A windfarm at sunset. Research suggests sustainable funds are longer-lasting than their peers. Photograph: Tim Phillips Photos/Getty Images

Environmentalists cheered by huge improvements in air quality during the lockdown and the collapse in coal power generation have another reason to celebrate. Even the stock market has gone in their favour.

A detailed number-crunching of environmentally sustainable funds has revealed that they have outperformed traditional funds across the board beating them during the pandemic as well as during the 10 years up to and including the coronavirus sell-off.

The data, from the global research agency Morningstar, comes amid growing evidence that environmentally focused investing once pigeonholed by City traditionalists as only for a vegan/hippy minority is becoming mainstream. This week, Vanguard, one of the worlds biggest fund managers, launched two ethical index funds aimed at UK investors, while Aviva, Britains biggest insurer, unveiled a climate transition fund.

Morningstar examined 745 sustainable funds and compared them against 4,150 traditional funds, and found they matched or beat returns in all categories whether bonds or shares, UK or abroad.

The outperformance continued during the coronavirus crisis

Average returns and success rates for sustainable funds suggest that there is no performance trade-off associated with sustainable funds. In fact, a majority of sustainable funds have outperformed their traditional peers over multiple time horizons, it says.

Over 10 years, the average annual return for a sustainable fund invested in large global companies has been 6.9% a year, while a traditionally invested fund has made 6.3% a year.

The outperformance continued during the coronavirus crisis. In all but one category considered in the study, sustainable funds outperformed, with average excess returns in Q12020 ranging between 0.09% and 1.83% across categories, Morningstar says.

One reason may be that many US tech stocks, popular among environmental investors, have soared during the crisis, while shares in oil, gas and coal companies have plummeted. The Nasdaq index of US tech stocks has recovered completely from the coronavirus crisis, reaching new highs this week, while the oil giant ExxonMobil is trading at $53 compared with $70 before the lockdown.

The Morningstar researchers noted that sustainable funds are longer-lasting than their peers. One of the tricks of the asset management industry is that funds that do badly are quietly removed usually by merging them with another, better-performing fund. This has the effect of flattering the overall performance figures, suggesting that investors are doing better over the longer term than they really are. Morningstar found that three-quarters of sustainable funds lasted 10 years or more, compared with less than half of traditional funds.

Campaigners welcomed the confirmation that sustainable funds are better. Michael Kind of ShareAction a charity and company that promotes responsible investment says:Its very positive, but also not surprising, to see that funds with robust environmental, social and governance (ESG) strategies are overall better performers financially. We hear from savers very often that one of the biggest barriers to action is that there is a perception that you will lose out financially if you switch to investing responsibly.

But is this enough? No we would expect more ambitious and authentic ESG funds to deliver better outcomes for stakeholders and the environment but not inevitably to deliver investors more money every time.

Research what funds your pension/Isa/investment provider offers you.

Look into the holdings and stewardship/investment policies of your funds, or those you are considering putting money in. These policies show how your asset manager will invest your money and try to influence companies on your behalf. You can either do this on your own or ask your investment (or pension) provider/employer/financial adviser for this information.

It is important to see how your investment provider votes at the worlds largest companies AGMs. Are they voting for climate action and supporting human rights?

ShareAction recently produced an independentglobal rankingof the most responsible asset managers across many topics. Use it to make an informed decision when selecting a manager.

Use resources from organisations such as Climetrics, Boring Money and Good With Money.

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Ethical investments are outperforming traditional funds - The Guardian

U.S. stockshave recovered robustly following March's virus-induced sell-off, prompting many to returnto the markets to make gains and recoup losses.

The S&P 500 erased its 2020 losses and the Nasdaq Composite reached a new record Monday, even as officials declared that the U.S.entered a recession in February.

That might suggest the region's return as an investing hot spot. But, as the dollarcontinues to tumble amid ongoing central bank stimulus, investors may be wise to look to other markets for wealth-building opportunities.

Asiacould offer one highlight, according to advisors CNBC Make It spoke to.

There is a good chance that Asian currencies are going to outperform the U.S. dollar.

Freddy Lim

co-founder and chief investment officer, StashAway

That presents an opportunity for investment in the region particularly for Asian investors who would otherwise be hit by foreign exchange losses when investing in U.S. dollar-denominated stocks, according to Freddy Lim, co-founder and chief investment officer of StashAway.

