The most recent book I read, “Investing: The Last Liberal Art,” by Robert Hagstrom, was a great advertisement for the role that wide and deep reading can play if we want to succeed in investing - not only in markets, but also in ourselves! Whether they are non-fiction (which is what I generally read) or fiction, they have the potential to boost our potential. Performance of last period’s ETF plays: The Invesco Dynamic Leisure and Entertainment ETF (PEJ) is up 7.9% since the last “Where to Invest $10,000” was published on June 1, while the SPDR S&P Homebuilders ETF (XHB) is down 3.3%.Īnother way to play it from Harnett: Imagine the library of physical books that you could buy with $10,000! For me, books remain a source of growth and insight.
The ETF has $6.3 billion in assets and a fee of 0.28%. Note, though, that the yield is only 1.7%, because the ETF holds companies that raise their dividend - not necessarily companies that have high dividends. Quality Dividend Growth Fund (DGRW) holds stocks that consistently increase their dividends, Bloomberg Intelligence’s Balchunas said. Top holdings include Microsoft Corp., Apple Inc.
#Micro cap stocks that have a good chance to move upward how to#
How to play it with ETFs: The WisdomTree U.S. equities, or want a more defensive strategy to protect longer-term wealth given current valuations, we suggest focusing on high yield/strong dividend growth stocks, or in dividend futures, since payout ratios - the percentage of earnings paid to shareholders via dividends - remain low by historic standards. After a torrid few months, Asian equities are now at valuations discounting most potential bad news, while stocks in Latin America are also looking oversold. While we still like Eurozone and Japanese equities, we have upgraded both Asian and emerging markets. So which equities to buy? Economic recovery typically favors international markets relative to the U.S. Treasury yields unlikely to rise above 2% in the coming year, relative valuations should also continue to support equities. An improving mix of economic growth and inflation will not only keep profit growth in the 15-20% range but should also support equity valuation multiples. The investment backdrop should get better from here, after a challenging third quarter for investors in which bonds rallied and “growth” stocks regained some ground over “value” stocks. While there may be bumps along the way, as we have seen with Evergrande and the supply shock in global energy prices, we suggest investors buy the dips. Our models are prompting us to increase our suggested allocation to equities. For suggestions on how to build a solid financial base, take a look at “ The 7 Habits of Highly Effective Investors.”įor investors who like to invest using exchange-traded funds, Bloomberg Intelligence senior ETF analyst Eric Balchunas offers suggestions of ETFs as rough proxies for the panelist’s ideas. When asked for where they would invest $10,000 if it fell into their own lap, they had a range of ideas including books, water rights, golden retrievers - and actual gold.īefore putting money into stocks, make sure that you have enough cash to weather whatever volatility the market may throw at you without being forced to sell into a downturn. to semiconductor plays to equities in Chile. Our five experts have found promising areas of opportunity that range from good old dividend-paying stocks in the U.S. Covid-19 and variants of the virus continue to take a large, deadly toll around the world, and ripple effects have supply chains snarled and and fears of inflation mounting. Moves by the Chinese government have roiled its stock market during October, which is already historically a volatile month for U.S. Investors have been fighting a war with their nerves. Get our new personal finance newsletter delivered weekly to your inbox.
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