short term – Face OVL http://faceovl.com/ Sat, 19 Mar 2022 09:46:40 +0000 en-US hourly 1 https://wordpress.org/?v=5.9.3 https://faceovl.com/wp-content/uploads/2021/07/icon-2021-07-08T143259.742-150x150.png short term – Face OVL http://faceovl.com/ 32 32 Investor behavior in Europe reflects the worst market crises, new research finds https://faceovl.com/investor-behavior-in-europe-reflects-the-worst-market-crises-new-research-finds/ Fri, 18 Mar 2022 06:18:29 +0000 https://faceovl.com/investor-behavior-in-europe-reflects-the-worst-market-crises-new-research-finds/ Traders at BGC, a global brokerage firm in London’s Canary Wharf financial centre, react to the opening of European stock markets early June 24, 2016 after Britain voted to leave the European Union during the EU BREXIT referendum. Russell Boyce | Reuters LONDON — European fund flow patterns so far this year mimic historic periods […]]]>

Traders at BGC, a global brokerage firm in London’s Canary Wharf financial centre, react to the opening of European stock markets early June 24, 2016 after Britain voted to leave the European Union during the EU BREXIT referendum.

Russell Boyce | Reuters

LONDON — European fund flow patterns so far this year mimic historic periods of crisis for markets, including the global financial cash of 2008, according to new research from data firm Refinitiv.

A lackluster market environment, lingering concerns around the Covid-19 pandemic and emerging geopolitical tensions in Europe meant that the continent’s fund industry saw sharp outflows in February that took overall flows up to present this year at -57.2 billion euros ($-63.2 billion), according to research.

Mutual funds – pools of investors allocated by fund managers into stocks, bonds, money market instruments and other securities – faced 67.6 billion euros in outflows in February alone. Meanwhile, exchange-traded funds (ETFs) – baskets of securities that trade on regular exchanges – benefited from inflows of 9.2 billion euros.

“In this market environment and given the economic uncertainties, one would expect European investors to sell long-term funds and buy money market products,” said Detlef Glow, head of Lipper EMEA research. Refinitiv.

“Therefore, it is somewhat surprising that European investors sold money market products, which are normally considered safe havens.”

The overall flow figures were heavily impacted by 49.4 billion outflows from money market products – short-term debt investments – meaning that long-term funds actually only faced to around €9 billion in releases, even in such a turbulent market environment. These money market products are cash-like funds with a low level of risk and generally offer investors high liquidity.

“Nevertheless, it appears that European investors are priced in to higher interest rates – caused by rising inflation rates around the world – as they sold more bond products during February” , added Glow.

In the first two months of the year, mutual funds recorded outflows of €91.9 billion while ETFs recorded inflows of €34.7 billion.

Glow pointed out that inflows into ETFs in this market environment repeat a pattern that has been seen in previous difficult market times, such as the financial crisis in 2008 or the euro sovereign debt crisis in 2011. in both cases, ETFs saw inflows while mutual funds suffered outflows.

Refinitiv’s analysis of the global Lipper top and bottom rankings for February indicated that European investors were still in “risk mode” despite the tough market environment.

“In more detail, European investors have taken positions in sectors that can provide diversification for their portfolio, such as global equities or flexible mixed-asset products,” Glow added.

“A closer look at the global Lipper best and worst selling classifications for the first two months of 2022 very clearly shows a trend that European investors have been selling some of their safe haven investments while investing in funds that can offer diversification. for their portfolio or focus on unique themes, sectors and countries.”

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Best Personal Loans for Debt Consolidation March 2022 https://faceovl.com/best-personal-loans-for-debt-consolidation-march-2022/ Tue, 15 Mar 2022 21:45:00 +0000 https://faceovl.com/best-personal-loans-for-debt-consolidation-march-2022/ Company Starting interest rate Minimum credit score Loan conditions Costs Discover Best overall 5.99% Not disclosed 36–84 months $39 late payment fee Before Great for extra features 9.95% 580 24–60 months Up to 4.75% administration fee; late fee First technology Best credit union and for fast financing 5.70% Not disclosed 24–84 months $15 late payment […]]]>
Company Starting interest rate Minimum credit score Loan conditions Costs
Discover

Best overall
5.99% Not disclosed 36–84 months $39 late payment fee
Before

Great for extra features
9.95% 580 24–60 months Up to 4.75% administration fee; late fee
First technology

Best credit union and for fast financing
5.70% Not disclosed 24–84 months $15 late payment fee
First Midwest

The best at no cost
5.23% Not disclosed 12–84 months Documentation fee of $150
To improve

Ideal for co-signers
5.94% 550 24–84 months 2.9% to 8% assembly fee; late fee
Loan amounts, APR and repayment period may vary depending on the purpose or type of loan.

Guide to Choosing the Best Personal Loans for Debt Consolidation

Should you apply for a personal loan to consolidate your debt?

The debt repayment process can be long and costly. Every month you have debt, you are charged interest, which adds to your balance and extends the repayment date of your debt.

For someone working to get out of debt, debt consolidation can be helpful in many ways. If your credit scores have improved since you incurred your current debt, or if you have a co-signer or co-applicant, you may be eligible for a loan with a lower APR than your current debt(s). Consolidating with a lower APR means lower fees and a shorter time to become debt free.

A personal loan from a reputable source, such as a bank, credit union, or established online lender, can be one of the most cost-effective ways to reduce debt. Compared to credit cards, payday loans, or even balance transfers, consolidation loans generally have much lower interest rates and fees.

If you’re struggling to pay your debts, a consolidation loan can help you in other ways. Debt consolidation could extend your payment schedule. While this increases the overall cost of repayment, it can also lower your monthly payments and help you balance your budget.

Before applying for a personal loan to consolidate your debts, it is important to determine what your goal is. Compare rates, fees and monthly payments to your current situation to decide if the loan meets your needs.

