It’s time to face the music: As I explained in yesterday’s essay, the Social Security system is broken. And neither political party wants the fallout from enacting the reforms to make it solvent once again — advocating for a reduction in benefits is tantamount to political suicide. That’s bad news for regular Americans, but there is a way you can fight back — by taking charge of your retirement with what I call “Social Security Insurance.” —Sponsored Link— Breaking: New Marijuana Legislation Just Released A new government announcement could completely change the legalization of marijuana… Read More

It’s time to face the music: As I explained in yesterday’s essay, the Social Security system is broken. And neither political party wants the fallout from enacting the reforms to make it solvent once again — advocating for a reduction in benefits is tantamount to political suicide. That’s bad news for regular Americans, but there is a way you can fight back — by taking charge of your retirement with what I call “Social Security Insurance.” —Sponsored Link— Breaking: New Marijuana Legislation Just Released A new government announcement could completely change the legalization of marijuana — forever. In fact, if you haven’t already dipped your toes into cannabis investing, now is the time. You see, thanks to this historic announcement, tiny pot stocks trading for under $5 are getting set to double, triple, or quadruple. And by putting a couple hundred bucks into these penny stocks, you could pocket life-changing gains — turning a fortune overnight. America’s leading pot stock expert shares all the good news — including details on five tiny weed stocks — right here. Here’s How It Works…  There is no complicated system to learn. All you have to do is… Read More

Let me ask you a question. Do you like heavy, clunky cell phones whose batteries lose their charge quickly? Of course not. Nobody does. And that’s why manufacturers are constantly seeking battery designs that are more compact and powerful.  In the old days, the best we could do was nickel-cadmium chemistries. You can still find them in ancient cordless phones built in the early 1990s. But then lithium-ion made its breakthrough, and the world has never looked back.  Lithium has more uses than duct tape. You’ll find it in fireworks, airplanes, glass cookware, and medicine cabinets. It’s even a key… Read More

Let me ask you a question. Do you like heavy, clunky cell phones whose batteries lose their charge quickly? Of course not. Nobody does. And that’s why manufacturers are constantly seeking battery designs that are more compact and powerful.  In the old days, the best we could do was nickel-cadmium chemistries. You can still find them in ancient cordless phones built in the early 1990s. But then lithium-ion made its breakthrough, and the world has never looked back.  Lithium has more uses than duct tape. You’ll find it in fireworks, airplanes, glass cookware, and medicine cabinets. It’s even a key raw material for rocket fuel propellant and nuclear reactor coolant.  But that’s not why I like it. These are just niche applications.  The true utility comes from the fact that lithium is endowed with some curious properties. It is the lightest of all metals (it can actually float on water) and has twice the energy storage density of previous materials. That’s an ideal combination, which is why lithium is coveted by battery makers.  Last quarter alone, approximately 307 million smartphones were produced worldwide (about 140,000 per hour), most of which were outfitted with lithium batteries. And it’s not just phones. Read More

You ever wonder why some businesses attract new customers in droves, while others have trouble standing out? It’s the same reason why Starbucks (Nasdaq: SBUX) can charge $7 for a cup of coffee, while the diner across the street only gets $2.  The answer lies in brand loyalty and recognition.  Consumers around the world are comfortably acquainted with certain brand names. And that familiarity has been reinforced by billions in advertising dollars. There is a good reason why Lexus has become synonymous with automotive quality, and why we instinctively grab a 12-pack of Corona beer when heading to the beach. Read More

You ever wonder why some businesses attract new customers in droves, while others have trouble standing out? It’s the same reason why Starbucks (Nasdaq: SBUX) can charge $7 for a cup of coffee, while the diner across the street only gets $2.  The answer lies in brand loyalty and recognition.  Consumers around the world are comfortably acquainted with certain brand names. And that familiarity has been reinforced by billions in advertising dollars. There is a good reason why Lexus has become synonymous with automotive quality, and why we instinctively grab a 12-pack of Corona beer when heading to the beach. The Big Mac isn’t the best hamburger around, yet McDonald’s (NYSE: MCD) still sells them by the truckload each day. The golden arches are instantly recognizable in 119 countries worldwide, delivering annual returns of 13.4% to stockholders over the past decade, nearly double the S&P 500.  Entrenched brands also confer pricing power, allowing their owners to pad profit margins by charging higher prices than competitors for similar products. When you walk into a department store and buy a Ralph Lauren (NYSE: RL) shirt, you pay a little extra for that polo label. Ditto for a Hershey (NYSE: HSY) bar over… Read More

