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Extended hours?
The MOTLEY FOOL
Ask the Fool
Published: January 14, 2025
Q: I heard that the New York Stock Exchange (NYSE) may extend trading hours to 22 hours a day. Is that good or bad? -- D.V., Orem, Utah
A: There are pros and cons to such a move. Most of us are familiar with the NYSE's "core" trading hours of 9:30 a.m. to 4 p.m. Eastern time (weekdays). But currently there's also an early trading session from 4 a.m. to 9:30 a.m. and a late session from 4 p.m. to 8 p.m., for a total of 16 hours. The proposed new trading hours would be from 1:30 a.m. to 11:30 p.m.
A change would be favorable for overseas investors in different time zones, and it would allow all investors to be able to act more quickly on good or bad news. But there's typically less trading during those early and late sessions, which can lead to more price volatility (such as when there are fewer buyers than sellers or fewer sellers than buyers). This could be the case with new hours, too.
It's not clear whether the Nasdaq Stock Market would follow suit. If it doesn't, some international companies might prefer to be listed on the NYSE for more convenient trading hours.
Q: What are some good books on financial planning? -- C.W., Charleston, South Carolina
A: Check out "Get a Financial Life: Personal Finance in Your Twenties and Thirties" by Beth Kobliner (Simon & Schuster, $18) and/or "I Will Teach You to Be Rich: No Guilt. No Excuses. Just a 6-Week Program That Works" by Ramit Sethi (Workman, $17). After you do some reading, you might consult a financial adviser; you can find some at GarrettPlanningNetwork.com and NAPFA.org. (Many will offer a free initial consultation.)
Fool's School
Planning for the End
To save our loved ones a lot of headache (and perhaps heartache), we all need to have up-to-date estate planning documents. Laws vary from state to state, but these documents may include:
-- A will and/or trust: A will specifies what you want done with your assets after you die. It can also dictate how your children will be provided for and can designate one or more guardians for them. Some folks would do well to set up a trust, too. These documents may help your estate avoid going through probate, an affair-settling process that's sometimes lengthy and costly.
-- Beneficiary designations on financial accounts: It's vital to designate beneficiaries for your financial accounts, and to keep them updated. (You may not want assets going to someone whom you divorced or who passed away, for example.)
-- A durable power of attorney: This document designates one or more people to manage your financial and legal affairs should you become incapacitated temporarily or permanently. They may sign financial documents, pay bills and conduct transactions on your behalf.
-- A health care proxy: This is a durable power of attorney for health care, empowering your designee to make health care decisions on your behalf if you cannot do so. They would consult with your medical team and could decide which treatments you get.
-- A living will (or advance health care directive): This document informs medical professionals and your health care proxy about your wishes -- such as at what point you would want care to cease.
-- A HIPAA release: Per the Health Insurance Portability and Accountability Act of 1996, this authorizes health care professionals and insurers to release protected information about your health to whomever you designate. Without it, doctors may not be able to inform loved ones of your condition if you're in an accident or otherwise can't communicate.
A good estate lawyer can help you with these. Urge your loved ones to create or update their documents, too!
My Smartest Investment
Followed My Gut
About 15 years ago, I asked for my broker's opinion about investing in Microsoft. He questioned the decision by asking whether the level of competition in the computer world wasn't about to limit the company's expansion. I felt that it had good management and would figure it out. It's now grown by more than 1,700%, and it's still going strong. I'm happy I bought the stock, and I still own it. -- A.W., online
The Fool responds: Bravo! It's always good to do your own thinking when investing, as it's your hard-earned dollars being deployed. And even a savvy and well-meaning adviser will be wrong now and then.
Buying Microsoft 15 years ago was a great move, and the company is likely to grow in value over the coming 15 years, too -- though perhaps not quite as briskly, since it has grown so big. (Its market value recently topped $3 trillion!) It encompasses valuable properties such as the widespread Office productivity software, the major Azure cloud computing platform, the Xbox gaming platform and the Windows operating system, and it's been investing heavily in artificial intelligence (AI). Cloud computing is a fast-growing technology, and many have great expectations for AI as well.
(Do you have a smart or regrettable investment move to share with us? Email it to TMFShare@fool.com.)
Foolish Trivia
Name That Company
I trace my roots back to 1974, when John Bogle designed a revolutionary mutual fund company owned by its funds' shareholders. I introduced a money market fund in 1975, and the next year debuted the First Index Investment Trust -- the first index fund, based on the S&P 500 index, to be marketed to individual investors. (Since then, low-cost index funds have deservedly become very popular.) Today, I'm a major investment management company, with more than 50 million investors (as of the end of 2023) and 426 funds available to investors (as of Sept. 30). Who am I?
Last Week's Trivia Answer
I trace my roots back to 1998, when I was formed via the merging of four dairy cooperatives: Mid-America Dairymen, Milk Marketing, Western Dairymen Cooperative and the Southern region of Associated Milk Producers. I've grown in part by acquisition, including the purchase of Dean Foods in 2020. Today, based in Kansas City, Kansas, I'm a national farmer-owned dairy cooperative, encompassing more than 10,000 family farm-owners. I make and market milk, cheese, butter, ice cream and much more, with brands such as Alta Dena Dairy, Borden Cheese, Friendly's, Garelick Farms, Kemps, Meadow Gold Dairy and Plugra Premium Butter. Who am I? (Answer: Dairy Farmers of America)
The Motley Fool Take
Communicating Income
Shares of Verizon Communications (NYSE: VZ) have climbed around 16% over the last year, due in part to growth both in wireless service revenue and in 5G adoption by smartphone buyers. The stock's high dividend -- recently yielding 6.5% -- will also look more attractive to investors as interest rates come down, which could be a catalyst for the shares in 2025.
Recent earnings results have eased Wall Street's concerns over weakening growth amid macroeconomic challenges and competition among wireless operators. In the third quarter, Verizon's revenue from monthly billed plans for wireless phones doubled year over year.
Verizon is expected to deliver profitable growth in 2024 and beyond. It will soon pay $20 billion to acquire Frontier Communications, which will expand its fiber network and broadband services.
Telecom stocks are attractive to dividend investors, particularly due to the consistent revenue from monthly billed services. Verizon Communications has paid a dividend -- and largely a growing one -- for 40 years.
Verizon should also benefit from the demand for AI-enabled devices. Additionally, management's focus on driving profitable growth and paying down debt should cast a brighter halo around the stock on Wall Street. Long-term income-seeking investors might want to take a closer look at Verizon. (The Motley Fool recommends Verizon.)
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