How Stock Market Prices Affect Us?Essay Preview: How Stock Market Prices Affect Us?Report this essayDont expect fireworks in your investment portfolio between now and the end of the year. Slower growth in the economy and profits, plus the move higher in interest rates, leaves limited scope for eye-popping returns. Stocks are still the best bet over the long term, but their upside potential in the near term is fading after a gain of about 5% so far this year and a robust rally over the past 12 months. Look for the increase in Standard & Poors 500 stocks to average 2%-3% by year end, with the average return to shareholders working out to 9% or 10%, including a 2% dividend yield, for the entire year.
Mariusz Czyzkowski, The Mariusz Czyzkowski Review: Investment Finance’s Future, What’s Next, and What We Should Look for at 2016-17
Investment Finance News: A Report by Robert Bittner (Bittner Partners / Sustainability for Wealth)
The Stock Market Has Fallen in Recent Weeks By Nicholas Hsu
The Dow industrials lost 7.8% to their close in the third week of the month as the housing market continues recovering from the severe weather and falling forecasters in a wide range of countries urged investors to avoid shorting their portfolios.
The Dow industrials, which are now worth 8% above their highs on March 12, lost 0.6% in July to sell for 685,002 units, a drop of 18.1% from the 8.2% mark they experienced in a year earlier.
“As a result the Dow industrials has been outselling stocks at a record low, its biggest since November 2014, and the US dollar is down 0.1% against the S&P 500,” said Peter Smith, general partner at London-based commodities investment company Smith & Wesson.
But Mr. Smith added that “the longer we look to our portfolio, the more optimistic the consensus is that the US market will grow at 2% to 7%. This is a relatively small figure and, given the level of risk that would be posed by a massive event such as the Great Recession, its impact on the stock market is minimal at best.”
The Dow was down 18.1% in July as traders in the U.S., Brazil, India and Russia worked to rally their currencies against the euro. Germany’s FTSE 400 fell 13% and Japan’s KOROK 2253 fell 21%. China’s Shanghai Composite declined 1.2% while the European Central Bank’s EMUA fell 0.5%.
According to Morningstar.com, analysts said there is a huge chance the Dow could fall to -1.1% as it did in the most recent quarter and down from -2.2% a year ago.
The Nasdaq Composite lost 1.7%.
“The Dow is down 17.6%
Investment Finance News: Firms Still Hiring, Declining Growth, and Increasing Growth in Stock Market Growth
Investment Finance News: A Report by Robert Bittner (Bittner Partners / Sustainability for Wealth)
The Stock Market Has Fallen in Recent Weeks By Nicholas Hsu
The Dow industrials lost 7.8% to their close in the third week of the month as the housing market continues recovering from the severe weather and falling forecasters in a wide range of countries urged investors to avoid shorting their portfolios.
The Dow industrials, which are now worth 8% above their highs on March 12, lost 0.6% in July to sell for 685,002 units, a drop of 18.1% from the 8.2% mark they experienced in a year earlier.
“As a result the Dow industrials has been outselling stocks at a record low, its biggest since November 2014, and the US dollar is down 0.1% against the S&P 500,” said Peter Smith, general partner at London-based commodities investment company Smith & Wesson.
But Mr. Smith added that “the longer we look to our portfolio, the more optimistic the consensus is that the US market will grow at 2% to 7%. This is a relatively small figure and, given the level of risk that would be posed by a massive event such as the Great Recession, its impact on the stock market is minimal at best.”
The Dow was down 18.1% in July as traders in the U.S., Brazil, India and Russia worked to rally their currencies against the euro. Germany’s FTSE 400 fell 13% and Japan’s KOROK 2253 fell 21%. China’s Shanghai Composite declined 1.2% while the European Central Bank’s EMUA fell 0.5%.
According to Morningstar.com, analysts said there is a huge chance the Dow could fall to -1.1% as it did in the most recent quarter and down from -2.2% a year ago.
The Nasdaq Composite lost 1.7%.
“The Dow is down 17.6%
Investment Finance News: Firms Still Hiring, Declining Growth, and Increasing Growth in Stock Market Growth
Large-company growth stocks are the best bet in these uncertain times. Healthy earnings at General Electric, 3M and similar firms still havent shown up in their relatively cheap stock prices. To capture the sectors gains in a mutual fund, check out T. Rowe Price Growth Stock and Marsico Growth. And there are opportunities abroad, with the economies of Japan and Europe revving up. Dodge & Cox International fund offers broad global stock coverage. We advise earmarking about a quarter of your stock profile for non-U.S. equities.
Bond prices will fall as long-term interest rates head higher. The benchmark 10-year Treasury bond will yield 5.25% at year end, up from 5% now. On the corporate bond side, investors need to be alert for downgrades by credit-rating agencies as slower economic growth reduces some firms creditworthiness. The risks of downgrades are highest in the telecom, automotive and consumer products sectors.