May, 2024

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Diversification is About Decades

A Wealth of Common Sense

A lot of investors have abandoned international diversification (or at least strongly considered it) in recent years. I understand why this is happening. The U.S. stock market has destroyed all comers ever since the Great Financial Crisis ended. Since 2009, a total U.S. stock market index fund is up more than 660% while a total international index fund is up more like 180%.

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Private equity returning to platforms, with greater efficiency

Private Equity Info

This article was first published in the Spring issue of Middle Market Dealmaker , the official print publication of the Association for Corporate Growth.

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Here's How Much the Average Retiree Has in Their Retirement Accounts

The Motley Fool

Saving and investing for retirement is essential if you want to enjoy your golden years. The average Social Security benefit for retired workers is currently $1,915 per month. That's not a ton of money to cover necessary expenses as well as retirement hobbies, activities, travel, etc. But consistently saving and investing in a tax-advantaged retirement account like a 401(k) or IRA can set you up to be able to spend much more later in life.

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The Social Security COLA Forecast for 2025 Was Just Updated. Here's the Good News and Bad News for Retirees

The Motley Fool

In 2022, the U.S. was hammered by the fiercest inflation it had faced in four decades amid the lingering macroeconomic disruptions and supply chain issues that followed the COVID-19 pandemic. As a result, in January 2023, Social Security beneficiaries got an 8.7% cost-of-living adjustment (COLA) -- the largest increase since the early 1980s. But many retirees are still struggling.

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3 Reasons Retirees Could Be Surprised by the Most Recent 2025 Social Security Cost-of-Living Adjustment (COLA) Forecast

The Motley Fool

Social Security is a vital source of income for the majority of retirees. About half of households with someone age 65 or older receive at least 50% of their income from Social Security, according to data collected by the Social Security Administration. Six in 10 retirees say the program is a major source of income in the most recent iteration of an annual Gallup poll.

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Should Abbott and DexCom Investors Be Worried About Vertex Pharmaceuticals?

The Motley Fool

Successful investors think about the future by focusing on what the new opportunities might be. They also pay attention to threats that could emerge that might impact the stocks they own. Sometimes, those threats come out of the blue, but other times, they're identifiable well in advance. If you own shares of Abbott (NYSE: ABT) or DexCom (NASDAQ: DXCM) , there's a looming threat to know about.

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Should You Buy Palantir Stock Before June 21?

The Motley Fool

One of the most respected milestones a public company can reach is being added to the S&P 500. This stock index acts as an important barometer of the overall market -- and being included in this exclusive club implies that a company is among the best in its industry. Of course, there's no guarantee a company will stay in the index as businesses can experience dramatic ebbs and flows in their results -- thereby impacting trading activity and valuations.

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The S&P 500 Just Did Something It Has Only Done 3 Times in the Last Quarter-Century. The Stock Market Usually Soars Next.

The Motley Fool

Year to date, the S&P 500 (SNPINDEX: ^GSPC) had advanced 10.4% as of Thursday, May 23, 2024. That seemingly arbitrary date was actually the 100th trading day of the year. The S&P 500 returned at least 10% during the first 100 trading days only three other times in the last quarter-century, according to JPMorgan Chase. So what? Under those circumstances, the S&P 500 has historically performed very well throughout the remaining months of the year.

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History Says the Nasdaq Will Soar in 2024: Here Are My Top 5 Software Growth Stocks to Buy Right Now

The Motley Fool

Unusually high inflation and a rising-interest-rate environment have played critical roles in impacting the macroeconomy over the last couple of years. Yet despite these economic pressures, the stock market has generally shown some signs of strength. Although the tech-heavy Nasdaq Composite cratered by 33% in 2022, the index demonstrated key resiliency last year -- surging 43%, thanks to the evolving euphoria surrounding artificial intelligence (AI).