"There is a good chance that Asian currencies are going to outperform the U.S. dollar over the next 18-24 months," said Lim of the Singapore-based digital wealth manager. "This also means that Asian-based assets could start looking interesting in local currency terms."

Looking at Asia's major markets, Singapore's Straits Times Indexappears attractive, offering access to "steady, high quality names with a long track record of navigating past epidemics," said Lim.

Other industrialized Asian markets, such as South Korea, Hong Kong, Taiwan, as well as China, also look to be relative "winners" compared with their less developed regional counterparts,according to HSBC Singapore's head of wealth & international, Ian Yim.

Focused young man working with a laptop in the bedroom at home.

Oscar Wong

"In addition to being attractively valued, they have lower exposure to commodities and oil, and have proven themselves to be better equipped to cope with the Covid-19 crisis," said Yim, highlighting the various factors at play in the market.

More specifically, industries with strong fundamentals that have been accelerated by the virus, such as e-commerce, the internet, and China's new economy, are likely to do well, agreed Yim and Lim.

"E-commerce-enabled companies have proven to have robust business models and can potentially reap the benefits of changing consumption behavior in future," said Yim.

Outside of the stock market, other investments in Asia show promise, notedSamuel Rhee, chairman and chief investment officer of Singapore-based digital advisory Endowus.

Asian fixed-income bonds, in particular, have fared well under governments fiscal response to the virus, and provide some all-important investment diversification, he said.

Time in the market is more important than trying to time the market.

Samuel Rhee

chairman and chief investment officer, Endowus

"For bonds, regionally, we see value in Asia, where yields have increased," HSBC's Yim agreed.

Real estate, or real estate investment trusts (REITs), on the other hand, could present some "vulnerabilities," given the virus' impact on the sector, said Rhee.

Before taking advantage of any investment opportunity, it's important to come up with a strategy. Outlining your financial goals and how much you can afford to invest is a great place to start.

StashAway's Lim recommended systematically investing a fixed sum each month. According to StashAway'sInsights 2020, "systematic investors," who invest continuously through a downturn, perform better than those who withdraw during a correction.

There are plenty of digital wealth managers now available to help you do that; automatically investing in passively-managed index fundsor exchange traded funds (ETFs) that track specific regions or sectors. Not only does that take the hassle out of monitoring the markets too closely, it also allows you stay invested for the long term, said Endowus' Rhee.

"Time in the market is more important than trying to time the market," said Rhee. "(That) has been proven to be a futile effort as the recent rapid fall and the equally rapid rebound has proven again."

Don't miss:Tech, health care and energy: Investing experts share where they're placing their bets

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As markets recover, here's how to make the most of your money in Asia - CNBC

Fear has once again returned to the financial markets.

An alarmingly high number of new COVID-19 cases across the U.S. and many other countries is forcing investors to once again consider the potentially devastating health and economic impact of the deadly disease.

And yet, even in the middle of a global pandemic, there are ways to protect and grow your wealth. Here are five outstanding companies that can help you do so -- and that you can safely invest in today.

Here's where to invest your money now. Image source: Getty Images.

While many businesses will suffer during the COVID-19 crisis, Amazon.com (NASDAQ:AMZN) stands to benefit from a coronavirus-driven acceleration in the growth of e-commerce. The online retail juggernaut served as a lifeline for millions of people while they sheltered in place during the early stages of the pandemic. Many people shopped on Amazon.com for the first time during this period, and now that they've seen firsthand the savings and convenience online shopping can provide, they're likely to remain loyal customers even as stay-at-home orders end.

Johnson & Johnson (NYSE:JNJ) is one of the companies working to create a potentially life-saving vaccine for COVID-19. The healthcare titan has partnered with the Biomedical Advanced Research and Development Authority (BARDA) to accelerate the development of its vaccine candidate for SARS-CoV-2, the virus that causes COVID-19. Just days ago, J&J announced that it would begin clinical trials in the second half of July, about two months sooner than expected. J&J has committed to spending more than $1 billion to fund these efforts, and it's already ramping up its manufacturing capabilities, in order to be able to make over 1 billion doses, should its vaccine prove safe and effective.

The coronavirus pandemic has been devastating for a huge swath of the traditional retail industry. Thousands of brick-and-mortar stores were forced to close due to stay-at-home orders, and, sadly, many will never reopen. Entrepreneurs are adapting to this new post-pandemic reality by embracing e-commerce, and Shopify (NYSE:SHOP) is giving them the tools they need to be successful. Shopify serves as an online retail operating system for businesses of all sizes, with tools that allow merchants to build online stores, manage inventory, process payments, ship products, and even apply for loans. Shopify has become an invaluable partner for more than 1 million businesses, and it's likely to play a key role in an eventual economic recovery.

