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Stock market trading is something that needs expert guidance and has its own set of risks associated. This is why, people generally consult experts before investing in stocks. However, one needs to be careful who they are seeking advice from when it comes to financial matters. In a recent case, a 63-year-old man from Hyderabad lost Rs 50 lakh after falling for a fraudulent stock trading scheme shared through a <keyword id="790242" type="General" weightage="20" keywordseo="whatsapp" source="Orion">WhatsApp</keyword> group. This is just one example of how fraudsters are increasingly using messaging platforms to lure in victims with false promises of easy profits. <h2>How the scam unfolded </h2> The scam began when the victim received an invitation to join a WhatsApp group called Stock Discussion Group. According to a Times Now report, the group was led by a man named <keyword id="23828130" type="General" weightage="20" keywordseo="kunal-singh" source="keywords">Kunal Singh</keyword>, who introduced himself as a financial advisor with extensive experience in the stock market. Singh claimed that his past clients had earned significant profits, boasting of returns as high as 500% by following his stock trading advice. Intrigued by these promises, the victim enrolled in online classes that were promoted within the group. These sessions, held through private links shared on WhatsApp, promised to teach participants how to make money by investing in the stock market. Singh continued to assure group members that his expertise would guide them to financial success. The victim, trusting his guidance, began to invest small amounts of money on a platform called Skyrim Capital, which Singh claimed was a legitimate trading platform. At first, the victim saw some returns on his investment, which only encouraged him to invest more. The initial success built his confidence, and over time, he transferred a total of Rs 50 lakh into multiple investments, believing that he was making wise financial decisions. However, when the victim attempted to withdraw his funds, he was unable to do so. The platform blocked his attempts, and when he tried to contact Singh, he received no response. The truth behind the scam The victim soon realised that he had been scammed. The platform, Skyrim Capital, turned out to be nothing more than a front for fraudulent activity, and Singh had disappeared with the man’s money. The scam had been carefully designed to build trust initially, only to betray the victim when he tried to cash out. The fraudsters used the lure of high returns and expert advice to convince the victim to keep investing larger sums, ultimately draining his finances. This scam is just one of many that have been reported in India, with cybercriminals exploiting the convenience and popularity of platforms like WhatsApp to reach potential victims. These scams often rely on false promises and fake personas, with fraudsters creating elaborate stories to convince their targets that they are legitimate financial advisors.

63-year-old Hyderabad man loses ₹50 lakh after joining WhatsApp group for stock market investment advice

Foreign investors have withdrawn nearly Rs 20,000 crore from Indian stock markets in just five trading days (November 4–8), continuing a trend of large-scale selling that began last month. Experts say investors are now moving their money to China, largely due to the high valuations presently prevailing in Indian markets. In early November, FPIs have offloaded as much as Rs 19,994 crore in Indian markets. The month prior, i.e., October, was one of the worst months in terms of foreign outflows, with FPIs making a net withdrawal of Rs 94,017 crore. Before this, Indian markets faced such a situation during the pandemic, when FPIs withdrew Rs 61,973 crore from equities in March 2020. <h2>Why Are Investors Leaving? </h2>According to Himanshu Srivastava of Morningstar Investment Research India, two main factors are driving this exodus. First is China's renewed appeal due to lower stock valuations and new economic stimulus measures. In a bid to nudge the domestic economy and bail state governments, China recently approved a 10-trillion yuan (US $1.4 trillion) package. Per reports, approximately 60% of this stimulus focuses on allowing local governments to refinance the mountain of debt on them. Srivastava explains foreign investors are also flocking to US dollar and Treasury yields, which have appreciated significantly in the recent past, leading FPIs to anticipate a stronger US economy going ahead. Moreover, high valuations in Indian markets are discouraging foreign investors from putting more money in the economy. As a result, over the past week, the selling pressure eroded Rs 74,563 crore in market value for Reliance Industries, while Bharti Airtel and ICICI Bank lost Rs 26,274 crore and Rs 22,254 crore, respectively. The combined market valuation of six of the top 10 most-valued firms dipped by Rs 1,55,721.12 crore last week. <h2> Silver linings</h2>Despite the ongoing outflux of funds since last month, November also saw unprecedented applications of about 40–50 new FPI registrations, which are eyeing to enter the Indian market. This was due to markets SEBIs recent relaxation to NRIs, permitting them to participate up to 100% and announcing measures for ease of entry and operations in India. On the other hand, FPIs invested Rs 599 crore in the debt general limit and Rs 2,896 crore in the debt voluntary retention route (VRR) during the period under review. So far this year, FPIs have invested Rs 1.06 lakh crore in the debt market. <li class="whitespace-normal break-words"></li>Going ahead, investors will be looking for certain macroeconomic cues, which include corporate earnings reports, India's inflation (CPI) and industrial production (IIP) data on November 12, the US inflation report on November 13, and wholesale price index (WPI) data on November 14.

