Category Archives: Stock Market

Sector Investing

Individual sectors of the U.S. economy often behave differently at various points in the business cycle. Therefore, changes in the direction or speed of economic growth can spur shifts in equity market performance. Some industries tend to lead the pack … Continue reading

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Becoming a More Rational Investor

Studies by the Investment Company Institute and the Federal Reserve Board indicate that investors’ willingness to assume risk tends to rise and fall with the stock market.1 Of course, it’s not surprising that people are more likely to pour money … Continue reading

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Averaging Ups and Downs

Market volatility seemed to be the norm in 2011. In just two trading days (October 31 and November 1), for example, the Dow Jones Industrial Average lost almost 4.7% of its value. At the end of the month, the Dow … Continue reading

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Diving into Dividends

Dividends have traditionally been considered a source of income, but they can also be a powerful way to help build savings. A recent study found that dividends contributed 44% of S&P 500 total returns from 1930 through September 2010.1 (Total return refers to … Continue reading

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Pursuing Both Growth and Value

Growth and value stocks have taken their lumps along with the rest of the market, but over the past 20 years these two asset types have experienced similar gains (see chart). However, the returns from growth and value investments in … Continue reading

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Sum of All Fears: Are Risk Aversion and Greed All in the Mind?

When the market takes a dive, are you more likely to change course or stay the course? What about when the market is rising? Are you more likely to follow the crowd and buy more, or do you maintain your … Continue reading

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The Problem with Investment Gains

What to Do When a Minor Asset Suddenly Becomes a Key Player What do you do when an investment performs beyond your expectations? That might sound like a silly question, but take a moment to think it through: Should you … Continue reading

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