The coronavirus pandemic has placed cleaning and sanitizing efforts in the spotlight, and companies like Clorox (NYSE:CLX) provide consumers with the products that make them feel safe. Clorox produces several of the items on the Environmental Protection Agency's list of disinfectant products that are effective against the novel coronavirus. Moreover, buying shares of Clorox could help you profit from the surging demand for bleach, hand sanitizers, and disinfectant wipes during the COVID-19 pandemic.

Apple (NASDAQ:AAPL) is a financial powerhouse. With more than $90 billion in net cash on its fortress-like balance sheet and over $65 billion in annual operating profits, the technology titan can withstand a stock market crash better than perhaps any other business. In fact, a lower stock price could work in investors' favor, as Apple would be able to repurchase its shares at even more attractive prices -- and remaining shareholders would be entitled to an even greater share of its enormous profits. Better still, those profits are set to increase, fueled by projected growth in Apple's booming services and wearables businesses, as well as a likely 5G-driven iPhone refresh cycle in the coming years.

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Stock Market Crash: Where to Invest Your Money Now - The Motley Fool

The stock market has been in manic-depressive mode as of late, surging early in June on the euphoria of the country's economic reopening, as well as a surprise jobs gain in the June 5 labor report. However, the market gave almost all of those gains back late last week, after some gloomy commentary from Federal Reserve officials, who now plan to keep interest rates at zero until at least 2022.

What does all of the volatility mean? That you can pick up shares of great companies to buy and hold for the long term. And while stocks relating to the reopening economy have shown a big rally lately, I think it may be time to refocus on stronger technology-related companies that help power the new, more digitized economy. And with lower interest rates here until at least 2022, these companies, which can grow even in a depressed economy, should fetch a premium down the road.

In that light, here are three rock-solid companies that play into these long-term trends. Got an extra $5,000? Then you should think about scooping up shares of these three top companies today.

Image source: Getty Images.

With businesses reeling from COVID-19 and many companies allowing work-from-home for the foreseeable future, securing enterprise communications among a distributed workforce is more important than ever. Thus, cybersecurity solutions are at a premium as never before.

Not only is the cybersecurity sector poised for long-term growth, but CrowdStrike (NASDAQ:CRWD) also appears to have a novel solution poised to take market share within the industry. CrowdStrike combines its software-based Falcon agents, which can be deployed to any "end point" in an enterprise's IT stack over the cloud, with a centralized artificial intelligence-based Threat Graph that uses all agent data to continuously improve algorithms for the entire customer base. Thus, the more customers CrowdStrike gets, the better its threat detection algorithms, which helps attract more customers, and on and on.

As proof of CrowdStrike's effectiveness, look no further than its blockbuster recent results, reported on June 2. Total revenue was up a whopping 85%, with core subscription revenue up 89%. Annual recurring revenue was up 88%, and the company's subscription customer count more than doubled, up 105%.

Also unusual for a cloud-based software-as-a-service company, CrowdStrike is generating some serious cash flow, although GAAP net profits are still negative. Operating loss improved from $25.8 million in the year-ago quarter to $22.6 million in the first quarter, but operating cash flow surged to $98.6 million from just $1.6 million a year ago, and free cash flow increased to $87 million, up from a free cash flow loss of $16.1 million a year ago.

Even if COVID-19 cases surge in a second wave and the economy stagnates, enterprises are still going to need cutting-edge solutions to secure their infrastructure and avoid the costly breaches we've seen over the past few years. In addition, CrowdStrike's growth and margin expansion are some of the best you'll find in the entire market, making the stock a buy even after a strong recent run.

Another company poised to grow no matter what the economy is doing is European semiconductor equipment manufacturer ASML Holdings (NASDAQ:ASML). Unlike many other companies in the semiconductor and memory space, ASML has seen its stock rocket higher, to even exceed where it was to start the year.

That's because ASML has a differentiated offering, having cracked the code on Extreme Ultraviolet Lithography technology. EUV is a mission-critical technology needed to produce more advanced semiconductor chips and DRAM memory at scale over the next decade, and ASML has a monopoly on it.