FPIs withdraw nearly Rs 20,000 crore from equities in the last 5 trading sessions, make a beeline for China and US

<ul class="summary-list"><li>John Hussman warns of poor S&amp;P 500 returns over the next 12 years.</li><li>High valuations suggest potential underperformance against Treasurys.</li></ul>Before investing in the stock market, <a target="_blank" class="" href="https://www.businessinsider.com/stock-market-crash-bubble-sp500-outlook-valuations-1929-2000-hussman-2024-9">John Hussman</a> urges investors to keep in mind that return outcomes ultimately have different probabilities based on when you buy in.While the <a target="_blank" href="https://www.businessinsider.com/personal-finance/investing/average-stock-market-return#:~:text=The%20S%26P%20500%20has%20returned,bonds%20or%20fixed%2Dincome%20assets.">S&amp;P 500 has averaged 10.5% annual returns</a> since 1957, that doesn't mean those are the average returns you'll get no matter when you enter the market."This is like stepping into a house with two rooms, one with the temperature at 0 degrees and one at 140 degrees, and expecting a temperature of 70 either way," said Hussman, the president of the Hussman Investment Trust who called the 2000 and 2008 crashes, in an October 17 note.Case in point, if you bought in on February 14, 2020, you'd be up 71%. But if you bought in just over a month later, at the bottom of the pandemic-driven crash on March 20, you'd be up 152% right now. They're both great outcomes, no doubt. But they're very different. And in business cycles where monetary and fiscal stimulus aren't as robust, the market can take a much longer time to recover.Right now, a few different variables show that investors should expect poor outcomes over the next 12 years if they were to invest in the S&amp;P 500 today, Hussman said.First, there are valuation levels. Hussman's go-to measure is the market cap of non-financial stocks divided by those stocks' total gross value added. The metric is at all-time highs, surpassing the largest bubble peaks in history.<div type="image" title="stock valuations" height="520" width="909" msid="114619204" hostid="261" sizebytes="35468"></div>Hussman likes it so much because it's been a fairly good predictor of 12-year market returns relative to 10-year Treasury returns. Here's the relationship between expectations and actual market returns. Current expectations have the S&amp;P 500 underperforming Treasurys by 9.9% annually over the next 12 years.<div type="image" title="expected vs actual market returns" height="526" width="911" msid="114619196" hostid="261" sizebytes="49876"></div>Then there's investor sentiment, which Hussman measures through the uniformity of movement in thousands of securities. In the chart below, when the measure goes flat like in 2000 and 2008, it's historically been bad for stocks.<div type="image" title="hussman market internals" height="522" width="915" msid="114619200" hostid="261" sizebytes="40814"></div>Finally, there's the accumulation of warning signs of market over-extension that rivals prior major downturn periods. The individual warning signs that Hussman monitors are various technical indicators, like the S&amp;P 500 being within 2% of its 5-year high while less than 72% of stocks are below their 200-day moving averages and 2.5% of stocks hit new both 52-week highs and lows at the same time, among other conflicting signals.<div type="image" title="hussman market over-extension signals" height="523" width="906" msid="114619202" hostid="261" sizebytes="38850"></div><h2 id="d60fe598-14e2-4ac5-a790-8f742704fa81" class="premium">Hussman's track record — and his views in context</h2>Hussman's outlook is often seen as extreme, and perhaps fairly so. But valuations are causing skepticism about future market returns among others on Wall Street, even if not to the same degree.Earlier this week, <a target="_blank" class="" href="https://markets.businessinsider.com/news/stocks/stock-market-outlook-sp500-future-returns-decade-forecast-goldman-sachs-2024-10">Goldman Sachs forecast that the S&amp;P 500 would average 3% annual returns</a> over the next decade. That's less than the 4.2% annual yield that risk-free 10-year Treasurys offer.It's also worth remembering that Hussman's outlook is only for a 12-year period if you were to buy in now — not if you plan to hold for multiple decades.For the uninitiated, Hussman has repeatedly made headlines by predicting a <a target="_blank" rel="" href="https://www.businessinsider.com/stock-market-news-john-hussman-says-stocks-at-record-valuations-will-lose-two-thirds-2018-1">stock-market decline</a> exceeding 60% and forecasting a full decade of <a target="_blank" rel="" href="https://www.businessinsider.com/stock-market-news-market-bear-sees-decade-of-stock-losses-wall-street-mad-2017-11">negative equity returns</a>. And as the stock market ground mostly higher, he persisted with his doomsday calls.But before you dismiss Hussman as a wonky perma-bear, consider again his track record. Here are the arguments he's laid out:<ul><li>He predicted in March 2000 that tech stocks would plunge 83%, and then the tech-heavy Nasdaq 100 index lost an "improbably precise" 83% during a period from 2000 to 2002.</li><li>He predicted in 2000 that the S&amp;P 500 would probably see negative total returns over the following decade, which it did.</li><li>He predicted in April 2007 that the S&amp;P 500 could lose 40%, then it lost 55% in the subsequent collapse from 2007 to 2009.</li></ul>Hussman's recent returns, however, have been less than stellar. His Strategic Growth Fund is down about 55% since December 2010 and has fallen 16% in the past 12 months. The S&amp;P 500, by comparison, is up about 39% over the past year.The amount of bearish evidence being unearthed by Hussman continues to mount, and his calls over the past couple of years for a substantial sell-off began to prove accurate in 2022. Yes, there may still be returns to be realized in this new bull market, but at what point does the mounting risk of a larger crash become too unbearable?That's a question investors will have to answer themselves — and one that Hussman will keep exploring in the interim.

