If this Key Trend Ends Stocks Could be in Trouble

If this Key Trend Ends Stocks Could be in TroubleIt could be called the Great American Dichotomy: As the rest of the world struggles, the American economy continues to slowly grow. But some traders say that investors are making a big mistake if they think this divergence will continue forever. After Caterpillar (CAT) released earnings Thursday, CEO Doug Oberhelman told CNBC’s ” Squawk Box “: “We’ve seen a real dichotomy here in the world. The U.S. growing fairly slowly…

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How to Reduce the Risks of Investing in Stocks

How to Reduce the Risks of Investing in StocksInvesting in stocks historically gives higher returns than placing money in bonds, GICs, or savings accounts. With higher return comes higher risk. Here I will talk about two risks that come with investing in stocks and how to reduce those risks. 1. Risk of capital loss You can buy and sell stocks on major exchanges easily through your bank or through a trading platform. However, the flip side of this…

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Investors Connect the Dots of Financial Forecasts at their Perils

Investors Connect the Dots of Financial Forecasts at their PerilsThe growing globalization of financial markets over the past 30 years means information from the four corners of the world is amassed in real time for the consumption of traders, pundits, and ordinary investors. But instead of increasing the batting average of financial forecasters, all this extra info only adds to the noise surrounding their less-than-perfect predictions. Human nature compels us to attempt to connect the dots — however seemingly…

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How to Profit From a Tumbling Loonie

How to Profit From a Tumbling LoonieOver the past 12 months, the Canadian dollar has declined by 15% versus the U.S. dollar. And there are plenty of reasons why the loonie is likely to depreciate further. Let’s start with the Canadian economy, which contracted for the fourth month in a row in April. There’s now a real possibility that Canada is in the midst of a recession, and this could lead to further rate cuts by…

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