Fools were out and about this week in an investing world jam-packed with actions and ideas. Here are three articles you might find useful as you decide how to invest your money.
Does the Market Have a New Nifty 50?
Despite the cool nickname, owning stocks in the so-called Nifty 50 turned out to be bad news for many investors in the 1970s. These large blue chips had been strongly outperforming the market, but "when the recession of 1973 arrived and Wall Street decided that its growth expectations for the Nifty 50 were too optimistic, things got ugly very quickly," Fool contributor Eric Jhonsa wrote.
What about today? Eric says that this time around, the richly valued, outperforming names include rapidly growing tech companies such as VMware
The lesson: "When a group of stocks is priced to perfection, any sign of imperfections will have those stocks taking it on the chin much worse than stocks with more subdued valuations will," Eric wrote.
Read the article to see more about how to keep from getting burned.
Where the Bargains Are Now
If you've been reading the Fool, you know that investing in American companies that do business abroad can be a smart way for investors who are uncomfortable putting money into foreign stocks to take advantage of economic strength outside the United States.
"Global View" columnist Tim Hanson this week made the scenario even sweeter by pointing out that "most of these stocks aren't followed by globally oriented analysts, but rather by industry-specific analysts who don't necessarily grasp or appreciate the international growth opportunities that lie ahead of these firms." He continues: "As a result, foreign exposure within large U.S. companies is going underappreciated and therefore being undervalued by the U.S. investing community."
Buying stocks when they're undervalued is essential to investing success. Check out the article for insight on Johnson & Johnson
Today's Buy Opportunity: Blue Nile
The Motley Fool ended its special "11 O'Clock Stock" series of 50 stock recommendations in 50 weekdays with a sparkler from Fool co-founder David Gardner, who also leads the team at Motley Fool Rule Breakers.
"Internet retailer Blue Nile
See the article to find out how owning shares of Blue Nile fit with David's investing principles:
- "I buy excellence, and it's never cheap."
- "I go where the trends favor me."
- "I hold longer than just about anyone I know, which includes 100% of Wall Street."
Look over the full list of recommendations and their performance. The Fool put its money where its mouth is on these picks.
See a stock in this story you'd like to follow? Add it to My Watchlist, which will find all of our Foolish analysis on it.
Baidu, Blue Nile, and VMware are Motley Fool Rule Breakers recommendations. Amazon.com and Netflix are Motley Fool Stock Advisor choices. Motley Fool Options has recommended a diagonal call position on Johnson & Johnson, which is a Motley Fool Income Investor recommendation. The Fool owns shares of Johnson & Johnson.
True to its name, The Motley Fool is made up of a motley assortment of writers and analysts, each with a unique perspective; sometimes we agree, sometimes we disagree, but we all believe in the power of learning from each other through our Foolish community.