Analyst Articles

My top-rated stock this week (out of more than 6,000 stocks and ETFs) is a basic materials company that focuses on industrial metals, minerals and oil and gas. In general, I like the basic materials segment of the global economy and even more so… Read More

September has been a wonderful month for stocks. The S&P 500 Index, for example, has risen in 10 of the past 13 sessions, rebounding to levels seen last May, before the bears took the reins. Shares are rising on expectations that we’re increasingly… Read More

An important trend that will drive stock market returns in the coming decades is demographics. Simply put, the age of citizens across the world is advancing. In the United States, the first of the Baby Boom generation was born in 1946 and is in the process of retiring. Japan, Europe… Read More

A seldom mentioned emerging market country is nurturing a future oil giant. Few are aware that Colombia is a growing and dynamic economy. Many people think of Colombia as a violent and lawless place dominated by drug cartels, or perhaps even… Read More

Although investors typically seek out stocks that are poised to rise, they also need to closely monitor what’s happening among short-sellers. These short-sellers often identify red flags well before Wall Street analysts or the financial media spot them. And if you are long a stock that is heavily shorted, you’ll need to dig deeper to try to find out why. (For example, you can go back to archived version of the most recent conference call to listen to what concerns arose during the Q&A). Twice a month, the Nasdaq and the… Read More

Although investors typically seek out stocks that are poised to rise, they also need to closely monitor what’s happening among short-sellers. These short-sellers often identify red flags well before Wall Street analysts or the financial media spot them. And if you are long a stock that is heavily shorted, you’ll need to dig deeper to try to find out why. (For example, you can go back to archived version of the most recent conference call to listen to what concerns arose during the Q&A). Twice a month, the Nasdaq and the New York Stock Exchange issue updated information about stocks that are heavily shorted. You can find that data on their websites, shortsqueeze.com, or in the Market Data section of The Wall Street Journal. Here’s a key breakdown of the short interest lists you need to know: Biggest Short Positions — Stocks on this list are not necessarily there because they are in trouble. Instead, they may simply be seen as a negative bet on the broader stock market or a particular sector. In the most recent data, three of the most five heavily shorted investments are… Read More

The banking industry still has a rocky road ahead of it as it struggles to shake the hangover headache from the financial meltdown that tipped the U.S. economy into recession. A quick check of the Federal Deposit Insurance Corp.’s website paints… Read More

Every few years, demographers raise their estimate for human longevity. Whereas 70 years old once signified a rapidly aging body and the early signs of mortal illness, now 70 year-olds run marathons, chop wood and settle for long retirements. Ninety is the new 70. And who could complain about that?… Read More

I attended an investment conference last week and listened to a number of business updates from leading financial institutions. The vast majority are staying extremely conservative with their lending activities and are waiting for more tangible signs of an economic recovery before they start shifting gears from surviving the credit… Read More

Can you name the oldest stock index still in use? Here’s a clue: it’s even older than the Dow Jones Industrial Average (DJIA). Ten points if you guessed the Dow Jones Transportation Average (also known as the Dow Transports). Charles Dow dreamed up the index nearly 130 years ago, as he presumed that the share price movements of transportation-related companies would provide a clear read on the amount of goods being sold (and trafficked) across the country. (As a side note, Dow… Read More

Can you name the oldest stock index still in use? Here’s a clue: it’s even older than the Dow Jones Industrial Average (DJIA). Ten points if you guessed the Dow Jones Transportation Average (also known as the Dow Transports). Charles Dow dreamed up the index nearly 130 years ago, as he presumed that the share price movements of transportation-related companies would provide a clear read on the amount of goods being sold (and trafficked) across the country. (As a side note, Dow also noted the importance of the Dow Transports and the DJIA moving in tandem. If only one was rallying, you shouldn’t trust it. This is one of the six tenets of the Dow Theory, which is best left for another day). Had Dow been around today, he might have stopped focusing on the Dow Transports and simply watched FedEx (NYSE: FDX), the world’s largest shipper. As you look at FedEx’s stock chart in the last year, you can get a clear read on investor expectations about the… Read More