Overnight, something strange happened over in the US. The tech-heavy US Nasdaq Composite (INDEXNASDAQ: .IXIC) Index fell a hefty 2.4%. That in itself isn’t too newsworthy (although it is a sizeable drop). No, what this test move means is that the Nasdaq is now officially in a ‘correction’. A correction is one of those rather superficial Wall Street terms that’s meant to dress up something bad as something good. A correction is a term given for a 10% or more drop in an index’s value. And since the Nasdaq has now dropped from around 14,095 points on 12 February to 12,609 after last night, the index is now down 10.54%. And that means we are now in correction territory.

What’s even more interesting though is how confined this ‘correction’ is to Nasdaq shares in particular. The broader S&P 500 Index (INDEXSP: .INX), which consists of both Nasdaq and New York Stock Exchange (NYSE) companies, is only down 2.88% over the same period. The Nasdaq and the NYSE are the two major share markets of the United States. The Nasdaq tends to hold most of the US’s tech stocks (such as the FAANGs), while the NYSE is home to most of the ‘old-school’ giants like Walmart Inc (NYSE: WMT) and Ford Motor Company (NYSE: F).

Put simply, it’s only tech stocks that are selling off with enthusiasm.

Tech sells off with a vengeance

Looking at what’s been going on, this becomes very obvious. Take tech darling Tesla Inc (NASDAQ: TSLA). Tesla shares are down a whopping 31% since 12 February. Amazon.com Inc (NASDAQ: AMZN) is down around 10% over the same period. Apple Inc (NASDAQ: AAPL) is down around 14%, while Netflix Inc (NASDAQ: NFLX) is down around 11%.

All in all, it hasn’t been a nice few weeks to own US tech stocks! This tech sell-off has also spilled over to the ASX. This morning, we reported on how the ASX tech sector is facing a bear market (a fall of 20% or more) if it falls too much lower. This has been exemplified by the performance of former ASX high-flyers like Afterpay Ltd (ASX: APT). Afterpay shares have fallen more than 30% in just the past month alone.

It’s hard to say exactly what is causing these seemingly-precipitous drops. But one could possibly put it down to the sector blowing off some steam after an incredible run up over the past few months. Rising bond yields are also especially problematic for tech stocks.

But even though a ‘correction’ is a scary thought for investors, the reality is that the Nasdaq is now back at levels that we were calling ‘all-time highs’ back in December. It’s hardly a time for panic.

More reading

• Why the Afterpay (ASX:APT) and Zip (ASX:Z1P) share prices are under pressure again
• Why ASX 200 tech shares could be in for another wild session
• Why Tesla Stock Fell Further on Monday
• ASX All Technology Index teetering on verge of a bear market
• 5 things to watch on the ASX 200 on Tuesday

John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Sebastian Bowen owns shares of Ford and Tesla. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends Amazon, Apple, Netflix, and Tesla. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of AFTERPAY T FPO and recommends the following options: short March 2023 $130 calls on Apple, long January 2022 $1920 calls on Amazon, long March 2023 $120 calls on Apple, and short January 2022 $1940 calls on Amazon. The Motley Fool Australia has recommended Amazon, Apple, and Netflix. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

What happened

Visa (NYSE: V) and Mastercard (NYSE: MA), the two largest payment-processing companies in the world, both saw their stock prices hit new all-time highs on Monday on more positive reopening and stimulus news.

At one point earlier in the day, Mastercard saw its stock rise as much as 6%, and at the time of writing trades around $373. Shares of Visa rose as much as 5% today and currently trade around $222.

So what

Over the weekend, the U.S. Senate approved President Joe Biden’s $1.9 trillion stimulus bill, all but guaranteeing it will be passed into law.

Also today, the Centers for Disease Control and Prevention provided guidance that said fully vaccinated people could meet with other vaccinated people and some unvaccinated people indoors without masks.

This news is great for Visa and Mastercard’s business model. While you may see their logos and brand names on your credit and debit cards, Visa and Mastercard do not actually extend credit.

Instead, they set up the card network for transactions to be made among financial institutions, merchants, and consumers, and they collect fees based on volume. So, more money in people’s pockets from economic stimulus and more positive reopening news will likely translate into more spending.

Now what

While the pandemic caused some short-term pain for Visa and Mastercard, it will likely prove to be extremely beneficial long term because it has significantly advanced the use of digital payments.

