The personal finance tool focuses on the concept of relatable and user-friendly finances. In fact, it embodies the digital version of one of the oldest and most grounded forms of personal finance: the envelope system. That is a form of financial organization that utilizes envelopes to divide and track cash, creating a natural barrier to overspending in the process. GoodBudget gives you an app-driven envelope system alternative. Users can divide their money into different “envelopes” that help track how much money they have left in each category. To be fair, the result is similar to most budgeting apps. For those who struggle with walls of numbers and charts, though, an accessible visual like envelopes can make all the difference. Prism helps you track your bills. Personal budgets tend to focus on income, expenses, and savings. It helps calculate what you owe others and how much you want to set aside for a rainy day. But it doesn’t actually pay off your bills. That’s an extra step that is easy to overlook — especially if you have a lot of different bills to attend to on a regular basis. Prism is an app that helps eliminate the stress of the bill-pay cycle. Unlike more comprehensive options on this list, like Mint and Personal Capital, this is a fintech tool devoted to one activity, and one activity only: paying your bills. The app connects you with your various lenders. It syncs up accounts and tracks what you owe. These are then presented in the Prism app, where you can see what you owe, when, you owe it, and to whom it must go. Etrade helps manage investments. If you already have a firm grasp of basic personal finance and you’re looking to take the next step, you may want to consider Etrade. The financial wealth management software facilitates hands-on trading and investment. This turns an otherwise daunting activity into a very accessible form of personal finance. Etrade doesn’t take commissions and has a wide range of different investment product choices. These include both active brokerage accounts as well as retirement options. In either case, if you want to stay involved in your retirement planning, Etrade gives you quick and easy access at all times. Vanguard features automatic investing tools. Vanguard is another retirement and investment-focused personal finance solution. The reputable brand offers automatic investing tools and solid support. A key element that attracts many users to the wealth management tool is the fact that it’s investor-focused — and that’s not just referring to a customer support initiative. Vanguard is actively owned by those who invest in Vanguard funds. As a result, this gives them a collective focus on mutual wealth creation and successful asset management. Add its suite of comprehensive fintech tools, and it’s an easy choice for many in search of easy-to-use personal finance solutions. Due gets top marks for generating wealth. It would be a gross oversight to neglect Due on this list. Many peg the popular financial tool as the internet’s number one retirement resource. Forbes rated it as a top finance blog with excellent resources for those looking to generate wealth. Entrepreneur Magazine called it one of the best places on the interweb to glean retirement information. Due is the perfect combination of resources and tools for personal finance management and wealth generation activities. The site has multiple finance-focused products, from annuities to life insurance and beyond. It also has a wealth of information in the form of an ever-growing blog and a lengthy list of comprehensive guides that revolve around money and its management. Whether it’s the need for quality fintech tools or a resource to inform your use of those tools, Due is the one-stop shop for successful personal finance. Personal finance is always important. During economic and fiscal crises, it’s particularly wise to gain control over your income, expenses, and investments. To sum up, use the list above to identify the best personal finance tech tools to fill in your personal financial shortcomings. Do you need a targeted solution for something like paying bills? Or is a more comprehensive application in order? Consider your situation, make your selection, and then invest in taking your personal finances to the next level. Article by Deanna Ritchi, Due About the Author Deanna Ritchie is a financial editor at Due. She has a degree in English Literature. She has written 1000+ articles on getting out of debt and mastering your finances. She has edited over 40,000 articles in her life. She has a passion for helping writers inspire others through their words. Deanna has also been an editor at Entrepreneur Magazine and ReadWrite......»»

