Will Rising Interest Rates Hurt Stock Prices?
Q: Will Rising Interest Rates Hurt Stock Prices?
Q: Will Rising Interest Rates Hurt Stock Prices?
Investors are always looking to find the next Amazon, but is trying find the next “superstock” worthwhile? New research from Professor Hendrik Bessembinder shows that most U.S. stocks don’t beat Treasury Bonds and that searching for the next superstock is likely to end in disappointment. To capture top performers and harness stocks’ power for growth, diversification is key.
Beating par in golf is extremely difficult—even for elite pros. It’s the same in investing. With golf’s US Open Championship underway, Vista’s Dougal Williams reminds readers that when it comes to long-term investing, par wins.
Despite passive investing’s incredible recent growth, there are several reasons we’re not concerned with indexing becoming too popular.
It’s been 25 years since Professors Eugene Fama and Ken French explained why investors were likely, but not guaranteed, to earn better returns by favoring small cap and value stocks. Results since then have validated the researchers’ conclusions, but capturing those higher returns hasn’t always been easy.