In 2019, Mastercard said that card payments only made up about 13% of the $235 trillion payments market, leaving huge growth potential for digital payments.

With some research firms and banks projecting gross domestic product (GDP) to surpass 6% in 2021, that would be the highest GDP growth since 1984. It’s hard not to like Visa and Mastercard in this environment with pent-up demand and a heavier reliance on digital payments than ever before.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

More reading

• What’s going on with the Senex (ASX:SXY) share price today?
• Here’s why the Catalyst Metals (ASX:CYL) share price is rocketing 9%
• Why the Afterpay (ASX:APT) and Zip (ASX:Z1P) share prices are under pressure again
• Top broker tips Integral Diagnostics (ASX:IDX) share price to climb 22% from here
• Why ASX 200 tech shares could be in for another wild session

Bram Berkowitz has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends Mastercard and Visa. The Motley Fool Australia has recommended Mastercard. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post Why Visa and Mastercard Shares Just Hit Their All-Time Highs appeared first on The Motley Fool Australia.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

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The Senex Energy Ltd (ASX: SXY) share price is sliding today, despite the company announcing a new gas sales agreement. During mid-morning trade, the energy producer’s shares are down 1.3% to 38 cents.

Let’s take a closer look at what Senex updated the market with.

New gas agreement

The Senex share price is in negative territory regardless of the positive announcement made by the company earlier today.

According to this morning’s release, Senex has entered into a new gas sales agreement with CleanCo Queensland.

Established in 2018, CleanCo is a government-owned electricity generation and trading company. The business is focused on providing reliable clean energy solutions at a competitive price for the people of Queensland.

The contract is expected to deliver 2.55 petajoules of natural gas from the Wallumbilla Gas Hub. This brings Senex’s total amount of gas supplied to CleanCo to more than 5.1 petajoules over the 2020–22 calendar years. One petajoule is equivalent to powering 19,000 homes for an entire year, or almost 100,000 dwellings with 5.1 petajoules.

The agreement is for a 1-year term and is scheduled to commence on 1 January 2022. The price of the gas will be at a fixed amount that is in line with current market rates.

Management commentary

Senex managing director and CEO Ian Davies welcomed the new deal, saying:

The strong ongoing relationship between Senex and CleanCo contributes to security of power supply that helps the recovery of the Queensland and Australian economies.

Senex will continue to build a portfolio of gas sales agreements that support jobs and regional economies as we partner with commercial and industrial customers for long-term and mutually beneficial relationships.

Each of our long-term and mutually beneficial relationships – with partners also including CSR, Orora, Visy Glass, Alinta Energy and Southern Oil Refining – reinforces Senex’s significance as a supplier of natural gas to the east coast market.

About the Senex share price

The Senex share price has been a solid performer over the past 12 months, rising by more than 90%. The company’s shares hit a multi-year low of 12 cents last March, but have since recovered on an upwards trajectory.

Based on current valuations, Senex commands a market capitalisation of around $565 million.

More reading

• What’s up with the oil price right now?
• Here’s why the Senex Energy (ASX:SXY) share price is 8% higher

Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The Catalyst Metals Ltd (ASX: CYL) share price is rocketing in morning trade, up 9.14%.

This comes after the ASX gold miner updated the market on its latest drill results.

What results did Catalyst report?

Catalyst Metals’ share price is moving higher after the gold miner reported visible gold in 4 of the 9 diamond drill holes completed in Boyd’s Dam at the Four Eagles Gold Project.

Catalyst has a 50% interest in the Four Eagles Gold Project, located in Victoria. Gold Exploration Victoria Pty Ltd holds the other 50% interest.

The company reported it has thus far received assays for 4 of the 9 holes, 2 of which (FEDD047 and FEDD044) came back with significant gold intersections. Those results include:

• 35 metres @ 117.0 grams per tonne gold (g/t Au) from 326.1 metres in FEDD047
• 4 metres @ 7.1g/t Au including 0.3 metres @ 22.5g/t Au and 0.3 metres @ 33.8g/t Au from 107.5 metres in FEDD044
• 8 metres @ 2.7g/t Au from 68.0 metres including 0.3 metres @ 17.2g/t Au and 0.75 metres @13.8g/t Au in FEDD044

Commenting on the initial assays, Bruce Kay, Technical Director of Catalyst Metals said:

It is very encouraging to intersect quartz structures with visible gold in four of the nine diamond drill holes completed so far this year, especially considering the wide spaced nature of the drilling. The discovery of a new deep structure beneath Boyd North adds to the potential of the whole mineralised system.