While the chip sector, and therefore semicap equipment companies, have traditionally been cyclical, and thus wouldn't be a great place to invest in a recession, things may be different this time around. Leading-edge semiconductors are crucial to making the digital economy run, powering cloud computing, artificial intelligence, 5G communications, and the Internet of Things. While ASML's first quarter revenue was affected by COVID-19, that was entirely due to supply issues, not demand. Management noted on the earnings release, "The demand outlook is currently unchanged and we have not encountered any push-outs or cancellations this year."

Furthermore, leading-edge semiconductors are now seen as a strategically important to both companies and countries alike. In fact, the U.S. Congress just announced a bipartisan bill to subsidize the semiconductor industry to the tune of $22.8 billion, as it aims to build semiconductor manufacturing capacity within the United States.

The building of additional, and perhaps redundant, semiconductor manufacturing plants in the U.S. would only mean additional demand for companies like ASML, and maybe especially ASML, since EUV is so crucial to the production of leading-edge semiconductors. So despite its strong run, ASML still looks like a strong pick to play these future technologies today.

If we're all stuck at home, streaming shows on our phones, ordering items on e-commerce websites, and accessing our work on cloud data centers, what do all of those things need? Servers, and lots of them. Super Micro Computer (NASDAQ:SMCI) makes servers for enterprise, cloud, and consumer customers all across the world. In contrast to the more standardized server offerings from Dell Technologies (NYSE:DELL) or HP Enterprise (NYSE:HPE), Super Micro makes more customized server solutions for specific end-use cases.

As servers become more important for different types of workloads, among artificial intelligence applications, 5G base stations, on-premises or cloud data centers and more, Super Micro could benefit. Also important, Super Micro actually does a fair amount of manufacturing in the U.S., which is somewhat rare, along with significant operations in Taiwan. Finally, as ESG concerns take hold of the corporate world, Super Micro's emphasis on environmentally friendly "green" computing should also resonate with customers going forward as well.

Of these three stocks, Super micro is the value stock of the bunch. Currently, it only trades at 16.5 times earnings, but that's even overrating the company's multiple. Super Micro has $301 million in cash versus just $33 million in debt, yielding $268 million in net cash, or 18.4% of Super Micro's market cap. In addition, Super Micro is still undertaking some extra costs related to remediating an accounting snafu from a few years ago, which has since been remedied. Should those costs fall off going forward and the company begins returning that excess cash to shareholders, and Super Micro is actually trading at something more like a low-teens multiple.

With COVID-19 still out there accelerating all of these digital trends, investors should look to buy stocks of companies that play to the digital future on these big market pullbacks. As such, CrowdStrike, ASML, and Super Micro Computer all look like solid additions to your portfolio today.

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Where to Invest $5,000 Right Now - Motley Fool

It also announced its 10th deal 1894.50 crore by L Catterton, one of the worlds largest consumer focused private equity firms. L Catterton is built in a partnership with LVMH and Groupe Arnault. L Catterton will now have a 0.39% equity stake in Jio.

This takes Jios total investments to 104,326.95 crore from the likes of Facebook, Silver Lake, Vista Equity Partners, General Atlantic, KKR, Mubadala, ADIA, TPG, L Catterton since April 22, 2020.

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According to the company, TPG is making the investment from its TPG Capital Asia, TPG Growth, and TPG Tech Adjacencies (TTAD) funds.

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Ambani is also counting on L Cattertons experience in creating consumer-centric businesses.

Over our more than 30 year history, we have established a track record of building many of the most important brands across all consumer categories and geographies, from retailers, omni-channel and digitally native brands. We are strong supporters of fostering growth through product development, enhanced digital capabilities and strategic alliances. We look forward to partnering with Jio, which is uniquely positioned to execute on its vision and mission to transform the country and build a digital society for 1.3 billion Indians through its unmatched digital and technological capabilities," said Michael Chu, Global Co-CEO of L Catterton in a statement. Advertisement

The deal is set to be closed in the coming week.

Reliance Jio gets to pick between Google and Microsoft for the last tranche of investments, two sources in the know told Business Insider. The ball is in Reliances court they get to pick and choose. They will decide what is the best strategic fit for Reliance and will evaluate how smart the money is, said the source. Advertisement

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Reliance Jio lands its 9th and 10th investment 4,546.80 crore from TPG and 1,894.50 crore from LVMH-backed - Business Insider India

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These money and investing tips can help you figure out if the stock markets rally can last - MarketWatch

International investing has the potential reward of diversification, but it is coupled with additional risks. Over the last decade, the foreign market underperformed, while the U.S. market was strong. The tide may be turning. Proceed with caution, however.

