Finding cheap stocks is all but impossible. Of course, that’s not uncommon when markets continue notching all-time highs. Unfortunately, overpriced markets pose significant risks for investors looking to deploy additional capital. But that doesn’t mean there aren’t any stocks trading at relatively attractive valuations. And that’s an important concept to keep in mind in this long-in-the-tooth bull market where most stocks are overvalued based on traditional metrics. That’s why the search for value is the single most important principle to employ right now. Simply put, should the market fall off the cliff, as many pundits expect, stocks bought at a… Read More

Finding cheap stocks is all but impossible. Of course, that’s not uncommon when markets continue notching all-time highs. Unfortunately, overpriced markets pose significant risks for investors looking to deploy additional capital. But that doesn’t mean there aren’t any stocks trading at relatively attractive valuations. And that’s an important concept to keep in mind in this long-in-the-tooth bull market where most stocks are overvalued based on traditional metrics. That’s why the search for value is the single most important principle to employ right now. Simply put, should the market fall off the cliff, as many pundits expect, stocks bought at a discount to their intrinsic value fare much better than other stocks trading at higher valuations. These so-called value stocks are often stocks that have fallen out of favor with the market — for any number of reasons. But oftentimes, the reasons a stock is trading below intrinsic value are transitory in nature, such as a bad quarter or two.  #-ad_banner-#But value investors are investors with long time horizons. It’s expected that a company will occasionally have a bad quarter every now and again — even Apple (Nasdaq: AAPL) does from time to time. But no sane long-term investor would ditch… Read More

When you think of all the major risks investors face, “the Federal Reserve” probably isn’t on the top of your list. But the Fed members hold a lot of power in their hands: For example, when the FOMC — the policy-making arm of the Federal Reserve — announces a policy decision, the market typically reacts with large price moves. —Sponsored Link— Top 10 Stocks For 2018 Hilary Kramer has just released her annual list of Top 10 Stocks for seven years running. The innovative companies named in this report are set to deliver knock out… Read More

When you think of all the major risks investors face, “the Federal Reserve” probably isn’t on the top of your list. But the Fed members hold a lot of power in their hands: For example, when the FOMC — the policy-making arm of the Federal Reserve — announces a policy decision, the market typically reacts with large price moves. —Sponsored Link— Top 10 Stocks For 2018 Hilary Kramer has just released her annual list of Top 10 Stocks for seven years running. The innovative companies named in this report are set to deliver knock out gains fueling the next leg a bull market rally we haven’t seen in the last 25 years. NOW is the time to load up on these 10 stock superstars before they run out of reach! Download your free copy today. This has been true since the Fed was created more than 100 years ago, and the committee recognizes this problem. Over the past 10 years, they have been trying to keep the market informed about policy changes with better communications and quarterly press conferences.  That’s why seemingly everyone — economists, analysts and investors alike — were… Read More

News of the Senate vote on tax reform last week buried another headline, one that could be just as momentous in remaking an entire sector of the American economy. Health insurer Aetna (NYSE: AET) has agreed to an acquisition by CVS Health (NYSE: CVS) in a $68 billion deal that could transform the healthcare industry. The addition of Aetna’s 22 million insurance customers will create one of the most vertically-integrated behemoths in the industry when added to CVS’s nation-wide pharmacy business, pharmaceutical benefits manager (PBM), and retail medical services. The ability to insure, negotiate drug prices,… Read More

News of the Senate vote on tax reform last week buried another headline, one that could be just as momentous in remaking an entire sector of the American economy. Health insurer Aetna (NYSE: AET) has agreed to an acquisition by CVS Health (NYSE: CVS) in a $68 billion deal that could transform the healthcare industry. The addition of Aetna’s 22 million insurance customers will create one of the most vertically-integrated behemoths in the industry when added to CVS’s nation-wide pharmacy business, pharmaceutical benefits manager (PBM), and retail medical services. The ability to insure, negotiate drug prices, and deliver health services and pharmaceuticals to customers could create a new standard in healthcare delivery.  This, combined with financial tailwinds from the potential tax reform package, could set off a wave of merger activity in 2018.  #-ad_banner-#And I’ve found three leaders that could be prime investment targets. How Could This $68 Billion Mega-Deal Reshape Healthcare? At $68 billion in cash and stock, the deal is more than twice the size of the next largest M&A deal so far this year. More than the size of the tie-up, the deal could have major significance for… Read More

You don’t need me to tell you that 2017 was a good year for stocks.  As I write this, the S&P 500 has advanced more than 17% for the year. As strong as this advance is, this index is a laggard compared with its peers: The Dow Jones Industrial Average… Read More

Love him or hate him, the Trump presidency has triggered a massive bull market. Investors have poured money into U.S. stocks during the first year of the Trump White House.  The latest numbers reveal a 16% asset under management (AUM) growth rate for domestic equity funds in 2017. Domestic and international equity mutual funds led the charge with nearly 22% AUM growth to a level of just over $11 trillion during Trump’s first year in office.  Trillions in cash are left on the sidelines just waiting to be deployed into equity funds in 2018. I fully anticipate the accelerated growth… Read More

Love him or hate him, the Trump presidency has triggered a massive bull market. Investors have poured money into U.S. stocks during the first year of the Trump White House.  The latest numbers reveal a 16% asset under management (AUM) growth rate for domestic equity funds in 2017. Domestic and international equity mutual funds led the charge with nearly 22% AUM growth to a level of just over $11 trillion during Trump’s first year in office.  Trillions in cash are left on the sidelines just waiting to be deployed into equity funds in 2018. I fully anticipate the accelerated growth to continue into the first half of 2018 as the bullish fever continues to attract both domestic and foreign capital.  In fact, the performance of some mutual funds reminds me of the 1980s, when mutual funds were on fire as the prime choice for equity investors. However, interest rates are dramatically lower today, making the atmosphere for long-term business growth truly ideal. #-ad_banner-#I forecast that these winners of 2017 will continue their winning ways into the first half of 2018.  3 Mutual Funds To Keep An Eye On  1. T. Rowe Price Value (TRVLX) Investors who follow the value… Read More