Catalyst has 2 diamond drill rigs and 1 reverse circulation (RC) drill rig operating at Boyd’s Dam and Boyd North.

Catalyst share price snapshot

ASX gold shares have broadly lost ground along with the sliding gold price. At time of writing an ounce of gold is worth US$1,684. That’s the lowest gold price in 11 months, and well below the US$2,063 per ounce on 6 August.

With today’s intraday gains factored in, Catalyst Metals shares are down around 16% over the past 12 months. That compares to 20% gain on the All Ordinaries Index (ASX: XAO).

Year-to-date the Catalyst share price is down just shy of 5%.

More reading

• Why the Afterpay (ASX:APT) and Zip (ASX:Z1P) share prices are under pressure again
• Top broker tips Integral Diagnostics (ASX:IDX) share price to climb 22% from here
• Why ASX 200 tech shares could be in for another wild session
• Why Tesla Stock Fell Further on Monday
• Why the Red 5 (ASX:RED) share price is soaring higher today

Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post Here’s why the Catalyst Metals (ASX:CYL) share price is rocketing 9% appeared first on The Motley Fool Australia.

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The Afterpay Ltd (ASX: APT) and  Zip Co Ltd (ASX: Z1P) share price performances have gone from bad to worse after both buy now, pay later (BNPL) giants have lost more than 35% in value since mid-February.  

The Zip share price is still up ~51% year-to-date, while Afterpay has dipped into negative territory and down 13% for the year. 

Just as you think the pain might be over, today looks to be shaping up to be another tough session for Afterpay and Zip shares. 

US tech shares under fire 

Rising bond yields continued to threaten richly valued tech and growth sectors overnight. Benchmark US government yields hit a one-year high of 1.60% despite the US being close to passing its US$1.9 trillion stimulus package. 

The Nasdaq Composite (NASDAQ: .IXIC) slumped 2.41% while the S&P 500 Index (SP: .INX) was down only 0.54% and the Dow Jones Industrial Average Index (DJX: .DJI) finished the session 0.97% higher. 

More notably, leading US-listed BNPL giant, Affirm Holdings Inc (NASDAQ: AFRM) closed 8.42% lower at US$74.31. This brings its shares to a new all-time low after listing on 13 January 2021 at an IPO offer price of US$39. Its shares hit a peak of US$146.90, a 275% return for those that managed to participate in the IPO. Conversely, those that bought Affirm shares at its peak would also find a 50% hole in their pockets on current prices. 

The Affirm share price reflects a similar sell-off narrative as the ASX-listed BNPL shares. Affirm shares peaked on 10 February, a similar timeline to Afterpay and Zip shares, which began to plateau around the same time. 

Why are the Afterpay and Zip share prices still falling? 

Despite being competitors, the Affirm, Afterpay and Zip share price largely move in tandem. 

The broader weakness across US tech shares combined with Affirm’s 8.42% slump and inability to bounce off lows has translated into a weaker open for ASX-listed BNPL shares. 

At the time of writing, the Zip share price has bounced off its intraday low of $8.41 to be trading for $8.51, which is down 4.71%, while the Afterpay share price is still sitting at intraday lows, down 8.96% at $101.20 per share. 

More reading

• Why ASX 200 tech shares could be in for another wild session
• ASX All Technology Index teetering on verge of a bear market
• Subreddit ASX Bets is gambling these 4 ASX shares will follow in GameStop’s footsteps
• 5 things to watch on the ASX 200 on Tuesday
• ASX 200 rises, TWE jumps, Zip sinks

Kerry Sun has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of AFTERPAY T FPO and ZIPCOLTD FPO. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The Integral Diagnostics Ltd (ASX: IDX) share price has been a positive performer on Tuesday.

In morning trade, the medical imaging service provider’s shares are up 1.5% to $4.50.

This means the Integral Diagnostics share price is now up a solid 25% since this time last year.

Can the Integral Diagnostics share price go even higher?

Positively, one leading broker believes the Integral Diagnostics share price can still go a lot higher from here.

According to a recent note out of Goldman Sachs, its analysts have initiated coverage on the company with a buy rating and $5.50 price target.

Based on the current Integral Diagnostics share price, this implies potential upside of ~22% over the next 12 months.

And if you include the 2.5% dividend yield that the broker is forecasting, this potential return stretches to almost 25%.

