Eq: Value

Eq: Value (85)

Tuesday, 04 October 2022 17:17

What are the fears of risks about an annuity?

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--Are annuities the way to travel, or are you better off whipping out your trusty IPhone and beckoning a Uber?

--Questions…..questions. Okay, so, what are some of the trepidations surrounding annuities? 

--One factor, apparently, is inflexibility. It goes like this: with a fixed or fixed index annuity, your interest rate? Why, for the life of the contract, it’s locked in, according to annuityexpertadvice.com. Meaning? Well, if rates trek north, you’ll derive nothing stemming from a spike in returns. Conversely, if rates falter, you’re good because your investment’s shielded from receding.

--Then there’s the bugaboo of market fluctuations revolving around your investment that enters the equation with a variable annuity. With a drop in the stock market comes a decline in the value of your investment. 

--Meantime, customization also enters the picture. Risks most conceivably linked to annuities can be mitigated by the fact the annuities themselves are, by their nature, custom friendly, according to sophisticatedinvestor.com. A caveat, however: that features comes with the assumption you’re willing to fork out the cash for it.

Then there are annuity riders – provisions you invest in for annuities, the site continued. They rachet down the percentage of your annal annuity payout.

What are the fears of risks about an annuity?

With a fixed or fixed index annuity, your interest rate is locked in for the contract’s life. So if rates go up, you will not benefit from the higher returns. However, if rates go down, your investment is protected from declining.

With a variable annuity, your investment is subject to market fluctuations. If the stock market goes down, your investment value will also go down. ...

Are Annuities Good Or Bad? (2022) - The Annuity Expert

Pro: If You’re Looking for a Guaranteed Income Stream in Retirement, an Annuity Can Help

An annuity can be a good option if you’re looking for a guaranteed income stream in retirement. With an annuity, you make a lump sum payment upfront and then receive payments from the annuity provider for a set period of time, typically for the rest of your life. This can provide peace of mind knowing that you have a guaranteed income stream to cover your basic living expenses in retirement.

Con: Annuities Come with High Fees

One of the most significant drawbacks of annuities is that they come with high fees (typically variable annuities). These fees can eat away your investment returns, leaving you with less money than you started with. So be sure to review the fee structure of any annuity before investing carefully.

 

 

Wednesday, 14 September 2022 07:29

Actively doing investors a solid

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Doing a solid or two for investors; hey, the more the merrier, right? So, when it comes to active fixed income, it’s said that active managers dispense important expertise, which explains why they can bill slightly more than passively managed funds. When it comes to fees, of course, they tend to be a bit easier on the pocketbook, according to ftadviser.com.

But – and isn’t there typically one – the debate among bond investors is more nuanced. Here’s the upshot: to some, because of the immense size of the bond market and since it’s so liquid, pinpointing the market inefficiencies that put active managers, or are supposed to, in a position to deliver value’s a little, well, trickier.

That said, this just in: it’s snot incumbent on active managers to be perfect. Yep; seriously.

In fact, during the past 70 years, studies of market indices show, these managers can land on the wrong side of the market approaching 40% of the time, according to naaim.org. And even then still equal a buy and hold return. When the market’s in an upturn, the deeper an investor reaches into their pocket, the more performance leverage they generate.

Tuesday, 19 October 2021 19:38

Value’s Rally is Still Alive

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Value stocks are usually sought after for their relatively cheap prices trading at low P/E ratios or below book values. They had been on a near decade-long losing streak that culminated in the Pandemic crisis, which drove investors to the lofty tech-based growth stocks, but things turned around for value in September 2020 but were once again stalled out by the delta variant. However, as the economy begins to once again stabilize value is coming back with a vengeance. Bankruptcy concerns and thin profit margins are no longer fears, and value is at the ultimate discount. Research Affiliates, and investment strategy firm, value is poised to return between 5-10% in the coming decade. Global vaccine rates are making progress and cyclical sectors and hence then value sectors are going to turn around the way they started to in September 2020.


FINSUM: Value’s comeback seems inevitable, the ultra-low prices are out of wack stability will see value outperforming other factors in the upcoming year.

Wednesday, 06 October 2021 20:16

And the Big Winner from the Growth Stock Tumble is…

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The Fed is beginning to talk tapering and that has sent treasury yields spiking to 3-month highs (since before delta was spreading rapidly). The treasury yield spike has sent Growth stocks, such as in the technology sector, tumbling. Investors caught in the middle have flocked to value stocks, such as energy and financials. These stocks have cyclical reopening qualities and investors are singing the same reflationary trade song from back in May. However, growth doesn’t look quite as sluggish, and this might keep these stocks rolling a bit longer. Supply side factors in energy in particular will keep value strong beyond interest rates falling or inflation being more than transitory.


FINSUM: Value needs this middle zone of moderate inflation and moderate growth. If either fall off or pick up too much it could push investors back into growth or push the whole market down!

Friday, 16 July 2021 16:52

Rising Treasury Yields Could Lift These Stocks

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(New York)

Treasury yields sank last week, before rebounding strongly late in the week…see the full story on our partner Magnifi’s site.

Monday, 12 July 2021 20:21

The Best Value Buys in Every Industry

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(New York)

Expensive stocks are the norm these days as P/E ratios are near all-time highs…see the full story on our partner Magnifi’s site.

(New York)

General Electric is a withered giant. Sure, it has ridden the comeback since the start of the pandemic, but it's so far off the $30 price tag of five years ago. However, Goldman Sachs sees a better future in the tea leaves for GE. In a memo to investors, Goldman set a $16 price target for GE and sees it as a ‘self-help’ success story. Goldman alludes to the repaired finances and leverage under the CEO Larry Gulp. Additionally, a global recovery, higher energy consumption, and better margins could push their stock higher, potentially a $20 price target. Earning projections remain strong for GE through the end of the year.


FINSUM: General electric is in a solid cheap position and Goldman might have been on to something as the stock lifted to $13 early in the week.

Friday, 04 June 2021 17:09

These are the Best Value Stocks in a Hot Economy

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(New York)

The U.S. economy could be running as hot as ever, particularly when it comes to price pressure…see the full story on our partner Magnifi’s site

Wednesday, 02 June 2021 17:22

Wall Street Says These Stocks are About to Soar

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(Houston)

Markets have been turbulent over the last month but overall 2021 couldn’t be…see the full story on our partner Magnifi’s site

Monday, 24 May 2021 17:38

New Investing Methods Expose Big Value

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(New York)

An asset manager at Applied Finance Capital Management told market watch of…see the full story on our partner Magnifi’s site

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