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What are Energy Sector Stocks?
The Energy Sector contains companies that are in the business of discovering, processing, or selling (or all 3) natural resources like oil, natural gas, coal, solar and wind. Oil companies dominate the sector and are the largest players. Energy stocks are also cyclical, meaning that they tend to perform better when demand for energy is high (economic expansions). Companies in the Energy sector are also very sensitive to changes in the price of the underlying natural resource, like oil. For example, as the price of oil rapidly declined in 2015, falling by 50+%, the earnings for virtually every energy company collapsed. Continue reading...
What is the Federal Energy Regulatory Commission?
The FERC oversees the interstate commerce surrounding oil, energy, and natural gas. This regulation and oversight might deal with pipelines and storage facilities, permits for future exploration sites, environmental and safety concerns with projects, as well as the sale and transfer of these commodities. FERC deals with the companies engaged in the extraction, transfer, storage, and sale of energy and energy-related resources. Continue reading...
What is a commodity swap?
Like a currency or interest rate swap, a commodity swap is a contractual agreement to trade one cash flow for another. Commodity swaps are facilitated by Swap Dealers (SDs) who pair up various companies, mostly in the oil industry, who are looking to trade a floating (market price) cash flow outlay for a fixed one, or vice-versa. Futures Commission Merchants (FCMs) are the agents licensed by the National Futures Association to solicit and broker commodity swaps through Swap Dealers (SDs). (Requirements — found here) Continue reading...
What is IRS Publication 530, Tax Information for Homeowners?
IRS Link to Publication — Found Here There are many tax questions when it comes to home ownership, mortgages, equity, federal loan programs, selling a home, and so forth. Publication 530 seeks to address all relevant tax information for this large and important financial asset, which is often the largest purchase they will ever make. Homeowners incur expenses for home equity, mortgage interest, private mortgage insurance, improvements and maintenance, and taxes. Much of this can be deducted. Continue reading...
How Much Money Should I Set Aside for Emergencies?
Research suggests that more than half of adult Americans do not have sufficient savings needed for emergency purposes. Here’s a startling but true piece of information: most surveys conducted in the past few years indicate that more than half of adult Americans do not have any kind of emergency fund at all, and even fewer have enough to cover three months of living expenses in the event of an unexpected event, like job loss or health emergency. Continue reading...
What are Other Mutual Fund Classifications?
Let’s look at some of the classifications for mutual funds that are determined using criteria other than market cap and P/E ratios. What is Mutual Fund Classification According to the Price to Earnings Ratio? What is Mutual Fund Classification According to Market Capitalization? Besides the main classifications for equity mutual funds which are derived from market cap and price-to-earnings ratio, many other categories for mutual funds exist. These criteria may be based on how much exposure a fund has to a specific industry, sectors or geographical regions, as well as the types of management strategies that the fund uses and which kinds of assets are held. Continue reading...
What is active money management?
Active management is when an investor or money manager attempts to outperform an index or benchmark, using tactical strategies. Many economists and financial professionals believe that the markets are efficient. This means that all available financial information has already been built into the prices of securities, and that you cannot outperform the market by making specific selections of stocks, timing the market, reallocating your assets regularly, following the advice of market pundits, or finding the best portfolio managers. Continue reading...
How Should I Invest my First Thousand Dollars Saved?
If you already have an emergency fund, you should put your $1,000 into a brokerage account and buy an ETF. Keep it simple – buy an ETF that corresponds to the S&P 500, and leave your money there for as long as possible. What Should My First Savings Vehicle Be? Should I Trust an Article Such as “Five Best Ways To Invest For Income?” Continue reading...
How large are market fluctuations?
Fluctuations are represented in terms of volatility, and different types of investments experience different levels of volatility. The answer here depends on which market you’re talking about. Generally speaking, the capital markets in fixed instruments, such as government bonds, are the least volatile. Market fluctuations of the price of commodities, small-cap stocks, and emerging markets are the largest, and can be as high as 30-40% per year. Continue reading...
Is my portfolio diversified enough?
