Should You Invest in IPOs?

Should You Invest in IPOs?

Since the beginning of this year we’ve seen a number of spectacular first-day gains among Initial Public Offerings (IPOs). Lyft rose 21% before closing with a gain of 9%. Pinterest soared 25% but was overshadowed by Levi Strauss’ 31% advance. And even those impressive returns pale in comparison to Zoom, which – true to its…
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Investors Keep Trying To Time Markets

Of all the schemes stock market investors have come up with to try to avoid losses and/or to beat the market, market timing is probably one of the least effective. Simply put, it requires the ability to identify some kind of trigger that enables you to sell your holdings before prices drop, then subsequently finding…
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Why Don’t Millennials Like Stocks?

I previously posted about a Bankrate financial security survey in 2017 which found that real estate was the Millennial Generation’s top investment preference over stocks and cash (https://www.cognizantwealth.com/2017/11/24/is-real-estate-best-for-building-wealth/). The post pointed out that real estate as an investment had actually underperformed stocks over many periods since 1900, suggesting that millennials’ expectations of the best long-term…
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What To Do About Record High Trade Deficits?

The U.S. Commerce Department reported this month that the trade deficit for 2018 reached a record $891.3 billion and grew by almost 13% over 2017. As investors, what should we be taking away from this metric? The first question might be how did we get to this point? President Trump assured us one year ago…
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Your Biggest Investment Risk

You may be familiar with the World Economic Forum’s (WEF) annual meeting in Davos, Switzerland, where leaders from around the world meet to discuss the most pressing issues facing our collective societies. The WEF produces a Global Risks Report summarizing the results, based not only on the discussions at the meeting but also on feedback…
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Trump & The Stock Market Part 2

Following up from last week’s post, a reader wrote that it would be more realistic to compare how the broader stock market performed under Trump than under previous presidents. Frankly, I don’t see the value of this exercise. As I stated in my last post, I believe that at best a president can only indirectly…
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