Month: March 2020

The benefits of index funds include diversification and low cost. But the trade-off investors endure is that these funds lurch downward with the market — as they did last week. Despite Monday’s strong U.S. market rebound, some investors may not have the patience (or the stomach) to sit on their hands until the market gets
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The Federal Reserve Board on Friday announced it would allow its newly created Money Market Mutual Fund Liquidity Facility, or MMLF, to use municipal bonds as collateral for loans, a move that raises a “thorny issue.” “For now, it’s simply to aid in market liquidity amid the dash to cash. It may have some impact
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Florida’s busiest airport is seeing a precipitous decline in flights and passengers amid the novel coronavirus outbreak, which has forced the closing of major theme parks like Walt Disney World and area hotels. Orlando International Airport has already seen a 36% year-over-year decrease in passengers since an expanded federal international travel ban became effective and
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The municipal market sold off again on Friday in dramatic fashion even after the Fed announcement that it would buy munis via collateral by financial institutions, a step aimed at calming the anxiety over the flight of money from tax-exempt money market funds. The Fed move did lessen the sell off on the short end
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We have not been challenged as a market like this in quite some time. More angst has been packed into a very compressed timeframe than I have almost ever seen before. The other crises during the last 50 years have all been quite a bit different in duration and scope. We really have not dealt
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Sen. Robert Menendez, D-N.J., is proposing the inclusion of his Municipal Bonds Emergency Relief Act, which would authorize the Federal Reserve to purchase municipal debt to help state and local governments finance public services to cope with the COVID-19 health emergency.Bloomberg News Public finance groups are pressing for the inclusion of municipal bond market assistance
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Ever since Henry Ford’s Model T car popularized automobiles in 1908, companies have worked tirelessly to design, manufacture, market, and sell new and improved car models. Unfortunately, some car brands associated with even the largest, most successful car manufacturers have been challenged in terms of sales and have had to be discontinued. Whether it was
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An initial public offering (IPO) is the process by which a privately-owned enterprise is transformed into a public company whose shares are traded on a stock exchange. This process is sometimes referred to as “going public.” After a private company becomes a public company, it is owned by the shareholders who purchase its stock. Many
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Trader Joe’s is a privately held chain of premium grocery stores with headquarters in Monrovia, California. With an eclectic array of products, a friendly atmosphere, and low prices relative to the quality of its goods, Trader Joe’s has become one of the most popular grocery store chains in America and it maintains a very loyal customer
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Since the legalization of cannabis in Canada in 2018, the past few years have seen a burgeoning growth for Canadian marijuana companies across the nation. As legalization continued to spread—including throughout parts of the bordering U.S.—Canadian cannabis companies and investors alike saw a major opportunity. More and more companies have launched, and some major non-cannabis
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Understanding the Financial Services Industry The financial services industry has served as common ground for investors seeking steady growth and income for decades, despite the 2008 economic downturn spurred by its mismanagement. Organizations that facilitate banking and insurance services, asset management services, lending and credit services, and brokerage operations make up a substantial portion of
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Trackers and exchange traded funds (ETFs) that pursue a simple, passive strategy of following a specified market or index have become extremely popular in recent years, as it has become common knowledge that classic stock picking does not always work. A pure tracker that entails “buying a market,” such as the S&P 500 or the
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Google (GOOG) is a technology company whose mission is to “organize the world’s information and make it universally accessible and useful.” Founded in 1998 and headquartered in Mountain View, Calif., the company has grown to become one of the most innovative companies in the modern technological age. Since Google was broken out into Google, Inc.
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Investing in micro-cap stocks, also called penny stocks, demands a higher degree of risk tolerance than investing in small-cap stocks because risk increases with lower market capitalization. One reason for this higher risk is the thin trading volume for micro-cap stocks, making it difficult to sell shares at the desired price within a reasonable time.
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