Comparison of personal lenders

It can be difficult to narrow down the field of potential lenders, but each offers something different. Here’s what to look for before applying:

  • APR range: Consider both the minimum and maximum APR for loans, including any rate reductions you may be eligible for.
  • Costs: Consider any upfront fees, such as origination or administration fees, and whether the fees will be withheld from your loan amount. Also be sure to consider prepayment penalties and other fees that may come into play in the future.
  • Credit requirement: Check to see if the lender discloses the minimum credit score required to qualify and whether or not they will consider other information instead of good credit.
  • Pre-qualification: Find out if you can be pre-qualified and receive a quote on the loan you qualify for, without a thorough credit investigation.
  • Loan amounts: Calculate the total amount of debt you want to repay and check if the lender offers loans that cover the total amount.
  • Loan conditions : Look at the term or how long you will have to repay your loan. Many lenders present this information as a range of months, such as 24 to 84 months. Note that a longer repayment term will result in lower monthly payments, but more money paid out for interest charges.
  • Deadline for receipt of funds: Consider how long it takes from the start of your application to approval and receipt of funds. Although the lender can transfer funds in as little as one business day, it may take several days or longer for your bank or creditor to process payment.
  • Loan Restrictions: Make sure the loans are available to residents of your state and the intended use of the funds is authorized by the lender. The lender may also have age and citizenship requirements.

How to apply for a personal loan

Once you have narrowed down your list of potential lenders, you will need to submit an application. Most lenders accept online applications, but you may be able to visit a physical branch or get help over the phone.

To complete an application, you will likely need to submit the following information:

  • Contact Details
  • Income and employment details
  • Social Security Number or ITIN
  • Reasons why you are applying for the loan
  • Desired loan amount

The lender can follow up by requesting more information. If your application is approved, you can review the offer before accepting it. You may also need to create an online account with the lender in order to manage your loan.

Be sure to note the due date for your first payment and, if desired or necessary, set up automatic payment. You can also change your due date.


Frequently Asked Questions

What is debt consolidation?

Debt consolidation involves using a loan or credit card to pay off multiple debt accounts, usually at a lower APR.

This is often done to reduce the overall cost of paying off debt, but it can be a good way to get immediate financial relief by reducing the cost of your monthly debt payments. It can also help by reducing the number of accounts you have to manage.

What are the advantages and disadvantages of obtaining a personal loan for debt consolidation?

Benefits

  • Consolidate multiple debt payments into one monthly payment
  • Reduce your APR and save money on the overall cost of debt repayment
  • Potentially eliminate debt faster
  • Set a clear debt repayment date
  • Improve credit scores by paying down debt faster and reducing the use of revolving credit

The inconvenients

  • Borrowers with poor credit may not qualify for better terms than their current debt
  • Fees and interest can make consolidation loans expensive
  • Extending debt repayment can lead to paying more over time

Are Debt Consolidation Loans Harming Your Credit?

Debt consolidation can affect your credit in many ways, but the effects are generally positive overall after enough time has passed. Applying for and opening a new loan account may result in a short-term drop in your credit scores, due to the thorough investigation and the new account. But paying off credit cards can lower your credit utilization rate, which can help boost your scores, and reducing the number of accounts with balances can also be good for scores. Making debt payments on time each month also helps build your scores over time.

What is the difference between a debt consolidation and a balance transfer?

Debt consolidation involves paying off multiple accounts, usually with a single new loan. A balance transfer, on the other hand, is a feature of credit cards; it involves moving a balance from an account (of any type) to a credit card. You can transfer a single balance or, depending on the card issuer, you can transfer multiple balances, just like debt consolidation.

Credit card balance transfers may require an upfront fee, often 3% of the total amount you transfer. You’ll also pay interest charges each month on the balance you carry, unless you use a balance transfer card with a promotional 0% APR (this can be a great way to pay off debt). In comparison, a debt consolidation loan does not involve transfer fees, but will come with interest charges and may incur other fees, such as origination fees.


How We Choose The Best Debt Consolidation Loans

Our team evaluated 38 lenders and collected 1,520 data points before narrowing down our top picks. We weighted more than 20 criteria and gave a higher weight to those having a more significant impact on potential borrowers.

Top picks were selected based on factors such as membership requirements (15% weighted), average fixed APR (15% weighted), and average origination fee (10% weighted).

We also considered flexible repayment terms, helpful features such as pre-qualification, and whether co-signer or joint applications are allowed to ensure borrowers have the best possible experience. For more information on our selection criteria and process, our full methodology is available.

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Bet on stock market volatility could cost investors hundreds of millions in losses as Barclays makes big change to funds https://faceovl.com/bet-on-stock-market-volatility-could-cost-investors-hundreds-of-millions-in-losses-as-barclays-makes-big-change-to-funds/ Tue, 15 Mar 2022 20:19:00 +0000 https://faceovl.com/bet-on-stock-market-volatility-could-cost-investors-hundreds-of-millions-in-losses-as-barclays-makes-big-change-to-funds/ Market participants trying to bet on stock market volatility face a reckoning on Tuesday, with the possibility of hundreds of millions in losses in sight as fund provider Barclays announced it has suspended sales and issuance of new shares of an instrument indexed to the VIX. Barclays said it has temporarily halted the creation of […]]]>

Market participants trying to bet on stock market volatility face a reckoning on Tuesday, with the possibility of hundreds of millions in losses in sight as fund provider Barclays announced it has suspended sales and issuance of new shares of an instrument indexed to the VIX.

Barclays said it has temporarily halted the creation of new shares of the iPath Series B S&P 500 VIX Short-Term Futures ETN VXX,
-0.38%,
as the exchange-traded note has seen its value rise in recent days amid worries over war in Eastern Europe and concerns over inflation and the potential for monetary policy missteps.

“They just stop creations when they get nervous,” said Eric Balchunas, principal analyst at Bloomberg Intelligence, which focuses on exchange-traded products, including exchange-traded notes, or ETNs, and currency-traded funds. stock market, to MarketWatch in an interview Tuesday afternoon. , referring to Barclays.

The iPath Series B S&P 500 VIX Short-Term Futures ETN is designed to allow investors to bet on the size of fluctuations in the S&P 500 SPX,
+2.14%,
tracking an index linked to the daily readings of Wall Street’s so-called fear gauge, the Cboe Volatility Index VIX,
-6.11%,
or VIX.

ETNs and related ETFs are intended to trade close to the value of an underlying asset. While ETFs hold securities, ETNs hold unsecured debt obligations of an issuer, in this case Barclays, that promises to pay a return tied to a specified asset.

However, the cost of hedging the VIX product has skyrocketed for Barclays as the underlying asset has risen. The issuer said it does not have the capacity to create more ETN shares and will resume creations once it does.

