Oil prices are notoriously volatile. In the past three years, the primary U.S. oil price benchmark, West Texas Intermediate, has ranged from a low of around $35 a barrel to a peak of more than $120. That volatility greatly affects the cash flows of companies focused on producing oil, which can affect their ability to pay dividends. However, some energy…
In an era where positive stock-bond correlations are becoming more common, low-risk investors are now in search of alternative avenues to bolster their portfolios against unforeseen market dynamics. Enter the realm of alternative exchange-traded funds, or ETFs, that go beyond the traditional approach. These “smart” ETFs employ sophisticated, rules-based methodologies – often reminiscent of those strategies utilized by hedge funds. Additionally,…
Increasing worries over geopolitical instability have led to significant attention to defense stocks. The recent assault on Israel by the militant group Hamas has heightened tensions in the Middle East. Defense companies should benefit as countries increase their defense spending amid rising geopolitical tensions. Therefore, it could be prudent to buy these fundamentally strong defense stocks to give your portfolio some…
The selloff in stocks continues. The downturn that began in August and accelerated in September is ongoing as we near the end of October. Since Aug. 1, the benchmark S&P 500 index has declined 7%. The drop in equities has largely been broad-based with few names or sectors spared. That said, there are a few stocks bucking the current downtrend and rising. A handful…
One of the top recession indicators flashed a warning signal about 15 months ago, and now, it’s getting louder and brighter. Two-year Treasury bonds started to yield more than 10-year T-notes last summer in what’s called a yield-curve inversion. In normal times, the yield curve slopes up and to the right. That is, longer-dated bonds offer a higher yield than shorter-dated bonds.…
A major decision out of China is likely to have sweeping consequences for electric vehicle (EV) makers. In a clear effort to retain its global supply-chain dominance, the nation has placed severe restrictions on graphite exports. This is exactly what U.S. automakers don’t want to see, as it will lead to higher battery production costs. While Chinese companies in the…
The biotech industry’s soaring growth owes much to the flourishing realm of personalized medicine, the rise of orphan drugs, innovative biotech tools, and unwavering government support. In light of this, these fundamentally sound biotech stocks could hold great potential as ideal additions to your portfolio at this juncture. Before delving into the highlighted stocks, let’s gain a detailed understanding of…
Artificial intelligence has the potential to make people’s lives easier with personalized product recommendations, meal plans and quicker access to relevant information. Investing is not immune: Some investors are turning to new AI tools for stock picks and advice on how to manage their portfolios. The popularity of AI tools is growing among investors, but are these developments beneficial for…
As the third-quarter earnings season gets underway, the market remains volatile and unpredictable. With war breaking out in the Middle East and bond yields remaining elevated, equities have been gyrating lately. However, within this environment, there are several stocks that are trading at 52-week highs and fast approaching all-time highs. While some of these names are obvious, others might surprise you.…
The last three years have seen a pandemic-driven market crash turn into a soaring (nearly bull) market, only for rising inflation and weak consumer spending to send stocks back down again. There’s a lot of uncertainty about what happens next for the economy and the stock market, but investors with a long time horizon can still put money to work.…