A notorious market bear who called the 2000 and 2008 crashes shares 3 signs it's a terrible time to invest in the S&P 500 — and warns stocks are due to underperform Treasurys by 10% over the next 12 years

<ul class="summary-list"><li>Investors boosted stocks after Donald Trump won a second term.</li><li>But investors shouldn't depart from their long-term investing plan, Morningstar's Dave Sekera says.</li></ul>Investors had a field day on Wednesday, <a target="_blank" class="" href="https://markets.businessinsider.com/news/stocks/trump-election-win-stock-market-today-record-high-sp500-dow-2024-11">plowing money into the stock market</a> following the news that former president Donald Trump had won a second term. The S&amp;P 500 rose 2.5%, while the Dow Jones Industrial Average ended the day up a whopping 3.5%.But even as prices soar, it's important not to get caught up in the mania beyond your normal risk tolerance, warns Morningstar Senior US Market Strategist Dave Sekera."Don't let any of these dire headlines that you may see here in the short term dissuade you from your long-term investment objectives," Sekera said in a webinar on Wednesday morning."Based on your risk tolerance, I probably wouldn't be making any changes here today," he continued. "And when you do make changes, make sure that you're only making changes when there's really a change in your underlying fundamentals and only make changes in your portfolio based on an informed analysis."While not letting near-term developments derail your plan for your portfolio is classic advice, Sekera said there's another reason to be extra cautious: stock valuations are at some of their most expensive levels in the last decade-and-a-half."When I look at the market today, it is trading, with today's bump, probably a 3% to 4% premium above fair value," he said. "Now, a lot of investors may say, 'Eh, 3% to 4% doesn't sound like that much from a market point of view,' but when I look at our valuations going back to 2010, less than 20% of the time have we seen the market trade at this much of a premium or more."While Morningstar has its own proprietary valuation measures, common metrics show the S&amp;P 500 is indeed expensive. Below is the Shiller cyclically-adjusted price-to-earnings ratio, for example. It's a 10-year rolling average of the market's trailing 12-month PE ratio.<div type="image" title="shiller cape ratio" height="943" width="1242" msid="115062287" hostid="261" sizebytes="44672"></div>These valuation levels have prompted some <a target="_blank" class="" href="https://www.businessinsider.com/stock-market-crash-why-sp500-decade-weak-returns-goldman-jpmorgan-2024-11">top investment banks</a>, including Goldman Sachs, to warn of relatively poor returns in the coming decade.At the same time, investors are probably right to be excited about the prospect of lower taxes and regulation, Sekera said. Even what some investors may view as negatives, like tariffs and the potential inflation that could result from them, may end up being a boon for stocks, he said."From the stock point of view, for those companies that have pricing power, that actually could end up helping them generate some additional earnings growth," he said.If Republicans end up taking a majority in the House of Representatives alongside their victory in the Senate and the White House, bullishness around more tax cuts may especially be well founded, according to Sekera.Still, markets are unpredictable, and investors shouldn't overreact to events like elections, as there are many variables at play beyond who is in political power — like starting valuations. Sekera pointed to a recent article from his colleague John Rekenthaler, where he highlighted that oil stocks have done much better under President Joe Biden than they did during Trump's first term, despite their differing attitudes toward the fossil fuel industry.That's again why Sekera is urging restraint, with the market being expensive. That is particularly true for growth stocks, which trade at a "very large premium," he said.Value stocks and small-caps are where Sekera sees the most opportunity — especially in the latter."The small-cap space, even with today's bump, it's still the most undervalued part of the market in our view," he said.