ETN debt essentially creates a liability on banks’ balance sheets, which they then need to hedge to comply with regulatory rules.

The halt in new shares for the time being means that shares of VXX, referring to its ticker symbol, will go out of sync with the underlying asset. It also means that investors who shorted VXX, selling borrowed stock betting that its price would fall, are struggling to find stocks they can buy to close their bearish positions.

“Investors cannot hedge their shorts,” analyst Bl said.

ETF.com describes VXX as a liquid volatility ETP and claims that it is one of the few to offer exposure to short-term VIX futures.

Balchunas estimates that nearly half of VXX’s stock was held short – some estimates say 90% – and that the stock’s surge is partly a function of short bettors being forced to buy VXX back on the open market to unwind their short bets as the price rises. He speculated that today’s surge alone for VXX could result in losses of around $200 million for those making short bets.

“I feel like it’s a bit selfish,” Balchunas said of Barclays’ decision to stop creatives. “You can’t just offer a fund during the good times when it’s easy and then stop creations in the bad times,” he said.

“This suspension is imposed because Barclays does not currently have sufficient issuance capacity to support new sales from inventory and any new issuance of ETNs,” Barclays said in a statement.

“These actions are not the result of the crisis in Ukraine or a problem with market dynamics in the constituents of the underlying index. Barclays plans to reopen sales and issuances of ETNs as soon as it will accommodate additional capacity for future issuances,” the bank said.

This is the second iteration of the iPath VIX product. It originally launched in 2009, but on January 30, VXX was delisted in an unusual event for such a popular product. Barclays launched a virtually identical product which traded soon after, with bond-like call characteristics, underlining the debt nature of the product.

Barclays has also discontinued the creations of ETN iPath Pure Beta Crude Oil,
-5.83%,
which is down 8.4% for the week so far, but up more than 28% year-to-date, moving with CL.1 crude oil futures prices,
-7.60%.

Oil prices and equities have been particularly volatile as investors monitor developments between Ukraine and Russia, with this dispute helping to inject a new dose of volatility into already volatile markets.

The measure of implied equity volatility, the VIX, which tends to move inversely to equities, is up 78% so far in 2022, compared to steep year-to-date losses in the S&P 500, Dow Jones Industrial Average DJIA,
+1.82%
and the Nasdaq COMP composite index,
+2.92%.

The ETN moves come after short-volatility products, including the VelocityShares Daily Inverse VIX Short-Term ETN and ProShares Short VIX Short-Term Futures ETF, imploded in 2018.

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Global stocks fall, oil rises in volatile trading after Russia’s oil ban https://faceovl.com/global-stocks-fall-oil-rises-in-volatile-trading-after-russias-oil-ban/ Tue, 08 Mar 2022 21:13:00 +0000 https://faceovl.com/global-stocks-fall-oil-rises-in-volatile-trading-after-russias-oil-ban/ NEW YORK, March 8 (Reuters) – Global stock markets fell on Tuesday as oil prices climbed further, pushed by the United States’ ban on Russian oil and other energy imports following Moscow’s invasion of Ukraine. US President Joe Biden made the announcement on Tuesday, while Britain said it would phase out imports of Russian oil […]]]>

NEW YORK, March 8 (Reuters) – Global stock markets fell on Tuesday as oil prices climbed further, pushed by the United States’ ban on Russian oil and other energy imports following Moscow’s invasion of Ukraine.

US President Joe Biden made the announcement on Tuesday, while Britain said it would phase out imports of Russian oil and petroleum products by the end of 2022. read more

Benchmark Brent crude for May hit an intraday high of $131.27 a barrel before settling at $127.98 a barrel, up 3.9%, while futures on the US crude CLc1 settled at $123.70 a barrel, an increase of 3.60%. Read more

Join now for FREE unlimited access to Reuters.com

Russia, which ships 7 to 8 million barrels a day of crude and fuel to world markets, has been the target of Western sanctions since its February 24 invasion of Ukraine. nL2N2VA28Q]

Russia calls its actions a ‘special operation’ and said earlier this week that prices could soar to $300 a barrel and that it could close the main gas pipeline to Germany if the West blocks its oil exports . Read more

Jason McMann, head of geopolitical risk analysis at Morning Consult, called the US ban remarkable, but said the “real show” would be Europe’s ban on Russian energy imports.

“Given Europe’s relatively high dependence on energy supplies from Russia, such a move, if materialized, would have major economic and geopolitical ramifications,” he said.

The news added to market volatility and stoked fears of rising inflation as European and other economies cooled.

The MSCI World Equity Index (.MIWD00000PUS), which tracks stocks from 50 countries, fell 0.59% at 3:50 p.m. ET (2050 GMT).

The Dow Jones Industrial Average (.DJI) fell 83.05 points, or 0.25%, to 32,734.33, the S&P 500 (.SPX) lost 16.03 points, or 0.38%, to 4,185.06 and the Nasdaq Composite (.IXIC) added 8.70 points, or 0.07%, to 12,839.66. The STOXX 600 was down 0.51% (.STOXX).

Solita Marcelli, chief investment officer for the Americas for UBS’s wealth management arm, said the rise in oil prices over the past week – the second biggest jump in 30 years – is expected to continue, resulting in continued market volatility.

“The Russian-Ukrainian war has pushed oil prices up faster than expected, but we continue to see a tight supply-demand balance for crude oil around the world, even as hostilities end and the geopolitical risk premium attached to crude is diminishing,” Marcelli said. noted.

Gold extended its rally to a record high on Tuesday after investors flocked to the traditional safe-haven metal amid growing fears around the Russia-Ukraine crisis. Spot gold prices rose 2.6% to $2,049.31 an ounce.

The London Metal Exchange (LME) halted nickel trading on Tuesday after prices doubled in hours to a record $100,000 a tonne, fueled by a race to cover short positions. Read more

UBS Global Wealth Management recommended a neutral stance on equities and advised clients to hold commodities, energy stocks and the US dollar as short-term portfolio hedges.

The rally in oil and other commodities has heightened investor fears about global inflation. Data this week is expected to show that the US consumer price index climbed 7.9% year on year in February, from 7.5% in January. Read more

Germany’s benchmark government bond yield rose sharply and a gauge of long-term eurozone market inflation expectations hit its highest level since late 2013.

The 10-year US Treasury yield was 1.8594%.

