What happens to stocks when interest rates rise?
stock market crash
"Mr. Market" is the analogy Warren Buffett uses to help investors understand the market as though it were a person.
Usually, Mr. Market is as rational as the efficient market we all dream about. But Mr. Market also suffers periods of manic depression - as the recent stock market sell-off shows.
Ebola fueled a selloff on Wall Street this week, but is the stock market going to keep falling?
If global growth concerns are any indication, we may be gearing up for a much deeper correction.
While the markets did not quite make it to official stock market correction territory this week, the 6% drop in less than a month should have reminded investors that they always need to be prepared for a downturn.
And mind you -- despite a rebound today (Friday), this correction may not be over. That means investors need a plan.
Ebola is fueling a market sell-off that's caused the worst losing streak for stocks in almost 3 years.
After last week's gyrations, the Standard and Poor's 500 Index is down 5.5% from its September highs - more than halfway to a stock market correction of about 10%.
But Money Morning Chief Investment Strategist Keith Fitz-Gerald -- a seasoned market analyst with 33 years of experience - refuses to go along with the gloom-and-doom crowd that's now predicting a stock market crash of 20% to 30%.
In fact, not even a 10% stock market correction bothers him.
To find out why Fitz-Gerald would relish a stock market correction, watch this video.
The bears are out in full force trumpeting the news that there's a tech bubble, and the steep decline has started.
As of today's opening, the Nasdaq Composite has dropped 7.3% in just over three weeks. That drop followed an incredible run where the index climbed 28% from September 2013 through September 2014.
But according to Money Morning experts, this is unequivocally not a tech bubble.
Fears of a stock market crash were stoked again yesterday (Thursday), with the Dow Jones Industrial Average taking its biggest dive of the year -- a loss of 334 points.
Money Morning Chief Investment Strategist Keith Fitz-Gerald, a seasoned market analyst with 33 years of experience, says this is not a "head for the hills moment," but an opportunity for savvy investors.
In this video, Fitz-Gerald also digs into the reasons for the mini stock market crash and what to expect in the weeks ahead.
I have long said that the Fed has never met a printing press it didn't like nor a dove that it didn't want to set free in the name of higher stock prices. And, yesterday, yet again, Yellen proved it.
Within minutes of releasing its latest set of notes hinting that the Fed will keep rates near zero, the S&P 500 took off on a 34-point gain that is the biggest so far this year. Moving first 45 points from its low of 1,925 to its peak of 1,970 in less than five hours (it later settled slightly lower), the index shrugged off the prior day's losses amidst global growth concerns and weaker European economic data.
This is manipulation of the highest order. It's also proof positive we NEED a correction. Now, more than ever.
Stock market crash talk often picks up in October – the month has a reputation of having the worst performance of the year.
October has an ominous reputation on Wall Street for delivering a stock market crash for good reason; six of the top 11 worst market declines have happened during the month.
American workers with 401(k) plans are right to dread a stock market crash that would wipe out a big chunk of their hard-earned balances.
But instead of living in fear, it's possible to do something about it - thanks to the option of money market funds, which almost every 401(k) plan offers.
And the best part is, reallocating 401(k) investments to a money market fund couldn't be any easier.
Ebay Inc.’s (Nasdaq: EBAY) plans to spin off its PayPal unit has left many on Wall Street salivating over the potential of the stand-alone payments business.
And some pundits are speculating that Google Inc. (Nasdaq: GOOG) or Alibaba Group Holding Ltd. (NYSE: BABA) might buy PayPal.
But they should be asking this question: Will Alibaba buy eBay?
Here’s why a deal would make sense for both companies…
Yahoo! Inc. (Nasdaq: YHOO) stock rose 4% today, with Starboard Value LP reportedly buying up a large stake in the company.
The investment management firm’s decision is a positive development for YHOO, which had seen its shares tumble for most of the week on concerns that as it sheds its portfolio of overseas investments, the remaining core business will be valueless.
Dow Jones Industrial Average officials just made membership requirements for its elite index even more stringent, prompted by a surge in inversion deals made to avoid the high U.S. corporate tax rate.
The committee overseeing the storied blue-chip benchmark just updated the definition for index inclusion. The classification now states that companies that conduct business in the United States, but are incorporated abroad, are not eligible for admission in the 30-stock index.
The Dow tweaked the language used in its process of accepting components into the coveted index to officially read that member companies must be incorporated and headquartered in the United States. Additionally, the United States must be a company’s largest revenue-generating country.
That means the new eligibility requirements clearly exclude companies that have moved overseas via inversion deals.
The profusion of dividend-paying stocks that have increased payouts over the last several weeks reflects a robust second-quarter earnings season.
Companies in the S&P 500 turned in 10.3% earnings growth in Q2 - the highest advance since 2011's third quarter.
Last week Microsoft </strong>(Nasdaq: MSFT), McDonald's </strong>(NYSE: MCD), and 22 other dividend stocks raised payouts. Here's the full list of dividend hikes announced during the week ending Sept. 19, 2014.