Today, we continue our discussion of the core points of our retirement planning philosophy. If you missed part one, you can go back and read it here.
4. Avoid plans that require high returns
Higher assumed future market returns imply higher sustainable spending rates, which basically means if you expect to make more money in the future, you will spend more money today. It’s only natural.
Stocks offer the potential of higher returns than bonds, but it’s important to remember that those returns are only possible because stocks carry higher risk than bonds. Their “risk premium” is not guaranteed and may not materialize during your retirement. That’s not to say that you should avoid stocks, but you must spend accordingly.
Retirees who spend more today because they are planning for higher market returns than they can get with bonds are essentially amortizing their upside when the markets could collapse t omorrow. They are spending more today than bond investments justify, based on the assumption that higher returns in the future will make up the difference and justify their higher spending.
best stocks to invest today: Navistar International Corporation(NAV)
- [By Lee Jackson]
Icahn also was a buyer last week of Navistar International Corp. (NYSE: NAV). He acquireda total of 423.404 shares of the truck and engine maker at prices that ranged from $25.37 to $25.92. The total for the buy was listed at $11 million. The stock closed Friday at $27.49, so it looks like another well-timed buy. The 52-week range for the shares is $10.30 to $33.46, and the consensus price target is $26.79.
- [By Lee Jackson]
Navistar International Corp. (NYSE: NAV) was started with a Buy rating and a $36 price objective at Aegis Capital. That compares with a consensus target of $24.08. The 52-week range is $5.78 to $32.84. The stock closed yesterday at $30.93.
best stocks to invest today: Steelcase Inc.(SCS)
- [By Money Morning Staff Reports]
These changes all emanate from the Ford Smart Mobility unit. Who ran that unit? New incoming Ford CEO Jim Hackett. Before joining Ford Mobility, Hackett was the corporate CEO of Steelcase Inc. (NYSE: SCS), where he transformed the company from a humdrum maker of desks to a designer of flexible, output-enhancing workspaces.
- [By Lisa Levin]
Steelcase Inc. (NYSE: SCS) shares dropped 14 percent to $14.10 after the company reported downbeat earnings for its first quarter and issued a weak outlook for the second quarter.
- [By Jon C. Ogg]
Steelcase Inc. (NYSE: SCS) was raised to Strong Buy from Market Perform at Raymond James.
SUPERVALU Inc. (NYSE: SVU) was raised to Outperform from Sector Perform at RBC Capital Markets. Shares were indicated up 6% at $3.54 on Thursday.
best stocks to invest today: TD Ameritrade Holding Corporation(AMTD)
- [By Chris Dier-Scalise]
After a another month of record highs for the Dow Jones Industrial Average, which surpassed the $21,000 mark, and the S&P 500, which topped $2,400, TD Ameritrade Holding Corp. (NASDAQ: AMTD) released its March report for the Investor Movement Index. Tracking retail investor movement in and out of equities, the IMX, like the markets at large, hit a new high of 6.22 and showed retail investors were net buyers of equity over the month.
- [By Chris Dier-Scalise]
That's the goal of TD Ameritrade Holding Corp.'s (NASDAQ: AMTD) Investor Movement Index, or IMX. The index tracks the activity of TD Ameritrade investors to measures how they are positioned in the markets.
- [By The Ticker Tape]
Short-term options traders have priced in a potential share price move of 2.5% in either direction around the earnings release, according to the Market Maker Move™ indicator on the thinkorswim® platform from TD Ameritrade Holding Corp. (NASDAQ: AMTD).
best stocks to invest today: Salesforce.com Inc(CRM)
- [By Sreekanth Anasa]
The biggest positives for Microsoft Corporation in 2016 would be its triple digit (113% Azure revenue growth) cloud revenue growth and it overtaking salesforce (NYSE:CRM) to become the overall enterprise SaaS market leader. Also, Office 365 increased its customer base to 23.1 M and Dynamics CRM online seat additions, enterprise mobility customers nearly doubled year over year. Surface series revenues growing by 9% ($3.81 B in profit) in the latest quarter can also be counted as apositive. Microsoft’s commercial cloud has also touched an impressive annualized run rate of $12.1 B.
