With changes coming to the tax code, we look at its impact on investors and how long growth stocks will continue to outperform their value counterparts.
As tax-reform proposals are analyzed and debated, we look at the differences between the House and Senate plans for income-oriented investors. Also, we look at the implications of GE’s dividend cut.
With growth-oriented investing continuing to outperform a value-based approach, we look at whether this trend will continue and what might tilt the balance.
A small group of technology stocks have recently delivered stellar returns. Facebook, Apple, Amazon, Netflix, and Alphabet (Google), the so-called “FAANG” stocks, are up 36% on average year to date through September. This superlative performance, in such a narrow group of large cap names, has led many to raise questions about the current valuation of the S&P 500, its sector composition, and comparisons to other markets.
Many top strategists, including Rick Reider of BlackRock, favor stocks over bonds. We look at those analyses plus other news about income investing.
Here are the key takeaways from events and interviews for capital-growth investors during the past month. Focusing on strong companies with a competitive advantage offer opportunities, but it comes at a price.
Changes to the tax code and the Fed’s impact on interest rates are some of the topics we explore for income-oriented investors.
Growth stocks have been outperforming their value counterparts and investors can look at Amazon as an example for why this happened. Meanwhile, new research on a smart-beta-growth strategy looks at the theoretical foundations surrounding traditional growth indices.
Closed-end funds and emerging-market debt offer opportunities for income investors. We also look at Vanguard’s most recent announcement about its bond ETF and what to expect from the FOMC this month.
For capital-growth investors, we look at research on a household’s decision to tilt towards value or growth stocks and the unintended consequences of passive investing. In other news, Columbia Professor Stephen Penman discusses the “value trap” and how to handle accounting in evaluating equity investments.