Picking stocks in a bull market is so easy the GEICO caveman could do it. After all, when the broader market indices, like the S&P 500, trade at average price-to-earnings (P/E) and price-to-sales ratios (P/S) of 24.4 and 2.2, respectively, just about every stock in the index is rising. #-ad_banner-#Of course, buying a market with such high multiples is fraught with danger. Both ratios are at extreme levels. In fact, the sales-to-price ratio is at its all-time high. What’s An Investor To Do? Investors really have two options to deal with an overpriced and volatile market. First is to… Read More

Picking stocks in a bull market is so easy the GEICO caveman could do it. After all, when the broader market indices, like the S&P 500, trade at average price-to-earnings (P/E) and price-to-sales ratios (P/S) of 24.4 and 2.2, respectively, just about every stock in the index is rising. #-ad_banner-#Of course, buying a market with such high multiples is fraught with danger. Both ratios are at extreme levels. In fact, the sales-to-price ratio is at its all-time high. What’s An Investor To Do? Investors really have two options to deal with an overpriced and volatile market. First is to sell their positions and move to interest-bearing securities. And while this may have worked in the past, moving money into bonds and preferred stock is actually more dangerous than the stock market right now. You see, the Fed intends to raise interest rates at least two more times — possibly three — in 2018. And because bond prices are inverse to interest rates, when interest rates go up, bond prices go down. It’s the opposite of what happened in 1983 when interest rates started falling. It fueled a bond rally that lasted more than three decades. But that rally created… Read More

Facebook is under siege. Personally, I think it’s unfair, in part. Facebook is in the news because the company does exactly what it said it would do. Like many of the largest companies in the world right now, Facebook is a data company. It collects information from users and packages billions of bits of random information into usable data files that customers then pay for. —Sponsored Link— BUY (I REPEAT BUY) THIS STOCK TODAY This little-known $15 company is currently cornering the market on a technology that’s crucial to the future success of not just… Read More

Facebook is under siege. Personally, I think it’s unfair, in part. Facebook is in the news because the company does exactly what it said it would do. Like many of the largest companies in the world right now, Facebook is a data company. It collects information from users and packages billions of bits of random information into usable data files that customers then pay for. —Sponsored Link— BUY (I REPEAT BUY) THIS STOCK TODAY This little-known $15 company is currently cornering the market on a technology that’s crucial to the future success of not just Google but also Apple, Amazon, Facebook, Microsoft, Samsung and many more. The best part? It trades for only $15 right now. Those who take action now could position themselves for gains of 12,000% or higher. To get the ticker symbol of this $15 company, click here. The current problem seems to be caused by the fact that the users who provided information somehow believed they were customers. Users don’t pay Facebook and they give away their information on the site. Facebook has long said they make money from all of that information. The real problem is… Read More

Many long-term investors are sitting on handsome winnings from the massive bull market of the last several years. Nearly everyone was riding high on bullish enthusiasm, and nothing seemed to go wrong. Investors were successfully buying dips as the stock market pushed to record high after record high. It was an actual golden age from the stock market to cryptocurrencies, as even beginners basked in sometimes steady and sometimes obscene profits. #-ad_banner-#Then the impossible happened — stocks started falling fast as investors scrambled to lock in profits by liquidating their holdings. While taking profits is always a smart move, it’s… Read More

Many long-term investors are sitting on handsome winnings from the massive bull market of the last several years. Nearly everyone was riding high on bullish enthusiasm, and nothing seemed to go wrong. Investors were successfully buying dips as the stock market pushed to record high after record high. It was an actual golden age from the stock market to cryptocurrencies, as even beginners basked in sometimes steady and sometimes obscene profits. #-ad_banner-#Then the impossible happened — stocks started falling fast as investors scrambled to lock in profits by liquidating their holdings. While taking profits is always a smart move, it’s hard to not think about what would have happened had you held your shares. The prevailing wisdom is that you can always buy back your stocks after taking profits. Of course, this makes sense, but it is tremendously challenging to execute. My hat is off to you should you not struggle to buy back at a lower price after selling. On the other hand, professional stock traders and investment firms often hedge their long positions rather than selling to protect their gains. A well-managed hedge can protect your profits while allowing for upside potential in the stock. Here are three… Read More