Category: blogSource: valuewalkNov 21st, 2022

Goldman: 2022 Has Been A Terrible Year For Fundamental Investors

Goldman: 2022 Has Been A Terrible Year For Fundamental Investors By Goldman trader and managing director, Bobby Molavi Last week was truly a tale of two halves. The start of the week seeing hope around China reopening but this quickly made way to denials and a subsequent 3% decline for the  SPX from Tuesday highs on increased focus on micro headwinds, job losses and deteriorating consumer backdrop. Then it was all change. The end of the week saw a 7% rally across Thurs/Friday for SPX on better than expected CPI and renewed hope that inflation and therefor rates were/had peaking/peaked. To put into context, Thursday saw one of the single biggest financial conditions easing on record….and I think it is fair to say, that not many were positioned for that trade.  The CPI numbers themselves indicated a slow down in rents, in used cars and in other areas such as inflation. This also came at a time where we saw a material ratcheting up in unemployment related headlines. Just in the last few weeks….Meta has laid off 11k, Twitter close to 4k, Robinhood around 30% of work force, Stripe around 15% of work force, Amazon a record 10,000 …even those who are ‘out performing’ like Apple have announced hiring freezes. Tech may not employ people commensurate with their market cap but in my mend the sector is much more interconnected into old economy and main street than it was in 2000. Where Tech leads I would imagine others to follow.  How much should we extrapolate from last week? For me, not much. We continue to see the sell side (including us) revise down EPS for 2023 and investors continue to argue that corporate margins have peaked and ability to pass on costs to consumer are now capped. In terms of last week market moves…it shows me that muscle memory (how to trade the low rate/fed support era) remains strong, and in an environment of light positioning, light liquidity and positive news I am not overly surprised by the scale of the move. Worth noting that between June 2000 and November 2001 the market saw 3 separate 30 to 40% rallies on it’s path from 4750 to 1083 (-78%). What is clear about last week is that 2022 is for many fundamental investor a true "annus horribilis." You spent the first 6 months of the year u/w banks/oils and overweight tech only to gradually (and painfully) correct that wrong way set up only to be dealt a 9th inning punch in the gut. As of last week Longs were longer cash than at any point in the year only to see markets having their strongest rally of the year. Hedge funds watched as most Shorted baskets in Europe traded up 15% since the start of October vs Stoxx 600 +8%. Even the 2022 winner had a horrible week last week…Systematic community had their 2nd worst daily performance ytd on thurs and I’d assume the macro community were hurt on both rates and short gbp. For me, another high velocity blip…but not much actually changed. Rich Privo put it well….”Think Waller made the position pretty clear overnight “The U.S. Federal Reserve may consider slowing the pace of rate increases at its next meeting but that should not be seen as a "softening" in its commitment to lower inflation… Markets should now pay attention to the "endpoint" of rate increases, not the pace of each move, and that endpoint is likely still "a ways off."  So what to do from here? Back to the barbell approach if you ask me. I don’t feel like last week was the signal to re-risk but it may be the signal that we can begin to model an accurate forward fulcrum risk free rate. With that duration assets and quality secular growth become easier to price and therefor should see more balanced activity than the one way de-grossing we’ve seen thus far this year. That being said, I think certainty continues to trade at a premium and as such I’m minded to continue to own short duration in the form of well capitalised banks (many European names offering mid teens TSR’s), old economy names supported by abnormally high earnings, free cash flow conversion and equity withdrawal (mega buybacks) – especially in oils and commod complex and then the quality global megacap defensives/pharma/staples that have outperformed all year and will likely continue to do so. On to this week…where we don’t have much to focus on…oh wait….digesting last weeks 4 standard deviation market rally, results of Midterms and aftermath, G20 and Biden/Xi meeting, China covid rising vs property stimulus, crypto volatility and the UK austerity. Liquidity. Last week I talked on liquidity and hidden leverage. The weekend news served as another reminder of the old Buffett adage “..only when the tied goes out do you discover who’s been swimming naked.” This weekends news flow acting as another reminder of the value of liquidity and the need for robust risk, liquidity and collateral frameworks for higher vol environment. As several episodes through time has proven.... there is a dramatic difference between ‘liquid’, ‘less liquid’ and ‘illiquid’. Even in the more benign space of public equities,  thurs/fri saw a 9 standard deviation move in midcap momentum long/short. For me, this in part reflects the continued withdrawal of liquidity from the system. I suspect the market remains a traders environment more than an investors one in the short term.   Flows. Positioning on a gross and net basis for investors remains relatively light. Going into CPI net exposure for fundamental investors was down to the 5th percentile on a 3-year lookback. Buybacks remain a supportive tailwind for markets…..to borrow from Tony P “2021: authorizations of $1.23tr, executions of $992bn.  FY’22 estimates: authorizations of $1.2tr, executions of $1.0tr (that would mark a new record).  FY’23 estimates: authorizations of $965bn, executions of $869bn.” Finally, CTA asymmetry is becoming more balanced and positioning cleaner but for now still marginally skewed to buy. Systematic funds now net long $5bn of global equities or 42%ile, and set to buy $72bn over one month on up tape vs selling $85bn on a down tape. Investors have spent the last few months rotating back into US (safe haven, $ and stronger consumer), into defensive well capitalised cash flow generative names and up the market cap curve (large and mega cap).  Due diligence. I read an interesting article on the Information this weekend titled “no additional work required”. It references a now made public comment from a well know VC founder around the time of their Twitter investment. I have often stated that the era of stories and narratives is over, the heady time of 2020/21 and the abundance of capital fueling what companies ‘might be’ in the future is behind us. We already noted the engines reverse on hiring within the sector earlier. With that pragmatism more scepticism could follow…..even in the power law driven right tail world of venture capital. As I read about Crypto-land and its latest crisis and note the quality brands/investors that have been impacted, it does highlight a few things. Venture/Growth grew incredibly fast  both in terms of fund launches, fund sizes, assets under management AND it deployed this new found capital extremely quickly and arguably/possibly with less process and/or discipline than what we’d normally see. The competition for access to cap tables became paramount and the size of funds may have resulted in a few things….style drift in terms of sectoral focus and expertise, due diligence holidays due to requirements of speed…too much focus on ‘who else was on the cap table’ and piggy backing of others ‘due diligence’. To put numbers to this…we saw 35k deals in 2021 and over $600bn of capital flow in to ‘start-ups’ of all sizes last year. Overall, $1.4tn found its way into growth companies globally last year. Some investors we’re close to doing a deal a day. When you reconcile that with a stat I recently read it gives cause for pause….”since 1994 there have been 1276 private equity funds focusing on growth equity…of that number only 22 have delivered on 2.3x their money.” To be fair, this was not specific to venture and growth, it was true in public markets. Companies with $1m of ARR hitting $100bn market caps based on growth and TAMs. In reality everyone became a growth investor in 20/21 to a greater or lesser degree and so this is not cohort specific....and as a result everyone got burned to some degree. End of day....growth investing is hard…when it works it is extremely profitable, especially in the age of innovation we find ourselves in…that being said...process over outcome…always. Tyler Durden Thu, 11/17/2022 - 12:18.....»»