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Generative AI Sales Could Surge 2,026%: Here's My Pick for the Best AI Stock to Buy Now (Hint: Not Nvidia)

The Motley Fool

Generative artificial intelligence (AI) took center stage when OpenAI introduced ChatGPT in late 2022. Nvidia CEO Jensen Huang recently called it "the defining technology of our time," and his company has arguably been the biggest winner through the initial phase of the generative AI boom. Nvidia shares have surged 680% since the beginning of 2023. However, the market is expanding rapidly, and countless companies will benefit in the long run.

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This $22.5-Billion Oil Company Acquisition Could Pay Big Dividends for Investors

The Motley Fool

A consolidation wave continues to wash over the oil patch. ExxonMobil kicked off the current boom in mergers and acquisitions last year with its recently closed $60 billion deal for Pioneer Natural Resources. Rival Chevron followed with its acquisition of Hess , which it hopes to close in the coming months. The sector has seen several smaller transactions as oil companies pair up to enhance their positions and reduce costs.

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Is It Too Late to Buy Nvidia Stock?

The Motley Fool

Nvidia (NASDAQ: NVDA) once again demonstrated why it is a top semiconductor stock. Last week, it delivered the report for its fiscal 2025's first quarter (which ended April 30), revealing triple-digit percentage revenue growth for yet another quarter and insatiable demand for its most powerful chips. The stock price boost inspired by those results has taken its market cap to about $2.6 trillion, a 230% yearly rise.

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Taiwan Semiconductor Hails a "New Golden Age" for Chips. Is It Time to Buy the Stock?

The Motley Fool

Executives at Taiwan Semiconductor Manufacturing (NYSE: TSM) , or TSMC for short, recently said at an event that we are in a "new golden age" for chips. These executives also forecast 10% annual growth for the global semiconductor industry, excluding memory chips. For its part, TSMC has been forecasting revenue growth of over 20% in 2024. Let's take a closer look at TSMC and why it could be one of the biggest beneficiaries of the strong market for semiconductors.

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The Zero Down Mortgage Is Back -- But Is It a Financial Mistake?

The Motley Fool

Image source: The Motley Fool/Upsplash This morning I heard on the news that United Wholesale Mortgage, the largest mortgage lender in America, is offering what is essentially a zero down mortgage. It works like this: The lender writes a 97% mortgage with a 3% second mortgage, but it's the same thing as a zero down mortgage. I couldn't be happier to see this.

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Here's Why UiPath Stock Absolutely Crashed Today

The Motley Fool

When a company greatly reduces its full-year financial guidance and its new CEO abruptly leaves the company, investors tend to react negatively. And that's exactly what's happening with enterprise software company UiPath (NYSE: PATH) on Thursday. As of 9:45 a.m. ET, UiPath stock was down a painful 35% as investors processed the disheartening developments from its report for its fiscal first quarter of 2025.

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Why You Shouldn't Try to Save Money by Eliminating All Your 'Fun' Spending

The Motley Fool

Image source: Getty Images Saving money is an unquestionably tough thing. And that may explain why 63% of Americans couldn't cover a $500 emergency expense by tapping their savings, according to data from SecureSave. But the reality is that you need savings to protect yourself from unplanned bills. If you were to lose your job or run into a major car repair, in the absence of savings, you'd likely have to fall back on credit card debt.

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Listen to Nvidia. This Little-Known, Undervalued Company Could Be a Top Artificial Intelligence (AI) Stock Pick Now

The Motley Fool

If there was any doubt about the strength of the AI boom in the stock market and the broader economy, Nvidia (NASDAQ: NVDA) just put those questions to rest. For the first quarter of 2024, the AI chip titan just posted another blockbuster earnings report, including year-over-year revenue growth of 262% overall and 427% in the data center segment, where the AI revolution is taking place.

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History Says the S&P 500 Could Soar This Summer, but Certain Wall Street Analysts Expect a Stock Market Correction in 2024

The Motley Fool

The S&P 500 (SNPINDEX: ^GSPC) closed higher on Friday, May 24, notching its fifth straight weekly gain. The index, a barometer for the U.S. stock market, has advanced 11% year to date, hitting more than two dozen record highs in the process. But history says that momentum will persist through the summer months of June, July, and August. Here's what investors should know.