- [By Chris Lange]
Salesforce.com Inc. (NYSE: CRM) is expected to release its fiscal second-quarter financial earnings report after the markets close on Tuesday. The consensus estimates from Thomson Reuters call for $0.32 in earnings per share (EPS) and $2.51 billion in revenue. The same period of last year reportedly had EPS of $0.24 and $2.04 billion in revenue.
- [By WWW.THESTREET.COM]
There was no macro on the Salesforce.com (CRM) call. We did not hear macro mentioned when it came to The Children’s Place (PLCE) call. If you heard macro with Nvidia (NVDA) , let me know. I sure didn’t. While it seems like ages ago, I still can recall–starkly–that you didn’t get a lot of macro on the Netflix (NFLX) call either.
- [By Peter Graham]
On the earnings call, Ellison noted that the company had surpassed Salesforce.com, inc (NYSE: CRM) in annualized recurring cloud revenue: We are now well on our way to passing them and becoming number one in the enterprise SaaS market.”
- [By Leo Sun]
Twilio (NYSE:TWLO) recently hired George Hu as its new COO. Hu spent 12 years at Salesforce (NYSE:CRM), and served as its COO for his final three years between 2011 and2014. That big hire fills the void left after the departure of Roy Ng, who resigned as Twilio’s COO last December.
best stocks to invest today: Bunge Limited(BG)
- [By Casey Wilson]
Many companies provide the infrastructure needed for farmers to move crops from the farm to the grocery store. Among those are Bunge Ltd. (NYSE: BG), an agribusiness and food company that specializes in the purchase, storage, processing, and transport of agricultural goods. BG is up over 8% year to date and has grown over 1.5% in the past 30 days.
- [By Ben Levisohn]
Bunge (BG) has dropped 1.5% to $76.14 after getting cut to Underweight from Neutral at JPMorgan.
L Brands (LB) has jumped 3.9% to $44.80 despite reporting weaker than expected same-store sales.
- [By Steve Symington]
Shares ofBunge Ltd.(NYSE:BG)rose 10% on Wednesday after the agribusiness and food company released strong fourth-quarter 2016 results.
Quarterly revenue grew 8.6% year over year, to $12.1 billion, and translated to 14.1% growth in adjusted earnings per share, to $1.70. Analysts, on average, were only expecting Bunge to report revenue of $11.4 billion and adjusted earnings of $1.57 per share.
best stocks to invest today: BYD Company Limited (BYDDY)
- [By SEEKINGALPHA.COM]
BYD Co. (OTCPK:BYDDY) (OTCPK:BYDDF) (HK:1211)
On December 4, BYD’s CEO Wang presented “The company’s SkyRail electric monorail at the Mayors Summit in Mexico City before 500 guests. This included government officials from over 93 cities, more than 40 mayors, NGO representatives, business leaders, and the media.”
- [By SEEKINGALPHA.COM]
Some already had their autonomous car bets made with positions in both Tesla and Nvidia (NASDAQ:NVDA) surmising those will be the big winners. They have good company. Trip Chowdhry of Global Equities Research summed up his thesis for autonomous transportation and transportation in general going forward as Winners: Tesla, Nvidia; and Losers: Mobileye (NYSE:MBLY) and all traditional automakers. All traditional automakers? That’s basically every automaker on the planet besides Tesla and maybe Fisker and BYD (OTCPK:BYDDY), that’s a lot of losers. Trip is a talented analyst. I’ve followed him for many years (see his ranking on TipRanks here). Even for him, that’s a pretty bold statement. It got me thinking, is Tesla’s lead in the race for autonomous cars so great that the race is effectively over? I wanted to find out if I was using traditional methodologies too much, overthinking my picks and missing out on the bigger winner, Tesla.