Why you shouldn't get caught up in the post-election stock-market frenzy: Morningstar

India's investment ecosystem is undergoing a seismic shift, with index investing gaining unprecedented traction among investors, according to a report by Motilal Oswal. The younger generation, including Gen Z and Millennials, shows a stronger inclination towards index funds as compared to older investors. They also prefer index funds over ETFs for better returns and liquidity. A recent report by Axis AMC also highlighted the growing appetite for ETFs, which witnessed net sales of Rs 15,403 crore in October 2024. While 46% of younger investors favor index funds, only 35% of Gen X and Boomers do so. Millennials and Gen X investors also have a keen interest in factor or smart beta funds, reflecting their appetite for innovative, albeit aggressive investment strategies. Passive funds have become a core component of investor portfolios, with 80% of investors increasing their allocation to these funds in 2024, compared to 53% last year. The Axis report echoed similar sentiments, noting that net sales in the passive category inched up to Rs 8,025 crore in October 2024. The combined assets under management (AUM) of passive funds have surged from Rs 7 lakh crore in September 2023 to over Rs 11 lakh crore by September 2024—a 1.5x growth in just one year. The survey also noted a growing popularity of ETFs, with 57% of respondents investing in them, up from 41% in 2023. Of these, 26% invest solely in ETFs, while 31% have diversified between ETFs and index funds. This rising preference is matched by a commitment to long-term investment. A significant 81% of investors plan to hold their passive investments for over three years, highlighting sustained confidence in the growth potential of these funds. Sectoral indices like Nifty IT and Nifty Bank dominate as the top choice for passive fund investors, selected by 67% of respondents. Benchmark indices such as the Nifty 50 and Nifty 500 follow closely, preferred by 61% of investors. A recent, similar report by stock broker Angel One also throws a spotlight on how young India plans and prefers mutual funds when it comes to savings and investments. The report, titled "Young Indians' Saving Habits Outlook 2024," compiled by Fin One, stated that 45% of respondents aged 22-35 have made it a point to save up some of their savings in mutual funds. A year ago, this figure stood at just 32%. Most of these investors make their way into mutual funds via SIPs, or systematic investment plans. 52% of respondents in the age cohort of 22-35 are now using SIPs to invest in mutual funds, up from 44% in the previous year. As for what was the driving factor behind beginning their investment journey, 42% underlined the past performance of funds, while 38% noted that advice from financial advisors remained a key consideration. 38% of young Indians are now increasingly focusing on building an emergency corpus, compared to 28% the year before. This shift underscores the drastic change in financial sensibilities brought forth by the pandemic and the consequent desire for greater financial resilience. In fact, approximately 4 out of every 5 surveyed investors maintained a dedicated, separate savings account. Out of the 1,650 individuals studied under the FinOne survey, a staggering majority made their first foray into the stock market in their early twenties. Nearly 2 in every 5 investors pick stock as their preferred choice of investment, followed by mutual funds and then savings bank accounts. While 45% of those surveyed picked stocks as their chosen investment avenue, 20% preferred mutual funds, and 15% wanted to keep their money in a savings bank account.