Well, we’re just past the midway point of the year. And if nothing changes over the next six months, 2017 will go down as a pretty good year for U.S. stocks. Through June 30, the benchmark S&P 500 had already delivered a return of 10.5%.  If it holds, that would be the strongest performance since 2013.  Unfortunately, if you don’t hold a handful of large-cap tech stocks, then you probably aren’t doing quite as well. You know the ones I’m referring to: Facebook (NYSE: FB), Amazon (Nasdaq: AMZN), Netflix (Nasdaq: NFLX) and Alphabet (Nasdaq: GOOG), previously known as Google. —Recommended… Read More

Well, we’re just past the midway point of the year. And if nothing changes over the next six months, 2017 will go down as a pretty good year for U.S. stocks. Through June 30, the benchmark S&P 500 had already delivered a return of 10.5%.  If it holds, that would be the strongest performance since 2013.  Unfortunately, if you don’t hold a handful of large-cap tech stocks, then you probably aren’t doing quite as well. You know the ones I’m referring to: Facebook (NYSE: FB), Amazon (Nasdaq: AMZN), Netflix (Nasdaq: NFLX) and Alphabet (Nasdaq: GOOG), previously known as Google. —Recommended Link— The U.S. Government Gave You A Gift I know it sounds incredible, but the IRS offers a retirement program that lets you opt-out of the tax system completely. Apply it in a specific way and it can triple your cash flow in retirement. Roger N. made the move and now collects $10,000 a month. He says “It doesn’t get any better…” As long as you are a U.S. citizen with a retirement account, you can make the same move. Here is what you need to do right now.  At the time of this writing, these four giants have… Read More

It was a lightly reported story. It didn’t even warrant more than a short blurb in your local newspaper. Unless you are an industry insider or Washington Beltway junkie, you may have missed it entirely. But last month, the White House orchestrated a landmark agreement paving the way for exports of liquefied natural gas (LNG) to China.  Right now, U.S. producers are largely shut out of this lucrative market. Most of China’s LNG deliveries come from Australia or Qatar. But that could be changing soon.  As with most commodities, China has a hungry appetite for LNG. In fact, it’s the… Read More

It was a lightly reported story. It didn’t even warrant more than a short blurb in your local newspaper. Unless you are an industry insider or Washington Beltway junkie, you may have missed it entirely. But last month, the White House orchestrated a landmark agreement paving the way for exports of liquefied natural gas (LNG) to China.  Right now, U.S. producers are largely shut out of this lucrative market. Most of China’s LNG deliveries come from Australia or Qatar. But that could be changing soon.  As with most commodities, China has a hungry appetite for LNG. In fact, it’s the world’s third-biggest consumer, behind only Japan and Korea. Last year, China imported 26 million tons of LNG, an increase of 33% — making it the world’s fastest-growing market.  Wood Mackenzie put pencil to paper and attached a potential dollar amount to this deal. Assuming current prices and projected usage, China could be importing $26 billion worth of LNG a year by 2030.  The question is, how do we get it there?  —Recommended Link— Pick & Shovel Investing For The 21st Century ‘Gold Rush’ From Russian gas and Saudi oil to the isolated cobalt mines of Central Africa — the… Read More

Do you ever wonder why investors get so worked up about rising interest rates? Well, the most obvious answer is that higher rates will elevate corporate borrowing costs, which can bite into profits. But there is an even more fundamental reason.  At the end of the day, we only invest… Read More

I knew it couldn’t last forever. From April 24 through May 8, the S&P 500 went 10 straight trading sessions going no lower than 2,379 and no higher than 2,401. That’s an ultra-narrow band of just 22 points.  So in two full weeks, the index didn’t fluctuate up or down by so much as 1%. According to Factset Research, this has only happened 10 times in the past four decades.  But there are no guarantees in the investment world, and I knew volatility would return. Without a doubt, I knew we’d eventually see one of those crazy days where the… Read More

I knew it couldn’t last forever. From April 24 through May 8, the S&P 500 went 10 straight trading sessions going no lower than 2,379 and no higher than 2,401. That’s an ultra-narrow band of just 22 points.  So in two full weeks, the index didn’t fluctuate up or down by so much as 1%. According to Factset Research, this has only happened 10 times in the past four decades.  But there are no guarantees in the investment world, and I knew volatility would return. Without a doubt, I knew we’d eventually see one of those crazy days where the Dow Jones Industrial Average swings up or down by a few hundred points.  That day was this past Wednesday, May 17. Both the Dow and S&P 500 lost 1.8%, their worst losses since September 2016. The news had every investor checking the financial sites to see how high (or low) our portfolio holdings were trading.  But we don’t have to resign ourselves to living with this type of volatility. Stay Out Of “Sensitive” Stocks You’ve probably noticed that on “up” days when most stocks are in the green, some holdings always seem to ride a little bit higher than… Read More

