Tuesday, August 29, 2017

The Potential Risks & Rewards Of Small-Cap Stocks

Price-Earnings ratios as a predictor of twenty...
Price-Earnings ratios as a predictor of twenty-year returns. From Irrational Exuberance, 2d ed. source (Photo credit: Wikipedia)
Blue chip stocks like Amazon, Apple and Google usually get the lion's share of attention from investors - after all, they have proven their worth over time and are unlikely to tank overnight. However, a lot of savvy investors choose to diversify away from those perpetual darlings of the stock market and instead invest in small-cap stocks.

Small cap stocks can be and have been subject to certain levels of risk. They can experience violent price swings and more than once they have fallen victim to fraudulent activity. However, they can also have a very attractive risk/reward ratio.

As a general rule, small-cap stocks come from companies that are relatively new to the public eye. While companies like Apple have a market cap that is quickly approaching $1 trillion, small cap stocks usually max out at now more than a few billion dollars. The Russel 2000 Index, for example, is the most commonly-used gauge for small cap stocks and it currently lists companies with market caps that range between about $144 million and $3.4 billion.

Small cap stocks are unique because they tend to rely on U.S. economic growth to be successful. They are usually more closely tied to the U.S. economy, including U.S. taxes and regulations, because they haven't yet reached the point of being internationally sought after stocks. This means they can be risky, but it also provides investors with the opportunity to see exponential gains in a short amount of time. The Russel 2000 Index, for example, rose 14% between November 2016 and January 2017 due to the political climate. For this reason a lot of investors see the value in diversifying their holdings and buying individual small cap stocks or small cap mutual funds.

Thursday, April 27, 2017

Using Uber for Your Travel Needs

Uber is one of the great new startups in America that allows anyone with a cell phone, a valid driver's license and auto insurance, a clean driving record and a clean vehicle to startup their own self-contracting service and make some additional money on the side.  A lot of good people who fit these requirements have found that putting in a few hours each week as an Uber driver has not only helped them with making some additional money to pay bills or save up for that special something, but it's also provided more Uber drivers available for hire in the country. 

I have personally used the Uber service all over the country and it has always been more convenient, easier and cheaper than using a standard taxi cab.  First of all, you're in a private vehicle so you don't have the stigma of appearing as though you're riding in a marked taxi.   Then, once you setup your Uber account and attach a credit card to your account, then you catch a ride anytime without the hassle of making sure you have a credit card or cash with you as you would need for a standard taxi service and when you're ride is finished you can just get up and go, as its all paid for through the online service.   If you haven't used Uber before, then there's no reason why you shouldn't consider Uber for your next traveling need.

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