Gen Z and Millennials prefer stocks and mutual funds; index funds trump over ETFs, say recent reports

In the last two years, there has been a rapid rise in scams in India and a lot of people have lost their hard-earned money after trusting strangers for financial advice. Be it a fraudulent app, being added to a shady WhatsApp group, or receiving phone calls from strangers that sound too good to be true, many cases have come to light. Now, in a new incident, a doctor from Thane, Maharashtra, was misled by three Karnataka-based suspects who promised earnings via a municipal contract to supply medical equipment, costing him ₹3.84 crore. Despite investing over a three-year period, he saw no returns and reported the crime to the Naupada police, who have registered a case but made no arrests. Thane doctor tricked by false municipal contract According to a PTI report, a 39-year-old doctor in Thane, Maharashtra was deceived by three men from Karnataka. These fraudsters offered him lucrative returns through a supposed municipal contract for supplying medical equipment. Convinced by the promise of reliable profits, the doctor began investing heavily in December 2020, making significant contributions until March this year. The doctor’s substantial investment – totalling ₹3.84 crore – was made over multiple transactions from December 2020 and March this year, in anticipation of high returns that never materialised. Suspicion finally arose after the doctor had seen no profits despite his repeated investments. Recognising he may have been defrauded, he reached out to the Naupada police station, who registered a case under charges of cheating. While no arrests have been made so far, authorities have launched an investigation to track down the perpetrators and recover the funds if possible. A police official told PTI, "The man approached police after he did not get profits or any return on investment. We have registered a case of cheating but have not arrested anyone." Ahmedabad gynaecologist duped in <keyword id="21361161" type="General" weightage="100" keywordseo="stock-market-scam" source="keywords">stock market scam</keyword> In a similar incident, a gynaecologist from Ahmedabad lost ₹1.1 crore to a scam that began with a social media advertisement. Attracted by the potential for substantial stock market returns, the doctor engaged with a group promising expert tips and was subsequently added to a WhatsApp group where members shared investment insights. Through this group, he was introduced to a web link for stock and IPO investments, along with an application that required his banking details and identification documents. A PTI report revealed that the doctor’s initial investment of ₹50,000 yielded a profit of ₹10,000, which he successfully withdrew. This initial success encouraged him to make larger investments, transferring ₹1.1 crore through multiple transactions in pursuit of higher gains. When he later attempted to withdraw his funds, he was unexpectedly asked to pay 20% of his total profits. After refusing this demand, he was removed from the WhatsApp group and realised the extent of the deception. He contacted Cybercrime police in February, and after months of waiting, a formal case was registered against unknown suspects under charges of breach of trust and cheating, alongside provisions of the <keyword id="20003647" type="General" weightage="20" keywordseo="information-technology-act" source="keywords">Information Technology Act</keyword>.

Thane doctor gets cheated of ₹3.84 crore, was promised high financial returns by 3 men

Foreign Institutional Investors (FIIs) have been rapidly exiting Indian markets, and this high-speed exodus does not look like it will stop anytime soon. In October 2024, FIIs withdrew Rs 1,14,445.89 crores from Indian markets. Yesterday, FIIs withdrew $770.67 million from the markets, with equity outflows of $440.86 million and debt outflows standing at $327.44 million across various categories. Per NSDL data, hybrid outflows amounted to $2.31 million. While this may sound dissuading at first, a recent SBI report underlined that FIIs still hold a massive $ 18.241 billion in Indian markets. So far, FY25 has seen FII inflows worth $ 8.924 billion. However, the situation may quickly turn alarming as well, given that FII holdings in Indian equities have already come down to a 12-year low. Says Anirudh Garg, Partner and Fund Manager at Invasset PMS, "The current valuation of Indian stocks, trading at around 24 times expected earnings, appears high compared to Chinese stocks, which are at approximately 10 times. Economic concerns, including weak corporate earnings and declining consumer demand, further exacerbate this situation. Additionally, renewed fears of inflation and potential monetary tightening by central banks have led FIIs to withdraw from the Indian market." In the meantime, DIIs (domestic institutional investors) are stepping in big time. During October 2024, DIIs infused Rs 1,07,254.68 crore in Indian markets. In November so far, DIIs have been keeping the fund momentum going, infusing Rs 12,265.74 crore in India, while FIIs have offloaded Rs 16,445.49 crore this month. But despite this strong uptick, SBI's recent report suggests that consumer confidence in India remains below 100, signaling muted positivity and optimism in the economy. While household consumption is gradually recovering, it grew at 4% last year, much below the 7% levels recorded pre-pandemic. <h2>FII share in <keyword id="20868945" type="General" weightage="20" keywordseo="NSE-listed-companies" source="keywords">NSE-listed companies</keyword> takes a dip, DII stake rise </h2>FIIs share in NSE-listed companies stood at 15.98% in October, with assets under their custody in the equity segment coming to Rs 71.08 lakh crore last month. In September, this stood at Rs 77.96 crore. Experts suggest that this is likely to continue for some time to come. Mutual funds, on the other hand, saw their share in NSE-listed companies hit a record high of 9.58%, as opposed to their 9.32% stake in September 2024. FIIs turned net sellers in the debt segment as well in October, dumping $771 million in Indian markets. This comes after 2 consecutive months of healthy inflows in this segment in August and September 2024, where the figures stood at $2,806 million and $2,295 million, respectively.