A few years ago, I had the opportunity to visit the palatial Biltmore Estate in Asheville, North Carolina. Built near the turn of the century to rival the grandest European manors, this stately five-story mansion is the nation’s largest private residence. Commissioned by George Vanderbilt during the Gilded Age, the Biltmore was an open display of opulence and wealth. At a time when many homes lacked basic electricity and indoor plumbing, this one featured an elevator, gymnasium, library, pipe organ, billiards room, heated swimming pool, bowling alley and walk-in refrigerator. The Biltmore Estate in Asheville, North Carolina… Read More

A few years ago, I had the opportunity to visit the palatial Biltmore Estate in Asheville, North Carolina. Built near the turn of the century to rival the grandest European manors, this stately five-story mansion is the nation’s largest private residence. Commissioned by George Vanderbilt during the Gilded Age, the Biltmore was an open display of opulence and wealth. At a time when many homes lacked basic electricity and indoor plumbing, this one featured an elevator, gymnasium, library, pipe organ, billiards room, heated swimming pool, bowling alley and walk-in refrigerator. The Biltmore Estate in Asheville, North Carolina The impeccable grounds outside were equally impressive. The country chateau was located in the scenic Blue Ridge Mountains, surrounded by acres of lush flower gardens, vineyards and tree-lined pathways. Two generations earlier, George’s grandfather, Cornelius Vanderbilt, took control of the New York Central Railroad, the Michigan Southern Railway and several other lines, eventually building an empire worth $143 billion in today’s dollars — making him the second-richest man in history. That was a different era, of course. Railroads seem quaint these days next to driverless cars and other 21st century technologies. But don’t be fooled. They remain the cheapest way… Read More

We cover a lot of different topics in my premium income newsletter, High-Yield Investing. One thing I make a point to feature in each issue is a detailed screen of some sort for interesting income opportunities. Sometimes I run straightforward, simple screens, like last month’s search for low-cost, high-yield equity income funds. Other months we might track down potential short squeeze candidates, talk about ways to combat inflation or hunt for highly efficient businesses that generate the most revenue per employee. This month, I wanted to get back to basics and pinpoint a few stocks that are poised for meaningful… Read More

We cover a lot of different topics in my premium income newsletter, High-Yield Investing. One thing I make a point to feature in each issue is a detailed screen of some sort for interesting income opportunities. Sometimes I run straightforward, simple screens, like last month’s search for low-cost, high-yield equity income funds. Other months we might track down potential short squeeze candidates, talk about ways to combat inflation or hunt for highly efficient businesses that generate the most revenue per employee. This month, I wanted to get back to basics and pinpoint a few stocks that are poised for meaningful dividend hikes in the near future. According to FactSet Research, dividend distributions among S&P 500 companies have increased for 11 straight quarters. Over the past year, aggregate payments are up 4.8% to $431 billion. That’s the good news. The bad news is that many companies have reached the upper limits of what they can afford to distribute relative to current profits. #-ad_banner-#In fact, 44 members of the S&P (almost 10%) have unsustainable payout ratios above 100%, meaning they aren’t earning enough to cover their dividend payments. Many of these companies may have trouble maintaining their current… Read More

There are two young co-workers, Mark and Lizzy, who are both serious about setting aside money for the future. After doing some research, Lizzy finds a reputable blue-chip dividend mutual fund and decides to open with a modest $1,000 investment. After that, she contributes $100 from every bi-weekly paycheck. She doesn’t see much accumulation at first. But over time, her account value starts to build. After 25 years at an average compounded annual return of 8.0% after expenses, Lizzy would be sitting on a nice sum of $204,722. #-ad_banner-#Meanwhile, across the office, Mark finds a similar equity income fund and… Read More

There are two young co-workers, Mark and Lizzy, who are both serious about setting aside money for the future. After doing some research, Lizzy finds a reputable blue-chip dividend mutual fund and decides to open with a modest $1,000 investment. After that, she contributes $100 from every bi-weekly paycheck. She doesn’t see much accumulation at first. But over time, her account value starts to build. After 25 years at an average compounded annual return of 8.0% after expenses, Lizzy would be sitting on a nice sum of $204,722. #-ad_banner-#Meanwhile, across the office, Mark finds a similar equity income fund and invests the same amount. His fund delivers an identical annual return, with one difference. It carries an extra 50 basis points (one-half of one percent) in additional yearly fees and expenses. Because of that extra drag, Mark’s account grows to just $189,644 over the same time frame — a difference of more than $15,000. For the sake of illustration, let’s suppose we start with a $10,000 upfront investment and assume a stronger annual return of 9%. Under that scenario, the two accounts would grow to around $316,000 and $290,000, respectively — a difference of $26,000. And keep in mind, that… Read More