Displaying items by tag: stocks

Global stock markets declined this week as investors braced for new U.S. tariffs that have heightened recession fears. The S&P 500 briefly fell into correction territory before rebounding, but it still posted its worst quarter since 2022. 

The uncertainty surrounding trade policy pushed the CBOE Volatility Index higher and drove investors toward safe-haven assets like gold, which reached a record high above $3,100 an ounce. 

Asian and European markets also struggled, with automakers hit particularly hard after Trump announced a 25% tariff on imported vehicles and parts. Meanwhile, CoreWeave's stock tumbled after its IPO, and Hong Kong’s CK Hutchison declined as a Chinese regulatory review delayed a major ports deal.

Finsum: Investors are flocking to bonds for any chance of relief, but this could be the time to buy on the bottom of the market if Trump pulls the rug on tariffs once again. 

Mid-cap stocks are tracked by multiple indexes, with the S&P Mid-Cap 400 being the most commonly referenced, alongside the Russell Midcap and Wilshire US Mid-Cap Index. These indexes serve as benchmarks for investors seeking exposure to mid-sized companies, which typically have market capitalizations between $2 billion and $10 billion, as defined by FINRA. 

For investors looking to track mid-cap performance, popular ETFs include the iShares Core S&P Mid-Cap ETF (IJH), Vanguard Mid-Cap Index ETF (VO), and iShares Russell Mid-Cap ETF (IWR). IJH follows the S&P MidCap 400 Index, holding companies like Williams Sonoma and Interactive Brokers, with a strong weighting in industrials and financials. 

Vanguard’s VO, which mirrors the CRSP US Mid Cap Index, includes firms such as Welltower and Palantir Technologies, while IWR, aligned with the Russell MidCap Index, features holdings like Applovin and Williams Inc.

Finsum: Mid-cap investments offer a middle ground between the stability of large caps and the growth potential of small caps, making them an attractive option for investors aiming to diversify their portfolios.

For investors aiming to balance steady income with potential capital appreciation, high-yield blue-chip stocks present an attractive option. These stocks represent well-established, financially robust companies with a history of consistent dividend payments, offering stability and income. 

Companies like Dow Inc., Verizon, and Pfizer stand out for their strong market positions, innovative strategies, and impressive dividend yields. Dow, with a yield of 7.22%, benefits from demand in high-growth sectors and sustainability initiatives. 

Verizon, offering a 7.00% yield, is expanding its 5G and fiber networks to drive future growth. Meanwhile, Pfizer, yielding 6.43%, leverages a robust product pipeline and strategic partnerships to maintain its industry leadership. 

Finsum: These firms highlight the appeal of high-yield blue-chip stocks for investors seeking reliable returns and long-term growth.

For value investors looking for opportunities, two large-cap stocks stand out this quarter due to their strong economic moats and undervaluation. PayPal (PYPL) is recognized as a leader in the electronic payments space, with a narrow economic moat that should help it remain competitive for years to come. 

Despite recent challenges, including increased competition and the reversal of pandemic-driven growth, PayPal’s focus on top-line growth and product innovation could restore its momentum over time, making its stock price attractive at $104 per share. 

Nike (NKE), the world’s largest athletic brand, also enjoys a wide economic moat but has faced difficulties like soft demand and a leadership change. Despite these setbacks, Nike’s competitive strengths and its new Triple Double strategy could revitalize growth. 

Finsum: Technology is also a place to consider large cap exposure, and the small cap run could mean it’s a great buy for larger cap stocks currently. 

Technology stocks have had an excellent 2024, driven by the growing demand for AI services and digital transformation. Generative AI has spurred substantial investments from major tech companies like Alphabet, Meta, and Microsoft. 

This surge in demand is also benefiting the semiconductor industry, with global sales expected to grow by 16% in 2024, reaching $611.2 billion. As the tech sector continues to thrive, the Nasdaq Composite has gained over 26% year-to-date, with the momentum expected to continue into 2025. 

Stocks such as American Superconductor, Vertiv, Toast, and Impinj have seen impressive gains and are well-positioned to capitalize on the ongoing growth in AI and technology. These companies, with strong growth prospects, have become attractive investment opportunities amid the sector's favorable outlook.

Finsum: There still seems to be positive momentum for AI technology now but its medium-term outlook to be profitable still is suspect.