If I asked you what was going on in the markets in January 2017, I’d bet that most folks wouldn’t recall anything in particular that really stood out. After all, the S&P 500 was climbing to new highs on a near daily basis, and volatility was near all-time lows. Ho-hum. In other events, you’d probably recall that it had only been a couple of months since President Trump’s surprise election, and that January was the month of his inauguration. But something else happened during that period. Something that can be used as a valuable investing lesson. From Trump’s election in… Read More

If I asked you what was going on in the markets in January 2017, I’d bet that most folks wouldn’t recall anything in particular that really stood out. After all, the S&P 500 was climbing to new highs on a near daily basis, and volatility was near all-time lows. Ho-hum. In other events, you’d probably recall that it had only been a couple of months since President Trump’s surprise election, and that January was the month of his inauguration. But something else happened during that period. Something that can be used as a valuable investing lesson. From Trump’s election in November 2016 to the end of January in 2017, the S&P 500 was up more than 9%. Nearly every stock was climbing… that is, except for two of my Top Stock Advisor holdings: Perhaps seeing the names of these companies begins to spark some memories. In short, clothing retailer PVH (NYSE: PVH) and beverage company Constellation Brands (NYSE: STZ) were taking heat over the rhetoric of a possible “Border Tax” — a tax on goods made overseas and imported and sold in the United States. At the time, there was a lot of concern regarding these two companies…… Read More

Learning to listen to the market is a crucial investment skill. The stock market will tell you what to do if you know what to listen for. The following five things are what the market is saying right now. 1. Volatility Is Here To Stay Short-term traders rejoice! After years of ultra-low VIX readings, volatility is finally back. Spiking into the 50 zone during the February stock market chaos, the VIX has stayed above its 200-week simple moving average (SMA). #-ad_banner-#The surging VIX has resulted in more than a few hedge funds and other money managers throwing in the… Read More

Learning to listen to the market is a crucial investment skill. The stock market will tell you what to do if you know what to listen for. The following five things are what the market is saying right now. 1. Volatility Is Here To Stay Short-term traders rejoice! After years of ultra-low VIX readings, volatility is finally back. Spiking into the 50 zone during the February stock market chaos, the VIX has stayed above its 200-week simple moving average (SMA). #-ad_banner-#The surging VIX has resulted in more than a few hedge funds and other money managers throwing in the towel as their “bread & butter” short-trade volatility blew up in their faces. At the same time, long-suffering bullish volatility players are being rewarded handsomely for their patience. In fact, one Denver-based hedge fund, Ibex Investors, managed to turn a $200,000 trade into over $17 million during the explosive move. Although the VIX has dropped since the 2018 highs, I have little doubt that we can expect additional spikes and continual relatively high volatility over the next few years. The reason for my long volatility thesis is the fact that politically, economically, and socially, the global structure is being thrown… Read More

Any man who’s gone through it will tell you that a lot of work, money and stress go into buying a diamond. I mean, behind your house and your car, this little rock is one of the most expensive purchases in life. Retailers are fighting for your business, and competition among jewelers is beyond fierce — and given the potential profits involved, it has to be. —Sponsored Link— The Most Powerful Investment Of The Next 10 Years It may be one of the most speculative sectors on the market. But it’s also one of the most explosive. Read More