Diversification is intended to reduce the volatility of price movements in individual securities, but many people are not sure what proper diversification looks like. It depends. You should definitely have exposure to at least two asset classes: equities and bonds. Within each asset class, diversification is also important. In your equity portfolio, you should have exposure to stocks with various capitalizations (such as Large Cap, Mid Cap, and Small Cap), various geographical areas (such as the Europe), Developing Markets, and Emerging Markets. Continue reading...
What are some strategies for diversifying a portfolio?
There are many ways to diversify a portfolio, but all of them center around a strategy of owning different types of asset classes. For equity investors, perhaps the best strategy for diversifying a portfolio is to own companies from different sectors in different style categories, maybe even across the globe. The S&P 500 has ten different sectors, and a very broadly diversified portfolio should have exposure to each one in some capacity. Continue reading...
Top Wind Energy Stocks
In the rapidly evolving landscape of renewable energy, wind power stands out as a beacon of sustainable progress. Amidst the global push towards cleaner, more sustainable energy sources, companies operating within the wind energy sector are not just contributing to environmental conservation but are also offering compelling investment opportunities. This article takes a closer look at some of the top players in the wind energy industry, analyzing their operations, market positioning, and financial health. The focus here is on a select group of companies that either operate assets or manufacture machinery and technologies pivotal to the wind and broader clean energy industries. Continue reading...
Best Stocks in the Energy Sector
The natural gas industry has been a cornerstone of the global energy market for decades. In recent times, it has gained even more prominence due to its role in the transition towards cleaner energy sources. This article delves into the top companies in the natural gas sector, analyzing their market performance, capitalization, and future prospects. Our focus is on notable corporations such as Exxon Mobil Corp, Chevron Corp, ConocoPhillips, and others, which have shown resilience and growth potential in this dynamic market. Continue reading...
Top Renewable Energy Stocks
Tap into the power of green energy with our in-depth financial analysis of the best renewable stocks to buy now. Find out which companies are leading the charge towards a sustainable future and how they can electrify your investment returns! Continue reading...
Top Stocks in Offshore Energy: Navigating the Sector
The offshore energy industry, encompassing drillers, shippers of offshore oil producers, and oil services companies, presents a dynamic and often volatile investment landscape. Notable companies like Schlumberger Limited (SLB), Transocean Ltd (RIG), Euronav NV (EURN), and Diamond Offshore Drilling (DO) stand out in this sector. This article aims to provide a comprehensive analysis of these top players in the offshore energy group. Continue reading...
Top Stocks Shaping the Sustainable Energy Future
In the ever-evolving world of the stock market, certain sectors consistently emerge as pivotal in shaping the future of the economy. The energy sector, particularly those companies at the forefront of sustainable and innovative power solutions, stands out in this regard. With the average market capitalization across this power theme being an impressive 7.1 billion USD, ranging from 680.9K to 92B, it's clear that this sector is not just about powering our homes and industries but also energizing investment portfolios. Continue reading...
What is a Home Debtor?
In contrast to the term “home owner,” home debtor is reserved for those who will seemingly never be able to pay off the mortgage(s) on their home, or who have already defaulted. Most Americans live in homes that they pay on, but are still primarily owned by the bank that loaned them money. Banks have insurance to protect them against mortgage defaults. Home mortgage loans are the primary way that Americans by homes today. Continue reading...
Best Electric Energy Stocks to Buy: Powering the Future
Unlock the potential of the electric power sector! Dive into our analysis of top stocks, industry challenges, and the transformative opportunities that lie ahead in the world of clean energy investments. Continue reading...
Top Lithium Stocks to Buy: Future of Green Energy
Unlock the potential of the lithium industry, the silent powerhouse behind the green energy movement. From powering electric vehicles to revolutionizing energy storage, discover the top lithium stocks poised to shape our sustainable future. Dive in to make informed investment choices in this burgeoning sector. Continue reading...
Best Crude Oil Stocks: Navigating the Volatile Energy Landscape
Unearth the secrets of the crude oil industry! From industry giants like Exxon Mobil to the intricate dance of geopolitics and technology, discover the vast potential and challenges of the energy sector. Ready to fuel your investment journey in the world of black gold? Continue reading...