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Tag: investing

More bubbles, less shorting. What the GameStop craziness could mean for the future of investing

Finance
Tiffany Hagler-Geard | Bloomberg | Getty ImagesThe stock market is known for being unpredictable and volatile, and any sense of normalcy was blown up during the recent GameStop rally.Most of us know the story by now: After discovering that several hedge funds had bet on the video game retailer losing value, people banded together on the Reddit forum WallStreetBets to drive up its share price by 1,500%. Over the course of January, GameStop's stock price ballooned to a high of $ 483 from a low of $ 17.The bubble already appears to be popping, with GameStop shares down to around $ 55 as of Friday.Still, the event is unlikely to be soon forgotten, experts say.More from Personal Finance:Millions would get pay raise from a $ 15 minimum wageMany have waited over a month for last round of unem...

Bitcoin’s latest slump shows why people should be cautious before investing in cryptocurrency

Finance
Hermione Granger | Moment | Getty ImagesIn the last few weeks, bitcoin has been on a wild ride, surging to record highs and then wiping hundreds of billions of dollars from the cryptocurrency market days later.The volatility shows why curious investors should pause before putting money into the cryptocurrency.Bitcoin had an epic runup early in 2021. The asset hit a record high of $ 41,973 on Jan. 12, according to data from Coin Metrics, but just days later fell about 15%, wiping as much as $ 200 billion from the cryptocurrency market in just 24 hours.The next week, it regained some of its losses, surging to near $ 40,000 before reversing course yet again. On Thursday, the cryptocurrency slipped about 8%, bringing the asset's two-day losses to more than 10%. In addition, the price of bit...

How to navigate the world of sustainable investing ratings

Finance
Oranut Fankhaenel / EyeEm | EyeEm | Getty ImagesSustainability ratings are useful tools for assessing the environmental, sustainability and corporate governance-worthiness of mutual funds and exchange-traded funds.But how do you navigate between different ratings providers, especially when they can have different results for the same fund?CNBC looked under the hood at some of the most pertinent issues.What's being measured?"[Ratings] don't have to agree, because the underlying methodologies are different," said Larry Lawrence, executive director, ESG products, for MSCI.To compare fund ratings in an apples-to-apples fashion, one must not only compare methodologies (here is MSCI's as an example), but also at how the underlying holdings are treated in terms of rating distribution; carbon inte...

Here’s what you need to know about impact investing, where returns are not the only reward

Finance
GYRO PHOTOGRAPHY | amana images | Getty ImagesGrowing rapidly within the socially responsible investing landscape is the world of so-called impact investing, which deploys your money more directly toward solving societal problems.Largely executed through direct investing platforms, this approach addresses specific problems, such as alleviating poverty in certain communities or reducing pollution.These investments are designed to generate specific, positive and measurable environmental, social and/or good governance outcomes, oftentimes with market-rate financial returns, said Michael Kramer, managing partner of Natural Investments in Kona, Hawaii. Furthermore, outcomes can have a local or a societal focus."It's very solution focused, very proactive — often investing in innovations, and sup...
Avoid this investing mistake as coronavirus fears grip the markets

Avoid this investing mistake as coronavirus fears grip the markets

Finance
Oliver Furrer | Cultura | Getty ImagesThe spread of the coronavirus helped to sink the Dow Jones Industrial Average more than 900 points when the market opened on Monday.And if that decline goes past 1,000 points, it could be the biggest one-day drop since 2018.If you're like many investors, you may be inclined to check your investment balances, including your 401(k), in reaction to the news.Yet reacting to a sudden market fall is exactly what you shouldn't do, according to one expert."Volatility is inherently frightening," said Dan Ariely, professor of behavioral economics at Duke University and chief behavioral economist at personal finance app Qapital. "Being frightened means that we are paralyzed, we think about it too much.""It influences our well-being, and it doesn't necessarily lea...