7 Small-Cap Stocks to Buy and Hold for the Next 5 Years investorplace.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from investorplace.com Daily Mail and Mail on Sunday newspapers.
As fun as finding winning stocks is (and trust us, it really
is fun), your allocation to stocks (equities) is only one slice in your total investing pie. Asset allocation basically comes down to how much you should have in cash, how much in bonds, and how much in stocks. The Fool’s four rules for asset allocation will help you slice up your portfolio into these important pieces.
Rule 1
If you need the money in the next year, it should be in cash.
You don’t want the down payment for your vacation home to evaporate in a stock market or bond market crash. Keep it in a money market or savings account.
5 Small-Cap Stocks With Huge Growth Potential insidermonkey.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from insidermonkey.com Daily Mail and Mail on Sunday newspapers.
The modern practice of inflationary monetary policies has drastic, wide-reaching effects on the economy.
Over the last 40 years, monetary policy has caused interest rates to decline from a high of around 20% down to the zero bound. During the same period, the U.S. dollar (USD) money supply has expanded at a rate never before seen in modern history and asset prices in dollar terms exploded to the upside, all while the U.S. average hourly wage has lagged on an unprecedented scale.
Ironically, the growing wealth gap, caused by lagging wages and rising asset prices, has occurred while the Federal Reserve (Fed) has been targeting a 2% inflation rate and pushing the narrative that inflation is good for the economy, good for economic growth and, most of all, good for the average Joe. This makes us wonder why the Federal Reserve, through monetary policy, is adjusting interest rates and setting inflation targets and whether this intervention is really benefiting the economy.