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It's True: These 13 States Don't Tax Retirement Income

The Motley Fool

If given the choice, would you rather not pay taxes? That's not a real choice, of course. No matter where you live or what level of income you're earning, you are taxed.even if it's just sales tax or property tax. In a handful of states, however, retirees' tax burden is eased simply because those states don't tax retirement income. This could mean thousands of dollars' worth of annual savings -- maybe more -- if you live in one of these states or are willing to move to one.

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5 Things to Know About Ethereum's First Spot Price ETFs

The Motley Fool

On May 22, the U.S. Securities and Exchange Commission (SEC) approved the first eight applications for Ether (CRYPTO: ETH) spot price exchange-traded funds (ETFs) from Grayscale, Bitwise, iShares, VanEck, Ark Invest, Invesco, Fidelity, and Franklin Templeton. Ether is the world's second largest cryptocurrency and the main coin of the Ethereum Network.

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Nvidia Rallies on Astronomical Revenue Growth and Stock Split. Is It Too Late to Buy the Stock?

The Motley Fool

Shares of Nvidia (NASDAQ: NVDA) climbed higher after the chip giant once again reported stellar earnings results. The stock has now more than tripled over the past year. The company also announced a 10-for-1 stock split effective June 7. Let's look at the company's latest quarterly results, one potential risk, its current valuation, and whether it's too late to buy the stock.

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Better Stock-Split Buy: Nvidia or Chipotle?

The Motley Fool

Step aside, Chipotle Mexican Grill (NYSE: CMG). There's a more heavily anticipated stock split on the way now. Nvidia (NASDAQ: NVDA) announced in its first-quarter update last week that it plans to conduct a 10-for-1 stock split effective June 7, 2024. Chipotle's board of directors approved a 50-for-1 stock split in March that's expected to take effect on June 26, 2024.

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This Nasdaq-100 Growth Stock Just Hit a New 52-Week Low. Here's Why It's Worth Buying Now

The Motley Fool

Lululemon Athletica (NASDAQ: LULU) investors enjoyed a mostly uninterrupted upward trajectory in its stock price from 2018 till the end of 2021. But supply chain challenges and inflation threw a wrench into that narrative in 2022 and 2023. Still, by the end of last year, Lululemon had broken above $515 a share to make a fresh, all-time high. Now, the athleisure brand is experiencing a brutal downturn once again.

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Why American Airlines and Southwest Are Flying Lower Today

The Motley Fool

American Airlines Group (NASDAQ: AAL) slashed quarterly estimates and announced the departure of its chief commercial officer, a sign of softening demand and a change of strategy. Shares of American were down 14% as of 1 p.m. ET, and the news is taking other airlines along for the ride. Shares of Southwest Airlines (NYSE: LUV) were down as much as 7% on Wednesday and traded down 5% as of 1 p.m.

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Should You Buy Sony Before Its Stock Split?

The Motley Fool

Over the last few years, many large technology companies have chosen to split their stock. Notable examples include Amazon , Alphabet , Tesla , and Nvidia. However, more recently, a number of consumer goods businesses have also engaged in stock splits following sharp rises in share prices. Energy beverage maker Celsius and big-box retailer Walmart both did so within the last year.

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Will Broadcom Be Worth More Than Apple by 2040?

The Motley Fool

Broadcom 's (NASDAQ: AVGO) stock has soared about 1,900% over the past 10 years. The chipmaker, which was known as Avago until it bought the original Broadcom in 2016, impressed investors with its robust growth and bold acquisitions. With a market cap of $650 billion, Broadcom is now one of the most valuable chipmakers in the world. However, it's still much smaller than its top customer, Apple (NASDAQ: AAPL) , which has a market cap of $2.9 trillion.

