Getting Started In Stocks
26, 2014 2:53 p.m. ET The emerging-world tumult that rattled global markets last week is prompting investors to take a fresh look at their portfolios. But so far few are responding to the shakeout by seeking shelter in U.S. stocks, a sign that markets around the globe likely face further turmoil.
Wall Street Week Ahead: Stocks may fall again as Fed stays course
Investors have yanked out $625 billion from stocks this month overall, as measured by the Wilshire 5000 Total Market Index. “We had way too much complacency at the end of last year,” said Nicholas Colas, chief market strategist at ConvergEx Group in New York. “You layer those things on together and it’s made for an incredibly rocky start of the year.” On Friday, the Dow tumbled 318.24 points, or nearly 2%, to 15,879.11. The index shed 175.99 points on Thursday. The broader Standard & Poor’s 500 index fell 38.17 points, or 2.1%, to 1,790.29.
Stocks plunge on fears over emerging markets
“There are good domestic reasons to expect the U.S. economy to be doing well over the year to come, and our central expectation is that while U.S. markets could take a temporary hit (due to the selloff in emerging markets), the shock will not be a major one for the U.S. economy,” Deutsche Bank analysts wrote in a note released on Friday. The Fed’s promise to keep interest rates near zero for an extended period could also help bring back buyers.
The S&P 500 fell 2 percent today after having its worst week since last June, and the tech-heavy NASDAQ was off more than 2 percent. So why united states are stocks falling out of bed in January after going up 30 percent last year? Investors are worried about slowing economic growth in China and a host of other emerging markets. On top of that, there are concerns about the profit picture ahead for U.S. companies and fears about what will happen to stocks now that the Federal Reserve is winding down its economic stimulus program.
Stocks Get Crushed: Time for ‘Seahawks Portfolio’?
The answers to these and similar questions will lead you to consider different types of equity investments, such as mutual or index funds versus individual stocks. If you are naturally not someone who takes risks, and feel uncomfortable doing so but still want to invest in stocks, the best bet for you might be mutual funds or index funds. This is because they are well diversified and contain many different stocks. This reduces risk – and doesn’t require individual stock research. How Much Time and Interest Do You Have for Investing?