Global stocks fell heavily across the board yesterday.Panic selling in the markets usually presents buying opportunities. Investors looking to deploy capital during uncertain times can buy high-quality dividend-paying stocks at cheap prices. Some of the reasons for investing in dividend-paying stocks are listed below: 90% of the U.S. equity returns in the past century has …
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The Too Big To Fail (TBTF) concept is the belief that certain financial institutions are so big and so complex that their failure will be be disastrous to the whole economy. Some of these institutions are indeed so huge that their failure is unimaginable and may wreck the economies of many countries in addition to …
SABMiller PLC, the international beverage company, announced plans to acquire Foster’s Group(FBRWY) of Australia for A$9.51 billion ($10.06 billion). Foster’s quick rejection of this takeover bid could lead to a battle among the major beer companies. Foster’s rejected the offer saying it “significantly undervalues the company.” Beer companies are attractive investment options when the economy …
The conventional wisdom holds that stocks are always the best asset class for long-term investment. However that theory is not entirely true. Investing in equities at the wrong time and holding for the long-term can lead to large and painful losses. The following three charts shows that investors holding stocks for the long-term may lose …
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Many investors overreact during times of crises. Retail investors especially tend to panic and sell out at the bottom and then buy at the top when the market rebounds. The fear of losing out on a rally and recoup some of their losses forces them to act this way. This classic scenario occurred in the …
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