Any man who’s gone through it will tell you that a lot of work, money and stress go into buying a diamond. I mean, behind your house and your car, this little rock is one of the most expensive purchases in life. Retailers are fighting for your business, and competition among jewelers is beyond fierce — and given the potential profits involved, it has to be. —Sponsored Link— The Most Powerful Investment Of The Next 10 Years It may be one of the most speculative sectors on the market. But it’s also one of the most explosive. Given the demand we’re seeing from 80 million retiring baby boomers, waves of new innovation, mergers and acquisitions, biotech is one of the best ways to park your cash. We’ve already been rewarded when: — ACADIA Pharmaceuticals (ACAD) returned 4,851% and 4,093% — Amicus Therapeutics (FOLD) retuned 626% — Celator Pharmaceuticals (CPXX) returned 1,635% — CymaBay Therapeutics (CBAY) returned 862% — Fate Therapeutics (FATE) returned 601% — Dynavax Technologies (DVAX) returned 2,036% But which ones are poised to do the same? Discover the five biotech wealth-building stocks that could triple your returns. Read More

Estimates are high and investors are enthusiastic about what could be the best year-over-year earnings growth in seven years. If expectations are met, it could confirm investor sentiment for the tax cuts and higher profits this year. But the market could be ripe for a correction just as investor sentiment peaks. The S&P 500 is trading at 16.5 times earnings expected over the next year, a premium of 15.4% over the 10-year average of 14.3 times. #-ad_banner-#Stocks have been skittish all year, dropping more than 10% in February from their peak. The market has already seen three times the number… Read More

Estimates are high and investors are enthusiastic about what could be the best year-over-year earnings growth in seven years. If expectations are met, it could confirm investor sentiment for the tax cuts and higher profits this year. But the market could be ripe for a correction just as investor sentiment peaks. The S&P 500 is trading at 16.5 times earnings expected over the next year, a premium of 15.4% over the 10-year average of 14.3 times. #-ad_banner-#Stocks have been skittish all year, dropping more than 10% in February from their peak. The market has already seen three times the number of days trading higher or lower by 1% or more than all of 2017. This dichotomy means investors need to look deeper into the numbers to make sure their sector positioning and individual picks are ready for what will likely be a very volatile earnings season. Earnings Season Takes Center Stage The trickle in first quarter earnings becomes a deluge this week with bellwether names like Bank of America (NYSE: BAC) and Procter & Gamble (NYSE: PG). More than 1,200 companies are expected to report profits for the first three months of the year this week, an increase of… Read More

Remember the good ol’ days of 2017? The market was climbing. Volatility was falling. And investors could do no wrong by putting their money into whatever was dominating the headlines at the moment. —Sponsored Link— 3 Hot Marijuana Stocks To Buy Before July 1 Since California dispensaries started to legally sell recreational marijuana on January 1, companies in the cannabis industry have increased by nearly $2 billion in value. And now Canada is set to legalize recreational marijuana by July 2018. Savvy investors are already grabbing positions in these three stocks… Read More

Remember the good ol’ days of 2017? The market was climbing. Volatility was falling. And investors could do no wrong by putting their money into whatever was dominating the headlines at the moment. —Sponsored Link— 3 Hot Marijuana Stocks To Buy Before July 1 Since California dispensaries started to legally sell recreational marijuana on January 1, companies in the cannabis industry have increased by nearly $2 billion in value. And now Canada is set to legalize recreational marijuana by July 2018. Savvy investors are already grabbing positions in these three stocks that are set to soar once the announcement is made. And, of course, the FAANG stocks were at their height. This catchy name stands for Facebook (Nasdaq: FB), Amazon (Nasdaq: AMZN), Apple (Nasdaq: AAPL), Netflix (Nasdaq: NFLX) and Google (Nasdaq: GOOGL). This group was supposed to represent the most popular technology stocks of this market. #-ad_banner-#Whether it was a self-fulfilling prophecy or simply really strong momentum (or both), the year-end Bloomberg analysis showed that the FAANGs (or a slight modification on that acronym) were instrumental in 2017’s record-setting market performance. In fact, taken together, Facebook, Apple, Amazon, Microsoft (Nasdaq: MSFT)… Read More