There are risks in every investment, including cash. Most investors focus on one risk, which is the loss of principal in the moment. There are many risks we must consider as fiduciaries. Inflation, market, sector, credit, interest rate, business, and regulatory are some but not all of the risks associated with investing. We will be doing a video series on these risks on our Facebook group page, Financial Enhancement Group Financial Tidbits.

Foreign investment brings additional risks. Notable are currency risk and political risk. Bear in mind the above risks are also included. There is comfort in knowing your investments, which is often difficult in a foreign environment. Currency risk is the most misunderstood concept for most retail investors.

Similar to a stock, the value of a currency is what another buyer is willing to pay for it. In the case of foreign currency, the price is driven by substantial institutions. For instance, there may be a manufacturer in the U.S. with plants in China, Germany, or Japan. They need to reduce their exposure to currency risk and use institutions to buy and sell various currencies to mitigate that risk.

Foreign governments also enter the currency markets to stabilize their economy when possible. Two issues that commonly confuse onlookers: How can a currency have risk? And, Why wouldnt a government always want a strong currency?

Currency has no immediate risk for an individual unless you travel outside of your country. There are long-term risks for all citizens. You can live your entire life in the United States and never cross a foreign border even to our largest trading partner, Canada. A dollar bill in Indiana is worth the same in New York, but a coffee and hotel stay is likely to be more expensive. You still understand the cost.

People in Germany may be in three countries regularly Germany, Switzerland, and France. The reason the euro currency was created was, in large part, to reduce the complexity of price change in multiple currencies. Currency fluctuation could make something cheaper in one country and more expensive in another. By the way, Switzerland doesnt play that game and retains its own currency.

If you are an exporter of goods to other countries, a weak currency is beneficial. Notice our president is always talking about our dollar being too strong. If you are primarily an importer of goods from foreign countries, you want a strong currency so you can buy cheaper. Sobering nations try to find the right balance, but market forces continue to drive the valuation.

The fluctuation of currency values has been of great magnitude recently. Foreign investing needs to be understood, but start with learning about how currency changes impact your nest egg.

Joseph Big Joe Clark, whose column is published Sundays, is a certified financial planner. He can be reached at bigjoe@yourlifeafterwork.com or

765-640-1524.

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'Big Joe' Clark column: Things to think about when considering international investments - The Herald Bulletin

The year 2020 has already been momentous, and it's not even half over. It's the start of a new decade, sure, but it will be remembered most notably as the year COVID-19 ended the longest period of economic expansion in U.S. history.

Periods of extreme uncertainty lay the groundwork for the next run higher, though, and innovative companies are even now hard at work pushing the boundaries of what's possible. Technological innovators aren't always great investments, so those who are thinking of buying stocks for the long term need to diversify accordingly.

Three stocks worth adding to the list of possible purchases for the decade ahead are Nikola (NASDAQ:NKLA), NVIDIA (NASDAQ:NVDA), and Square (NYSE:SQ).

The NVIDIA EGX processor for small smart devices. Image source: NVIDIA.

I want to start with the most controversial stock here, Nikola, which just completed its public debut via a merger with special purpose acquisition company VectoIQ. The company is being talked about as a potential competitor with Tesla (NASDAQ:TSLA) in the burgeoning electric vehicle (EV) industry and has an equally vocal CEO and founder in Trevor Milton. Oh yeah, there's also the attention-grabbing fact that the stock doubled in a single day on June 8 (for what it's worth, I defend myself by saying I started writing this article before that happened).

What's all the fuss? Though this company has yet to make an official earnings report showing any sales, the company has over 14,000 pre-orders for its battery-electric and hydrogen fuel cell-electric big rig trucks (with some notable names among the pre-orders like Budweiser parent A-B InBev). The orders represent over $10 billion in sales, although that's if all of them are fulfilled. Nikola will be signing firm deals (starting later in 2020) on seven-year sale-lease agreements, so revenue will be recognized upfront but collected over the life of the term. Initial targeted routes will be on the I-10 corridor between Los Angeles and Phoenix (the latter being the location where the trucks will be assembled at Nikola's factory). Also of note (and what sent the stock soaring in a single day) is that pre-orders for its Badger pickup truck will open on June 29.