FII stake in Indian equities dips to a 12-year low

New Delhi: <keyword id="19900795" type="General" weightage="20" keywordseo="foreign-investors" source="keywords">Foreign investors</keyword> pulled out a massive Rs 94,000 crore (around USD 11.2 billion) from the Indian <keyword id="19925636" type="General" weightage="20" keywordseo="stock-market" source="keywords">stock market</keyword> in October, making it the worst-ever month in terms of outflows, triggered by the elevated valuation of domestic equities and attractive valuations of <keyword id="20295104" type="General" weightage="20" keywordseo="Chinese-stocks" source="keywords">Chinese stocks</keyword>. Before this, foreign portfolio investors (FPIs) withdrew Rs 61,973 crore from equities in March 2020. The latest outflow came after a nine-month high investment of Rs 57,724 crore in September 2024. Since June, FPIs have consistently bought equities after withdrawing Rs 34,252 crore in April-May. Overall, FPIs have been net buyers in 2024, except for January, April and May, data with the depositories showed. Looking ahead, the trajectory of global events like geopolitical developments, interest rate movements, progress in the Chinese economy and the outcome of the US Presidential election will play a crucial role in shaping future foreign investment in <keyword id="20014814" type="General" weightage="20" keywordseo="Indian-equities" source="keywords">Indian equities</keyword>, Himanshu Srivastava, Associate Director, Manager Research, Morningstar Investment Research India, said. On the domestic front, key indicators like inflation trajectory, corporate earnings, and the impact of festive season demand will also be closely watched by FPIs as they assess opportunities in the Indian market, he added. According to the data, FPIs recorded a net outflow of Rs 94,017 crore in October. The intensity of net outflows could be gauged from the fact that except for one day, FPIs were net sellers throughout the month, bringing their total investment for 2024 down to Rs 6,593 crore. This relentless selling resulted in about an 8 per cent decline in benchmark indices from their peaks. Several factors contributed towards this massive withdrawal of foreign capital from the Indian equity markets in October. The major among them is the elevated valuations of Indian equities. This has triggered a shift in investments towards China, where valuations are currently more attractive. Additionally, a series of stimulus measures, aimed at bolstering Chinese economic growth has made Chinese equities increasingly appealing to global investors, Srivastava said. Despite the massive FPI selling in financials, this sector is resilient since the valuations are fair and every selling is being absorbed by DIIs and individual investors, particularly HNIs, VK Vijayakumar, Chief Investment Strategist, Geojit Financial Services, said. In addition, FPIs pulled out Rs 4,406 crore from the debt general limit and invested Rs 100 crore from the debt Voluntary Retention Route (VRR) during the period under review. So far this year, FPIs invested Rs 1.06 lakh crore in the debt market.

FPIs withdraw record Rs 94,000 cr from Indian equities in Oct on attractive Chinese valuations