The euro rose 0.47% to $1.0903, after falling 3% last week to its lowest level since mid-2020.

The dollar index fell 0.112%.

Join now for FREE unlimited access to Reuters.com

Reporting by Elizabeth Dilts Marshall; additional reporting by Saikat Chatterjee, Elizabeth Howcroft, Sujata Rao and Julie Zhu; Editing by Jonathan Oatis, Alexander Smith and Mark Heinrich

Our standards: The Thomson Reuters Trust Principles.

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Will a debt consolidation loan affect my credit rating? https://faceovl.com/will-a-debt-consolidation-loan-affect-my-credit-rating/ Tue, 08 Mar 2022 18:09:05 +0000 https://faceovl.com/will-a-debt-consolidation-loan-affect-my-credit-rating/ Our goal at Credible Operations, Inc., NMLS Number 1681276, hereafter referred to as “Credible”, is to give you the tools and confidence you need to improve your finances. Although we promote the products of our partner lenders who pay us for our services, all opinions are our own. (The Credible Money Coach explains the possible […]]]>

Our goal at Credible Operations, Inc., NMLS Number 1681276, hereafter referred to as “Credible”, is to give you the tools and confidence you need to improve your finances. Although we promote the products of our partner lenders who pay us for our services, all opinions are our own.

(The Credible Money Coach explains the possible credit impact of a debt consolidation loan.)

Dear Credible Money Coach,

Is it true that when you take out a debt consolidation loan, it hurts your credit? —Twila

Hello Twila and thank you for your question. Debt consolidation affects your credit differently depending on how you structure it and manage loan repayments. This can be a smart way to manage multiple high interest debts without hurting your finances.

If you’re considering a personal loan for debt consolidation, compare rates from multiple lenders to get the best deal. Credible, it’s easy to view your prequalified personal loan rates in minutes.

Why do people consolidate their debts?

When you consolidate debt, you open a new credit account, such as a personal loan, credit card, or home equity loan, to repay several existing debts. This leaves you with one payment instead of multiple accounts to manage.

If you have good credit, you may be able to get an interest rate that’s lower than the combined effective rate you’ve paid on multiple debts. This saves money in the long run.

Ways to Consolidate Debt

There are several options for consolidating debt, including:

Each of these options has advantages and disadvantages. For example, personal loan interest rates are generally lower than credit card rates. But if you continue to incur credit card charges, you could go into more debt.

Doing a 0% balance transfer could save you interest for 12 months or more. But if you don’t repay the entire balance before the end of the promotional period, the interest rate could increase significantly.

If you sign up for a debt management plan with a credit counselor, they can negotiate with your creditors to pay less than you owe, lower your interest rate, or extend your repayment period. But if you can’t repay a debt management plan as agreed, your credit may suffer.

Risks of a debt consolidation loan

A debt consolidation loan can lower your credit scores in the short term. This is because new credit applications cause your scores to drop. And if you use the loan to pay off a credit card and then close it, you reduce your total available credit, which leads to lower credit scores. (It’s best to keep a paid credit card open so you have more credit available in your name.)

However, if you make your new loan payments on time each month, your credit should recover fairly quickly from the slight hit it took when you opened the loan.

Should you get a debt consolidation loan?

A debt consolidation loan is not for everyone. I advise you to think twice before emptying a retirement account to pay off debt or putting your home at risk with a home equity loan or line of credit.

And if bad spending habits are causing your debt, working with a qualified credit counselor to improve your financial habits may be more helpful than lowering your interest rate with a debt consolidation loan.

If you decide a personal loan is right for you, Credible can help. compare personal loan rates from multiple lenders without hurting your credit.

Ready to know more? Check out these articles…

Need Credible® advice for a money-related question? Email our credible financial coaches at moneyexpert@credible.com. A Money Coach could answer your question in a future column.

This article is intended for general information and entertainment purposes. Use of this site does not create a professional-client relationship. Any information found on or derived from this website should not replace and should not be taken as legal, tax, real estate, financial, risk management or other professional advice. If you require such advice, please consult a licensed or competent professional before taking any action.

______

About the Author: Laura Adams is a personal finance and small business expert, award-winning author and host of silver girl, a weekly audio podcast and top notch blog. She is frequently quoted in the national media and millions of readers and listeners benefit from her practical financial advice. Laura’s mission is to empower consumers to live richer lives through her work as a speaker, spokesperson and advocate. She earned an MBA from the University of Florida and lives in Vero Beach, Florida. Follow her on LauraDAdams.com, instagram, Facebook, Twitterand LinkedIn.

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The investment strategy that can reduce the risks of your portfolio https://faceovl.com/the-investment-strategy-that-can-reduce-the-risks-of-your-portfolio/ Mon, 07 Mar 2022 23:15:00 +0000 https://faceovl.com/the-investment-strategy-that-can-reduce-the-risks-of-your-portfolio/ Opinions expressed by Contractor the contributors are theirs. For decades, the hallmark of a sound investment plan has been portfolio diversification: a relatively simple concept that is tantamount to not “putting all your eggs in one basket”. By incorporating a healthy mix of investments across a range of asset classes, sectors and geographies, investors can […]]]>

Opinions expressed by Contractor the contributors are theirs.

For decades, the hallmark of a sound investment plan has been portfolio diversification: a relatively simple concept that is tantamount to not “putting all your eggs in one basket”. By incorporating a healthy mix of investments across a range of asset classes, sectors and geographies, investors can theoretically minimize the likelihood of concentrated losses in one area.

While this conventional wisdom still carries weight, the realities of the 21st century market have challenged many existing assumptions about diversification. The negative correlation between asset classes such as bonds and equities was once considered a mainstay of portfolio construction, but is increasingly seen as under threat. A longer-term change in this relationship, which means bonds and stocks would fall in concert, could make it increasingly difficult for investors to create low-risk portfolios.

These changing dynamics are among developments that have accelerated the wider adoption of factor investing, an approach that can help investors understand changing market conditions and mitigate risk in their portfolios.

What is factor investing?

Factor investing is based on the principle that there are various attributes, or factors, that underlie the performance of each investment. These are well-studied, quantifiable and measurable characteristics that have demonstrated a reliable correlation with returns over time. By targeting exposure to these factors in their portfolio, investors can benefit from increased diversification and potentially higher returns.