Milton and company are aiming to end reliance on diesel -- within the next decade if solely up to Nikola -- and will use the $700 million in cash it raised from its merger to complete its assembly facility outside of Phoenix, begin building its hydrogen fueling network, and continue signing partnerships with third-party manufacturers (which will include parts, as well as the Badger pick-up itself, although the automaker partner has yet to be announced). On this latter point, Nikola is unique. Where Tesla has vertically integrated its operations like no other auto manufacturer, Nikola is aiming to partner with as many companies as possible -- all the while controlling the highly profitable technology and licensing aspect of the business.

The Nikola Badger. Image source: Nikola Motor.

There are a lot of unknowns here, but the global transportation and logistics industry spends hundreds of billions, if not trillions, of dollars every year. While Nikola and Tesla will rub shoulders once in a while, there's more than enough market share ripe for disruption to go around. As of this writing, Nikola's market cap of $29 billion is on par with Ford's. Thus, I'm not advising an investor to jump in right now after the massive rush in recent weeks to scoop up the stock. However, I don't think the company is a pipe dream either. There is plenty of ultra-long-term (10 years or so, if Tesla is a guide) potential here. At the very least, keep Nikola on your radar, or buy a small position (1% or less of your portfolio) and forget about it.

Moving on to the far less controversial, NVIDIA is already a massive enterprise doing big business. Its graphics processing units (GPUs), and now high-speed networking gear via its recent takeover of Mellanox, are some of the key ingredients powering artificial intelligence and machine learning. In fact, its data center segment is set to pass up its core video game business, and the same tech fueling AI in the cloud has also been miniaturized to power robotics, autonomous machines, and other devices operating outside of data centers in the field.

In fact, while the video game industry is still a very large part of the whole at NVIDIA, this company has transformed itself into an AI and future computing powerhouse. The GPU is quickly becoming an accelerator for special-purpose computing needs and growing into an ubiquitous part of everyday life -- albeit behind the scenes and unknown to most. At its remotely held 2020 GPU Technology Conference, CEO Jensen Huang outlined all sorts of new innovative uses for his company's wares, from AI-powered call center services using conversational language to personally curated and predictive search results to the scaling of its autonomous vehicle tech to cover everything with wheels.

There's no denying that NVIDIA is an innovative chip designer, but it too comes with its own controversy. After rallying 150% in the last year following a cyclical sales slump in 2018 and early 2019, the stock trades for 19 times trailing one-year revenue and 51 times free cash flow (revenue less cash operating and capital expenses). That's some steep pricing, especially for an enterprise already carrying a market cap of over $220 billion.

But there's a good reason for the steep premium. Revenue is expected to grow by 39% in NVIDIA's next quarter, a rate that isn't necessarily out of the question for the rest of the year given Mellanox is now part of the picture (and lapping last year when it wasn't). Over the next decade, though, I think NVIDIA will be larger than it is today. So whether now is ideal timing to buy or not, I think this innovative semiconductor leader is worth a look.

Over the last 10 years, mobility and e-commerce were highly profitable investment themes. Now that mobile devices and online shopping are a part of everyday life, I believe services based on omnipresent mobility and delivered via the web on consumers' terms will be a key place to uncover winning stocks.

On this front, Square has already been a big success. After taking a breather since 2018, shares have more than doubled since the March 2020 market crash and are homing in on all-time highs again. Square's ecosystem of digital payments and online selling services for businesses is proving resilient in the shelter-in-place era, and a permanent bump up in activity could be the result as consumers and organizations adapt to a digital-first age. Its credit services for small businesses have been a lifeline during the COVID-19 crisis too. And Square's Cash App is also innovating new services for its users. Once a simple tool for individuals to send money to one another, the service is turning into a full-fledged mobile banking application.

The latest Cash App service added in the first quarter of 2020 was cross-border payments, giving users the ability to instantly move money between the U.S. and the U.K. It joins other add-ons like the Cash App debit card that links to a customer's digital wallet balance, direct deposit of paychecks and tax returns, and investing (including the ability to purchase partial shares for small retail investors). Between Square for businesses and the consumer-facing Cash App, Square is innovating a new type of banking relationship.

Of the three stocks listed, Square is the least expensive, with a valuation of 8.5 times trailing one-year revenue. On the profitability side of the equation, it trades for 90.4 times free cash flow (though it is still dumping most of its profits back into the business to develop new services and promote new Cash App capabilities). But the rich price tag goes with the innovative company territory. Square grew sales 44% in Q1 2020, and though no specific guidance was provided for the second quarter and beyond (as subscription service fees were temporarily paused to help customers), gross payment volume in the month of April was up 39%. The balance of 2020 will have plenty of turbulence, but it's clear this mobile banking and e-commerce company is making innovative waves and picking up plenty of new business.