<ul class="summary-list"><li>A new study shows 51.6% of US stocks since 1925 lost value over their lifetimes.</li><li>But there are steps one can take to mitigate risk, says Lance Roberts.</li></ul>It may come as a surprise that most stocks lose value over their lifetimes, given the long-term outperformance of major indexes like the S&amp;P 500.A <a target="_blank" href="https://download.ssrn.com/2024/10/1/4897069.pdf?response-content-disposition=inline&amp;X-Amz-Security-Token=IQoJb3JpZ2luX2VjEC0aCXVzLWVhc3QtMSJHMEUCIQDN0qA7vH3iVQ7kMnZb4o9%2B6lcNFjaOmf49w%2Bw5bU5jTwIgcl%2BOpTpgkU0WOQS0sUYTeqH4vOVA8%2B8E6WE59iHcgnEqxgUIlv%2F%2F%2F%2F%2F%2F%2F%2F%2F%2FARAEGgwzMDg0NzUzMDEyNTciDCv3AwTMvnly0NCcWyqaBSrLGbVPR%2FoKw54NV4LpS3q9DrkC7NW5xBeK2ftAprs7ZR3zweHEhwYokQZoeckyXVjOYsfI5OgW5X%2Bhoc1%2BXcM0CqhRVsDEfiBV4qaTawLsmCdPLxe25894Br3LsWasPrlqCZAH0%2BxqDk2kc9I8ll7kgw29%2Bmxqt0yMQeFb94WPydLAWP2stv7jD115u2xfyuzvMlKTlQ8n4q5ZgJrPTd0kZ6g17XIlXbj8IL%2BvVqr7whu15KdngyMNqBNVU9GkBTLR81ubC8l%2B%2FTW3xSxgv6BbMntgX35R6HQv2uOzghLnb1qbkEdKYJFV4R62Fte8CUaOCwctmVXfLasGnKnT5BSiEdYnOhZQbdlmUPn%2FAWZdQRjqL8wm0iDfuM4BtEY1z0ciIiJ4NY0j7oglRko3K4qqP40u1U6CaAH2DhQeFdhQKa439hGN9RDg9RBi3%2FJ3onq6CHpFJuwtPv8Yku5vVy6xtVdk3YQ96ByG3T1VmjbABE3GdTwdsUxl%2BQfCS3RY%2FjHUDhbCai6ISC224s0DqUFs8FScV5TgvzgtkV8H4DuKVmOiK5qPX7vYHRRhbwcuBjxYMYZQjiAoTTckr2YYAKBnKsROl%2FnNdm4G5ajKXDWMAg9Qr2lp7MOSOYS2HRoUq3WQM%2BqPFe5dvmhJAi0VdiglMOVr2nOKLlcJYslVEmVSPh1gsSwc%2FuGB3zqv4nMD9aF9yURFCH3D4hSVN7yxxfiICYhDa7ShR7zJrYlE3ynmdUq93rBo7BNZYUB9osihmSdmZ%2BmgMv7JbliHmQQ3%2BAcziK6rMzmyeIRnAvLRc2RBywKi0xELG%2BhdhhaHjhpIfp2om%2FUK0K40CScj8RPLooS%2BESjM7Um1N3VZOe6BAOYE5BLTmiyHG1QMezDZ9tq4BjqxATVtLNrOOHOYEAQZIosRIxp1zb2GclGkoEhSicOA%2BE%2BbO2hvslHnjd40DFltPtmBYF11Njs6G5hJhfO692AkL4qSuuMuHPv7kdkzrC8POj3h6JnqrPdWUkFqC%2F3UWvPe87E26USmQo59UWLnXFizN94H58Zcmu5wf9eSMFxKG4clIBMWdttM170wHE3yM%2FIChBmKC8unL1x%2BrW9N%2Fub9QEc8ltLUIq3rvQN8AOBHPZYX8A%3D%3D&amp;X-Amz-Algorithm=AWS4-HMAC-SHA256&amp;X-Amz-Date=20241021T213401Z&amp;X-Amz-SignedHeaders=host&amp;X-Amz-Expires=300&amp;X-Amz-Credential=ASIAUPUUPRWEZRIUPSYY%2F20241021%2Fus-east-1%2Fs3%2Faws4_request&amp;X-Amz-Signature=1021ef908b230aa75cb64668700a9ac247e2301ab654cc87622c3e6185016a1c&amp;abstractId=4897069">recent paper</a> from Arizona State University professor Hendrik Bessembinder found that 51.6% of 29,078 US stocks since 1925 have lost value from when they were listed. The median return of those stocks was -7.4%.If you're an investor who likes to keep your money in individual stocks instead of an index fund, those might be scary statistics. But there are a few steps you can take to mitigate risk, according to RIA Advisors Chief Investment Strategist Lance Roberts, who discussed the paper in a recent note.To start — it's advice you hear time and again — make sure your money is diversified enough.Diversification comes in many forms. In addition to putting money into stocks, perhaps consider investing in bonds and real estate, Roberts said. You could also consider spreading your money across a number of different industries and sectors, instead of having your whole portfolio in, say, a few tech stocks. A simple way of doing that could also be putting money into an index fund.You can also set up stop-loss orders. This can be done in a brokerage account, and your position is sold if a share price falls to a certain point. There's also the trailing stop-loss order, Roberts said, which adjusts based on upward movements in a stock's price. So a 5% stop-loss limit, for example, moves up to correspond to a level 5% below a stock's rising price, but will never dip below the original stop-loss limit."This safeguard ensures that you are not solely reliant on timing the market, which, as we all know, is nearly impossible to do consistently," Roberts said.And third, take profits on gains. With Nvidia and other AI stocks delivering ungodly returns over the last couple of years, this piece of advice might be good for investors in those firms to hear. It can be tempting to stay fully in a stock that has treated you well. But doing so may also melt away the wealth you've built if the stock has a sudden turnaround, Roberts said."This is not an uncommon issue that I always see with clients and prospects," Roberts wrote. "Greed comes in three destructive forms: 1) the need to make more, 2) the lack of knowing when "enough is enough," and 3) the unwillingness to pay taxes."He suggested a strategy resembling something like taking half of your gains and buying safer assets like Treasurys, and said to keep in mind that paying taxes on capital gains can be cheaper than suffering losses."As investors, it's crucial to understand that market gains are never guaranteed and that the risks of overexposure can be devastating," Roberts said. If you're "riding the wave of massive market gains, ask yourself: Is now the time to take some chips off the table? Are your investments aligned with your long-term goals and risk tolerance?"