Why is Goldman Sachs bullish on Integral Diagnostics?

Goldman believes the medical imaging service provider is a well-run business in an attractive industry.

It also notes that it has a relatively secure volume profile of mid to high single digit growth and a clear path for further growth through brownfield expansions and merger and acquisition activities.

In addition, Goldman feels Integral Diagnostics is well-positioned to benefit from a number of key drivers. These include:

“1) Aging population and increasing prevalence of chronic diseases underpin the long term sustainability of the industry’s volume growth profile;

2) Steady increase in utilisation/vol. of MRI and CT as Australia’s current levels still remain well below its developed market peers (c.-50%), and we see little impediment to the narrowing of that gap;

3) Positive mix shift to high-acuity modalities over the mid-term (MRI, CT and PET) as these services deliver higher quality clinical outcomes while also generating higher revenue/margin per service for IDX (CT and MRI revenue c.2-3x above industry avg);

4) Pricing tailwind from reintroduction of indexation at c.1.5% p.a for 90% of Medicare items (c.80% of benefits). Further upside risk for pricing should MRI & PET (20% of benefits) get reindexed;

5) Clear scope for growth via further brownfield expansion and M&A (consolidation of a fragmented industry), for which we see a long runway of opportunities in both areas.”

All in all, Goldman expects this to lead to earnings growth of ~9% per annum through to FY 2023.

And with the Integral Diagnostics share price trading at 22x estimated FY 2021 earnings, it feels this is an undemanding valuation for its current growth profile.

More reading

• 2 highly rated ASX dividend shares to buy now
• Integral Diagnostics (ASX:IDX) share price lifts on strong half-year results

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Integral Diagnostics Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The US market experienced yet another strange session overnight with the Nasdaq Composite (NASDAQ: .IXIC) falling by 2.41% while the S&P 500 Index (SP: .INX) fell only 0.54% and the Dow Jones Industrial Average Index (DJX: .DJI) closed 0.97% higher. The significant slump in tech and growth sectors could put pressure on ASX 200 tech shares.

Benchmark US government yields were once again in the spotlight, edging slightly higher to close at 1.60%. Yields have now more than tripled since August 2020 lows of 0.50%. 

Why do yields matter? 

Record-low and near-zero yields, or interest rates, have helped the stock market and the broader economy in a number of ways. 

Lower interest rates translate to lower borrowing costs, which can prop up economic activity. 

As interest rates get lower, investors must also take on more risk to maintain the same returns. It can therefore translate into a flow of funds from low-risk assets such as bonds, into higher-risk assets such as equities. 

Interest rates also impact the theoretical value of companies and their share prices. A company’s fair value is its projected future cash flows discounted to the present. If interest rates fall and everything else is held constant, the share price should rise. Conversely, if interest rates go higher, then share values should fall. 

Tech shares, many of which are not yet profitable, rely on more earnings in the future. Its rich valuation makes it more vulnerable to an increase in the yield used to discount its earnings. Whereas cyclical, or more value orientated shares such as financials, commodities and real estate tend to do better in high interest environments. 

The pressure is on for ASX 200 tech shares 

Yesterday, ASX 200 tech shares attempted to open higher but finished the session in the red. The S&P/ASX 200 Info Tech (INDEXASX: XIJ) opened as much as 3% higher on Monday, but closed 1.14% lower. 

Today, the tech index is down as much as 5%%, bringing its 5-day performance to -10.10% and 1-month performance to -21.03%.

Weighing down the index include ASX 200 tech share giants Afterpay Ltd (ASX: APT), which is down 10%, Xero Limited(ASX: XRO), down 7%, and Wisetech Global Ltd (ASX: WTC), which is down 4.3% at the time of writing.

Computershare Ltd (ASX: CPU) was the only large-cap that managed to open in the green and is currently up 2.80%. 

More reading

• ASX All Technology Index teetering on verge of a bear market
• 5 things to watch on the ASX 200 on Tuesday
• ASX 200 rises, TWE jumps, Zip sinks
• Where next for the Xero (ASX:XRO) share price?
• How the CSL (ASX:CSL) share price weakness exposes its dividend strength

Motley Fool contributor Kerry Sun has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

What happened

Shares of Tesla (NASDAQ: TSLA) slid sharply on Monday, extending a bearish few weeks for the stock. It finished the day almost 6% lower.