Category: smallbizSource: nytNov 17th, 2022

Is PYMAX a Strong Bond Fund Right Now?

MF Bond Report for PYMAX Having trouble finding a Mutual Fund Bond fund? PIMCO High Yield Municipals Bond A (PYMAX) is a potential starting point. PYMAX has a Zacks Mutual Fund Rank of 1 (Strong Buy), which is based on nine forecasting factors like size, cost, and past performance.History of Fund/ManagerPIMCO Funds is based in Newport Beach, CA, and is the manager of PYMAX. PIMCO High Yield Municipals Bond A made its debut in August of 2006, and since then, PYMAX has accumulated about $687.11 million in assets, per the most up-to-date date available. The fund is currently managed by David Hammer who has been in charge of the fund since August of 2015.PerformanceInvestors naturally seek funds with strong performance. This fund in particular has delivered a 5-year annualized total return of 0.93%, and is in the top third among its category peers. If you're interested in shorter time frames, do not dismiss looking at the fund's 3-year annualized total return of -2.62%, which places it in the top third during this time-frame.When looking at a fund's performance, it is also important to note the standard deviation of the returns. The lower the standard deviation, the less volatility the fund experiences. Compared to the category average of 14.62%, the standard deviation of PYMAX over the past three years is 8.79%. The standard deviation of the fund over the past 5 years is 7.11% compared to the category average of 12.69%. This makes the fund less volatile than its peers over the past half-decade.This fund has a beta of 1.02, meaning that it is more volatile than a broad market index of fixed income securities. Taking this into account, PYMAX has a positive alpha of 0.93, which measures performance on a risk-adjusted basis.RatingsInvestors should also consider a bond's rating, which is a grade ( 'AAA' to 'D' ) given to a bond that indicates its credit quality. With this letter scale in mind, PYMAX has 22.16% in high quality bonds rated at least 'AA' or higher, while 37.48% are of medium quality, with ratings of 'A' to 'BBB'. The fund's junk bond component-bonds rated 'BB' or below-is at 39.73%, giving PYMAX an average quality of BBB. This means that it focuses on medium quality securities.ExpensesCosts are increasingly important for mutual fund investing, and particularly as competition heats up in this market. And all things being equal, a lower cost product will outperform its otherwise identical counterpart, so taking a closer look at these metrics is key for investors. In terms of fees, PYMAX is a load fund. It has an expense ratio of 0.85% compared to the category average of 0.79%. Looking at the fund from a cost perspective, PYMAX is actually more expensive than its peers.Investors should also note that the minimum initial investment for the product is $1,000 and that each subsequent investment needs to be at $50.Bottom LineOverall, PIMCO High Yield Municipals Bond A ( PYMAX ) has a high Zacks Mutual Fund rank, and in conjunction with its comparatively strong performance, better downside risk, and higher fees, this fund looks like a good potential choice for investors right now.For additional information on this product, or to compare it to other mutual funds in the Mutual Fund Bond, make sure to go to www.zacks.com/funds/mutual-funds for additional information. And don't forget, Zacks has all of your needs covered on the equity side too! Make sure to check out Zacks.com for more information on our screening capabilities, Rank, and all our articles as well. One Tiny Company Could Shake the EV Industry Zacks Aggressive Growth expert Brian Bolan has pinpointed a U.S. manufacturer with an under-$5 stock price that's gearing for a monster ride. It's ramping up production of an affordable, "working man's" rival to Tesla just as soaring gas prices and desire for energy independence are set to drive the EV market to $1 trillion in 5 years.See This Stock Now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Get Your Free (PYMAX): Fund Analysis Report To read this article on Zacks.com click here. Zacks Investment Research.....»»

Category: topSource: zacksNov 17th, 2022