A new study shows most stocks have lost value in the last 100 years. Take these 3 steps to protect your portfolio.

<ul class="summary-list"><li>Billionaire investor Bill Gross says the stock market's record-breaking run is set to slow.</li><li>He recommends that investors reposition toward defensive and high-yielding stocks.</li></ul>Though this year's record-beating stock rally <a target="_blank" href="https://markets.businessinsider.com/news/stocks/stock-market-outlook-goldman-sachs-boosts-sp500-price-target-again-2024-10#:~:text=Goldman%20Sachs%20raised%20its%20S%26P,trends%20should%20boost%20earnings%20growth.">continues to impress</a> Wall Street, billionaire investor Bill Gross isn't so sure the bull market will maintain its hot pace for much longer.According to the so-called Bond King's latest <a target="_blank" href="https://williamhgross.com/investment-outlook-archive/">note</a>, investors should reposition toward defensive and higher-yielding stocks as momentum winds down. He also recommended low exposure to fixed income, having previously <a target="_blank" href="https://markets.businessinsider.com/news/bonds/bond-yeidls-bill-gross-rising-treasury-issuance-government-debt-deficits-2024-5">criticized current Treasury conditions.</a>"No bear market, but it's not the same bull market anymore," Gross said, adding that equities are set for "low buy positive" returns going forward.Gross also listed four of his favorite investments at present time:The first is <a target="_blank" href="https://markets.businessinsider.com/stocks/ale-stock">Allete</a>, an electric-service company that has risen 5% year-to-date. It's a buyout with 10% upside over the next 12 months, he said.Gross also touted multiple limited partnership pipelines, an investment he frequently emphasizes as a fruitful alternative to bonds. He cited that MLPs offer 8% tax-deferred yields. <a target="_blank" class="" href="https://markets.businessinsider.com/news/stocks/bill-gross-investing-strategy-oil-gas-piplines-limited-partnerships-ai-2024-5">Back in May</a> he said that MLPs had been "almost as good as AI."On the theme of Treasury alternatives, Gross also cited <a target="_blank" href="https://markets.businessinsider.com/stocks/nly-stock">Annaly Capital Management</a>, a high-yielding mortgage REIT.He also sees <a target="_blank" href="https://markets.businessinsider.com/news/bonds/municipal-bonds-muni-recession-outlook-sahm-yield-curve-charles-schwab-2024-8">municipal income</a> funds as a worthwhile investment, as many have offered over 7% tax-free yields. Gross named the DWS Municipal Income Trust as one example but noted that there are between 20 and 30 others to choose from."7% may not last forever, but for now these funds trade at 6-8%," he said.Gross isn't going as far as to predict that the stock bull run is about to crash, only that a number of headwinds are around the corner. These range from extended valuations to an assortment of macroeconomic and geopolitical headwinds.Gross specifically cited higher corporate taxes under a Kamala Harris presidency, as well as stunted growth if military tensions keep escalating globally. Rising deficits — an issue the investor has <a target="_blank" href="https://markets.businessinsider.com/news/bonds/bill-gross-us-debt-crisis-deficit-inflation-federal-reserve-default-2024-2">repetitively warned against</a> — will eventually slow down spending.Gross also referred to the record cash pile held by legendary investor Warren Buffett, which some see as a <a target="_blank" href="https://markets.businessinsider.com/news/stocks/warren-buffett-record-cash-pile-stock-market-crash-signal-berkshire-2024-5">sign that the market could soon sell off sharply</a>. To Gross, it at least signals a "bumpy road ahead."His note also cited some positives to counter the listed headwinds, such as falling inflation and continued investment in artificial intelligence.

You Searched For "stock investing" and got 10 results

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