Investing money in stocks oil price volatility is impacting

Oil price volatility is impacting airline stock valuations, with many investors reducing exposure to transportation shares. Diversification when investing money in stocks helps mitigate sector-specific risks. Once you’ve figured out your ideal asset allocation, the next step is deciding what to invest in. A solid starting point for domestic equities is an ETF that tracks the S&P 500. These funds offer broad exposure to 500 of the largest U.S. companies, historically averaging around 10% annual returns. They’re low-cost, not actively managed, and provide instant diversification. “I wouldn’t say a dividend-paying stock is a low-risk investment because there were dividend-paying stocks that lost 20 percent or 30 percent in 2008,” Wacek says. “But in general, it’s lower risk than a growth stock.” Small-cap indexes showed resilience, rising 0.9% as domestic manufacturing PMI improved. Investing money in stocks within small-cap industrials can capitalize on localized economic expansion.