Think of it like a car. All passenger cars on the market include several essential components, such as the engine, battery, tires, and chassis. However, the owner may decide to make adjustments or modifications to these components based on their specific needs. For example, they can buy performance tires for acceleration or snow tires to maintain traction in tough conditions. Others might consider a suspension upgrade for more precise handling and braking.

Just as a car owner can target features that make their car better suited to their performance and safety needs, factor investing offers investors a more thoughtful and customizable approach to meeting their portfolio’s risk and return goals. . And because the factors generally have low correlations with each other, investors can use them to diversify a portfolio across different underlying characteristic risk factors.

Related: The difference between direct indexing and ETFs

What are the different types of factors?

Factors generally fall into two main categories: macroeconomic and style. Macroeconomic factors explain risk in several asset classes and include concepts that are likely somewhat familiar to most investors – things like inflation, gross domestic product (GDP) growth and interest rates .

Style factors, which are the most commonly implemented, can help investors identify risk and reward factors within asset classes. They understand:

  • Assess. We all love a bargain. This factor leverages fundamental analysis to help investors identify and buy quality companies whose attractive stock prices belie their promising fundamentals.

  • Cut. Bigger is not always better. Factor investors can target small-cap stocks which, although generally riskier investments than their large-cap counterparts, can offer significant growth potential for long-term investors.

  • Quality. It reflects the overall sustainability of a business and is typically assessed using criteria such as debt level, earnings and asset growth, leadership credibility, and accounting practices. Many of these same metrics are important for sustainable investors, especially those focused on strong corporate governance.

  • Momentum. While the ubiquitous “past performance is no guarantee of future results” is entirely sound advice, momentum recognizes the tendency for stocks that have performed well recently to continue to gain in the short term. Factor investors typically implement momentum by picking stocks that have gained in the previous three to 12 months, typically ignoring the most recent month’s performance.

  • Volatility. Research suggests that stocks with more stable return patterns are likely to outperform those with a history of large price swings. This factor is captured by looking at the standard deviation of price changes over a period of one to three years.

Related: The Unexpected Parallels Between Dating and Angel Investing

Why factor investing?

Factor investing is a fairly intuitive proposition. After all, knowledge is power, and expanded access to financially important information can help investors make more informed decisions about the contents of their portfolio. This is an idea already familiar to many sustainable investors; in fact, we often hear environmental, social and governance (ESG) investing referred to as “all-information investing”. Indeed, it goes beyond traditional financial analysis to provide a more informed view of how a company manages risks and opportunities.

Factor investing itself isn’t new — it’s a strategy that active managers have been offering for years, often at a premium. However, as with many areas of capital markets, its wider adoption has been accelerated by rapid advances in data science and technology. Passive managers are now able to offer profitable index exposures that can be biased towards specific factors, as well as tailored to clients’ preferences regarding ESG issues, tax management and tracking error. From there, the platforms take care of the continuous rebalancing of the portfolio to minimize active risk.

It’s the best of both worlds: the flexibility and tax optimization benefits of active management, with the price transparency and efficiency of passive strategies.

Related: The Growth of Sustainable Investing

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7 Essential Tips When Considering a Stopover in Europe https://faceovl.com/7-essential-tips-when-considering-a-stopover-in-europe/ Fri, 04 Mar 2022 20:42:34 +0000 https://faceovl.com/7-essential-tips-when-considering-a-stopover-in-europe/ A handful of times during our travels in Europe, we had an important decision to make before booking flights. Do we detour out of a place where we will be stopped before reaching our final destination – or do we skip it? Of course, there are benefits to adding a bonus trip to your adventure, […]]]>

A handful of times during our travels in Europe, we had an important decision to make before booking flights. Do we detour out of a place where we will be stopped before reaching our final destination – or do we skip it? Of course, there are benefits to adding a bonus trip to your adventure, but as with many things in life, the final decision somehow…depends. On the one hand, you don’t want to miss anything, but on the other hand, you might end up over-complicating things for very little gain.

Here are seven proven tips to help you make the decision to layover – or just skip it!

1. Consider your budget

First things first: does a quick overnight or weekend stopover fit into your travel budget? Be honest!

Yes, it is quite tempting to soak up all the possible experiences in Europe, but don’t do it if it jeopardizes the quality of your main trip. Costs can add up quickly, even for the shortest stays: hotel, transport, meals – all the things you’ve already factored in at your main destination. Conclusion: don’t blow your budget with a stopover. Instead, wait until you’re back in Europe for your next adventure.

Famous Palmenhaus Cafe and Hofburg Palace Vienna, Austria (Photo credit: trabantos / Shutterstock.com)

2. Timing is everything

Once you’ve determined that you have the funds and the desire to make your air stopover a mini-trip, remember that timing is really everything. If you’re only planning a brief overnight stopover, don’t try to cram a ton into a compressed time frame. Consider picking a prime site, museum, or even just a walking tour of the historic city center to get a sense of the place. You won’t see and do everything in 12 hours, but that might be enough to tempt you to come back one day for a longer visit! It’s also important to keep in mind that many overnight layovers are just that: layovers. You won’t have much time to really dig – and if you do take the plunge, it might be in the wee hours (more on that in a bit). This could be another determining factor in your decision to quit or jump.h

If you have a few days, great! Do what you can in this time frame. But if your layover precedes most of your trip, take your time. You don’t want to burn out before you get to your main event!

Rays of traffic lights on Gran via street, main shopping street in Madrid at night.  Spain, Europe.
Madrid (Photo credit: Matej Kastelic / Shutterstock.com)

3. Is this a bucket list spot?

This can be a big deciding factor. Once, on an off season return flight from Dublin, we had to connect via Madrid with a 13 hour overnight layover. The sensible thing to do would have been to get a comfortable hotel room near the airport and rest. However, we had never been to Madrid. What to do?

Well, we knew that all the museums and other downtown attractions would be closed and we would be arriving in town in the middle of the night. But we had never been to Madrid, and in our minds it was better to go and experience it a bit. Our short time there made it our decision to add the spectacular city to our future travel list.

Conversely, if your layover is somewhere you’ve visited before and are familiar with, you might decide to rest near the airport. Or, you can choose a single location to focus on. For example, a one-night stopover in London on the way back from Eastern Europe. We really know London very well. But instead of staying near Heathrow, we decided to visit an area we hadn’t visited before, have dinner at a fancy little cafe and hit up a few pubs. It was quieter – and easier to get to and from the airport in this area. This targeted approach has worked well for us, and maybe for you too!