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3 Stocks to Invest In for Future Innovation - Motley Fool

You don't know where to start. You hardly have any money. You don't know the financial terms.

Lots of conditions may stop non-investors from becoming investors, says Bola Sokunbi, a financial education instructor and author of Clever Girl Finance.

The intimidation people feel is real, and Sokunbi thinks it stems from a financial literacy gap. The result is thinking you don't have enough money to start investing and believing it's just too hard.

The danger of waiting till you have more cash, aside from the opportunity cost of missing out on time in the market, is that you may never actually get around to it, Sokunbi says.

Time ticks on "and people find other ways to spend their money," Sokunbi said.

First,adjust your mindset. "Investing doesn't have to be complicated, and you don't need to be Warren Buffett," Sokunbi said. "You don't have to have a financial degree."

What you do need is a little education to get a sense of how investing works. "Don't feel intimidated," Sokunbi said. "Instead, pick up a financial investing 101 book, or Google 'investing 101.' This will give you a sense of confidence."

Learn the core principles, Sokunbi says: what's a stock, what's a bond and how fees play a part in your returns. Figure out how much risk you can tolerate, so you'll know if you should stay more conservative. Understand the importance of diversification.

One of the biggest investor mistakes is giving into panic over the market, Sokunbi says.

Thursday's deep plunge is a test for many investors, but investing experts counsel staying the course.

"When there's a decline in the stock market, people rush to sell," Sokunbi said. "Or if it's doing well, people rush to buy." Don't let your emotions shape your investing decisions.

"When you understand it takes time for investments to grow, you start thinking long term," she said.

When you hear about stock market returns of 7% or 8% over time, remember that at times you'll see greater returns, Sokunbi says. Other times you'll see big losses. "Staying in for the long term is how you'll achieve that average return despite the dips and spikes," Sokunbi said.

Follow some basic money management to accumulate some cash to invest.

Frequently, people who say "I don't have any money" are looking backwards, trying to figure out what happened.

Avoid that frustrating look-back bysitting down with your money and creating a plan for each paycheck, Dixon says.

Walk through your day. Say you stop and buy takeout one day. "If you allocated for it, that's fine," Dixon said. "But if you didn't write that down, then you've taken away from another category."

"Tell each dollar where to go," Dixon said.

There's no minimum for saving and investing, says Brent Weiss, a certified financial planner and co-founder at advisory firm Facet Wealth in Baltimore.

"Just because someone says you can put up to $6,000 in an IRA, don't think you have to put in that much," he said.

If you can save $10 a month, save $10 a month.

Schedule regular money dates with yourself and increase your savings by a small amount. "Those small steps will work," Weiss said. "Down the road, you'll be saving more than you ever imagined you would."

Hitting targets like your first $100 or $1,000 is extremely motivating.

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No money? No expertise? Ditch your excuses and start investing anyway - CNBC

Over long periods of time, the stock market has compounded at an annualized rate of somewhere between 9% and 10%, including dividend reinvestment. That's a fast enough rate to turn ordinary people into millionaires if they invest consistently enough throughout their careers. Of course, few people start investing early enough in their careers to make that path easy. Others want a faster way there or to reach a wealth target beyond that million-dollar threshold.

For them, options, margin, and other risky investment practices offer up the potential for faster returns, albeit with lots of strings and risks attached. Those risks could cause you to lose even more than you invested in total. As a result, they're tools that should only be used if you fully understand the risks and limit your exposure to where they won't run your future if and when things move against you. Read on for some of the basics that you'll be facing if you choose to use them.

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When you invest on margin, you're essentially borrowing money from your broker to buy securities. That leverages your potential returns, both for the good and the bad.

For example, assume you have $1,000 in cash and want to buy $2,000 worth of a stock that trades at $10 a share. You can put up $1,000 of your own money, borrow $1,000 from your broker, buy 200 shares, and you'd own $2,000 worth of that stock. Your net account balance would still look like you have $1,000, but it would show up as $2,000 in stock and a $1,000 margin loan from your broker.

If the stock went up from $10 to $12, that's a 20% increase. At that point, your 200 shares would be worth $2,400, and your account balance would reflect a total value of $1,400 ($2,400 in stock, minus the $1,000 margin loan). That's a 40% increase to your account value on only a 20% increase in the stock price.

