Separate truth from fiction in the hype surrounding artificial-intelligence stocks, and remain mindful of exposure Investors who’ve been around the block—and their younger proteges who’ve done their homework—know something about the dot-com sensationalism of the late ‘90s and early 2000s. Companies that claimed they were online or simply added “.com” to the end of their … Continued
Hockey Sticks Visualize the possible gain or loss from any options trade Simple graphical representations called hockey sticks show the potential profit and loss of any options trade. The name comes from the shape. Imagery aside, keep in mind that options have a limited lifespan and expiration date. Volatility and time until expiration can change … Continued
Exchange-traded funds reduce risk by diversifying portfolios Retail investors had their choice among 3,145 exchange-traded funds (ETFs) as of the beginning of this year, according to Morningstar. But how do you pick the right ones? Here are some key questions to ask and three metrics to consider. Keep in mind that nobody has to choose … Continued
Pfizer and Moderna profited by developing vaccines at a breakneck pace, but should investors add them to their portfolios in 2023? Did you get Pfizer or Moderna?” That question came up in countless everyday conversations during the past two years as America got vaxxed and de-masked in an attempt to return to a normal life … Continued
These five best practices can keep traders well informed before the bell rings Everyone’s morning routine differs—some start with coffee, some walk the dog. A daily trading routine is no different. But following these five best practices before the market opens will help you prepare for your trading day. Check the headlines. While many investors … Continued
Long-term investors and active traders have more in common than they might think So-called professionals sometimes urge novice investors to turn their backs on active trading. Instead, beginners should entrust their money to an adviser or stash it in a mutual fund and leave it there, the pros like to say. Those passive approaches might … Continued
No one knows for sure what direction the market will take, but options prices can provide actionable clues It’s been a rough year for long-term investors. By the end of the third quarter, the S&P 500 exchange-traded fund (SPY) was down nearly 24% for the year, on pace to become the first negative year since … Continued
Elections affect the markets, sometimes in unpredictable ways Two years ago, as America geared up for the showdown between incumbent President Donald Trump and former Vice President Joe Biden, this column analyzed the potential impact of the election on stocks and exchange-traded funds (ETFs). The focus was on clean-energy ETFs and manufacturers of firearms and … Continued
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Investors can express bullish or bearish opinions on cryptocurrencies by trading the CME’s affordable (and more secure) micro futures contracts The Chicago Mercantile Exchange (CME) has for decades provided institutional investors and hedgers access to two-sided, leveraged products for markets underserved by other asset classes. These markets include currencies, metals (both precious and industrial), and … Continued