You may have heard of investment trends in the media or from your friends, but it’s important to research and verify online information before jumping on a hot new trend. Some types of buzzy investments can lead to significant financial losses. Learn about the facts behind four investment trends to help you avoid fad investing.
Cryptocurrency is gaining ground as an alternative to stocks, but it’s a risky asset class with limited history and an uncertain regulatory outlook. It’s best to allocate no more than 5 to 10 percent of your portfolio to crypto.
Artificial intelligence companies like Nvidia and Broadcom have been the stock market’s darlings for over two years, thanks to their explosive growth and massive returns. However, the technology sector as a whole has lagged the S&P 500. But the industry is poised for a major comeback in 2025.
Small-cap stocks have underperformed larger companies globally, in part due to higher global inflation and interest rates alongside fears of recession. But since the early-April lows, smaller companies have begun to outperform on a global basis again.
Charles Dow developed a set of principles that became the cornerstone of technical analysis, including the concept that prices move in trends. Dow believed that a rising trend was made up of ascending peaks and troughs – higher highs and lower lows. He also believed that, much like a rising tide, once the peak of a wave was passed, it would begin to recede – causing a trough.