Of course, margin cuts both ways. Say that stock instead dropped 20% from $10 to $8. At that point, your 200 shares would be worth $1,600, and your account balance would reflect a total value of $600 ($1,600 in stock, minus the $1,000 margin loan). That's a 40% decrease to your account value on only a 20% decrease in the stock price.

In addition to magnifying the swings in value, investing on margin brings with it other risks. First and foremost, you will pay your broker interest on any money you're borrowing when you invest with margin. At Fidelity, for instance, the recent cost to borrow money on margin on balances up to $24,999 was 8.325%.When you compare that rate to the 9% to 10% potential annual return in stocks, you'll quickly recognize that you're taking the risk, but the broker is getting much of the rewards.

In addition, while you have a margin loan outstanding, your broker may issue something known as a margin call -- particularly if the market moves against you. When you have a margin call, you broker can demand you pony up more cash or sell out positions you currently own in order to satisfy the call. If you can't cover the call, your broker will liquidate your positions to get it covered.

If your broker starts selling out your positions, that broker doesn't care about your tax situation, your view of the company's long-term prospects, or anything else other than satisfying the call. If the market really moves against you -- say that stock you bought on margin declared bankruptcy and became worth $0 -- you're also still on the hook for the money you borrowed.

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Options are what is known as a derivative security -- which means they derive their value from some other investment (such as a stock). Options come in two flavors, calls and puts. Buying a call gives you the right to buy the underlying investment at a certain price on or before a certain date. Buying a put gives you the right to sell the underlying investment at a certain price on or before a certain date.

Most publicly traded options contracts on stocks cover 100 shares at a time, and the buyers and sellers of those options often create the contracts when they initiate their opening transactions. Because options expire, part of their value comes from the amount of life they have left (time value). The other part of their value (intrinsic value) comes from how far above the contract price the shares are trading if it's a call option or how far below the contract price the shares are trading if it's a put option.

Because of that contract price -- known as the strike price -- options are also leveraged investments that can move far more than the underlying stock. That provides the potential for magnified returns to both the upside and the downside. It's important to understand, too, that thanks to the time value involved along with the options limited lifespan, options sellers get paid up front and thus are willing to take the risk that the market moves against them.

Here's an example of how options work. Imagine there's a stock trading at $50 per share, and that stock has call options available for three months from now. If the $50 call option trades for $2, you can buy one contract for $200 ($2 per share, 100 shares per contract). If three months from now, just before expiration, the stock trades at $55 per share, your options would be worth $5 per share, or $500 total.

You can then sell that option, and you would have more than doubled your money in the space of three months. That's an amazing return, particularly when you compare it to the 10% move in the underlying stock. Also note that the options seller -- your counterparty to that trade -- would be out a net $300 ($500 at expiration, less the $200 premium received when setting up the option). In this way, it's possible to lose more than 100% of your investment when trading options.

Of course, that potential return is exceptionally risky. If the stock closes at or below $50 when the option is about to expire, the option is worthless, and you will have lost 100% of your investment. That's despite the fact that you would likely have still had something had you owned the stock, Likewise, if the stock closes between $50 and $51.99 just before expiration, you would wind up losing money on the option. That's despite the fact that you would have made a little money if you owned the stock.

As if the leverage natively embedded in options weren't enough, you can combine the two and use margin to buy and sell options. With that combination, you magnify the potential returns as well as the very real risks you're taking on with your strategies. Unfortunately, that combination brings even risks above and beyond the mere leverage involved.

Remember that options expire and brokers can initiate a margin call if your balance gets too low relative to the amount you've borrowed. That combination means that if the market moves against you in the short term, you can lose everything -- potentially even more than you invested -- because of bad timing, even if the strategy would have ultimately worked out for you in the long run. That risk is real, and it can burn you.

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Beyond options, margin, and the combination of the two, there are also other high risk, high potential reward strategies, such as speculating in the futures market. Similarly, those alternative investments also carry with them leveraged potential returns, along with the possibility of losing more than you invested when the market moves against you.

All these strategies and tools look tempting on the surface because they offer that potential of faster returns if things go well. In reality, reaching for those potential rewards require you to take on substantial real risks above and beyond the typical risks of ordinary stock investing.

As a result, they should only be considered by very experienced investors who fully recognize those risks. Even then, those investors who want to use them should carefully limit their total exposure so that when the market moves against them, it doesn't jeopardize the rest of their financial position.

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Options, Margin, and Other Risky Investment Practices - The Motley Fool