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Investing Archives - Page 5 of 17 - Wealthspire | Page: 5

Basis Points (BPS)

Financial Dictionary
What is a Basis Point? A basis point represents one gradation on a 100-point scale representing 1%. This term is used especially in expressing variations in the yields of bonds. Fixed income yields vary often and slightly within one percent and the basis point scale easily expresses these changes in hundredths of 1%. Basis Point Calculator One basis point is equal to 0.01% or 0.0001. To figure out basis points as a percentage, simply multiply the basis points by 0.01%. For example, if a stock option is worth $6,000 and increases by 50 basis points, multiply 50 by 0.01% and…
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Asset Allocation

Financial Dictionary
What is Asset Allocation? Asset allocation is the process of dividing investments among cash, equities (ex. U.S. Large Cap, International), fixed income (ex. Taxable, Municipal) and cash equivalents to optimize the balance between risk and reward based on investment needs. What Should my Asset Allocation be by Age? As a general rule, your target asset allocation can be determined by subtracting your age from either 100 or 110. The resulting number is the approximate percentage of assets you should allocate to stocks. For example, at age 50, this would leave you with 50 to 60 percent in equities, depending on…
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Appreciation

Financial Dictionary
What is Appreciation? Appreciation means that the value of a financial asset increases over time. This increase occurs for many different reasons, including increased demand, weakened supply, or a change in inflation or interest rates. What Causes Appreciation? Appreciation can be caused by a number of factors, like economic growth or changes in interest rates. If a company’s growth is faster than that of similar companies or at a quicker rate than expected, then stock prices can increase and lead to appreciation as well. How to Invest for Appreciation When considering mutual funds, look for investments that will rise in…
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Alternative Investments

Financial Dictionary
What Are Alternative Investments? Alternative investments indicate assets that aren’t considered “conventional” investment types, like stocks, bonds, and cash. Alternative investments might include private equity, hedge funds, managed futures, real estate, commodities, and derivatives contracts. What are the Types of Alternative Investments? Private Equity investments are usually limited partnerships in which investors buy and restructure companies that are not publicly traded. Hedge Funds are actively managed pools of investments that employ a wide range of investment strategies often including leveraged assets, with the goal of generating above average investment returns Managed Futures are diversified portfolios of futures contracts actively managed…
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inflation

Inflation

Financial Dictionary
What Is Inflation? Inflation is an increase in the average price of goods or services in an economy. Each month, the Bureau of Labor Statistics reports on the average level of prices when it releases the Consumer Price Index (CPI). Inflation is measured as the percentage increase in average level of prices over a select period of time. In a stable economy, an average inflation rate is typically around 2%. Inflation Calculator You can use an inflation calculator to see the purchasing power of the U.S. dollar and how it has changed over the years. With this tool, you can…
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dow 36000

Dow 36,000 Revisited

By Blog
On October 1, 1999, in the midst of the tech stock mania of that era, James K. Glassman and Kevin Hassett published their notorious book, Dow 36,000: The New Strategy for Profiting from the Coming Rise in the Stock Market. When the tech bubble burst the next March, Glassman and Hassett became the butt of many jokes for the audacity and timing of the book. In full disclosure, I know and like Jim Glassman and he has been very kind to me in my career; but Jim and Kevin forgot a seminal piece of old Wall Street wisdom – it’s…
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