The Heathrow Express train at Paddington station in London, UK.
The Heathrow Express train (Photo credit: Frank Gaertner / Shutterstock.com)

4. Don’t forget transportation

It’s a big problem ! If you’re committed to leaving the airport and exploring your layover city, you need to consider how you’re going to get there. In Madrid, we were lucky enough to find a small hotel near the airport that was also close to a metro station. From there it was 45 minutes to downtown. In London, the Heathrow Express is a quick and easy (if a bit pricey) way to get to historic London…much quicker than a taxi or Uber. Depending on your specific stopover goals, it might be a good idea to combine your transportation needs with a driving tour to see as much of your city as possible.

Bottom Line: As we discussed during a layover, your time will likely be limited. Be sure to plan your transportation – private or public – in advance. You won’t be sorry.

A lot of multicolored tourist suitcases in the cargo area.
vadimmva / Shutterstock.com

5. Make a plan for your luggage

No one – and I mean no one – wants to drag luggage around on a quick, time-limited trip. Airlines generally do not check baggage during an overnight layover, which means you will need to collect it from the claims area when you arrive. That said, your visit will likely be a whirlwind and you don’t want suitcases or bags dragging you around. Luckily, you have a few options to lighten your load.

First, consider packing a light travel bag and leaving your heavy suitcases at the airport. Many major airports offer a luggage storage service, but of course you will want to check availability and associated costs in advance. Many train stations also offer this type of storage service.

You can also consider going through an online broker, such as Bounce. These will connect you to luggage storage locations near an airport or hotel, allowing you to roam a lot of ground right away. They are also generally cheaper than storing in a travel hub.

Last but not least, look into your hotel. Most will be happy to check your bags at the bell or have them brought up to your room immediately after you check in. Depending on the length of your layover, this might be the best option – and the cheapest.

light trolley with colorful suitcases at the hotel
Anna Jurkovska / Shutterstock.com

6. Will language be an obstacle?

Layovers are usually fast-paced and action-packed. This is why it may be wise to consider whether or not the language will be an obstacle. Of course, London, Dublin or Edinburgh will not be a problem. However, if you are considering a city in a country where English is not the primary language and you don’t have a basic understanding of what it is, you might run into some issues that could cut into your travel time. stopover and/or your pleasure. .

We learned this the hard way when, on that super-quick layover in Madrid, the taxi driver ‘couldn’t find’ our hotel one exit off the main airport thoroughfare. We don’t speak Spanish at all, so this quickly turned into a fiasco, cutting into our fast travel time, not to mention our patience!

When we talk about a normal-length vacation, we’re all about experiencing different cultures and languages; it’s part of what makes travel so great. That said, while a language barrier may create a few grumbles in your short-term trip, it might be best to revisit a city when you have more time to spend and get the real feel of a place… and refresh some local words!

Puerta del Sol in Madrid with a crowd of people at sunset.
Puerta del Sol (Photo credit: JJFarq / Shutterstock.com)

7. You might have to party like a rockstar

Finally, keep in mind that many overnight layovers are just that. You will land in the late afternoon and, depending on the type of plane ticket you have purchased, you will depart early the next morning. Usually, if you bought an economy class ticket or bought one with miles, no change without big surcharges will be allowed.

The good news is that many European cities don’t really get going until mid-evening. During our night in Madrid, we finally reached Puerta del Sol around 8pm, just as the city was starting to buzz. And while the museums were closed, we certainly made the most of our sleepless night, visiting the Museo del Jamon, La Torre del Oro (a bullfighting bar) and even a local pub where we filmed the last half of the epic Real Football match Madrid/Barcelona. We got out so late it was early, and by the time we took the metro back to our hotel, we only had 90 minutes to shower, grab a quick cup of coffee, and head to the airport. Yes, it was crazy. And we had no regrets. We had a 7 hour flight to crash before heading back to the US and we had enough taste in Madrid to know that we will be back soon.

Bottom line: A quick layover is just that. But if you’re headed to a fascinating place you want to get to know a little better, it’s a great way to experience a new city without making a big commitment, if you keep time and budget in mind. Embrace overnight adventure!

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Explained: How Indian investors can trade 8 major US stocks directly from today via NSE IFSC https://faceovl.com/explained-how-indian-investors-can-trade-8-major-us-stocks-directly-from-today-via-nse-ifsc/ Thu, 03 Mar 2022 05:14:00 +0000 https://faceovl.com/explained-how-indian-investors-can-trade-8-major-us-stocks-directly-from-today-via-nse-ifsc/ NEW DELHI: Indian retail investors will be able to trade selected US stocks from today through a subsidiary exchange of the National Stock Exchange which operates in the city of Gujarat International Finance Tech City (GIFT). Investors will now be able to trade eight leading US stocks, which will gradually increase to 50. Currently, Indian […]]]>
NEW DELHI: Indian retail investors will be able to trade selected US stocks from today through a subsidiary exchange of the National Stock Exchange which operates in the city of Gujarat International Finance Tech City (GIFT).
Investors will now be able to trade eight leading US stocks, which will gradually increase to 50. Currently, Indian investors buy US stocks through designated online brokers who have clearance from Indian and US regulators to offer such services.
NSE IFSC is a wholly owned subsidiary of the National Stock Exchange of India (NSE). Trading in the shares will be in the form of unsponsored certificates of deposit.
Here’s everything you need to know:
What is this exchange?
NSE IFSC (NSE International Exchange) incorporated on November 29, 2016, is a wholly owned subsidiary of National Stock Exchange of India Limited (NSE). Exchanges operating in the city of GIFT are permitted to offer corporate actions in any currency other than Indian Rupee. As a result, NSE IFSC, which launched trading on June 5, 2017, offers USD-denominated trades in various products.
NSE IFSC offers trading in various products including index derivatives, equity derivatives, currency derivatives, commodity derivatives and debt securities.
what is a NSE IFSC receipt?
It is a negotiable financial instrument in the nature of an unsponsored “certificate of deposit”, which means that it is a derivative product and investors can directly trade these 8 shares without having to to do so through registered online brokers. Investors have the flexibility to trade in fractional amounts of the underlying securities traded on US markets. Just as you buy shares in the domestic market, you can now buy shares in the United States and issue receipts against them, which will be known as NSEIFSC receipts.
What stocks can you trade?
NSE IFSC has so far received clearance to trade receipts for 50 US-based stocks. However, only 8 will be available to redeem from Thursday. These include in particular the following: Amazon, Tesla, Alphabet, Meta Platforms, Microsoft, Netflix, Apple and Walmart.
This will gradually be expanded to include others like Paypal, McDonalds, Johnson & Johnson, Nike Adobe, Berkshire Hathaway, Mastercard, Visa, Chevron, Morgan Stanley and JP Morgan. The release date is yet to be determined.