The electric-car maker’s shares were likely down on Monday primarily due to a weakness in the overall market, particularly among tech stocks.

So what

Reflecting the tech stock sell-off on Monday, the tech-heavy Nasdaq Composite fell 2.4% even as the S&P 500, which is better diversified across other sectors, fell only 0.5%. Many growth stocks like Tesla fell even more sharply than the Nasdaq.

Monday’s market dynamics represented a continuation of a trend in recent weeks of tech stocks taking a breather after a big run higher in 2020. Tesla stock has been hit especially hard, declining more than 30% since mid-February. Year to date, it is now down more than 20%.

Now what

Investors should note that Tesla stock is still up about 300% over the past 12 months and 570% since the beginning of 2020. It’s not too surprising, therefore, to see the growth stock pulling back.

Growth stocks are generally more volatile than the overall market. Investors, therefore, should plan for more volatility from stocks like Tesla. On the other hand, shareholders should primarily remain focused on the company’s underlying business. On that note, management guided for its year-over-year vehicle delivery growth to accelerate this year compared to last year.

“We are planning to grow our manufacturing capacity as quickly as possible,” Tesla said in its fourth-quarter shareholder letter. “Over a multi-year horizon, we expect to achieve 50% average annual growth in vehicle deliveries. In some years we may grow faster, which we expect to be the case in 2021.” 

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

More reading

• This was the week that ASX dividend shares proved their worth
• Why Tesla stock is stuck in reverse
• Shocking photo shows how quickly electric cars could take over
• Elon Musk doubles down on promise to IPO Starlink
• Why this ASX tech ETF is in the buy zone

Daniel Sparks has no position in any of the stocks mentioned. His clients may own shares of the companies mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends Tesla. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post Why Tesla Stock Fell Further on Monday appeared first on The Motley Fool Australia.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

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The Red 5 Ltd (ASX: RED) share price is soaring higher today following the announcement of possible contract negotiations with Macmahon Holdings Limited (ASX: MAH). At the time of writing, the gold producer’s shares are up 5.8% to 18 cents.

What’s driving the Red 5 share price higher?

The Red 5 share price is on the rise after providing investors with a positive update this morning.

According to its release, Red 5 advised it has signed a letter of intent with Macmahon for mining contract services at its King of the Hills (KOTH) Gold Project. This follows an in-depth tender process that saw a number of contracting companies compete for Red 5’s open pit and underground mining activities.

Pending the final agreed terms, the proposed contract will run for an initial 5-year period beginning in the March quarter of 2022. Formal documentation of the contract is expected to be completed in the June quarter of this year.

Macmahon estimates that the award will generate revenue over $650 million over the life of the deal.

In addition, Red 5 will appoint experienced mining engineer Andrew McRae as the KOTH mine manager. McRae has held senior management roles within the industry over the past 10 years. Most notably, he served in the leadership team at Evolution Mining Ltd (ASX: EVN)’s Cowal Gold Mine.

Quick take on the KOTH Gold Project

Wholly-owned by Red 5, the KOTH Gold Project is situated within the Eastern Goldfields region of Western Australia. The gold mine has a 16-year mine life, with over 2.4 million ounces of ore reserve, and 4.1 million ounces of mineral resource. The large open pit and underground mine is expected to have its first gold pour in the June quarter of 2022.

Words from the managing director

Red 5 managing director Mark Williams touched on the contract award, and the inclusion of its new KOTH mine manager:

Following a rigorous tender process, we are delighted that, subject to final agreed contract terms, Macmahon will be appointed as mining contractor for both the KOTH open pit and underground mines. We see a number of important operational efficiencies and cost benefits in having both mining operations managed by a single contractor.

We are also very pleased to welcome Andrew McRae to the Red 5 team as the KOTH Mine Manager. Andrew brings a wealth of experience and knowledge from his time at the Cowal Gold Mine and he will play a key role in planning and preparations to ensure we remain on commencing activities at the KOTH Gold Mine in early 2022.

The Red 5 share price has fallen 40% over the past 12-month period.

More reading

• 5 things to watch on the ASX 200 on Tuesday
• ASX 200 Weekly Wrap: ASX finishes higher, despite tech selloff
• Why the Red 5 (ASX:RED) share price is lifting 6% today
• ASX 200 rises, Rio chair will leave, Nine gets a new CEO
• Why the St Barbara (ASX:SBM) share price will be on watch today

Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post Why the Red 5 (ASX:RED) share price is soaring higher today appeared first on The Motley Fool Australia.

