With summer coming to an end and back to school season full in swing, Americans will start to prep for the upcoming holiday season by frequenting malls, shopping centers, and online stores. Because of this, it is the perfect time to invest in retail stocks, from Target to Chinese retailer Alibaba Group to Home Depot.
Since the rise of online retailers like Amazon, other merchandise companies have been hit hard. However, Target is among one of the big retailers that have stood its ground. Target has captured consumers with new initiatives such as cutting prices, adding private labeled brands, remodeling stores, and opening more stores in urban areas.
Their hard work has paid off for both the company itself and investors. Target released their second-quarter revenue, reporting a total of $17.8 billion, which is a 6.9% year over year. Target shares have increased to over 60% and have increased its quarterly dividend by 3.2% to $0.64 per share
Alibaba is China’s leading e-commerce infrastructure operator. Over the past four years, Alibaba’s sales and cash flows have been accelerating at promising rates. In the past four years, cash flow has risen an annual average of 55% and revenue rising 48% each year.
In recent news, the stock price has experienced a 4% price drop over the past and 10% decline, making it an opportune time to invest.
Over the past decade, Home Depot’s shares have soared over 600%. Instead of opening new stores, the company has invested in e-commerce, improving its stores and share buybacks. By implementing this strategy, sales have jumped to 8% in the recent quarter.
Home Depot’s success is tied to the demand for home renovations. In recent years, millennials have been spending more money on remodeling old homes and opting for Home Depot instead of online retailers to avoid outrageous shipping fees on heavy goods like lumber.
Shareholders have felt the benefit of Home Depot’s success. Since 2011, Home Depot has raised its dividend every year due to the 16% quarterly payout. As consumers continue to spend and the housing market continues to grow strong, Home Depot is an advantageous investment for shareholders.
Oil, often referred to as “black gold,” is the natural resource behind a significant portion of the globe’s energy usage. Because oil is needed and utilized all over the world, it makes sense that investors may view it as a viable investment product.
There are many different ways to invest in oil, either directly or indirectly, and prices are regularly quoted in almost all major financial media publications. In terms of investment vehicles, investors have a wide range of products to choose from based on their investment objectives and risk tolerance.
One of the ways to invest in oil is through an oil well. These investments are often set up as limited partnerships or similar structures. An oil well investment requires investors to put up capital for the exploration and/or drilling of an oil well. If the well produces oil profitability, investors may be entitled to a portion of the profits.
Another way to invest in oil is through oil stocks. These stocks can include oil producing companies, as well as refiners, transporters, explorers and more. An oil stock, such as Exxonmobil, may potentially rise in value through higher oil prices or profitability in its operations. In addition, stocks may also pay investors a dividend.
For speculators willing to take on significant risk, oil futures contracts traded on an exchange may be another way to bet on oil prices. These contracts allow speculators to potentially profit from both rising and falling oil prices, depending on which way the investor bets. Options contracts are also available on such contracts, and can be used to speculate on both higher or lower prices as well.
As one of the largest markets on the globe, oil investments are extremely popular. The oil market can be affected by numerous issues on both a global as well as local scale. Supply shortages, new finds, transportation issues and geopolitics can all fuel movement in the oil market. Due to the many potential inputs on oil prices, the market can see extreme levels of volatility with wild swings in price. Such wild swings, however, can potentially present viable investment and trading opportunities. Such investments also carry significant risks.
Before getting involved in the oil market, potential investors should carefully consider their objectives, financial situation and risk tolerance before putting any capital at risk.
*This post originally appeared on www.adamkuettel.net.
Although there is great interest in investing in stocks, bonds, and other funds, many individuals are hesitant to do so due to the fear of market instability or even downturn. However, with the stock market on the rise, now is as good a time as ever to dive into the realm of investing.
Here is some advice all first-time investors should adhere to:
Do your research
One of the best ways to overcome the common fear of investing is doing ample research. The financial realm is filled with jargon and acronyms that can be extremely confusing to first-time investors. So, it would be wise to improve your financial literacy by researching the basics of stocks, bonds, mutual funds, and even commodities like gold and silver. Try reading the works of seasoned financial experts as well, as these publications will likely offer a great deal of insight.
Save before you invest
Although there are plenty of inexpensive stocks on the market, it is imperative to establish a sizable emergency fund just in case something goes awry. Many experts suggest that first-time investors save at least 6 to 12 months’ living expenses before even looking at stocks. Following this advice ensures you will have enough money to safely avoid a financial crisis and time to get yourself back on your feet.
Determine what you are investing in
Once you have become familiar with the market, as well as saved the recommended amount of money, you can begin searching for the right assets for your budget. One option to consider is an exchange-traded fund (ETF) like SPY. This particular investment seeks to provide results that correspond to the price and yield performance of the S&P 500 Index. Although this means you will be investing in small stocks from 500 separate companies, this method is one of the most secure, seeing as it is highly unlikely that all 500 companies would bottom out at the same time.
Establish your long-term goals
It is important to remember that investing is not a surefire scheme one can employ to get rich overnight. Investing requires not only research, but time and patience as well. Therefore, it is important to set realistic goals and refrain from expecting a large return within even your first five years. By establishing this mindset early on, you will be less likely to venture from your original plan or pull out of the market all together.
Control your emotions
It is easy to be perturbed by the constant fluctuation of the stock market. However, it is important that you remain consistent during both booms and busts. Do not let your emotions rule your investing decisions — otherwise, you may end up losing the portfolio you worked so hard to establish.
Adam Kuettel is a successful Financial Advisor who is currently serving as a Managing Partner at NWA Financial Partners and Partner at Argo Capital Partners.
Adam has always been fascinated with financial markets. Combine this with his passion for helping others, his career as an advisor was a natural fit. He has the skill set and knowledge to help guide his clients make sense of their financial lives, whether it is saving for retirement, putting kids through college, estate planning or tax planning, among other services.
A graduate of the University of Central Arkansas, Adam Kuettel has a Bachelor’s of Business Administration in Finance and Marketing.
Following his educational endeavors, Adam has played pivotal roles at numerous financial firms. Adam began as a Financial Advisor at Beall Barclay & Company, PLC where he was part of a five member wealth management team. Located in Northwest Arkansas and the River Valley, Adam worked directly on Northwest Arkansas Accounts. He was tasked with designing and presenting investing, tax, insurance and benefit strategies for clients. In addition, Adam maintained the current firm client book, while actively growing assets.
Adam Kuettel transitioned to a wholesaler position at Dividend Capital, located in Denver, in 2010. During his first year with the company, Adam increased the capital inflow of his region by 781% and led education efforts for clients and advisors on alternative assets. Furthermore, he led capital raises internally for the Southeast region for Industrial Income Trust, a $4 billion REIT.
In 2011, Adam made another shift over to Preadium Consulting. Working as a Principle, he helped develop a sales platform for 1031 exchanges and led research endeavors on national 1031 market for clients. Adam also successfully facilitated institutional transactions between institutions and clients.
Argo Venture Capital is based in Bentonville, Arkansas. The company focuses on making investments in seed, early and formative stages to companies centered around consumer packaged goods and retail. There are four partners in Adam’s firm, three specializing in retail and Adam specializing in Finance.
Argo Venture Capital stands out because of their level of understanding, connectivity and past success in and around the consumer package goods and retail space. They are able to build brands and commercialize them because of their deep level of understanding of how to work with consumers and retailers. The company has a broad network inside of the world’s largest retailer as well as CPG companies that they can draw on. They have has many past successes and plan on having many more in the future.
- Certified Financial Planner
- Accredited Portfolio Management Advisor