An index typically tracks returns on a buy-and-hold basis and therefore constitutes a passive investment approach. An index fund, also known as exchange-traded fund (ETF), is a basket of securities -- some combination of stocks, bonds and commodities. Many of these funds track various indices and help investors diversify their portfolio holdings.Over the past three decades, index funds have become some of the most popular passive investment vehicles among retail and professional investors. Low transaction costs and intraday liquidity are among the biggest benefits for investors. And even in these uncertain times, new investors are wading into the stock market. * 6 International Stocks to Buy for Impressive Returns Now Laura Gonzalez, Ph.D., associate professor of Finance at California State University, Long Beach, spoke with InvestorPlace via email to offer some advice to new investors. She says:InvestorPlace - Stock Market News, Stock Advice & Trading Tips"Beginning investors need to keep in...
General Electric Company (NYSE: GE) shares traded slightly lower on Friday after the company extended the contract of CEO Larry Culp through 2024.One Wall Street analyst said Culp's new contract eliminates one uncertainty for GE investors, and Culp's turnaround efforts were working prior to the COVID-19 outbreak.The Analyst: Bank of America analyst Andrew Obin reiterated his Buy rating and $11 price target for GE.The Thesis: Obin said the pandemic-diven downturn in air traffic has pulled the rug out from under GE's Aviation division and has delayed the company's turnaround timetable. However, he said Culp's extension is a "benefit for GE shares."Prior to the outbreak, Obin said GE was making progress on several fronts, including boosting liquidity and lowering leverage via asset sales. Obin said even GE's Power unit was potentially on track to generate positive free cash flow in 2021, although he said that would have been a major challenge.In the...
Old West Investment Management recently released its Q2 2020 Investor Letter, a copy of which you can download here. The S&P was up 20% in the quarter, the Russell 2000 small cap index was up 25%, and the firm was up over 30% in all portfolios except for its Income Fund, which was up 19%. […]...
Since my last article several weeks ago about SPAC stocks -- SPAC standing for special purpose acquisition company -- I decided to find five more stocks with agreed-on merger deals. Some of these stocks have very serious upside potential. We're likely to see this on display once their combination with the target private company closes.As I previously pointed out, one reason for this is very simple. The general investing public tends to wait to buy these stocks until after the combination. In some cases, investors are not aware that you can buy the SPAC stock first. In other cases, they are not aware of the newly public company until it starts trading under its own new symbol.Therefore, an investor can get in on the bottom floor, so to speak. The potential for huge upside profits, once the combination goes into effect and the stock symbol changes, is very high.InvestorPlace - Stock...