Investor Protection
Investors will have the ability to trade in fractional quantity/value relative to the underlying stocks traded on US markets. “The proposed framework will make US equities affordable for Indian retail investors,” according to NSE-IFSC.
What’s the benefit?
It’s a matter of accessibility. Investing in US stocks is currently a long and expensive process. But it will be much less difficult and affordable now. “This offers Indian investors a new investment opportunity with a simple investment process and low costs. Compared to the underlying stocks traded in US markets, you will be able to trade in fractional amount value. Investors will be able to hold the certificates of deposit in their own GIFT City demat accounts and will be eligible for corporate action benefits on the underlying stock,” said Likhita Chepa, senior research analyst at CapitalVia Global Research.
Who can invest?
Person residing outside India, Non-Resident Indians and Person residing in India who is eligible under FEMA to invest funds overseas, to the extent permitted by the Reserve’s Liberalized Remittance Scheme Bank of India. However, US and Canadian residents are not allowed to invest through this instrument.
How can we invest?
Investors residing in India will need to open a demat account with the IFSC. Investors will be able to hold the certificates of deposit in their own demat accounts opened in GIFT City and will be entitled to receive corporate action benefits relating to the underlying stock. The investment can be made within the Liberalized Remittance Scheme (LRS) limits prescribed by the Reserve Bank of India (RBI), meaning it must be capped at $250,000 per annum (Rs 1.9 cr ).
How does the ratio work? If I buy a stock receipt, will I own a stock in this company?
Nope. A holder of NSE IFSC Receipts will have a pro rata beneficial interest in the underlying shares, which depends on the ratio in which the NSE IFSC Receipts are issued to an underlying share of the relevant underlying company. This ratio can be expressed as 1:N (example 1:100, 1:200, etc.) and is linked to the value of the underlying Share. For example, the ratio for Apple is 25, which means one Apple share equals 25 NSE IFSC receipts. For Amazon, the ratio is 200, which means one Amazon share equals 200 NSE IFSC receipts.

You can see the whole list here
What is the tax burden on this?
Receipts will be considered foreign assets for filing tax returns. Short term capital gains will be taxed at the slab rate while long term capital gains will be 20% with indexation.
What currency will we trade in?
The trading currency will be US dollars and the minimum note size is $0.01.
Trading hours
Trading will start at 8:30 p.m. on the first day until 2:30 p.m. the following day. Trading in US Equity Receipts will take place over two calendar days beginning at 8:00 p.m. on the first day and extending until 2:30 p.m. the following day. Such a trading cycle will be considered as one business day.
What about the price range?
There will be no fixed price range applicable but the exchange will have a dynamic price range mechanism, which will prevent the acceptance of execution orders which are placed beyond the price limits set by the stock Exchange. If the market is trending one way or the other, the dynamic price band will be loosened in the direction of the price movement during the day. For US Equity NSE Receipts, the dynamic price range will be set at 10% of the base price
What is the process for an Indian resident to redeem NSE IFSC receipts?
An Indian resident who wants to trade NSE IFSC receipts on the NSE IFSC platform must complete the below formalities before they can start trading:
• Register with an IFSCA registered trading member and meet KYC requirements
• Complete documentation for the Liberalized Remittance System (LRS) with the bank
• Transfer US dollars from his bank account to the commercial member’s bank account in GIFT IBU
• Confirm that the broker has credited their account
• Start trading NSE IFSC receipts on the NSE IFSC platform.
Can a commercial member benefit from the LRS?
LRS is not available for corporations, joint ventures, HUFs, trusts
Is intraday trading allowed? Is short selling allowed?
Yes. Intraday transactions are allowed in NSE IFSC receipts. However, with respect to Indian retail investors, intraday trading is permitted, provided that the investor:
• Will not be allowed to take positions/execute trades that would exceed the overall LRS
limit of USD 2,50,000 per fiscal year.
• Each transaction is adequately guaranteed by the full value of the transaction.
• Sale transactions must either be secured by NSE IFSC receipts or be a sale transaction against
an open buy position created during the day.
Short selling of NSE IFSC receipts by Indian retail investors will not be permitted
What is the settlement cycle for NSE IFSC receipts?
All NSE IFSC receipts bought and sold on the NSE IFSC platform must be settled through NSE IFSC Clearing Corporation Limited (NICCL).
Settlement of funds and IFSC NSE RECEIPTS will take place on day T+3.
What type of bank account does the investor need to send funds/receive payments?
There are no specific requirements for a bank account to be held by investors. Investors can either open a dollar account with any of the banks operating in the IFSC region or use their domestic INR account to make or receive payments from the broker.
What are the potential risks for an investor?
Investing in NSE IFSC Receipts involves risks. Some of the significant risks are:
1. General Price and Volatility Risk.
2. Liquidity Risk.
3. Underlying Stock Risk.
4. Risk of Cancellation and Termination of NSE IFSC Receipt.
5. Tax risks.
6. Other risks such as force majeure, changes in legislation, regulations, negotiation, etc.
Holidays :
Most trading holidays for NSEIFSC receipts on U.S. stocks will conform to U.S. holidays. However, some Indian festivals have also been incorporated. In 2022, the public holidays are April 15 (Good Friday), May 30 (Remembrance Day), June 20 (Juneteenth National Independence Day), July 4 (US Independence Day), August 15 (Indian Independence Day ), September 5 (Labor Day), October 24 (Diwali), November 24 (Thanksgiving) and December 26 (Christmas)

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Buy This Paints Stock Trading Near Its 52-Week Low For Short-Term Gains Of 24%: HDFC Securities https://faceovl.com/buy-this-paints-stock-trading-near-its-52-week-low-for-short-term-gains-of-24-hdfc-securities/ Sat, 26 Feb 2022 00:58:56 +0000 https://faceovl.com/buy-this-paints-stock-trading-near-its-52-week-low-for-short-term-gains-of-24-hdfc-securities/ Buy Akzo Nobel for a target price of Rs. 2315 On Feb 21, 2022, the brokerage recommended buying on the certificate for a target price of Rs. 2315 for a period of 6 months. From the current price level of Rs. 1870.6 per share, the potential gains can reach 23.76% in the short term. Akzo […]]]>

Buy Akzo Nobel for a target price of Rs. 2315

On Feb 21, 2022, the brokerage recommended buying on the certificate for a target price of Rs. 2315 for a period of 6 months. From the current price level of Rs. 1870.6 per share, the potential gains can reach 23.76% in the short term.