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This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

Back in the last century — which was only 21 years ago — there were limited opportunities for women to learn about investing in the stock market. Many women who were children in the 1950s and ’60s grew up believing that a woman’s place was in the home. No financial education was offered in schools, and young girls were thrown into home economics and sewing classes, while boys attended woodworking or electrical classes — to prepare them for, well, making a living and supporting a family.

But things have changed, thank goodness. Women have claimed full equality, and even though they still earn less per hour than men, they can be seen in high-profile jobs like CEO, financial advisor, and even vice president of the United States.

Unfortunately, things haven’t changed much in the financial realm. Considering that 90% of women will have to manage their own assets at some point, it’s surprising that they don’t feel comfortable when it comes to investing. And only 39% of women feel they have the resources for a 25-year retirement, while the other 60% are worried sick about it.

It’s time for women to claim their power when it comes to investing. And if you’ve been reluctant or frightened about the stock market, it’s time to change. Following are four steps that can make you a better investor.

Make a financial plan

Everyone needs a guide on the path to financial security. But 59% of women don’t have a plan. Instead, they estimate what their retirement needs will be. That’s a recipe for disaster — if you don’t know how much to save, where to put your savings, and how to grow them, you run the risk of falling short of funds in retirement — and that will cause anxiety and worry.

Instead, be real about your future. Find a financial advisor you trust and sit down and run some numbers. There are many advisors out there — many of whom are female, if that makes you more comfortable — who are happy to give you a free introductory session to show you where you are now financially and where you need to go to make enough for retirement. Yes, it may also include a sales pitch to get your business, but you can say no, or “I’ll think about it.” Just go for the free information. Or make an appointment with a fee-based financial planner who will focus entirely on you and avoid the sales pitch.

At the very least, there’s an abundance of articles like this retirement primer on the internet that you can read if you’re the do-it-yourself type. Once you have a plan, you’ll have a guideline to help you decide the exact type of investments you’ll need to reach your goals.

Make investing a priority

According to Morningstar, women placed investing fifth on their list of priorities, following daily living expenses, paying off debts, housing costs, and savings. No wonder it gets no love! By the time a woman handles those four other items, she has no energy left to spend on growing wealth in the stock market.

If you want to be a better investor, you must give it a higher priority. Set aside an hour or two each week to learn about it or review the stocks or funds you currently own. And don’t make those hours subservient to other household business. Your financial life is extremely important, so treat it that way.

Be a little risky

Almost every study out there indicates that women don’t like to take risks with their money. They tend to keep too high a percentage in cash, money market accounts, CDs, and Treasury bills. And according to BlackRock, only 21% of women invest in stocks.

But to make money that’s going to fund your retirement, you have to take a little risk. Just a little to start, OK?

Maybe you could be slightly more aggressive in your 401(k) [superannuation] allocations. Put a higher percentage in an S&P 500 index fund, which most workplace plans offer. The long-term average return of the S&P 500 is around 10% — which is a lot more profitable than the 1% to 2% you’ll earn from cash and CDs. Or take a small stock position in a company that you think has a great future. In any case, you need to take on some risk to generate enough for a comfortable retirement.

Get confident about managing your money

These days, women are earning a majority of doctorates and master’s degrees, and 60% of college students in the U.S. are women. We are intelligent and capable — so why aren’t we confident when it comes to money?

Education is key — and you can become knowledgeable about investing just as you learned how to do everything else in your life that you’re successful at. Don’t know where to start? Read The Motley Fool’s 13 Steps to Investing Foolishly. The more you learn, the more confidence you’ll have, and the stock market will become more a place of fun and less a place of fear.

Time to start learning

Here’s where your investing confidence and education will get you: Many studies show that women who invest far outperform men. They trade less often and take a longer time to make decisions, traits that make successful long-term investors.

Women have achieved so much. They’re college graduates, they’ve earned higher degrees, and they run major corporations, birth children, and take care of their parents. Some even run the House of Representatives, serve on the Supreme Court, and are next in line to be president of the United States. If women can do all that, they can certainly become better investors. Just take the time to learn, take on a little risk, and persevere. And remember, when you feel cold feet coming on… you CAN succeed at investing!

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

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Barbara Eisner Bayer has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post 4 Ways Women Can Become More Successful Investors appeared first on The Motley Fool Australia.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

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