Institutional investors are organizations that pool money for the goal of investing. These include mutual funds, pension funds and hedge funds. The advantage for a retail investor is that they get access to managers who are more informed and better skilled in their specific category. Retail investors also get the opportunity to place their funds in investments not always open to an individual. Individual investors are also able to get a diversified portfolio more easily, depending on the fund with which they’ve invested.
Institutional investors are still buying earnings safety and predictability in an otherwise slow-growth environment.In any market, good businesses stand out both in terms of operational growth at a faster rate than the general economy and good share price performance. The Sherwin-Williams Company (SHW) and Alliance Data Systems. Read More
In any market, there are good businesses with operating dynamics that exceed the normal cyclical nature of economic activity. They are often non-brand-name enterprises, the kind of companies that might fall under the category of “special situations.” They are the kind of businesses that institutional investors hold without. Read More
With the broader stock market gyrating based on expectations of the Federal Reserve’s possible interest rate increase, the NASDAQ Biotechnology index and Russell 2000 are still holding up near their highs. A closer look at the current market dynamics suggests rising interest rates won’t be the cause of a stock market collapse.. Read More
It really is a great time to be in the railroad business. Cash flow is abundant and these stocks are poised for more capital gains.While coal shipments have been a weak spot for railroad companies, virtually all other major customer sectors are producing excellent comparable growth.And that growth is directly reflected in share prices.. Read More