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Prediction: This Will Be the Next Semiconductor Company to Join Nvidia in the Trillion-Dollar Club (Hint: It's Not AMD)

The Motley Fool

As it stands today, there are only seven companies in the world with market capitalizations in excess of $1 trillion. This exclusive club includes six of the " Magnificent Seven " -- Microsoft , Apple , Nvidia , Alphabet , Amazon , and Meta Platforms. Nvidia is the only pure-play semiconductor and data center services business with a trillion-dollar valuation right now.

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3 Brilliant Reasons to Buy Nvidia Stock Before Its Stock Split

The Motley Fool

Nvidia (NASDAQ: NVDA) last split its stock in 2021, a 4-for-1 split to reduce its $600 share price to around $150. Now, due to the company's success in the past few years, management has decided it needs another one. During its last earnings release, Nvidia announced a 10-for-1 stock split that will occur on June 10, reducing its $1,000 stock price to $100 per share.

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Generative AI Software Sales Could Soar 6,260% by 2032. 1 Unstoppable Artificial Intelligence (AI) Stock to Buy Before It Does (Hint: Not Nvidia)

The Motley Fool

Artificial intelligence (AI) has spread like wildfire since early last year, and the benefits are clear. These generative AI algorithms take AI to the next level, creating original text, images, and video from a few simple prompts. As a result, users can simplify mundane and time-consuming tasks and increase productivity. As the old adage states, "Time is money," so businesses are eager to adopt these next-generation systems.

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Is the Vanguard S&P 500 ETF Still a Buy? Here's What History Says and Why You Should Ignore It.

The Motley Fool

The American stock market is on fire. The S&P 500 index, a benchmark for U.S. equities, has been printing fresh all-time highs this year and trading at a staggering 70% above its historical average when measured by the 10-year cyclically adjusted P/E ratio, known to many as the Shiller P/E Ratio. The question on many investors' minds is whether this is the time to pull back on stock investments, particularly those tracking this benchmark index like the Vanguard S&P 500 ETF (NYSEMKT: VOO)

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This Is the Average Social Security Benefit for Age 67

The Motley Fool

The average retired worker in the United States receives $1,915 per month from Social Security, but there's a wide variety of age groups included in this data. It includes 62-year-olds who decided to claim Social Security early. It includes 90-year-old retirees who have been receiving monthly checks for decades. And much more. The full retirement age for Social Security is 67 years old for most American workers, so what does the average Social Security recipient get at this age?

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Forget Nvidia: Billionaires Are Selling It and Buying These 2 Hypergrowth Stocks Instead

The Motley Fool

You might not realize it, but one of the most important data releases of the quarter occurred roughly two weeks ago. On May 15, institutions with at least $100 million in assets under management were required to file Form 13F with the Securities and Exchange Commission. In simple terms, a 13F gives investors over-the-shoulder access to Wall Street's brightest investment minds.

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Marjorie Taylor Greene Just Loaded Up on Stocks: Here Are the 6 She Bought

The Motley Fool

Sometimes politicians seem to have an uncanny ability to beat the market. In recognition of this, many investors outside of the Beltway pay particular attention to the trades of our senators and representatives -- like those of Rep. Marjorie Taylor Greene, R-Ga. Last week, Greene submitted a regulatory filing that revealed six recent stock purchases: Advanced Micro Devices (NASDAQ: AMD) , Apple (NASDAQ: AAPL) , Caterpillar (NYSE: CAT) , Charles Schwab (NYSE: SCHW) , Kinder Morgan (NYSE: KMI) , a

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Why Dick's Sporting Goods Stock Skyrocketed to an All-Time High Today

The Motley Fool

Shares of sporting-goods retailer Dick's Sporting Goods (NYSE: DKS) skyrocketed on Wednesday after it reported what some analysts described as "blowout" financial results for its fiscal 2024 first quarter. As of 12:30 p.m. ET, the stock was up by 16% and had hit a new all-time high. Sales and profits are surprisingly strong It's been a good few years for Dick's Sporting Goods, and investors have been waiting for its results to finally cool off.

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