Reports Feed

Dynalect Sells Position in GM Among Emerging Emissions Scandal

On Thursday, the news broke that GM had been accused of using illegal devices in its Chevrolet Silverado and GMC Sierra trucks to cheat on nitrogen oxides (NOx) emissions tests, making it the latest automaker to be caught up in a NOx emissions scandal. According to reports, the amount of illegal pollution generated by the trucks is at least as much as that generated by Volkwagen’s cheating passenger cars before their lawsuit in 2015, a lawsuit which has resulted in enormous fines, recalls, and sales declines for VW. There’s real potential for GM to face serious consequences as this scandal unfolds, but a few key factors suggest that GM stock might not fare as poorly as that of VW in the wake of scandal.

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Bonds! A 3 Step Guide to Making Your First Purchase…

Last week, I offered a brief overview of the bond market. We talked about what a bond is and why you might want to consider adding some to your portfolio. This week, let’s take it a step further by discussing how to research different types of bonds, and bond funds, and then ultimately take the next step by making some investments!

Before we get started, let’s review some basics of bond investing: Continue reading “Bonds! A 3 Step Guide to Making Your First Purchase…”

Investing for Good

This is a brief post describing the basics of impact investing. In it, I will discuss the ways in which you can practice it as well as the social, ethical, and financial benefits of this particular investment strategy. Enjoy!

A few days ago, The Dynalect Team published a report on the clean water industry. In it, we recommended several stocks and ETFs that we believed to be the best equipped to benefit from an increased in demand for access to clean water. While all of our recommended securities were in some way related to the water purification industry, some of them, like Consolidated Water Company (NASDAQ: CWCO), which desalinates saltwater in several South American and Caribbean countries, are directly involved in providing potable water to people where there is insufficient access to clean drinking water.

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A Rising Tide: The Future of Clean Water

Clean, potable water seems to be ubiquitous in most parts of the developed world, but only a small fraction of the world’s water is safe for human consumption. The UN has predicted that given the existing state of climate change, “half the world’s population will be living in areas of high water stress by 2030.” The world already spends a collective $700 billion per year on clean water; over the next 25 years, the world is expected to spend a total of about $25 trillion on clean water resources in an attempt to alleviate this predicted water scarcity. This enormous expenditure creates a substantial economic opportunity for companies involved in the water purification and management industry, and any investors savvy enough to participate in their growth. This month, we’ve put together a report that will show you how to capitalize on these developments and use your personal portfolio to contribute to improving clean water availability around the world. Continue reading “A Rising Tide: The Future of Clean Water”

Don’t Wait to Buy the Dip

It’s a common-sense strategy that makes intuitive sense: if you think a correction or even a bear market is coming, wait it out until stock prices drop, then buy up stocks at a discounted price and watch them rebound. A classic tactic of active investors, waiting for price declines or “buying the dip” can also be justified from a value investing perspective. If a particular security or even the whole market seems overvalued, waiting until it’s more fairly priced would seem to be more prudent.

An active investing strategy that appeals to value investors? Surely any idea that can unite such opposite philosophies must be correct, right? Wrong. At least, sorta. This week I’ll guide you through the do’s and don’t of trying to wait out fair prices, and what it means for preparing for the next correction or recession.

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Bonds! A First Glimpse

Bonds play a key role in a well-balanced portfolio, but so far here at Dynalect we haven’t spent much time talking about how to invest in bonds or what to look for in the bond market. As a young investor, bonds can be an excellent way to set aside money for the long term and receive “coupon” payments periodically. Especially as equities valuations are soaring in the US and many finance professionals are warning of an eminent correction or economic downturn, this is a great time to introduce the bond market to Dynalect readers and to offer yet another compelling investment opportunity to help you build your portfolio and curb some of the risk you might hold in your equity assets.

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