Akzo Nobel Q3fy22 results by brokerage:

Akzo Nobel Q3fy22 results by brokerage:

For the quarter ended 31-12-2021, the company reported consolidated total revenue of Rs 919.06 Crore, up 23.55% from last quarter, total revenue of Rs 743.90 Crore and up up 17.78% from the same quarter last year, total revenue of Rs 780.35 Crore. The company reported a net profit after tax of Rs 83.82 Crore during the reporting period.

Why 'buy' the Akzo Nobel script?

Why ‘buy’ the Akzo Nobel script?

Even amid the Covid fallout, the paints sector has shown resilience since the Q2fy21 period. Additionally, as work from home and policy initiatives to boost residential real estate have become the norm, the paints sector has seen a faster recovery than other discretionary segments. Other driving forces such as population driven growth, housing growth, shorter repaint cycle as well as premiumization will also help the business. Moreover, the company will also prove to be the biggest beneficiary in the industrial segment also due to the revival of the investment cycle.

Warning:

Warning:

Investing in the stock market is risky. Investors should therefore exercise caution. Greynium Information Technologies and the author are not responsible for any losses caused as a result of decisions based on the article.

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Stock Market Today: Russian Invasion Sets Off a Roller Coaster Day for Stocks https://faceovl.com/stock-market-today-russian-invasion-sets-off-a-roller-coaster-day-for-stocks/ Thu, 24 Feb 2022 21:37:59 +0000 https://faceovl.com/stock-market-today-russian-invasion-sets-off-a-roller-coaster-day-for-stocks/ News of Russia’s full-scale invasion of Ukraine sent stocks plummeting today. “We are clearly in risk mode in the market at the moment given the uncertainty surrounding military operations in Ukraine,” said Brian Price, head of investment management for Commonwealth Financial Network. “There seems to be an element of surprise that events have escalated so […]]]>

News of Russia’s full-scale invasion of Ukraine sent stocks plummeting today.

“We are clearly in risk mode in the market at the moment given the uncertainty surrounding military operations in Ukraine,” said Brian Price, head of investment management for Commonwealth Financial Network.

“There seems to be an element of surprise that events have escalated so quickly and I expect we will continue to see short-term volatility.”

Indeed, after the Dow Jones Industrial Average flirted with correction territory and the Nasdaq Compound slipped below its bear market level on an intraday basis, major stock indices reversed course as President Joe Biden announced a new round of sanctions against Russia, including the freezing of billions of dollars of Russian assets , and said he was sending additional US troops to Eastern European countries that are in NATO.

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At the close, the Nasdaq – which was down 3.4% at its session low – rose 3.3% to 13,473. S&P 500 Index also ended in positive territory, gaining 1.5% to end at 4,288. Dowmeanwhile, finished with a 0.3% gain at 33,223, after trading as low as 32,272 earlier.

Other news on the stock market today:

  • Small cap Russell 2000 joined the rollercoaster ride, ending the day up 2.6% at 1,995, after falling 2.6% in intraday trading.
  • Gold Futures Contracts gained 0.8% to settle at $1,926.30 an ounce, its highest level in 17 months.
  • Bitcoin rose 2% to $38,466.10. (Bitcoin trades 24 hours a day; prices shown here are as of 4 p.m.)
  • Modern (MRNA) was a big gainer today, jumping 15.1% after earnings. In the fourth quarter, the drugmaker reported adjusted earnings of $11.29 per share on $7.2 billion in revenue, beating the $9.90 per share and $6.8 billion expected by analysts. The company also said it sold $17.7 billion of its COVID-19 vaccine and expects to sell at least $19 billion in fiscal 2022.
  • Reserve credits (BKNG), on the other hand, fell 7.1% after its quarterly results. The online travel booking company reported adjusted earnings of $15.83 per share and revenue of $3.0 billion in the fourth quarter, beating analysts’ expectations for a profit of $13.30 per share on sales of $2.9 billion. The company also said gross travel bookings for the three-month period increased 160% year-on-year to $19.0 billion. Still, Booking CEO David Goulden warned of “a potentially volatile environment with high COVID infection rates in some parts of the world and geopolitical uncertainty that could impact our business, particularly in Europe. “, in the company’s earnings call. UBS Research analyst Lloyd Walmsley maintained a buy rating on BKNG. “Looking forward, we see the possibility of a stronger than expected recovery in 2022 and 2023 in terms of room nights and bookings which we believe would result in attractive additional margins,” he wrote in a note. .

A way to hedge geopolitical risk

One way to protect against international turbulence: raw materials. That’s according to a team of strategists at Goldman Sachs Commodities Research.

“As news of Russia’s invasion of Ukraine emerged, commodity markets rallied aggressively, acting as a clear geopolitical hedge of first resort,” they write.

This was seen in the price action of several commodities today, including U.S. crude oil futures, which broke above $100 a barrel in intraday trading – their first move above. above that level since 2014 – before settling 0.8% higher at $92.81 a barrel.

And prices are likely to rise further, with many experts predicting that oil could hit the $125 a barrel mark. “Uncertainty around potential sanctions is starting to create a potential supply shock,” the team says. “In our view, until the uncertainty surrounding the rapidly escalating situation is resolved, commodity price risk remains on the upside.”

Not only would a continued rise in oil prices be good news for traditional energy stocks and energy exchange-traded funds, but also for master limited partnerships (MLPs). These companies, which are largely responsible for pipeline infrastructure and storage facilities, offer both exposure to the booming energy market and high dividend yields.

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