As we look towards 2025, the relatively high valuation of many U.S. stocks may add to investor risk. On most valuation metrics, the U.S. stock market appears expensive compared to history, often at double historical norms. That may imply lower returns in future years. It’s important to remember this after a generally strong bull market since at least 2022 and U.S. markets outperforming foreign stocks fairly consistently since the 2008 financial crisis, investors may be becoming accustomed to strong U.S. stock performance. Yet, market corrections are very much part of investing history too. Elevated Valuation Metrics Famed investor Warren Buffett…

Most investors consider equities to be risky, fixed-income instruments to be conservative, and cash to be completely safe. However, this perspective can be misleading, particularly when the fixed-income portion of a portfolio consists of anything other than bonds held to maturity. Bond funds—the most common way investors gain exposure to fixed income—can be as risky as equities. Asset allocation lies at the heart of any investment portfolio, and individual investors have traditionally focused on three major asset classes: equities, fixed income, and cash. Generally, equities provide growth, fixed income provides an income stream and cash provides safety. This classification is…

Electrical infrastructure stocks like Powell Industries and IES Holdings have been on a tear, leading Forbes’ ranking of mid-sized companies. Right behind are names like Abercrombie & Fitch, Dutch Bros, Sweetgreen and Shake Shack. By Hank Tucker, Forbes Staff The growing appreciation of artificial intelligence and anything related to it has been one of the main themes of 2024 for investors, highlighted by Nvidia rising to over $3 trillion in market capitalization, to become the world’s second most valuable company, but the semiconductor designer is far from the only company benefitting from the AI boom. Houston-based Powell Industries (POWL), the…

Key News Asian equities started the week with a thud on light volumes as the US dollar strengthened. Mainland China and Hong Kong had weak sessions following the mid-morning November economic data release, as the retail sales expectations miss was widely cited. Yes, retail sales’ 3% missed expectations of 5% and October’s 4.8%, which was widely cited as the culprit for today’s market action as it implies the necessity for more policy support geared to domestic consumption. Investors did not look beyond the headline number, as several categories showed strength year-over-year (YoY), including auto, which increased +6.6%; furniture, which increased…

As each year draws to a close, I like to poke the embers of stocks that have done the worst. Through unlucky Friday (Dec. 13), here are the worst performers among all U.S. stocks that have a current market value of at least $5 billion and that were publicly traded for all of 2024. · Intel Corp (INTC) takes the booby prize, down 59%. · Moderna Inc. (MRNA) has fallen 58%. · Walgreens Boots Alliance Inc. (WBA) has lost 57%. · Celanese Corp. (CE) is off 55%. · Five Below Inc. (FIVE) has declined 52%. Most years, I find one…

Trump 2.0 will feature Wall Street-approved suit Scott Bessent as Treasury secretary. Bessent will advocate for financial deregulation and increased lending. Easier and faster money. Which will be a boon for private equity (PE) firms and business development companies (BDCs). Today we’ll discuss seven BDCs yielding between 11.1% and 14.2%. They operate like PE shops—both will benefit from a friendly deal-making environment. For our income investing purposes, we pick BDCs because it is easier to buy them. We can buy BDCs individually as we would any stock. And BDCs can avoid taxes at the federal level by paying out at…

We income investors don’t talk about international stocks nearly enough. That’s too bad, because there are ways we can use them to build a massive income stream and make our investments safer, too. In fact, there’s one way, using high-yield closed-end funds (CEFs), we can “time” US and international stocks to get a 9.2% yield we can build over time by making simple moves to “rebalance” between US and overseas CEFs from time to time. It all starts with China, because there’s a spark there that sets the stage for our 9.2%+ overseas payout strategy. Chinese Stocks: 13% Yearly Gains…

Retirement becomes a hot topic for Gen X-ers as they enter their 50s. We discuss how to get the right asset for your future with Jacob Sadler, founder and senior advisor at Curio Wealth based in Asheville, N.C. Larry Light: Why does retirement planning become more crucial as you enter your 50s? Jacob Sadler: Retirement planning takes on a heightened sense of urgency then because retirement is no longer a distant concept—it’s on the horizon. This is the decade when you start to seriously evaluate whether you can sustain the lifestyle you envision in retirement. You may find yourself scrutinizing…

With the impending Trump administration set to take office, we can anticipate a flurry of policy changes that could reshape the economic landscape. President-elect Trump has already signaled aggressive stances on trade, including a proposed 25% tariff on imports from Mexico and Canada to address issues like drug trafficking and illegal immigration. While these tariffs could stoke inflation and pressure U.S. manufacturers, they may also serve as negotiation tools to secure more favorable trade terms. Beyond tariffs, the administration’s strategy may extend to tighter restrictions on critical electronics components, including semiconductor capital equipment. Similar to the existing export bans targeting…

The company’s Search revenue could diminish over the long term due to novel AI models By Oliver Rodzianko Summary Google’s diversification into AI mitigates risks to Search revenue from competitors like OpenAI, Anthropic, and Perplexity with a forecasted 11.17% EV CAGR over the next decade. AI-driven tools like ChatGPT pose challenges, but Google Cloud’s 35% YoY growth and $13B AI infrastructure investments bolster its position as a long-term leader in multiple AI use cases. With a conservative EBITDA margin of 35% and an 11.24% margin of safety, my valuation model supports a Buy rating, forecasting a December 2034 enterprise value…