Oil, Patience, and Value Investing

Written by Rob Copeland | 11 February 2015

Every investor's dream is a stock or bond that goes straight up and earns them a great return with zero stress.

But that's not how investing works: While good picks have rewarded investors handsomely, each and every one has involved some level of volatility.

Take Facebook, for example. When it went public in May of 2012 at $42 per share, most investors thought it was a cant-miss investment. Over the following three months, however, it plummeted to less than $20 per share on fears that it was overvalued. Smart investors kept their nerve and held on to the stock. And they were rewarded for their patience: Facebook now trades above $74 per share, a 76% total return!

Read more...

Low Oil Prices: Blessing or a Curse?

Written by Rob Copeland | 12 January 2015

As anyone who drives a gas-powered car knows, fuel prices have plunged.

In just seven months, the price of oil has dropped by more than 50%, due to the combination of rising production and falling demand. Gas, which is derived from oil, has gone down with it. For consumers who use oil to heat their houses or gas to fuel their cars, this is welcome news.

But economists and investors, are debating whether lower oil prices are ultimately good for the market and the economy.

Lower oil prices are usually seen as having a largely positive impact. When consumers have to pay less for fuel, they historically have spent the savings in other areas. That increased consumer spending, in turn, has helped to stimulate the economy, boost corporate earnings and drive stocks higher.

Read more...

A Checklist That Could Save You Thousands

Written by Rob Copeland | 10 December 2014

The end of the year is a busy time for all of us because of the holidays. But making time to organize your finances can potentially save you thousands of dollars, along with countless headaches, in the years ahead.

Here's a quick checklist of some of the most vital matters to take care of before January 1.

• Estimate your 2014 tax liability. Knowing how much you're likely to owe ahead of time will let you prepare to pay it in a way that is least disruptive to your finances. In a worst-case scenario, you could be forced to liquidate a big chunk of your investment portfolio to pay a larger-than-expected tax bill. There are several good online calculators available (here's one and here's another) to help you determine what you'll owe based on factors like your income, deductions and payments. Once you know about how much you'll owe, you'll also know how much more you need to save or put aside before you have to file.

Read more...

The Real Election Winners

Written by Rob Copeland | 06 November 2014

With the Republican party making big gains in the recent midterm elections, many investors are looking for legislation that will benefit businesses and consequently generate market gains.

But history shows that the market performs strongly around the mid-term elections no matter which party prevails. As a result, it's investors who have historically been the real winners.

Read more...